Indoor malls are not obsolete. Two in Hampton Roads continue to thrive.

Some think shopping malls are going the way of the dinosaur.

This past year, Military Circle mall in Norfolk closed for redevelopment and the city acquired MacArthur Center, which lost its last anchor store, Dillard’s. Pembroke Mall in Virginia Beach closed its smaller interior mall stores about two years ago and its development and rebranding as Pembroke Square continues.

But not all traditional malls in Hampton Roads are languishing. And a June report by Coresight Research said U.S. malls are “competitive, attractive and here to stay.”

In 2022, “top-tier” malls saw a recovery in foot traffic as retail sales grew more than 11%, and they had more store openings than closures than six years prior. The research firm defines “top-tier” malls as those featuring luxury retailers and newer brands with locations in more affluent areas. They also refer to them as “destinations” — combining retail, dining and experiences in a single place.

While other businesses were moving their stores out of malls, Philip Scotti, owner of four Philip Michael Fashion for Men stores in Hampton Roads, was moving in.

In 2021 during the pandemic, Scotti had a store in an adjacent strip mall. But as he watched the ongoing customer traffic at Lynnhaven Mall, he decided that’s where he wanted to be.

“The shopping center we were in was a hodgepodge of things,” Scotti said. “The mall is really focused on fashion and upscale stores.”

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Customers crave ‘return to normal’ post-pandemic

Lynnhaven Mall, with more than 160 retailers and restaurants, reports it is nearly 100% occupied. The Virginia Beach mall maintains strong anchors, including JCPenney, Dillard’s and Macy’s, and junior anchors, including Dick’s Sporting Goods, Barnes & Noble, Dave & Buster’s, Jump Trampoline Park and an AMC movie theater.

Michael Harris, senior general manager of Lynnhaven Mall, said leasing remains very active and as retailers consolidate in the area, the mall is positioned to capitalize.

With mall traffic well above pre-pandemic levels, Harris said mall leaders are pleased with how the community has supported the center, which opened in August 1981 and underwent a major renovation in 2015.

“During the pandemic, it was an uncertain time for businesses but now post-pandemic, it really showed the strength of our community and the longevity of Lynnhaven,” Harris said. “People missed getting out to socialize and enjoy time with friends and family. We have witnessed a remarkable return to normal and even thriving.”

And the mall has evolved to meet the needs of the community, Harris said. As a community hub, Lynnhaven Mall holds several signature events such as The Art of Being a Military Child, The Mayflower Marathon and Canstruction food drives, blood drives and visits with the Easter Bunny and Santa Claus.

“We know shoppers want to touch and feel the product before they purchase and they want options to dine and be entertained,” he said.

That “return to normal” after the pandemic has helped with Scotti’s business, too.

“I think people just wanted to get out and go to parties, so our dress clothing is doing extremely well,” he said.

Scotti noticed that the mall adds additional younger customers to his clientele.

“I think customers like the fact that the mall is full and they have a lot of choices,” Scotti said.

Philip Michael Fashion for Men also has a freestanding store on Poplar Hall Drive in Norfolk, a strip center location in Coliseum Crossing in Hampton and another inside Chesapeake Square Mall in Chesapeake.

“All of our stores are flourishing and once the pandemic was really over that (Lynnhaven Mall) store blossomed,” he said.

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Diversity keeps shoppers coming back

Patrick Henry Mall in Newport News opened as the area’s third enclosed mall in 1987. Thirty-six years later, the mall has over 100 stores and stands at 94.9% occupancy with Dick’s Sporting Goods, Macy’s, Dillard’s and JCPenney as its anchors.

Mikia Ross, Patrick Henry Mall’s senior marketing director, said the mall continues to experience strong demand.

“We have recently welcomed or signed Kokee Tea, Wok-A-Holic, Lovisa, Pursuit, and Charlotte Russe to name a few,” Ross said. “Additionally, we are excited to share that Noodles 757, with 12 other restaurants in the region — of various brands — have signed a lease to open at Patrick Henry.”

Following the pandemic, Patrick Henry Mall remained a “bright spot” for the owner of the mall’s portfolio — Pennsylvania Real Estate Investment Trust — and even saw traffic levels exceeding pre-pandemic levels during the peak of pent-up consumer demand shopping in 2021 and early 2022.

“As we emerged from lockdown, customers recognized the value of in-person experiences, and retailers recognized that customers were returning in droves, driving sales to existing retailers and demand for space,” Ross said. “We had a strong lineup of tenants heading into the pandemic, which resulted in a strong return.”

The long history of proactively managing the mall’s anchor mix and diversifying its tenant base — while continuing to focus on new-to-market experiences — keeps shoppers coming back, she said.

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Middle-class traditions die hard

Lina Gude is happy with her two businesses within Patrick Henry Mall and would never think about moving them elsewhere.

Gude has owned a Great American Cookies franchise at the Newport News mall for the past 23 years. The store dates back 35 years and Gude said she gets generations of families who buy cookie cakes for their children, grandchildren and great-grandchildren. She also owns Thread Impressions, an embroidery shop that opened five years ago.

Gude said she thinks the mall is doing well because it is the only one in the area.

“The mall is very safe and people like to bring their kids here,” she said.

Plus, she said most of the stores cater to middle-class shoppers.

While Gude said a lot of people opt for online shopping, there are still certain things they have to actually come into the mall for. Her cookies can be ordered online but have to be picked up in person. Same with her embroidery creations — Gude does not offer deliveries.

“Some people would never come to the mall throughout the year but they come during the holidays,” she said. “For many people, it’s part of their holiday tradition.”

Sandra J. Pennecke, 757-652-5836, sandra.pennecke@pilotonline.com