Luxe Louisiana Malls Are Thriving While Others Struggle—Here’s Why

Retail trends in Louisiana are diverging, with some malls flourishing while others experience closures. In Lafayette, Macy’s is shutting down its long-standing anchor store in the Mall of Acadiana, part of a nationwide downsizing effort. Meanwhile, Big Lots is closing its Veterans Boulevard location in Metairie as the company grapples with bankruptcy. Party City is also shutting down all eight of its Louisiana locations due to its overall business collapse.

However, despite these struggles, some shopping centers are thriving. Canal Place in New Orleans recently welcomed a new Swarovski Crystal store, joining its lineup of luxury retailers, while Lakeside Shopping Center is preparing spaces for the arrival of Mango and Alo Yoga.

What’s Behind This Retail Divide?

Even more than a decade after online shopping reshaped consumer habits, the retail industry continues to evolve. Experts in commercial real estate note that some retailers are successfully attracting in-person shoppers, while others are seeing declining sales or shutting down completely.

“It may seem contradictory, but multiple factors are at play,” explained Ryan Pecot, a commercial agent with Stirling.

Economic Factors and Spending Trends

One major factor driving this divide is the increasing gap between high-income and middle- to lower-income shoppers. A report from Moody Analytics found that the top 10% of earners, making $250,000 or more annually, were responsible for nearly half of all spending in the U.S. last year—compared to about two-thirds of all spending three decades ago.

Luxury spending has surged, with affluent consumers purchasing high-end fashion, vehicles, and real estate at a pace that outstrips inflation. In contrast, middle- and working-class households have reduced their spending over the same period.

This trend has benefited upscale malls such as Canal Place, which attracts a mix of tourists and affluent locals. The shopping center is now 95% leased, with brands like Louis Vuitton, Tory Burch, Tiffany & Co., and Saks Fifth Avenue among its tenants.

“Our first-floor retailers are exclusive to this region, with only a few other locations in Houston and Atlanta. It makes Canal Place a regional luxury shopping destination,” said manager Matt Brown.

Lakeside Shopping Center in Metairie is also performing well, with an average occupancy rate of 99%. The mall is expanding its offerings with Spanish fashion brand Mango opening a 5,500-square-foot store and California-based activewear retailer Alo Yoga moving into a 5,000-square-foot space.

“Lakeside is a powerhouse that keeps evolving. It’s in a prime spot to attract high-spending shoppers,” noted Kirsten Early, a principal at SRSA and experienced commercial agent.

The Decline of Traditional Department Stores

While luxury retailers are thriving, traditional department stores like Macy’s and JCPenney continue to struggle. These brands, much like Sears before its downfall, have faced challenges in adapting to the rise of e-commerce.

Many discount retailers are also failing to compete with online shopping. Party City, Big Lots, and Bed Bath & Beyond have all faced closures, with experts citing the convenience of online alternatives.

“Why go to Party City when you can order the same products online, with a larger selection, and have them delivered the next day?” said Pecot.

However, some budget-friendly retailers are bucking the trend. Mid-tier chains like Marshall’s, T.J. Maxx, HomeGoods, and Ross Dress for Less are performing well in Louisiana, with plans to expand.

“At the end of the day, success depends on how well a company is run and whether it can offer good quality at the right price,” Early added.

Retailers Adapting to Changing Consumer Habits

The ability to pivot and meet shifting consumer preferences has been key to survival. For example, Barnes & Noble in Baton Rouge’s Citiplace is moving from its 20,000-square-foot space to a smaller, more modern location in the high-end Towne Center.

Meanwhile, Books-a-Million in Lafayette opted for a different strategy, relocating from a costly 12,000-square-foot site near Target to a larger space and rebranding as 2nd & Charles, expanding its offerings to include books, music, games, and pop culture merchandise.

“The move worked, and they’re doing well now,” Pecot said.

The Challenge of New Retail Development

Another major hurdle for the retail sector is the lack of newly constructed shopping spaces. While vacant storefronts exist in older shopping centers, the rising costs of construction, interest rates, and insurance have made new development financially unfeasible.

“Most leasing activity is happening in existing centers because new construction is just too expensive,” said commercial agent Jonathan Walker.

Even within existing properties, high renovation costs mean only well-funded retailers can afford to move in.

“I’ve had to turn down deals simply because there’s not enough prime retail space available,” said Early. “Everyone is asking, ‘Where’s the new development?’ The answer is—there isn’t any.”