Did you know the USA now has nearly 500 outlet malls, up from just over 100 in 1988? This shows how much people love to shop for deals at outlet stores. But traditional shopping malls also have a lot to offer, like many kinds of stores, fun things to do, and places to eat. Outlet stores and shopping malls serve different shopper needs. Outlets are known for brand-name and designer items at lower prices. They might have last season's stuff or products that aren't perfect. On the other hand, malls provide a big mix of stores, fun, and food choices, such as food courts and movie theaters.
One big difference is where they're located. Outlets are often outside of main cities, where land is cheaper. This lets them have more stores in one place. Malls, however, are frequently in city areas, which means more people can get to them. In outlet stores, the focus is on cutting prices for customers. Shoppers might see savings of 50% or even more. But it's wise to check if the prices are lower than what you'd find elsewhere. Malls usually sell items at regular prices but also have big sales and clearances, where shoppers can save a lot.
Key Takeaways:
- Outlet malls have grown significantly in number, from just over 100 in 1988 to nearly 500 today.
- Outlet stores focus on offering discounted prices on brand-name products, while shopping malls provide a wider range of retail stores, entertainment, and dining options.
- Outlet malls are typically located outside the city in suburban areas, while shopping malls are found in more populous areas.
- Outlet stores prioritize discounts and deals, with savings of up to 50% or more off traditional retail prices.
- Shopping malls offer a more comprehensive shopping experience, including periodic sales, promotions, and clearance events.
The Rise of Outlet Malls
Outlet malls have become very popular in recent years. They offer brand-name products at lower prices. The idea of outlet malls started in the 1920s when retailers sold goods outside the city to save money. As a result, they drew in customers looking for good deals.
History and Growth of Outlet Malls
The concept of today's outlet malls grew in the late 1980s. Many different stores were brought together in one location. This made shopping for various brands easy and convenient for shoppers. In the United States, the number of outlet malls has grown from 100 in 1988 to nearly 500 today. This shows how popular they’ve become.
Recently, outlet malls have seen a big increase in sales despite economic challenges:
- Luxury outlet sales have increased by 35% since 2021, rising from $37 billion to $50 billion.
- Outlet malls represent 13% of the personal luxury goods market, while online channels account for 56% and experienced a 27% growth to $217 billion in 2023.
- Placer.ai reported an 11% increase in outlet mall traffic in March, exceeding the growth rates of indoor malls and open-air shopping centers.
Reasons for the Popularity of Outlet Malls
There are several reasons why outlet malls have become so popular:
- Discounted prices make high-quality items more available. Shoppers love finding luxury brands at lower prices.
- Convenience is a big plus. Outlet malls bring many brand stores together in one place. This makes it easy for shoppers to find everything they need without going to several stores.
- Evolving consumer preferences have also played a role, especially after COVID-19. Outlet malls now offer more than just shopping. They provide great experiences and luxury brands, keeping shoppers coming back.
"Outlet malls are now a top choice for shoppers looking for deals on quality items. Their variety, low prices, and convenience keep drawing people in, making them a success in the U.S."
| Retail Channel | Market Share | Growth (2021-2023) |
|---|---|---|
| Outlet Malls | 13% | 35% |
| Monobrand and Online | 56% | 27% |
| Travel Retail | - | -14% |
As shopping habits change, outlet malls keep up and do well. They listen to what customers want, offer a wide range of goods, and make shopping fun. This puts them in a good place for the future.
Traditional Shopping Malls: An Overview
For decades, traditional shopping malls have been key places for consumers. They offered a lot in one spot, such as stores, food, and fun. Over time, they changed to match what people wanted and how markets changed. Nowadays, malls are not just for buying things. They are also places to eat, hang out, and have fun.
The Evolution of Shopping Malls
Shopping malls have come a long way since they started. At first, they were all about shopping and a little bit of eating. As people wanted more from their visit, malls added fun things to do. This switch created various types of shopping places, each meant for different shoppers.
| Mall Type | Average Size (Square Feet) | Characteristics |
|---|---|---|
| Average Mall | Less than 400,000 | Offers a mix of retail stores and limited dining options |
| Regional Shopping Mall | 400,000 to 800,000 | Features a wider selection of retail stores and entertainment venues |
| Super-Regional Mall | Over 800,000 | Provides an extensive range of retail, dining, and entertainment options |
The change in shopping malls was also due to how people and markets changed. Online shopping made malls think of new ways to attract shoppers. Now, many malls let you shop in-store or online. They also focus on making shopping fun with events and exciting displays.
Advantages of Shopping at Malls
There are many reasons why people still love shopping at malls. One big reason is how easy it is to find what you need in one place. This saves time and energy since you don't have to run around to different stores.
