Retail

The death of the American mall was a warning sign that our dystopian future was closer than we all thought

sears vaccination
A Sears has been turned into a COVID-19 vaccination center, aiming to vaccinate around 700 people a day. Photo by Paul Hennessy/SOPA Images/LightRocket via Getty Images
Read in app

As vaccines roll out across American, thousands of people aren't getting vaccinated at CVS pharmacies or local health clinics. Instead, they're heading to abandoned Kmarts, Sears, and Toys R Us stores to get their shots. 

For American companies that have seen store counts collapse in recent years, the symbolism of having abandoned stores turned into mass vaccination clinics highlights how quickly the world was changing before the pandemic, and how COVID-19 accelerated a shift to an unfamiliar and sometimes dystopian future. 

The end of the COVID-19 pandemic might be in sight as vaccine shots ramp up, but crumbling malls, the country's haphazard approach to healthcare, and brands looking to capitalize on the "new normal" suggest our new dystopian reality is here to stay.

sears vaccine
The Townsquare Mall in Rockaway, New Jersey turned a former Sears into a vaccine "mega" site.  Kena Betancur / AFP

American malls are dying a slow and painful death

The last decade has seen American cultural touchstones disintegrate as part of the retail apocalypse. 

Companies like Sears and JCPenney spent over 100 years building their brands into household names — but it took only 10 years for an apocalypse to sweep through the retail industry, leaving vacant stores and dead malls in its wake.

The demise, like so much in the last decade, can be linked to the financial crisis: After the housing bubble burst in the late aughts, many retailers were never quite able to get back on their feet. Hundreds of thousands of employees were out of work, and private equity stepped in, burdening mall brands with massive amounts of debt.

Read more: Taco Bell is adding 1,000 drive-thru 'bellhops' as chain tweaks traditional and Cantina stores for a post pandemic world

The American mall began to face "a death spiral," John M. Clapp, a professor at the University of Connecticut's Center for Real Estate, told Insider in 2017.

"Once a department store goes vacant that tends to be contagious because all those middle-mall stores — the nail salons and the jewelry stores — they are all depending on the traffic coming from the bigger retail stores," he said.

A report from Coresight Research cited by CNBC last August estimated that out of roughly 1,000 American malls, a quarter will close down in the next three to five years.

And, of course, it's impossible to ignore the Amazon effect: The Seattle bookseller sparked an e-commerce boom, leading to a race to the top for Amazon and its main competition, Walmart, and opening the direct-to-consumer floodgates. Companies like Glossier, Allbirds, and Casper led the way, eschewing a traditional retail experience in favor of online-only shopping. (Of course, all of those brands eventually opened retail experiences of their own.)

In what is perhaps the cruelest twist of irony, Amazon reportedly held talks with Simon Property Group, the biggest mall-owner in the US, to discuss converting empty retail space into fulfillment centers that pack and ship Amazon orders.

The pandemic has only made matters worse. Retail vacancy rates are nearing a seven-year high, after major chains announced closures of more than 12,000 stores in 2020. Moody's Analytics projects that roughly 135 million square feet of vacant space may become available in regional malls nationwide within the next five years. These vacancies have left malls abandoned, and they readily turned into vaccination sites.

Many laid off retail workers have either pivoted to discount chains that pay employees significantly less, or Amazon itself. And though Amazon pays workers $15 an hour, warehouse jobs are more physically demanding and delivery drivers said they've dehydrated themselves to get through a shift without bathroom breaks.

In lieu of an adequate government safety net to ensure Americans get fair pay and health care even as businesses shutter, brands are — unfortunately — left to pick up the pieces.

COVID Vaccine Line
People wait in line in a Disneyland parking lot to receive COVID-19 vaccines.  Valerie Macon/AFP/Getty Images

Things are only going to get weirder 

The complete disruption of the pandemic puts Americans in a position where the "new normal" is a flexible term. As seen by the transformation of malls into vaccination sites, something that would seem straight out of "28 Days Later" in 2019 can be completely acceptable in 2021. 

The factors that allowed for this cobbled together solution — a broken retail system saving a healthcare system stretched to the breaking point — are not going away.

The inclination to turn to companies to fix broken infrastructure can run the gambit from creative at best to disturbing at worst. For example: 

And as state governments work to vaccinate their citizens as quickly and efficiently as possible, they've turned to other capitalist symbols of the before-times to help carry out their plans.

