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Mall Visits Up, Spending Down: The New Consumer Paradox
1 Jul
Summary
- Consumer foot traffic increased year-over-year across all mall formats in May 2026.
- Malls offer diverse attractions beyond shopping, like dining and entertainment.
- JCPenney has continued closing stores annually since its 2020 bankruptcy.
In May 2026, mall foot traffic experienced a year-over-year increase, continuing a trend of four positive months in 2026, despite reports of record-low consumer sentiment. This rise in visits, however, does not necessarily translate to increased spending.
Malls are evolving into multi-purpose destinations, offering dining, fitness, entertainment, and social spaces. Consumers are reportedly scaling back on discretionary purchases while maintaining their mall visits. This shift impacts traditional retailers, such as JCPenney.
JCPenney, which filed for Chapter 11 bankruptcy in 2020, has been progressively closing stores. Initially, plans involved shutting down approximately 29% of its 846 stores. Since then, the company has continued this pattern, closing eight stores in 2025 and several more are expected to close in 2026 due to factors like struggling malls and lease issues.