Malls also offer a place to shop no matter how the weather is outside. They are always a pleasant temperature, making shopping enjoyable all year long. This makes them stand out from places outdoors.
"Shopping malls have become more than just a place to buy products; they have evolved into social and entertainment hubs where people can spend quality time with friends and family while enjoying a variety of activities and services."
On top of that, malls have lots of food and fun things to do. You can find all kinds of food to eat, from quick bites to sit-down meals. This is great for taking a shopping break. Malls also have spots to watch movies, play games, and have fun with family.
Key Differences Between Outlet Malls and Shopping Malls
Outlet malls and shopping malls are both popular places to shop. There are a lot of differences between them that affect how we shop. These differences include the type of products they sell and where they're located, as well as the prices and the feel of the place.
Outlet stores normally sell lower-quality items or products with small issues. However, shopping malls tend to sell better-quality things from many different brands. The products in outlet stores are usually made just for them and are made from cheaper materials than those in regular stores.
Then, there's the price tag. Outlet malls are all about the big discounts that can save you a lot of money. It's common to see prices slashed by 50% or more. You might find a mix of prices in shopping malls, with some things on sale and others at normal prices.
| Aspect | Outlet Malls | Shopping Malls |
|---|---|---|
| Product Quality | Often lower-quality or items with minor defects | Typically higher-quality goods from various brands |
| PricingStrategy | Focus on discounts and promotions, often exceeding 50% off | Mix of regular-priced and discounted items |
| Location | Usually in less populated areas outside the city center | Often found in more affluent suburban areas |
| Shopping Experience | Emphasis on finding deals and discounted products | Wider variety of products, services, and entertainment options |
Where these malls are located also makes a big difference. Outlet malls are often in less busy areas outside the city. This means they can have big spaces and lots of stores. Shopping malls, on the other hand, are in wealthier suburban areas. This makes them easier to get to. They also see more people coming through every day.
So, which is best for you, outlet or shopping malls? It depends on what you like. If you love discounts on top brands, outlet malls are great. But if you want more choices and things to do, shopping malls might be your pick. Knowing the differences helps you choose the best place for your shopping needs.
Product Quality and Variety
Outlet malls and shopping malls are different spots for shopping. They each have their own unique product quality and selection. This caters to various shopper needs and expectations.
Quality of Products at Outlet Malls
Outlet malls are great for snagging brand-name bargains. But, some items may not be top quality. These items could be made with cheaper materials. They might also have small imperfections that keep them from regular stores.
You might also find second-hand or slightly damaged goods. They are not bad deals, but you should look them over. Always keep an eye out for these differences when shopping there.
Product Variety in Shopping Malls
Shopping malls, on the other hand, offer loads of product variety. They have everything from clothes to gadgets and home stuff. Shoppers can easily compare different brands in one place.
These malls often have well-known stores as their main attractions. They add to the big variety by selling a wide range of items. This draws in more customers, alongside the smaller specialty shops.
| Outlet Malls | Shopping Malls |
|---|---|
| May offer lower-quality products or items with minor defects | Generally offer products of standard retail quality |
| Some products are specifically manufactured for outlets using lower-quality materials | Products are typically the same as those found in regular retail stores |
| May sell gently used items or products with irregularities | Primarily sell new, first-quality products |
| Limited variety due to focus on specific brands or product categories | Wide variety of products from numerous brands and categories |
| Fewer anchor stores and limited product range within each store | Anchor stores offer extensive product ranges across multiple departments |
Choosing between the two depends on what you're looking for. Outlet malls are great for deals, but you might find lower quality. Shopping malls have a huge selection to meet different needs and tastes. They give more consistent choices for shoppers.
Pricing and Discounts
Outlet malls and traditional malls use different pricing and offer strategies. This is to bring in more customers. By being smart, shoppers can save big on things they love.
Pricing Strategies at Outlet Malls
Outlet malls sell items much cheaper than regular stores, sometimes 20% to 70% less. They do this by offering products that are overstocked, out-of-season, or not perfect.
But, shoppers should check if the prices are really lower than elsewhere. Some outlet prices might not save you much money. So, it's wise to look around first.
Sales and Promotions in Shopping Malls
Regular malls sell items at their normal prices. To draw in customers, they have sales and special discounts from time to time.
These deals are often seen during holidays such as Black Friday. Malls offer sales like up to 75% off, back-to-school sales, or special holiday discounts.
