What Happened to The Lakes Mall in Muskegon, MI? Inside Its Decline

Opening and Initial Success

The Lakes Mall in Muskegon, MI, opened its doors on August 15, 2001. CBL & Associates Properties, a Chattanooga-based developer, built the mall. The mall’s location near the intersection of Interstate 96 and U.S. Highway 31, at Sternberg Road and Harvey Street, made it easily accessible for shoppers in the area.

The Lakes Mall launched with several anchor stores: Sears, JCPenney, Younkers, and Bed Bath & Beyond. JCPenney relocated from a standalone store, while Sears moved from the Muskegon Mall downtown.

Bed Bath & Beyond and Younkers provided additional draws for the newly opened shopping center. In its early days, the presence of these well-known brands attracted a large number of visitors.

In its first years, The Lakes Mall quickly became a primary retail destination for the Muskegon area. The mall featured over 100 stores and services, offering a variety of shopping and dining options.

The mall’s early success led to the development of nearby retail spaces, contributing to the growth of the commercial area surrounding it.

Anchor Store Changes

In late 2004, Dick’s Sporting Goods joined the mall as a new anchor, replacing the original lineup’s balance. This addition gave the mall a fresh boost, attracting shoppers interested in sports equipment and apparel.

However, in April 2018, Younkers announced it would close. The Bon-Ton Stores, Younkers’ parent company, was going out of business.

By August 2018, Younkers had shut its doors, leaving a large vacancy in the mall. This closure marked the beginning of a series of anchor store exits.

In December 2018, Sears announced its closure as part of a plan to shut down 80 stores nationwide. By March 2019, the Sears at The Lakes Mall was no more.

By 2023, Bed Bath & Beyond, another original anchor, also closed. The company faced financial struggles and decided to shutter its underperforming locations, including the one at The Lakes Mall. This left the mall with three vacant anchor spaces and a need for a new strategy to fill these gaps.

These closures left JCPenney and Dick’s Sporting Goods as the only remaining anchors. The loss of three anchor stores reduced foot traffic, leading to a decline in the mall’s overall business.

Decline and Vacancy Issues

The departure of key anchor stores like Younkers, Sears, and Bed Bath & Beyond set off a chain reaction.

Smaller retailers started to leave, leading to higher vacancy rates throughout The Lakes Mall. As these stores left, the mall’s vibrancy diminished, and fewer shoppers visited.

Namdar Realty Group, a firm known for buying distressed properties, took over the mall’s management. The new management faced the challenge of filling the empty spaces left by departing tenants. With fewer stores, the mall struggled to maintain its appeal as a shopping destination.

As of August 2024, The Lakes Mall, with only about 40 stores, stands as a shadow of its former self. The vacant spaces tell the story of a mall that once thrived but now grapples with the challenges facing many malls across the country.

The area that once buzzed with activity now faces the reality of changing shopping habits and economic pressures.

Economic and Community Impact

When it opened in 2001, the Lakes Mall reshaped the retail landscape in Muskegon. Before its arrival, the only major shopping area was the Muskegon Mall downtown, which struggled to attract the big-name stores that consumers wanted.

The Lakes Mall brought in those brands, drawing shoppers from across the region and boosting the local economy as businesses clustered around the mall.

Retail spaces such as the Lakeshore Marketplace, once a quiet strip mall, were redeveloped to accommodate new big-box stores like Toys “R” Us, Barnes & Noble, and Old Navy. Restaurants and other services soon followed, making the area a bustling commercial hub.

However, the decline of malls in recent years has had the opposite effect. With the loss of major anchors like Sears and Younkers, foot traffic has dwindled.

The vibrancy that once characterized the area has faded, replaced by concerns over the mall’s future and the economic health of the surrounding community.

Comparison with Other Malls

The Lakes Mall’s struggles reflect a broader trend seen across the country. Many regional malls, especially those built in the late 20th century, have faced similar challenges.

The rise of e-commerce, shifts in consumer behavior, and economic changes have all contributed to the decline of once-thriving retail centers.

Comparing The Lakes Mall with others in Michigan, like Westland Shopping Center or Birchwood Mall, shows a common pattern. These malls, like The Lakes Mall, saw their anchor stores close in the wake of corporate bankruptcies and changing retail strategies.

Sears, Macy’s, Carson’s, and Younkers were once staples in these malls, but as these companies downsized or went out of business, their departure left gaping holes in the shopping experience.

Some malls have successfully adapted by shifting to a mixed-use model. For example, The Village of Rochester Hills transformed from a traditional mall into an outdoor lifestyle center. This concept combines retail with dining, entertainment, and residential spaces.

This shift has helped some properties stay relevant in a changing market. Whether The Lakes Mall can find a similar path remains uncertain, but the challenges it faces are part of a much larger story in the retail world.

The Lakes Mall: Current State and Prospects

As of August 2024, The Lakes Mall continues to operate but at a much-reduced capacity.

With only two remaining anchor stores—JCPenney and Dick’s Sporting Goods—the mall’s once-bustling atmosphere has diminished. Many of the smaller retailers have left, unable to sustain business in the quieter environment.

In October 2023, the Muskegon community contributed hundreds of ideas to breathe new life into The Lakes Mall. These ideas ranged from enhancing retail options to incorporating entertainment venues and community spaces.

A significant focus has been placed on transforming the mall into a more community-centered space, integrating local businesses, and hosting events that cater to the broader Muskegon area.

The Lakes Mall’s future remains in question, with no clear path forward. The area’s retail environment has changed, and The Lakes Mall must either adapt or face further decline. Whether new strategies will emerge to save the mall or if it will follow the fate of many other regional malls is a story still unfolding.