BIFURCATION OF THE US ECONOMY HITS THE SHOPPING MALL

Summary from the TLDR Marketing newsletter

US shopping malls show a widening split between a small group of strong performers and a large group in decline as the economy bifurcates. The top 100 of roughly 900 malls hold about 50% of total asset value, while the bottom 350 hold just 10%, and C and D malls saw occupancy fall by more than 26 percentage points from 2016 to 2019. Pressure is rising as lower-income consumers face higher bills, and 34% of consumers plan to spend less this year, with 43% citing tariffs. Brands and retailers must either move upmarket to target the top 10% that drives 50% of US spending or compete harder on value, which requires strong brand equity to support pricing and promotions.