Shopping mall
The first covered shopping passage appeared in Paris in 1798, called the Passage du Caire. London followed with the Royal Opera Arcade opening in 1816 and the Burlington Arcade arriving two years later in 1819. Western European cities embraced these arcade-style centers as a new way to shop indoors. The Galleria Vittorio Emanuele II in Milan opened its doors in 1877 and became larger than any predecessor before it. This structure inspired the use of the term galleria for many other shopping arcades that followed.
In the United States, the Arcade in Providence, Rhode Island claimed the title of first shopping arcade when built in 1828. Early suburban shopping centers designed specifically for automobiles emerged after World War II. Market Square in Lake Forest, Illinois opened in 1916 while Country Club Plaza in Kansas City, Missouri arrived in 1924. The Broadway-Crenshaw Center in Los Angeles was constructed in 1947 and anchored by a five-story Broadway department store alongside a May Company California location.
Enclosed malls did not enter mainstream consciousness until the mid-1950s. Valley Fair Shopping Center in Appleton, Wisconsin opened on the 10th of March 1955 featuring central heating and cooling plus large outdoor parking areas. Later that same year, the world's first fully enclosed mall appeared in Luleå, Sweden under architect Ralph Erskine. Victor Gruen pioneered the regional-size enclosed complex concept in 1956 with Southdale Center opening in Edina, Minnesota during October of that year. Gruen has been called the most influential architect of the twentieth century by Canadian writer Malcolm Gladwell.
The first retail complex promoted as a mall was Bergen Mall in Paramus, New Jersey which opened the 14th of November 1957 with an open-air format before being enclosed later in 1973. Other significant early enclosed shopping malls included Harundale Mall in Glen Burnie, Maryland from 1958, Big Town Mall in Mesquite, Texas from 1959, Chris-Town Mall in Phoenix, Arizona from 1961, and Randhurst Center in Mount Prospect, Illinois from 1962.
High land prices in densely populated cities led to the creation of vertical malls where retail space spans multiple stories connected by elevators or escalators. The Water Tower Place skyscraper in Chicago, Illinois rose in 1975 containing hotel rooms, luxury condominiums, office space, and an eight-level atrium-style retail mall fronting on the Magnificent Mile. This type of mall challenges shoppers to move upward and downward rather than horizontally across flat ground.
Vertical malls appear frequently in East and Southeast Asia where population density demands creative solutions. Hong Kong hosts numerous examples including Times Square, Dragon Centre, Apm, Langham Place, ISQUARE, Hysan Place, and The One. The Darwin Shopping Centre in Shrewsbury, UK sits on a steep hillside around former town walls split over seven floors vertically with two horizontal locations linked by bridge walkways. Some establishments incorporate such designs into their layout like Shrewsbury's former McDonald's which spread across four stories featuring medieval castle vaults complete with arrowslits in basement dining rooms.
Food courts form another common feature consisting of fast food vendors surrounding shared seating areas. Anchor stores became necessary for financial stability when Victor Gruen developed the shopping mall format in the mid-1950s. These larger department stores draw retail traffic that results in visits to smaller stores within the mall as well. In physical configuration anchor stores sit as far from each other as possible to maximize foot traffic between them.
Regional differences shape how these components function globally. Europe contains 222 malls generating combined sales of US$12.47 billion in 2014 representing a 10% revenue increase from the prior year. The United Kingdom and Ireland refer to both open-air and enclosed centers as shopping centres while mall primarily refers to either a collection of shops adjoining a pedestrian area or an exclusively pedestrianized street allowing shoppers to walk without vehicle interference.
In the mid-1990s American malls were still being constructed at a rate of 140 per year. A PricewaterhouseCoopers study found in 2001 that underperforming and vacant malls known as greyfield and dead mall estates had become an emerging problem. No new malls were built in America during 2007, marking the first time in fifty years since the Great Recession hit. City Creek Center Mall in Salt Lake City opened March 2012 as the first new construction following the recession.
Malls began losing consumers to open-air power centers and lifestyle centers throughout the 1990s because customers preferred parking directly in front of big-box stores with lower prices. These alternatives eliminated overhead costs associated with traditional malls like long enclosed corridors. The growth-crazed American commercial real estate industry simply built far too many nice places to shop compared to actual population growth or retail sales figures. The number of American shopping centers exploded from 4,500 in 1960 to 70,000 by 1986 reaching just under 108,000 by 2010.
High vacancy rates revealed declining economic health across United States malls between 2006 and 2010. Real estate experts considered malls dying if they maintained at least 40% vacancy rates while unhealthy meant 20, 40% and trouble indicated 10, 20%. Nearly 3% of all US malls were classified as dying by 2014 while nearly one-fifth had troubling vacancy rates above 10%. Some experts identified a fundamental problem creating an extremely over-retailed market glut across many country regions.
Online shopping emerged as a major competitor accounting for increasing shares of total retail sales in the United States. Roughly 200 out of 1,300 malls went out of business during 2013 alone. By 2022 shopping mall operator Unibail-Rodamco-Westfield decided to exit the American market entirely. The United States possessed an average of 24.5 square feet of retail space per capita compared to only 4.5 square feet per capita in Europe.
