Have you been considering opening a mall franchise, but find yourself deterred by rumors that shopping malls are a dying breed? Don’t let the gossip fool you – shopping malls aren’t dying, and a mall franchise isn’t an ominous curse on your business’s future. In fact, research is showing that malls are on the rise, and many are expecting to see increases in business in the coming years.
In order to qualify as “dead,” a mall needs 40% or more vacancy. But the fact of the matter is that only 3.6% of malls have met this criterion, meaning that 96.4% are alive and kicking! Furthermore, stats show that a mere 20% of malls are struggling at 10% vacancy, which leaves the other 80% as healthy and thriving. A study by CoStar shows that by the end of 2014, the average mall vacancy rate was 5.5%, which is well below the threshold for concern. In fact, this statistic is actually considered healthy by many economic experts.
While it is true that some malls are indeed dying (which is the natural process of an economy), it’s important to also look at why this is. When you look at the data, you’ll find that the main reasons that malls are dying are demographics and competition. In certain areas, populations have seen a decline. Naturally, fewer people means less business. In middle-class areas, wages are struggling, which can also contribute to mall downfalls.
In addition to demographic struggles, many malls have been on the decline simply due to competition. Shoppers are abandoning old malls in favor of newer, better malls. This is a stark contrast to the theory that people don’t enjoy malls – it’s actually the opposite!
So for those who are hesitant to open a mall franchise, this information is a true game-changer. A mall franchise is not any less likely to succeed than any other business if it’s in a good location with booming business and a strong local economy.
Additionally, mall franchise owners are more likely to succeed when they buy into a strong, trusted brand. For this reason, Marble Slab Creamery is a great mall franchise opportunity for entrepreneurs looking for their next investment. For more information, visit our website.
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