Strip malls are starting to get a second look from some retailers who have historically ignored them.
Last week, both Macy’s and Sephora announced that they would seek to open more stores in strip malls in the coming years. Last year, supplements brand GNC announced plans to close 700 of its mall-based stores, and instead focus on its stores in strip malls, which were reporting “relatively stable” store comps.
There are a few benefits to strip malls that are becoming increasingly important as more shopping is done online, and fewer shoppers visit malls. The rent at strip malls is typically cheaper because their stores are typically smaller. The anchor tenants are often grocery stores or gyms, which means that retailers have the benefit of being in a place where shoppers have been conditioned to visit multiple times a week. The challenge with strip malls is that retailers often have to reconfigure their stores and/or product assortments in order to convince shoppers to stop in every time they visit the strip mall.