More bad news for America's shopping malls: Consumers are shopping closer to home. And increasingly, home is not where the malls are.
Spending growth at mom-and-pop businesses has outpaced that of the big chains in the past two years, according to Sarah Quinlan, senior vice president at credit-card giant MasterCard Inc., which tracks purchasing patterns. When they're not shopping online, Americans are seeking more personal connections and advice — something they can find lacking at bigger retailers.
Big chain stores still account for the majority of shoppers' purchases, according to MasterCard. But many of the most affluent consumers are now clustered in walkable neighborhoods, letting them skip the mall in favor of neighborhood stores. And they're willing to pay the higher prices, Quinlan said.
That doesn't mean malls are going away. The A-rated shopping centers are still doing fine. But the other roughly two-thirds of malls are struggling to cope with shifting spending patterns, an aging population and the rise of Amazon.
Independent retailers and small chains have been able to step into the void. Many of them are thriving in categories like hardware, furniture and crafts.
Holiday markets have capitalized on the trend, letting small businesses offer their wares in bustling pop-up shopping districts.
But local shoppers frequently have to overcome a big hurdle: price.
Since smaller businesses often can't buy in bulk, customers typically have to pay more. Increasingly, that's a sacrifice shoppers seem willing to make — at least when they're shopping offline, Quinlan said.
