Area malls grapple with closures of former ‘anchors’

May 26, 2026 - 01:58

The recent shutdown of Saks Fifth Avenue stores this month has sent shockwaves through the retail real estate industry. A dozen mall landlords are now left with hundreds of thousands of square feet of empty space, forcing them to either find new tenants or completely repurpose the vacant buildings. The closures mark another blow to the traditional mall model, where large department stores once served as the primary draw for shoppers.

Retail experts say the loss of these anchor stores is not just a logistical problem but a fundamental shift in how malls must operate. For decades, department stores like Saks were the cornerstone of shopping centers, pulling in foot traffic that benefited smaller shops and restaurants. Now, with those anchors disappearing, landlords are scrambling to fill the gaps. Some are considering converting the space into entertainment venues, fitness centers, or even office and residential units.

The challenge is steep. The empty spaces are often massive, spanning multiple floors, and require significant investment to reconfigure. Meanwhile, consumer habits have changed dramatically, with more people shopping online and seeking experiences rather than just products. Industry analysts warn that malls that fail to adapt quickly may face further decline. The Saks closures are a stark reminder that the era of the traditional anchor store is coming to an end, and the future of the American mall depends on creative reinvention.