Customers can also get deals with store apps or by signing up for newsletters. Some stores even have exclusive in-store deals and coupons on their websites. Newspapers also carry coupons for stores looking to attract more customers.
| Discount Type | Outlet Malls | Shopping Malls |
|---|---|---|
| Everyday Discounts | 20% - 70% off regular retail prices | Rare, except for clearance sections |
| Seasonal Sales | Limited, mainly end-of-season sales | Frequent, especially during holidays |
| Clearance Events | Common, due to overstocked or imperfect items | Periodic, often at the end of a season |
| Loyalty Programs | Rare, as outlets focus on one-time deals | Common, offering points, discounts, or exclusive offers |
Location and Accessibility
Outlet malls and shopping malls differ in where they're located and how easy they are to reach. Outlet malls usually pop up in quieter, cheaper areas outside main city spots. This layout means they have lots of parking and more stores in one place. Such perks draw in shoppers looking for good deals.
Now, shopping malls, they're often found in busier suburbs or right within cities. Being close to lots of people helps shopping malls get more visitors. They welcome a broad mix of shoppers and enjoy the hustle and bustle. For many, it's great having everything in one place.
Both mall types work hard to be accessible to everyone. The Mall of America is a prime example, aiming to welcome all shoppers. It offers many ways for folks with different needs to enjoy their visit.
| Service | Details |
|---|---|
| Wheelchairs and Electric Carts Rentals | Wheelchairs for $10 daily, electric carts for $40 daily, and shopping carts for $7 daily |
| Parking | Handicap parking spaces available on all levels, with Level 1 and Level 4 having the most handicap parking spots |
| Restrooms | Accessible restrooms available throughout the Mall of America, all equipped with wheelchair-accessible stalls |
| Sensory-Friendly Resources | Mall of America is a Certified Autism Center, providing resources for visitors with sensory conditions |
| Public Spaces | All public spaces, doorways, and hallways are fully ADA compliant |
| Hotels | Radisson Blu and JW Marriott are connected to Mall of America, offering accessibility and special needs features |
| Nickelodeon Universe | Provides information on rider safety, accessibility, companion rider policy, and sensory guide |
Ensuring access for all is more than a legal obligation. It's smart for business, too. With millions of potential shoppers needing accessible places, it's a wide-open market for those who cater to everyone.
Keeping a place accessible really pays off. Broken elevators, locked doors, or tricky layouts can stop disabled folks from getting around. So businesses must regularly check and maintain their accessibility to keep all shoppers happy.
Shopping Experience and Atmosphere
Outlet malls and traditional shopping malls differ in the experience they offer. Outlet malls focus on saving money and efficiency. Shopping malls, on the other hand, aim to make you feel welcome with lots of amenities. A study found that many people value a good shopping atmosphere. So much so, 42% are even ready to spend more for a nice experience.
Shopping Environment in Outlet Malls
Outlet stores are straightforward and easy to shop in. The stores are usually laid out in a simple way. This makes it a breeze to find good deals and navigate. The goal is to give you a focused shopping trip where you can find discounts and deals easily.
Ambiance and Amenities in Shopping Malls
Shopping malls, however, work hard to welcome you in. They're designed with beautiful features like fountains and cool architecture. These design elements make shopping not just about buying, but also about enjoying the space. Retail stores have used design to attract customers since as far back as 1973.
- Retail clothing stores often have upholstered chairs or sofas to convey a sense of luxury.
- Shops targeting teenagers often use contrasted lighting and loud music to create a trendy vibe.
- Panera Bread and Subway® expertly use aromas like the smell of freshly baked bread to encourage purchases.
Moreover, shopping malls offer extras to make your visit easy. This includes comfy resting areas and helpful customer service. They even keep the temperature just right for you. All these things together can influence what and how you buy, making a big difference in your shopping experience.
However, there's a fine line with mall design and atmospherics. Too much can turn some people away. So, it's crucial to strike a balance in making the atmosphere welcoming without being overwhelming.
Convenience and Time-Saving Factors
In today's quick world, most people want shopping to be easy. They consider it very important. That's why shopping malls are so popular. They offer everything in one place, saving time and making shopping quick.
Malls are full of stores selling everything from clothes to electronics. This means you can do many chores in just one trip. For 40% of people, easy shopping is the top reason they pick a mall. Clearly, malls offer a big advantage.
The Importance of Location and Accessibility
The location of a store matters a lot for one out of five shoppers. Half of all shoppers say where a store is really affects their choices. Malls are usually in easy-to-reach places. This suits 78% of people who find the closest store to their home the most convenient.
Younger people like Gen Z often prefer malls they can easily walk to or reach by bus. This shows how important it is for everyone to get to malls with no trouble. Malls try to be in spots that are easy to reach for everyone.
Streamlining the Shopping Experience
Malls work hard to meet new consumer needs. They add things that make shopping easier. For example, self-checkout is popular among Gen Z shoppers as it makes things more convenient for them.
