Why Older Malls Thrive in Mérida While Newer Ones Struggle

While shopping malls in the United States and Europe face declining foot traffic and store closures, Mexico continues to see a wave of new mall construction. Retail sales in the country rose 4.4% year-on-year in November 2025, and 15 new malls were planned for 2025 alone. 

Few places illustrate this trend better than Mérida, Yucatán, where at least five new shopping centers were authorized in late 2025. Yet not all these new projects succeed. Some struggle with high vacancy rates and fail to adapt to shifting consumer habits. Meanwhile, several older malls that have been around for decades—Gran Plaza, Plaza Fiesta, Plaza Oriente, and Plaza Las Américas—continue to draw steady crowds.

The New-Wave Struggles

Newer, flashier malls in Mexico have not always lived up to their promise. According to a 2025 report, shopping alone is no longer enough to guarantee success, and prime luxurious locations do not ensure profitability. Several regional examples illustrate the problem. In Tampico, Plaza Las Américas faced market saturation and competition from newer developments, leading to high vacancy and eventual demolition. In Hermosillo, a so-called Mega-Mall has been described as one of several centers that failed to adapt, leaving its corridors empty. The issue is not a lack of investment but a mismatch between what developers offer and what local shoppers actually need.

The Veterans That Endure

Three older malls in Mérida have taken a different approach. Gran Plaza, which opened in 1994, houses over 200 stores anchored by Sanborns, Sears, a Soriana supermarket, and multiple bank branches, including HSBC and Banorte. Its tenant mix emphasizes department stores, supermarkets, and banks. Annual foot traffic reaches about 2 million visitors, and occupancy stands at 95 percent.

Plaza Fiesta opened in 1988 and has a gross leasable area of 25,000 square meters. It is anchored by a Soriana supermarket, banks, pharmacies, electronics shops, and sewing supply stores—all essential services for its surrounding community. After 35 years, it maintains a 95 percent occupancy rate and averages 1.5 million visitors per year. In a 2023 statement marking its 35th anniversary, the mall’s management noted that its more than 100 tenants are committed to keeping the plaza a preferred destination where residents can engage in various activities in a friendly, social atmosphere.

Another factor Plaza Fiesta has going for it is loyalty, as during the past few years, groups of older shoppers with deeper-than-average pockets have set up shop in their food court to play domino; something the mall’s administrator has wholeheartedly endorsed. 

Plaza Las Américas distinguishes itself through a large Chedraui supermarket and a sizable food court focused on affordable dining. The mall underwent a renovation in 2018 to modernize its appearance, proving that older centers do not stand still. While detailed foot traffic data is less public, the mall has maintained steady local patronage by focusing on grocery shopping, casual dining, and quick bank visits.

Why Practicality Beats Glitz

The success of these older malls comes down to several practical factors. First, they offer essential services that residents use frequently, including bank branches, supermarkets, pharmacies, and utility payment services. In Mexico, where roughly half the population remains unbanked, and many transactions are still cash-based, physical access to banking and bill-paying services is a major draw. Malls that provide these services see lower vacancy risks and steady repeat business.

Second, these malls feature an affordable retail mix. Instead of luxury international brands, they fill their spaces with mid-tier national chains, electronics and stationery shops, household goods stores, and local family-run businesses. For Mexican households facing inflation, this value proposition resonates more than high-end concepts.

Third, they rely on traditional food courts serving fast food and regional Mexican options at accessible prices. Modern competitors often emphasize sit-down “luxury dining experiences,” which do not generate the same high-frequency visits as quick-service meals. Frequent, low-cost dining keeps customers coming back.

Finally, these malls have built decades of community loyalty. Many shoppers first visited them as children. They are landmarks. Management teams keep the facilities clean and parking accessible. As one real estate analysis noted, such strengths include low vacancy risks and community loyalty, fostering repeat business for lessees. In a rapidly growing city where new projects constantly market themselves, that sense of continuity matters. The lesson from Mérida is clear: get the basics right, and foot traffic will take care of itself.