The Future of Shopping Malls: From Retail to Multi-Purpose Hubs

Published May 14, 2025 · Original on LinkedIn

Global Reality Check: Offline Retail Is in Trouble

In 2025, traditional malls are under pressure worldwide:

USA: In Q1 2025, retailers vacated nearly 6 million square feet of space — the weakest leasing activity since early COVID years. Closures by bankrupt chains like Big Lots and Party City led the wave (Wall Street Journal).
UK: Over 17,000 stores are expected to shut down in 2025, with up to 202,000 job losses, according to forecasts from the Centre for Retail Research (The Sun).
E-commerce: Global online retail sales will reach $7.4 trillion in 2025, up from $4.2 trillion in 2020 (Exploding Topics).

People shop online. They visit malls for other reasons.

Russia: Retail Chains Losing Billions

Russian shopping malls are seeing more empty spaces and tenant exits. Up to 50% of non-food retailers are expected to end 2025 with losses, due to falling demand, rising competition from e-commerce, and lower mall foot traffic.

Kari: projected loss – ₽6.4 billion
Sportmaster: up to ₽12.2 billion in losses
Hoff: potential loss of ₽1.3 billion

Vacancy rate in Moscow malls reached 7.4% in Q1 2025 (Kommersant)

Source note: Data comes from forecasts by the Russian Shopping Centers Union (SCU) published in May 2025.

Central Asia: Mixed Growth and Challenges

Kazakhstan

Mall foot traffic is growing.
But vacancy jumped from 1.2% to 6.6% in early 2025 due to too many new malls

Uzbekistan

Rapid mall development — 27% of all new mall space in the region.
Vacancy also rising: now 4.0%

Kyrgyzstan

89 malls nationwide, half in Bishkek.
Good economic growth: +10.7% GDP in early 2025, driven by trade, remittances, and digitization trends.
Still, big shortage of malls outside the capital.

Malls are being built fast — but many stay empty. The challenge now is quality, not just quantity.

People Want Experiences, Not Just Products

Across the world, malls are becoming destinations for emotions and time well spent:

In India, 70% of visitors come for entertainment, not shopping. [The Economic Times]
Bicester Village (UK) attracts 6.7 million visitors a year with outlet shops + resort vibes. [The Guardian]
Central Asia is following the trend: food courts, events, coworking spaces, classes, kids zones. [Kommersant]

Bottom line: Shopping is no longer the main driver. Malls win when they become places to spend time — not just money.

E-commerce Isn’t the Enemy — It’s Part of the Game

Online shopping keeps growing fast in Central Asia:

Kazakhstan: E-commerce reached ₸3.2 trillion (~$6.15B) in 2024, making up 14.5% of total retail turnover — more than 5x growth since 2020 [Central Asian Light]
Uzbekistan: Market size was $311M by end of 2022, with projected CAGR of 41.4%–47.4% through 2027 [KPMG]
Kyrgyzstan: E-commerce volume hit $359M in 2023, or over 6% of total retail turnover [IntelliNews]

Malls are adapting:

Pick-up points (PUDO), showrooms, last-mile logistics
Hybrid online + offline services are the new normal

New Mall = Multi-Service Urban Hub (MFC)

The mall of the future is more than just a mall. It’s a multi-function center where people live, solve tasks, and relax.

Financial & Telecom & Government Services

Bank branches, mobile operators, insurance, even visa/passport or document services.

E-commerce Logistics

Pick-up & return points, express delivery, small warehouses, marketplace showrooms.

Local Daily Infrastructure

Pharmacies, clinics, salons, food spots — all within walking distance

Experience Zones

Food courts, wellness, coworking, DIY zones, pop-up events, masterclasses.

Shopping malls aren’t dying — they’re evolving.

They’ll survive if they become flexible, multi-use, and more than just places to shop.

In Central Asia, that change is already happening — with the chance to leap ahead by skipping outdated formats.

Sources

Kommersant (Retailer losses forecast)
Kommersant (Moscow mall vacancy rate)
Kommersant (Transformation of malls in Central Asia)
Forbes Russia (Russian Shopping Centers Union outlook)
Central Asian Light (Kazakhstan e-commerce volume 2024)
KPMG Uzbekistan (E-commerce market forecast)
IntelliNews (Kyrgyzstan e-commerce overview)
Economist.kg (Malls and retail infrastructure in Kyrgyzstan)
Wall Street Journal (US retail vacancy, Q1 2025)
The Sun (UK store closures forecast 2025)
Exploding Topics (Global e-commerce forecast 2025)
The Economic Times (India mall entertainment preference)
The Guardian (Bicester Village footfall data)

Disclaimer

This article is part of an ongoing independent analytical series based on publicly available information. It does not constitute an assertion of facts, and the views expressed do not necessarily reflect those of any organizations mentioned. Sources are cited for informational purposes only.