Asian malls lead in dining and entertainment while specialty retail stays strong: Cistri

The rise of online shopping has not emptied Asian malls of retail. Instead, the region’s largest shopping centres are evolving into more densely layered destinations, combining a greater concentration of specialty shops with more restaurants, entertainment and other activities designed to keep visitors around longer.

That is one of the key findings of urban consultancy Cistri’s August 2026 report, The Changing Face of Malls Globally, which examines 70 super and mega regional malls across Australia, Asia, the Middle East, the US, Canada and the UK. The sample includes 16 malls in Asia and covers 11.4 million sq m (122.7 million sq ft) of gross leasable area (GLA).

Asia has the highest proportion of mall space devoted to what Cistri calls “in-centre consumption” — encompassing F&B, retail services, entertainment and other non-retail uses. These account for 38% of occupied GLA in Asian malls, compared with an average of 28% across the malls surveyed.

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Yet retail remains a major part of the mix. Specialty stores account for 44% of occupied mall GLA in Asia, considerably higher than the 30% to 35% seen in North America and the UK.

The combination highlights how Asian malls differ from those in some Western markets. Rather than simply substituting retail space with restaurants and entertainment, they retain a deep and diverse specialty retail offering while devoting significant space to activities that are less susceptible to online competition.

The study compares the composition of leading malls today with Cistri’s previous survey in 2018, capturing how online retail, changing consumer expectations and greater demand for experiences have reshaped the traditional shopping-centre model.

Rise of F&B

One of the clearest beneficiaries has been F&B.

Across the malls surveyed, F&B’s share of occupied floor space has risen to an average 10% in 2026 from 8% in 2018. Asia stands well above that level, with F&B taking up 17% of occupied GLA — the highest among the six markets surveyed. The UK follows at 13%, while the Middle East is at 10%.

Restaurants are also increasingly being positioned as part of a mall’s broader leisure offering rather than simply another tenant category. Owners are creating themed dining precincts and more distinctive food experiences to drive visitation and encourage longer stays.

Entertainment is playing a similar role. It accounts for 14% of occupied mall floor space in both Asia and the Middle East, the highest among the markets surveyed, followed by the US at 13%. Cistri says mall owners are using entertainment to broaden their appeal, drive visitation and encourage longer dwell times.

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Mini-majors take on bigger anchor role

The changes are taking place against a longer-term decline in the traditional anchor tenant.

Across the sample, large retail majors now occupy an average of 29% of occupied mall GLA, down from 36% in 2018. Their share is just 20% in Asia, compared with 39% in Australia, 36% in the UK and 35% in the US.

Department stores have also retreated sharply. Their average share of occupied GLA has fallen to 17% from 29% in 2018, with Cistri noting that the decline has been particularly pronounced in North America as major chains rationalised their networks or exited altogether.

Mall owners have responded by breaking up former department-store boxes into smaller units. Some have gone further by converting the spaces into non-retail uses such as offices or residential accommodation. In Australia, Cistri says subdividing former department-store space has generally led to a marked improvement in overall centre performance.

Taking on a greater anchoring role are mini-majors — retailers occupying between 930 sq m (10,000 sq ft) and 4,650 sq m (50,000 sq ft). Their share of occupied mall GLA across the sample has risen to an average 21% from 16% in 2018. Canada has the highest proportion at 27%, followed by the Middle East at 25% and the US at 22%. Asia stands at 18%.

The shift suggests that malls are becoming less dependent on a single large tenant to generate traffic. Instead, mini-majors, smaller specialty retailers, dining and entertainment precincts can collectively perform the anchoring role once dominated by department stores.

Asia, however, continues to stand out for the depth of its specialty retail offerings.

Specialty stores average just 140 sq m in Asia, about half the 290 sq m average in the UK and 260 sq m in the US. Cistri says the difference reflects contrasting leasing strategies: Asia’s malls tend to prioritise a wider range and greater variety of retailers, while Western centres generally favour fewer, larger-format stores.

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Malls evolve into multi-purpose community hubs

At the same time, malls are expanding beyond shopping, dining and entertainment into functions that were once less commonly associated with major retail centres.

Medical services, fitness operators, education providers, childcare facilities and offices — including co-working spaces — are increasingly being incorporated into malls.

Such uses account for an average 4% of occupied space across the study, with Australia leading at 7%, while Asia, Canada and the Middle East each allocate 5%.

Their appeal to landlords is partly the regular traffic they generate. Cistri says these tenants support retail performance by bringing consistent visitation to malls throughout the week.

Cistri sees this as part of a broader transition from shopping centres into multi-purpose community destinations — integrated hubs incorporating retail, services and other uses rather than places built primarily around shopping.

For Asian malls, the shift towards more experience-led destinations has not meant abandoning retail. Instead, the emerging model is one of greater variety: a high concentration of smaller specialty retailers alongside more dining, entertainment and everyday services.