Having big anchor stores and famous brand shops also helps. It means shoppers can find a wide variety of things in one place. This makes shopping quicker and easier for everyone.
| Generation | Top Convenience Factors |
|---|---|
| Gen Z |
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| Millennials |
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| Boomers+ |
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As what people like changes, malls change too. They make sure they're a top choice for all ages by keeping things convenient. By offering a large selection of items, being easy to get to, and providing features that make shopping easier, they stay popular.
Entertainment and Dining Options
Every mall, whether it's a shopping or outlet mall, brings its own flavor to dining and fun. Outlet malls don't have as many choices as shopping malls. But they make up for it in other ways.
Food Courts and Restaurants in Shopping Malls
Shopping malls offer a big variety of foods to suit everyone's taste. You find food courts with lots of options for a quick bite. This includes Asian food, pizzas, burgers, and sweets like cookies.
Not just that, malls also have places for a more laid-back meal. So, no matter how you like to eat, the mall has you covered.
Then, there's the fun part. Malls often have movie theaters and gaming areas. All these add to the fun of a shopping trip.
Limited Dining Choices at Outlet Malls
Unlike shopping malls, outlet malls have fewer food spots. You might find a small food court or a couple of fast-food places. But they don't offer as many options as the big malls do.
Outlet malls are mostly about good deals, not fancy meals. They aim to be a place for affordable shopping. So, they often miss out on the bigger restaurant scene.
| Category | Shopping Mall | Outlet Mall |
|---|---|---|
| Fast Casual Dining | 8 | Limited |
| Restaurant Dining | 13 | Few |
| Family Entertainment | 2 | Rare |
| Cuisine Variety | Asian, American, Mexican, Indian, and more | Limited selection |
| Food Court Offerings | Asian, pizza, burgers, Latin, hot dogs, cheesesteaks, cookies | Fewer options |
| Dining Atmosphere | Varied, from quick bites to sit-down restaurants | Primarily fast-food or quick-service |
Shopping malls shine with a wide food selection, even big names like Cheesecake Factory and Starbucks. Outlet malls have fewer, with mostly quick, easy bites. The difference is clear.
Which is better comes down to your needs. For a feast of choices and entertainment, head to the mall. But for focused shopping on a budget, outlets are the way to go.
The Future of Outlet Malls and Shopping Malls
Outlet malls and shopping malls are facing new challenges and chances. E-commerce growth is pushing them to find new ways to keep up. Recent data shows outlet malls are doing well. They're coming back strong. Traditional malls are focusing on offering better shopping experiences.
Challenges Faced by Traditional Malls
Online shopping has been tough on traditional malls. Many have low occupancy rates and are pulling in fewer customers. In the past, more than half of US retail sales happened in malls. But, this number has dropped a lot. Some malls have closed or changed how they work to stay afloat.
Consumer tastes have shifted to wanting shopping that's easy and personal. E-commerce has made shopping online simple and flexible. This makes it hard for traditional malls to keep up.
Adapting to Changing Consumer Preferences
Malls are changing to meet what shoppers want. They're including more fun and interactive shopping things. For example, there are more events and cool pop-up shops. This draws people in looking for social fun and good times.
They're also getting into online and offline shopping at once, called omnichannel. For example, buy something online, and then pick it up at the mall. This mixes both worlds, offering the ease of online shopping without the wait for shipping. Research shows this setup can increase how much people shop and how much they spend.
| Company | Occupancy Rate (June 2023) | Occupancy Rate (Previous Year) |
|---|---|---|
| Tanger Outlets | 97.2% | 94.9% (June 2022) |
| Simon Property Group | 94.7% | 93.9% (June 2022) |
Traditional malls are seeing tough times, but outlet malls are getting better. Tanger Outlets jumped to 97.2% occupancy in June 2023, from 94.9% in June 2022. Simon Property Group also saw a rise, hitting 94.7% from 93.9% the year before. This shows outlet malls are doing well, attracting both shops and shoppers.
In the future, malls of all kinds need to keep evolving. They should focus on fun shopping and services that mix online and in-person shopping. These changes will help them stay popular and successful in the years ahead.
Conclusion
Outlet malls and shopping malls differ, offering their own pros and cons. Outlet malls are great for saving money on top brands. They're a top pick for those looking to get quality items at a discount. On the flip side, shopping malls are known for their variety. They have it all, from products to services and fun, in one place.
Choosing between an outlet and a shopping mall means thinking about different things. How important is product quality and the shopping feel? Outlet malls might be cheaper, but the product quality could be hit or miss. However, they tend to be further away from city centers. Shopping malls hold their strength in their variety and easy-to-reach locations, but expect to pay a bit more.
As people's tastes change and retail grows, both kinds of malls must evolve. They need to offer something beyond just shopping. This means things like unique experiences and the latest in convenience. Thanks to these changes, consumers will have even more tailored options for their shopping needs.
