What’s More Eco-Friendly: Going to the Mall or Shopping Online?

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Apr 3, 2016

Could going to the mall be better for the environment than shopping online?

That’s the surprising claim in a new study from Simon Property Group, the nation’s largest mall landlord.

The argument is that mall shoppers often travel in groups and buy more than one item, reducing their environmental impact. Online shoppers, meanwhile, return products more often, and the shipping requires more packaging.

“We wanted to make the point that consumer choices matter,” said Mona Benisi, head of sustainability at Simon.

The issue isn’t settled, however. Other studies have found that shoppers can often reduce their environmental impact by shopping online, and experts say the outcome depends on individual shoppers’ circumstances and behavior.

“There’s just not a black and white answer to this question,” said Jason Mathers, a supply-chain specialist at the Environmental Defense Fund, which works with companies, including Simon, on environmental matters. “If you’re looking to purchase one item and your choice is driving a good distance to a facility or buying it online, you are likely to be better off buying it online.”

Simon’s March 1 research report comes as owners of retail real estate and their tenants contend with the rapid growth of e-commerce. Last year, U.S. retail sales rose 1.4% over 2014, but e-commerce shot up 14.6%, according to federal data.

Retailers and landlords are scrambling to adjust by trying to accommodate the needs of shoppers who may, for example, prefer to buy online but pick up goods in stores. Landlords also are trying to offer richer experiences at the mall, including more restaurants and entertainment. At the same time, companies are giving investors and consumers more information about the environmental impact of their businesses and their efforts to reduce it.

Simon, which is based in Indianapolis, owned or held a stake in roughly 200 retail properties in 37 states and Puerto Rico as of the end of 2015, including high-profile malls such as Roosevelt Field in Garden City, N.Y., and The Galleria in Houston.

The report was prepared with help from Deloitte Consulting LLP. It tracked how a basket of four common products — women’s tops, women’s shoes, coffee makers and wine glasses — are distributed and sold through the two channels, and the materials and energy used along the way.