Shopping malls continue growing and thriving in many European countries and Asian nations despite North American struggles. Westfield London located in White City stands as the largest shopping centre in Europe. Russia saw large numbers of new malls built near major cities notably MEGA malls like Mega Belaya Dacha mall near Moscow financed largely by international investors popular with emerging middle class shoppers.
The list of world's largest malls reveals significant concentration outside Western markets. Iran Mall in Tehran opened 2018 covering 2,500+ gross leasable area making it the largest mall globally. South China Mall in Dongguan reached 2,350 square meters until at least 2014 when occupancy rates sat at only 10% leaving most stores empty. SM Mall of Asia in Pasay Metro Manila spans 3,500+ featuring IT parks MoA Arena hotels university IKEA buildings bay-area resorts and amusement parks totaling reclamation anticipated upon completion.
New Century Global Center in Chengdu China opened 2013 spanning 2,300 square meters while The Dubai Mall in United Arab Emirates covers 400+ square meters since 2008 becoming second largest by total land area. Lotte World Mall in Seoul South Korea arrived 2014 holding title as largest shopping mall in that nation. Jamuna Future Park in Dhaka Bangladesh opened 2013 representing largest mall in South Asia.
In India Sarath City Mall in Hyderabad opened 2019 measuring 2400+ square meters standing as biggest shopping mall nationwide. Indonesia hosts Mal Taman Anggreak in Jakarta from 1996 hosting world's largest LED display alongside Medan Centre Point opened 2013. Thailand features Central WestGate Nonthaburi covering 500+ square meters including floor area of mall building plus 50,278 square meters for IKEA store alone.
One controversial aspect involves effective displacement of traditional main streets or high streets by private malls offering parking garages controlled environments and private security guards over central business districts with limited police coverage. Some consumers prefer these enclosed spaces despite higher prices compared to outdoor downtown areas facing poor maintenance and weather exposure.
A few jurisdictions notably California expanded freedom of speech rights ensuring speakers can reach consumers who choose to shop eat and socialize within privately owned mall boundaries. The Supreme Court decision Pruneyard Shopping Center v Robins issued the 9th of June 1980 affirmed California Supreme Court ruling arising from free speech dispute between Pruneyard Shopping Center in Campbell California and several local high school students.
Shopping property management firms specialize in owning and managing shopping malls with most firms holding at least twenty properties. Mills Corporation places Mills in most mall names while SM Prime Holdings Philippines puts SM in all their malls including anchor stores like The SM Store SM Appliance Center SM Hypermarket SM Cinema and SM Supermarket. In the UK The Mall Fund changes any center name it buys to The Mall location using its pink-M logo before reverting when sold back to original branding such as Ashley Centre in Epsom.
Following rebranding from Capital Shopping Centres intu Properties renamed many centers to intu location examples include intu Lakeside where malls removed from network revert to own brand like The Glades in Bromley.
Developers have converted failing retail spaces into educational campuses entertainment venues or mixed-use communities facing online competition and declining foot traffic. Highland Mall spanning 600,000 square feet will become campus for Austin Community College transforming abandoned Texas retail space into academic facilities. France's So Ouest mall outside Paris designed to resemble elegant Louis XV-style apartments includes green space alongside retail areas.
Australian company Westfield launched an online mall later adding mobile app containing 150 stores 3,000 brands and over one million products attempting digital adaptation strategies. City Creek Center Mall opened March 2012 in Salt Lake City representing first new construction after recession while American Dream in Meadowlands New Jersey opened 2019 featuring Nickelodeon Universe DreamWorks Water Park Big Snow indoor ski resort.
The COVID-19 pandemic significantly impacted retail industry through government regulations temporarily closing malls increasing entrance controls imposing strict public sanitation requirements forcing rapid operational changes. Some successful exceptions added entertainment experiential features big-box store anchors converting to specialized formats like power centers lifestyle centers factory outlet centers festival marketplaces. In Canada shopping centres frequently replaced with mixed-use high-rise communities addressing changing demographic needs.
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Common questions
When did the first covered shopping passage appear in Paris?
The first covered shopping passage appeared in Paris on the 10th of March 1955. This structure was called the Passage du Caire and opened in 1798.
Who designed the world's first fully enclosed mall in Luleå Sweden?
Architect Ralph Erskine designed the world's first fully enclosed mall in Luleå, Sweden. This project opened later in 1955 following the opening of Valley Fair Shopping Center in Appleton, Wisconsin.
Which city contains the largest shopping center in Europe as of 2024?
Westfield London located in White City stands as the largest shopping centre in Europe. This facility is situated within the United Kingdom and serves as a major retail hub for the region.
What year did Iran Mall open to become the largest mall globally?
Iran Mall in Tehran opened in 2018 covering over 2,500 square meters of gross leasable area. It holds the title of the largest mall globally by total size compared to other international competitors.
When did the Supreme Court rule on free speech rights at Pruneyard Shopping Center?
The Supreme Court decision Pruneyard Shopping Center v Robins was issued on the 9th of June 1980. This ruling affirmed California Supreme Court decisions regarding freedom of speech rights within privately owned mall boundaries.