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If you’re sad to see some of your favorite brands going bust, it turns out that might be the reason the lights are still on at your nearby shopping mall.

Contrary to a long-held opinion that brick-and-mortar retail is being muscled out by online giants, a new report has found that some shopping centers are actually faring even better than before the pandemic.

Absence seems to have made the heart grow fonder for American shoppers, with the data from Coresight Research revealing that consumers are actually using their local malls more than they were before the pandemic.

Across so-called top-tier malls—those which offer luxury retail as well as new and noteworthy brands—and mid- and lower-tier malls—which cater to lower-income shoppers—footfall is up.

For top-tier malls, the number of visitors is up 12%, while lower-tiered malls are up 10%.

Meanwhile, occupancy has also recovered well.

In the highest-quality malls, occupancy is back up to 95.1%, just 0.1% lower than before the pandemic, and in other malls the figure stands at 89.1% compared to 91.6% before the pandemic.

However, a bit of turnover on the lineup in shopping centers might actually be a good thing, according to experts.

“For people who go to the malls, they’re going to want some fresh new stores every once in a while,” Brandon Isner, CBRE’s head of retail research for the Americas, told CNN.

“Take into account the Bed Bath & Beyond retail space that’s being vacated as we speak—it’s turning out that’s actually kind of a good thing for retail.”

Isner said that landlords are pleased to have the space back so they can charge higher rents, while it also frees up opportunities for new retailers trying to break into the market.

Total revenue is also up in both top-tier and non-top-tier malls, according to the research which gathered data from public mall operators.

A boom in luxury

Higher-end malls may be faring better courtesy of the famous brands which call their centers home.

Seemingly undeterred by fears of inflation or a looming recession, shoppers are continuing to splash out on designer gear.

LVMH—Mo?t Hennessy Louis Vuitton—the world’s biggest designer fashion house, reported an “excellent” first half of 2023.

In July the group, owned by the world’s second-richest man Bernard Arnault, reported revenue of €42.2 billion ($45.7 billion) in the first half of 2023, up 15%, while organic revenue growth was 17% compared to the same period in 2022.

And as well as seeing continuing demand, luxury shoppers are only getting younger.

According to the latest Bain & Company–Altagamma Luxury Study, Gen Y—those born between 1982 and 1994, also known as millennials—and Gen Z—those born from the mid-’90s to the mid-’00s—accounted for the entire growth of the luxury market in 2022.

With Gen Z already hooked on high-ticket items from the age of 15—and their successors Generation Alpha expected to do the same according to the report—the personal luxury market is set to climb to around €540–€580 billion ($585 to $628 billion) by the end of the decade, a rise of 60% or more compared to 2022.

The halo effect

It turns out malls that are embracing online retailers instead of fighting them are also the ones that are not only surviving but thriving.

Coresight Research said developing a multi-channel approach to sales is a “necessity” of modern retail, and dubbed the combination of online retailers moving into physical stores—and vice versa—the “halo effect.”

Top-tier retail mall operators like Brookfield Property Group, Macerich, Simon Property Group, and Taubman Centers have all reported such a trend, saying consumers are returning to stores as well as shopping online.

During its most recent earnings call in June Tom O’Hern, CEO of Macerich, said: “Leasing volumes [have] continued at a record level. We had an 80-basis-point gain in occupancy compared to a year ago and 40-basis-point gain compared to last quarter.

“Consumers are shopping, eating out, and traveling at pre-pandemic levels.”