Retail is unrecognizable from six years ago. The tenant mix driving successful shopping centers in 2026 looks nothing like 2020 — and knowing the difference is how you stay ahead.

What’s Losing Ground

Apparel and department stores have taken the hardest hit. These categories once held 50% or more of a typical mall’s tenant mix.

Today, that number sits below 25%. Online shopping, the casualization of dress codes, and off-price competition have permanently shrunk the market. There’s no recovery coming.

General merchandise is in the same position. Bed Bath & Beyond is the most visible casualty, but the category has been hollowed out broadly — leaving behind large-format vacancies that don’t fill easily.

What’s Gaining Ground

Medtail is the headline story. Healthcare tenants have grown from 5–10% of retail composition to 15–20% in well-positioned properties.

Health systems are still expanding their retail footprints. The trend has room to run.

Dining and entertainment have become the anchor. Combined, these uses now represent 30–35% of successful center composition — up from 15–20% in 2020. Fast-casual, food halls, and eatertainment venues are driving that growth.

Services — fitness, salons, pet care, childcare, personal care — have held steady and grown modestly. They don’t translate online. That’s their competitive advantage.

What to Do With This

Run an honest audit of your current tenant mix. If you’re over-indexed to apparel and general merchandise, you’re facing occupancy pressure — possibly already. If you’re aligned with healthcare, dining, and services, you’re positioned well.

Then build a forward-looking tenant mix vision for each property. Don’t wait for vacancies to force the issue. The centers winning in 2026 started repositioning in 2023.

williamscapitaladvisors.com | (213) 880-8107 | francisco.williams@williamscap.ai