Some Valley malls fight to survive despite the industry's decline
Add Axios as your preferred source to
see more of our stories on Google.
Many of the Valley's indoor shopping malls have closed in recent years, but some, like Scottsdale Fashion Square, are still thriving. Photo courtesy of Macerich
The fate of the Valley's once-ubiquitous shopping malls has been a mixed bag, with some continuing to thrive while others have fallen on hard times or even been razed to make way for new developments.
Why it matters: Malls were once the economic and social hearts of their communities, providing places to shop, meet and work.
The big picture: Enclosed, indoor shopping malls have been on the decline for years, and those in the Phoenix metro area are no exception.
- Some malls have survived by taking on new lives as entertainment and lifestyle hubs, and by tailoring themselves to fill specific niches.
- With so much shopping done online these days, successful malls have evolved to play different roles in people's lives, said Donald Bredberg of Las Vegas-based StoneCreek Partners LLC, a shopping mall and retail consultancy.
Reality check: Some of the Valley's most beloved and iconic malls couldn't withstand the trend.
Zoom in: Famous as the site of memorable scenes from "Bill and Ted's Excellent Adventure," Metrocenter closed permanently in 2020, and demolition began last year.
- In its place will be "The Metropolitan," a mixed-use development filled with housing, retail, restaurants and entertainment.
- Similar plans are in the works for the sites of Paradise Valley Mall and Fiesta Mall.
- Most malls are in good locations, Bredberg said, and it's normal to redevelop all or part of them.
Yes, but: Other Valley malls have adapted and survived, in some cases by capitalizing on particular consumer groups.
- Desert Sky Mall caters to Hispanic culture, with features like its Mercado De Los Cielos, the Valley's only Curacao department store, and a Spanish-language movie theater.
- Scottsdale Fashion Square is all about luxury, with fine dining and high-end retailers that often can't be found anywhere else in Arizona.
The intrigue: There's still a place for brick-and-mortar retail, Bredberg told Axios, but people are looking for food and entertainment while they browse.
- The big trend now is "location-based entertainment" businesses like PopStroke golf, Chicken and Pickle restaurant and pickleball court, and LumberjAxes ax throwing bar.
State of play: Arrowhead Towne Center is a "unified shopping experience" and is "perfectly positioned" as the only regional shopping center in the rapidly growing northwest Valley, said Rachel Olish, a senior marketing manager at Macerich, which runs malls including Arrowhead, Desert Sky and Scottsdale Fashion Square.
- And, she told Axios: "We don't just keep the same tenants. We continue to evolve with what our shoppers want."
- Case in point: Round 1 Bowling and Arcade, a Japanese arcade chain, replaced an old Mervyn's at Arrowhead in December 2023 and helped revitalize that area of the mall, Olish said.