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  4. Malls across the US are trying to survive the 'retail apocalypse' by adding rides, indoor ski parks, and other entertainment options

Malls across the US are trying to survive the 'retail apocalypse' by adding rides, indoor ski parks, and other entertainment options

A retail apocalypse has been taking place in malls across the US over the past few years.

Malls across the US are trying to survive the 'retail apocalypse' by adding rides, indoor ski parks, and other entertainment options

Online shopping is the main culprit, with revenue from online sales overtaking that of brick-and-mortar stores last year.

Online shopping is the main culprit, with revenue from online sales overtaking that of brick-and-mortar stores last year.

Source: CNBC

As a result of online shopping's growing popularity, more than 57,000 stores closed between 2007 and 2017.

As a result of online shopping

Source: CNBC

And more than 5,800 more store closures were announced in 2019.

And more than 5,800 more store closures were announced in 2019.

Major retail stores such as Victoria's Secret, JCPenney, Gap, and Forever 21 have closed numerous locations within the last two years.

Major retail stores such as Victoria

And about 10 retailers filed for bankruptcy or liquidation in 2019.

And about 10 retailers filed for bankruptcy or liquidation in 2019.

As stores keep closing, shopping malls continue to hurt.

As stores keep closing, shopping malls continue to hurt.

Around 25% of malls are expected to close in the next five years.

Around 25% of malls are expected to close in the next five years.

Source: Gothamist

A mall's demise usually begins with the loss of one or more of its anchor department stores.

A mall

Traditionally, a mall has major retailers at either end.

Traditionally, a mall has major retailers at either end.

The passageways connecting these anchor stores are usually filled with smaller stores and boutiques.

The passageways connecting these anchor stores are usually filled with smaller stores and boutiques.

But once anchor stores disappear, smaller stores often break their leases and leave or negotiate a cheaper rent.

But once anchor stores disappear, smaller stores often break their leases and leave or negotiate a cheaper rent.

In the next decade, analysts are predicting more than 300 malls to close.

In the next decade, analysts are predicting more than 300 malls to close.

In order to stay alive, malls need to reinvent themselves. And some malls are doing just that.

In order to stay alive, malls need to reinvent themselves. And some malls are doing just that.

Destiny USA is a mall in Syracuse, New York, that is trying to revamp its identity.

Destiny USA is a mall in Syracuse, New York, that is trying to revamp its identity.

The mall is home to one of America's oldest carousels.

The mall is home to one of America

The carousel has been around since 1909, and for many, it represents the heart of the mall.

The carousel has been around since 1909, and for many, it represents the heart of the mall.

In 2012, Destiny USA rebranded in an attempt to turn the mall into a destination for much more than just shopping.

In 2012, Destiny USA rebranded in an attempt to turn the mall into a destination for much more than just shopping.

One of its efforts in doing so was restoring the historic carousel. The revamp plan also included expanding the mall to accommodate new entertainment options.

One of its efforts in doing so was restoring the historic carousel. The revamp plan also included expanding the mall to accommodate new entertainment options.

Some of the recent additions to the mall include a 70-foot-tall ropes course …

Some of the recent additions to the mall include a 70-foot-tall ropes course …

… a go-kart track …

… a go-kart track …

and a bowling alley, not to mention laser tag and several arcades.

and a bowling alley, not to mention laser tag and several arcades.

As a result of all these additions, Destiny USA is now 55% entertainment and 45% retail.

As a result of all these additions, Destiny USA is now 55% entertainment and 45% retail.

Another mall that is taking the entertainment approach from the start is American Dream.

Another mall that is taking the entertainment approach from the start is American Dream.

Located in East Rutherford, New Jersey, American Dream is the second-largest mall in the US.

Located in East Rutherford, New Jersey, American Dream is the second-largest mall in the US.

American Dream cost an estimated $5 billion to build and opened in 2019. The mall consists of almost 4 million square feet of space to accommodate shopping, entertainment, and dining.

American Dream cost an estimated $5 billion to build and opened in 2019. The mall consists of almost 4 million square feet of space to accommodate shopping, entertainment, and dining.

Source: CBS News

The mall is primarily focused on bringing in consumers for the entertainment options rather than shopping.

The mall is primarily focused on bringing in consumers for the entertainment options rather than shopping.

Source: Forbes

55% of American Dream's space is dedicated to entertainment and dining, while only 45% is for retail — the same ratio as Destiny USA in Syracuse.

55% of American Dream

Source: Forbes

American Dream has an ice rink, and in December, a 180,000-square-foot, 16-story indoor ski and snowboard park opened.

American Dream has an ice rink, and in December, a 180,000-square-foot, 16-story indoor ski and snowboard park opened.

The mall is also home to an aquarium, a theme park with 35 rides and attractions, and a 300-foot-tall observation wheel.

The mall is also home to an aquarium, a theme park with 35 rides and attractions, and a 300-foot-tall observation wheel.

Around 350 shops will also make their way to the mall in 2020, along with 100 dining options.

Around 350 shops will also make their way to the mall in 2020, along with 100 dining options.

Ken Downing, the chief creative officer of Triple Five Group, who helped create American Dream, told the New York Post that he wanted to create a mall that could offer everything to consumers.

Ken Downing, the chief creative officer of Triple Five Group, who helped create American Dream, told the New York Post that he wanted to create a mall that could offer everything to consumers.

"We're taking the 'M' out of 'mall' and created an 'all,' a welcoming community for everyone," Downing told the Post.

"We

"American Dream is a one-of-a-kind property that will reshape the way people think, look, and interact with entertainment, theme parks, shopping, and dining," he said.

"American Dream is a one-of-a-kind property that will reshape the way people think, look, and interact with entertainment, theme parks, shopping, and dining," he said.

Mall operators are hoping that if they can lure customers with recreation options, they'll spend money on retail as well.

Mall operators are hoping that if they can lure customers with recreation options, they

"The largest percent, if you broke down our sales, it's still retail," Rob Schoeneck, general manager of Destiny USA, told Business Insider.

"The largest percent, if you broke down our sales, it

Schoeneck said that by combining retail with dining and entertainment options, it gives the mall a tremendous opportunity to bring in new customers and make more money.

Schoeneck said that by combining retail with dining and entertainment options, it gives the mall a tremendous opportunity to bring in new customers and make more money.

It's one example of how malls across America are coping with the retail apocalypse.

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