We’ve all heard the myth that shopping malls are on the decline, which leads to the myth that opening new stores in shopping malls aren’t worth the investment. But when you look at the facts, they beg to differ. So if you’re considering a mall franchise but concerned that you’d be digging your entrepreneurial grave, take a look at some statistics that will help to change your mind.
In order to qualify as “dying,” a mall needs to have at least 40% vacancy. While media stories and gossip may lead to believe that most malls are at this stage, a mere 3.4% actually are. That means that the other 96.4% of our malls are doing just fine.
When a mall approached the 10% vacancy rate, it begins to enter the territory of risk. However, only 20% percent of shopping malls have actually reached this number. Statistics also show that these higher-vacancy malls are victims of demographics and competition with other malls, as opposed to an actual decline in customer demand for shopping malls.
Many people think that shopping malls are on the decline because of the growing demand for online shopping, where customers can do all their shopping from the comfort of their own homes. But according to statistics, online shopping is a rather small piece of the competitor pie as compared to other factors that steer away from the notion that shopping malls are going out of demand.
According to the International Council of Shopping Centers (ICSC), malls are booming. Rental rates in shopping malls are continuing a path of steady growth, and net operating income throughout shopping centers experienced a solid growth in 2014. Operating income is growing at a faster rate than it has since 2000.
So based on these statistics, you can see that shopping malls are still going strong, meaning that opening a mall franchise can still be a great business decision. This is especially true for those who partner up with a well-known and trusted brand like Hot Dog on a Stick.