It’s become a bit of a cliché to say that the U.S. mall is dead.
To be sure, many retailers complain about declining shopper traffic, and stores from mall stalwarts Sears SHLD -6.07% and J.C. Penney JCP -5.50% to Coach COH 0.56% and Gap GPS -0.64% have closed many stores in recent years. Analysts say too many malls have become stale and obsolete—in fact by some estimates, 15% of malls are expected to close by 2024 after years of overbuilding.
It’s become a bit of a cliché to say that the U.S. mall is dead.
To be sure, many retailers complain about declining shopper traffic, and stores from mall stalwarts Sears SHLD -6.07% and J.C. Penney JCP -5.50% to Coach COH 0.56% and Gap GPS -0.64% have closed many stores in recent years. Analysts say too many malls have become stale and obsolete—in fact by some estimates, 15% of malls are expected to close by 2024 after years of overbuilding.
But at the same time, many malls have reinvented themselves through remodels, adding high quality restaurants and attracting hot new retailers. Two of the biggest mall developers in the United States have reported stellar quarterly results, showing how much life is left in the mall concept, if done well: Simon Property Group SPG 0.59% reported last week reported its tenants’ sales rose 2.8% last quarter, while General Growth Properties GGP 0.43% on Tuesday said that 97% of its portfolio was leased.
The biggest growth areas in retail in recent years have been luxury, as well as outlet malls, where shoppers can get big-name brands at big discounts, trends that are abundantly clear from the list of the 10 U.S. malls by sales per square foot (the most closely watched metric in retail), according to 2014 data provided to Fortune by real estate analysis firm Green Street Advisors.
2. The Grove (Los Angeles)
Sales per square foot: $2,100 (Owner: Caruso Affliliated)
This 12-year-old mall is fully leased and in many ways shows how a development can be current, even cutting edge, by tapping the history around it: The Grove´s layout was designed around the iconic Grove Trolley. And its 14-screen movie theater, a top venue on a per-screen revenue basis, is an art deco-influenced building, and staffed by ushers wearing classic pillbox hats harkening to nearby Hollywood´s heyday. The 600,000 square-foot mall´s stores vary from the very high-end Barneys New York to Gap GPS -0.64% , as well as a flagship for hot British fashion brand Topshop Topman.