Beginning in January, lines snaked around the parking lot at Disneyland, but not to visit Thunder Mountain or the Haunted Mansion — the theme park, shuttered since March 2020, became a "super" vaccination site where hundreds of thousands of doses have been administered.

Read more: We just got the best look yet at the consumer genetics market ahead of 23andMe's public debut. Here are the 5 biggest obstacles the $3.6 billion company will have to overcome.

Major league sports stadiums, many of which sat empty and dark for most of last year, have also become mass vaccination sites. Where fans would have once lined up to get let into a football or baseball game, they're now lining up to get a COVID shot. 

Brands have been bailing out the US health system throughout the pandemic. Coors beer breweries transformed into hand sanitizer manufacturers. Volkswagen made hospital equipment after the country's gown and mask shortage got so bad nurses resorted to wearing trash bags.

This kind of corporate contingency plan shows no sign of stopping after the pandemic subsides — in fact, it may even be coming for schools next. A mall in Vermont became a safe-haven for a high school after the school, just before it was set to reopen for in-person learning, was found to have elevated levels of toxic chemicals known to cause cancer.

AP21084746481358 (1)
Downtown Burlington High School.  Downtown Burlington High School.

There may, however, be a more nefarious side to some companies lending a hand, even during the COVID-19 pandemic. CVS and Walgreens — which have collectively given nearly 20 million shots so far — are reportedly looking to cash in on data collected from people they administer vaccines to. And drug companies that made the COVID-19 vaccines won't give up their patents to help vaccinate the rest of the world.

These self-serving tactics should be taken as a warning sign as the US increasingly relies on brands to build a post-pandemic future. In some cases, companies have unique insight into problems — such as a Chick-fil-A manager helping with a vaccine drive-thru. But, relying too fully on corporations whose ultimate focus is their bottom line is not just dystopian, it's dangerous. 

The pandemic has shown just how quickly things can change. As the country rebuilds, it needs to be on solid ground, instead of relying on the magnanimity of brands.

Read next

Avery Hartmans is a senior reporter on Insider's retail team covering the apparel industry and tracking changes in how and why people shop.  She previously worked on Insider's business news desk. Before that, she spent four years on the tech team, covering the consumer tech world and later serving as Insider's tech editor. Before joining Insider, she covered startups for the Pittsburgh Business Times. She has a degree in journalism from Syracuse University. You can contact her at ahartmans@bjinnox.com.
Allana Akhtar was a senior health reporter for Insider, where she covers the emerging wellness industry and general health topics. During the COVID-19 pandemic, Allana wrote extensively about nurses, mask mandates, the vaccine rollout, and disparities in access to health. Her articles include features on nurses needing to re-use PPE in the early days of the pandemic, ones who struggled to get paid time off after getting COVID-19, and those who left bedside care after grueling pandemic working conditions. Allana also spoke to flight attendants and retail workers who faced violence as they enforced mask mandates, and community health workers who said they struggled to receive equitable vaccine access during the initial rollout. Allana now reports on emerging trends within the wellness industry, including the Westernization of indigenous medicine and dangerous wellness trends spread through social media. She also writes about plastic surgery, racial disparities in healthcare, and breaking health news. Allana has won numerous awards for her work, including the Best News Story by the Michigan Press Association in 2015, Best Reporter Covering Nurses in 2019, and the Morris and Lola Wasserstein Award for her contribution to the the University of Michigan's student paper as an Honors student. Before Insider, Allana wrote for USA TODAY, US News & World Report, Money Magazine, Health Magazine, Jalopnik, and more. You can email her at aakhtar@bjinnox.com, call/text her at (646) 376-6058, or follow her on Instagram, TikTok, Twitter, and LinkedIn. Secure tips line: Signal # 248 760 0208'We're grossly unprepared': Nurses share their frustration as the coronavirus spreads with little direction from the government or hospitals on how to mitigate it'Sexy nurse' costumes demean one of the most in-demand professions in American life — and they're a bestseller on Amazon right nowFlight attendants describe 'unprecedented' violence as travel returns and passenger aggression soarsG/O Media fired a queer employee of color who wore crop tops, shorts, and heels to work, violating a brand-new dress code that others say they routinely violated without being punishedContractors at controversial startup Rev say they worked long hours for little pay, feared they could lose their job at any time, and had to transcribe interviews with sexual-abuse survivors without warning