In the last decade, the retail industry has faced many challenges — from difficult economic times to rapid technological improvements. These developments have changed the modern consumer and caused an overhaul of the industry.

In the latter half of the 20th century, shopping malls were a staple of the booming retail industry. Today, shopping malls are out, and experience-focused and hybrid retailers are in.

The question is: What does the future hold for retailers?

History of the shopping mall

Victor Gruen opened the first modern shopping mall in Edina, Minnesota, in 1956. Based on 19th-century department stores, the Southdale mall combined several different retailers but with one major difference: all of the stores had interior entrances linked together in a climate-controlled shopping mall. Prior to Southdale, individual stores were climate-controlled but the retail doors led outside.

In 1990, 19 new malls opened in the U.S., signaling the most successful year for malls in history. Later that decade, though, malls began to physically crumble while the stores inside followed suit.

While the demise started prior to the Great Recession, the economic downturn in 2008 was the final straw. Stores across the country were closing, and those who managed to survive had to evolve as the customer evolved.

The changing industry and consumer

The Great Recession caused a different type of consumer — one that would shake up the industry. Shoppers wanted bargains and discounts.

Malls weren't created as discount shopping centers; the opposite in fact. Malls thrived on the high-end luxury stores, like Niemen Marcus and Dillard's. Consumers began avoiding these retailers, shifting their attention to discount stores, like Target and TJ Maxx.

One of the biggest predictors of future success for individual retailers is the ability to be constantly evolving, according to Sarah Kimes, assistant vice president at CallisonRTKL and leader of the brand strategy team at their Dallas location. Those who are still in business proved during the recession they are capable of constant change — and for many, one major change was offering an omnichannel experience.

"The main thing stores should be doing is ensuring their in-store experience feels cohesive with their online experience, and in the best cases, be completely integrated," said Kimes, whose design firm has attempted to imagine what the mall of the future will look like.

Retailers need to adjust their brick-and-mortar stores to accommodate the omnichannel — you can't just leave your physical stores back in 2004. Being able to utilize the retailer's mobile app while shopping in the store is a must, so offer free Wi-Fi storewide. Update your store to accommodate things like site-to-store areas so customers can pick up their online purchases, or interactive shopping walls to bring a new style of shopping to your location.

"Ensuring the checkout process is easy and frictionless is also key," Kimes said. "Having salespeople process the purchase via app, having the option to print or email the receipt, asking whether or not the consumer wants the product picked up in-store or shipped are all ways to improve the process and enhance the retail experience to match the online experience."

Finally, to attract the younger generations, social media engagement is a must. "Nearly half of digital buyers worldwide said that reading reviews, comments and feedback on social media influenced their shopping behavior," according to eMarketer.

Options for communities with failing shopping malls

The American malls that still stand must conform to the modern desires of the community — or some fear they will become privatized facilities taking away from the public life of the community.

Some malls can survive by doing a complete overhaul of tenants and anchor stores. Rethink your anchor stores. One new addition to the list of popular anchor stores is Apple. They offer products that consumers prefer to purchase in store and they have increased traffic in some malls by 10 percent. In addition, some malls have added experience-based anchor stores or restaurants to drive traffic.

Another option that many communities have chosen is to transform these declining or abandoned malls into community colleges or large-scale medical facilities. For example, Panola College opened its Marshall College Center inside Marshall Mall. And Vanderbilt University Medical Group occupies an entire floor at Oaks Mall in Tennessee.

The mall of the future looks very different — and promising

Even though the 20th-century shopping mall is a memory from the past, customers are still visiting retailers. They are just doing it in different ways.

Today's consumer wants an experience, not an item. When they visit a retailer, yes, it's to purchase an item. But they will select the retailer based on other things — like what foundation or cause they support, or what experience they offer.

Today's consumer wants a space with blurred lines, according to Kimes. Hybrid stores are popping up left and right to fulfill this desire. Hybrid stores combine two completely different concepts, creating a unique experience that can't be replicated.

Take for example, Sprockets Bicycle Shop in Denton, Texas. As you would guess, they offer bikes, supplies and bike-related gear, as well as repair services. But they didn't stop there: They also offer coffee and baked goods, plus a sitting area for socializing.

The shopping mall of the future will resemble these hybrid stores — on a massive scale. Instead of the shopping mall offering the basic retail stores and fast food court, these mixed-use developments will house retailers, dining options, entertainment, services, residential spaces and more. E-commerce will have its place, too, with things like interactive shopping walls.

Another possible addition to the mixed-use developments are healthcare facilities. While this is a newer concept, it is one that is likely to stick. However, because of the delicate nature of the industry, incorporation should be handled expertly and delicately.

When asked where mixed-use developments have the most chance for success, Kimes gave an unexpected response.

She thinks the most important predictor for the success of a modern, mixed-use development is transit access. Having easy access to public transportation is vital to the success of a mixed-use development. While the main focus of these developments is having work, home and play all in close proximity, they also need easy access to the rest of the world — they don't want to feel secluded.

The retail industry has gone through massive change, requiring retailers to adapt and "mingle" with other industries. The shopping mall of the past is transforming into mixed-use developments that offer consumers the "blurred lines" lifestyle they desire.

Remember the strategy of retailers today: "Don't deliver a product. Deliver an experience."