What Makes Mexican Malls Thrive?

The Wall Street Journal: “While U.S. malls are dying a slow, painful death, malls in Mexico are thriving … Part of the reason is simple supply and demand. The U.S. is vastly over-retailed … What’s more, a growing middle class in Mexico is gravitating toward more formal retail—shops and malls instead of the urban outdoor markets … Meanwhile, online shopping has barely penetrated here, as low credit-card usage and challenging shipping logistics keep the Amazon.com effect at bay.”

“Perhaps most important, Mexican mall developers learned long ago—partly by watching the struggles in the U.S.—that shopping centers do better with a diverse mix of tenants. Instead of relying on department store anchors to drive foot traffic to smaller apparel shops, a shopping mall should also have a grocery store, play areas for children, sit-down restaurants, and yes, even roller-coasters.”

“Another major factor in malls’ appeal is cultural: Mexicans see malls as community gathering places, especially in cities with public security problems like those along the U.S. border. Last year was the deadliest in at least two decades here, as violence related to drug-trafficking escalated and more than 25,000 people were murdered. Many Mexican families spend hours at the mall every weekend, eating, shopping and socializing in the safe, well-maintained spaces.”

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