The Industry

Shopping Center IndustryThe largest shopping center industry in the world, the American shopping industry has been a catalyst for economic growth in communities all over the United States. With over 47, 000 shopping centers in the US the shopping center industry has been a thriving business raising the profits of two key industries: the retail industry and the real estate industry.

Currently curbing its million dollar earnings, the economic crisis has imposed a significant strain on the worldwide shopping center industries. The retail industry has posted lower and lower earnings starting the summer of 2008. For the shopping center developers this has meant the stalling of expansion projects and of new construction of shopping centers.

As consumers are significantly cutting on their spending, the shopping center management sector faces important challenges especially in the luxury shopping centers sector where earnings have dropped sharply. Market research studies are used by shopping center management to find the best strategies that would get people to come to the shopping centers and buy even in these difficult economic times.

The shopping center industry has its leading magazine “Shopping center business” that covers the latest industry news and develops articles on industry related topics. Their articles about the latest news in retail capital markets show even more proof of the effect of the crisis not only on consumers’ purchasing power but the spill over effects in terms of rent rates and leasing rates in shopping centers across the nation.

Outside business cycles, booms and busts, the business model of shopping centers represents the epitome of a thriving capitalist society where endless varieties of consumer choices make up the proof of the freedom of choice and entrepreneurship in a developed society.