Other mall categories are outpacing outlets in the U.S.

Since the 1930s, outlet malls have been a popular shopping destination in America. However, their popularity is declining.

Historically, factories had outlets where they sold discounted merchandise, including out-of-season, overrun, or faulty items, to their employees.

In 2023, the U.S. outlet industry was valued at $64.9 billion, with 342 centers nationwide, and soon became a popular destination for Americans seeking discounts on their favorite brands.

Stephen Yalof, CEO of , stated that the outlet consumer is an aspirational customer who seeks the best possible value for their favorite brands, which draws them into shopping centers.

The pandemic, the growth of e-commerce companies such as Amazon and Shein, and historically high inflation have all negatively impacted the industry.

According to Placer.ai, outlet malls have not recovered as well as indoor malls and open-air shopping centers from the pandemic, as estimated through the use of anonymized data from mobile devices.

The outlet mall recovery is lagging behind other mall counterparts, and the industry is fighting back against e-commerce shopping by implementing new strategies.