Massive American Dream mall opens but will shoppers come?

EAST RUTHERFORD, N.J. (AP) — More than two decades ago when a mega entertainment and shopping complex was being conceived on a vast swath of swamp land in New Jersey, the iPhone didn’t exist, Amazon was only selling books online and malls were where you went for all your shopping needs.

Now, after endless fits and starts and billions of dollars spent, American Dream is officially opening its doors to the public as the second largest mall in the country, and third largest in North America. It will showcase 3 million square feet of leasable space dedicated to more than a dozen entertainment attractions like a 16-story indoor ski slope, rollercoaster, waterpark and eventually 450 retail, food and specialty shops.

The big question is: Who will come?

In today’s retail landscape, consumers are glued to their iPhones and smartphones, where they can do their shopping without ever leaving their couch. Amazon has morphed into the biggest online retailer in the world. And overall traffic at malls, which had been on the rise in the late 1990s, has declined 10% since, according to an estimate by Coresight Research.

A report from Credit Suisse published two years ago predicted that up to a quarter of the shopping malls will close by 2022 given the increasing popularity of online shopping and a rash of store closings. Since 2015, only nine malls have been built, a dramatic fall from their peak construction in 1973 of 43, according to CoStar Group, a real estate research firm.

Amid that new reality, American Dream is looking to draw 45 million to 50 million visitors in its first year. Entertainment will account for more than half of its space, including attractions like a bunny field and an aviary. There will also be a doggy day care and a luxury wing, where shoppers can sip champagne and sample caviar as they wait for their designer handbags to be wrapped.

“You can make it your backyard playground if you live in Manhattan or even if you’re in New Jersey,” said Ken Downing, chief creative officer for Triple Five Group, the mall’s developer. “It’s a staycation. So, it’s a little bit of competing with mindset and emotion, far more than a property or even Disneyland.”

During the opening on Friday, which was limited to a few thousand visitors, the smell of saw dust and sound of electric drills served as a reminder that the American Dream is still a work in progress. Only two of the major entertainment attractions were open: an ice-skating rink and the Nickelodeon Theme Park, although not all the rides were up and running.