Is the online marketplace replacing shopping malls?

The first strip mall was opened in Kansas City, Missouri in 1922. Thirty years after, the first enclosed mall opened in 1956 in Edina, Minnesota. In the 1980s, the first gigantic mega malls like the West Edmonton Mall in Alberta were constructed -- a trend that mirrored the growing consumer frenzy sweeping the continent.... even the world! Now, thirty more years later, malls are turning into ghost towns and many once-popular shops are closing completely or investing in their online shops.

Does this mean people have gotten over their appetite for consumer goods? Yes and no. The recession has caused people to tighten their purse strings so they are buying less stuff than before. But the proliferation of online shops has gained momentum over the last decade and now hundreds of millions of people prefer to shop online rather than at a physical store. So, the appetite is still there, but the medium to satiate the appetite has changed a bit. Even though the recession is a good reason to curb spending, it is not the only reason people have turned away from malls.

According to Wikipedia, thriving malls eventually become "dead malls" when the surrounding community experiences an economic change for the worse or when newer, bigger malls open in the neighborhood. If you think about it, both come into play concurrently. Not only can you find better deals online to save money for more important things, but you can also find a lot of great things with the click of a mouse that you could never dream of finding in a mall in the same amount of time. The internet is the newer, bigger mall next door.

Why are more people shopping online than in stores?

- Not only enhanced online security but more widespread popular knowledge about online security.
- Cheaper prices and great deals, and sometimes FREE SHIPPING.
- Money saved on gas and time saved on travel.
- It's super convenient if you're pressed for time.
- Access to millions and millions of online shops. What shopping mall can boast that?
- Malls can be loud and tacky. Online shopping provides a calm sanctuary away from the din.
- Simply put, consumer tastes change and merchants have to change their approach to suit their clientele or risk the success of their business.

What are some of the drawbacks of online shopping?

- Shipping can cost a mint if it's not waived or included in the price.
- It's more difficult to return merchandise.
- Less customer service, so getting help with your purchase is not always an option.
- You need to have some computer and internet knowledge. For some, the learning curve is steep.
- The risk of security breaches. This can be avoided if you educate yourself and shop only on trusted sites with trusted payment processors like AlertPay.

But in this day and age, convenience is king so people will continue to flock to the online marketplace, while malls are left behind as remnants of a not-so distant past. Unless of course you seek entertainment and adrenaline rushes as well as consumer goods. If that's the case, entertainment and shopping complexes like the American Dreams Meadowlands mall in East Rutherford, New Jersey will definitely tickle your fancy.

But despite the eventual launch of such an ambitious project, people will continue to shop online. This is the way of the future for most of the world, but if malls can keep up with the desires of their customers and their needs for good deals, convenience and stimulation, then why can't there be room for both the online marketplace and the mall?


Resources:

The History of the Shopping Mall

The Venerable Shopping Mall Disappearing into the Sunset

Image: Matt Banks / FreeDigitalPhotos.net