Once a busy shopping center, Provo Towne Centre mall is now facing difficulties adjusting to a changing retail environment.
When the mall opened in 1998, it was projected to generate more than $1 million annually in tax revenue, according to statements made by former Provo City Mayor George Stewart prior to the opening.
By Feb. 1, 2016, General Growth Properties announced the sale of Provo Towne Centre to Brixton Capital for $37,500. With $31,127 in debt, General Growth Properties was left with only $6,373 after paying off obligations. The low sale price indicates the mall may not have met its original financial projections.
Brixton Capital planned to revitalize the mall with new retail, dining and entertainment options.
However, eight years later, the mall’s transformation has yet to be recognized by the public.
Keith Morey, head of economic development in Provo, noted that the demand for traditional brick-and-mortar retail has decreased.
“It’s harder for retailers to capture an audience, so they have to be more creative,” Morey said.
He pointed out many malls across the country are adapting by integrating residential developments nearby.
“People are looking for a more urban lifestyle where they can live, work, shop and eat close to home,” he said.
Sarah Benson, a 24-year-old graduate student in math education, has spent her entire academic career at BYU, first as an undergraduate and now as a graduate student.
Despite her living in Provo and going to BYU for years, she has only visited Provo Towne Centre mall a few times. Benson said the mall often feels empty.
“I don’t see very many people when I come. It just feels like it’s dying,” she said.
Although she shops at individual stores, she is not interested in spending time wandering around the mall.
“I do more online shopping or visit stores briefly,” she said. “I prefer to go in, get what I need and leave quickly rather than spending time just wandering around.”
As consumer preferences shift towards mobile shopping, with mobile commerce expected to account for 62% of all retail sales by 2027, traditional malls such as Provo Towne Centre have faced significant challenges.
E-commerce giants such as Amazon have seen their revenue surge from $34.2 billion in 2010 to $574.8 billion in 2023, marking a significant shift in consumer preferences.
While Provo Towne Centre mall is facing challenges, there is reason for optimism when looking at the broader mall industry.
Recent data from Coresight Research highlights that both top-tier and non-top-tier malls experienced steady revenue growth, with compound annual growth rates in the mid-to-high single digits (approximately 4-9 percent) between 2020 and 2022.
This growth shows that the mall industry is recovering from the challenges of the COVID-19 pandemic.
Several factors led to this resurgence, including a shift in consumer behavior toward seeking experiences that combine shopping, dining, entertainment and leisure activities all in one place.
Looking ahead, Morey predicts a dynamic retail environment.
“We might see stores with shorter lease terms, changing frequently,” he said.
Despite current challenges, Morey said he is optimistic about the mall’s future.
“It may seem like progress is slow,” he said. “But there are plans to build more residential areas and reimagine the mall’s role in the community.”
Morey said the impact of the new Target at the Provo Towne Centre mall has been "significant." The Target opened in early 2024.
“We’re seeing an upward trend in sales tax performance, which is a great direction for the mall’s future,” he said.
Looking to the future, it remains to be seen whether students and other shoppers will be drawn back to the mall.
Provo Towne Centre continues to adapt and reinvent itself to meet evolving consumer habits and remain a relevant destination.