Nov. 9, 2023
By Kiara Rasmussen
Staff Writer
American Dream, the second-largest shopping center in the United States, opened its doors in October 2019 with high hopes. However, a three-page document posted on the Municipal Securities Rulemaking Board’s EMMA website revealed that the East Rutherford entertainment and retail complex is in trouble.
The document shows American Dream expected a $2 billion income in 2021 but only generated $422 million in gross sales, which is less than a quarter of what it expected.
Italian teacher Mr. Raguseo, who shops online and picks up his orders at American Dream, said he is not surprised American Dream has financial woes. He said one main factor in its money issues is the increase in online shopping.
“When you do shop online, you find better prices, and you find what you want in stock, whereas in the store, you don’t always find what you want in your size in stock,” Raguseo said. “[Consumers are] not going to the mall to go shopping anymore like they used to, so I think [American Dream] overestimated how many shoppers it would attract.”
Since it is in Bergen County, American Dream must adhere to Blue laws, which means its retail stores are closed on Sundays.
“If they were open on Sundays, which is a part of everybody’s weekend, they would probably get more people there to spend money,” Raguseo said.
While retail stores at the megamall are closed on Sundays, its approximately 20 attractions including the Dream Wheel, DreamWorks Water Park, Nickelodeon Universe and Sea Life Aquarium remain open seven days a week.
Raguseo said he is concerned American Dream may close because it would impact Lyndhurst and neighboring communities.
“We all want it to succeed because, if not, it will have a negative impact on our local economy and the state economy, so it’s important that American Dream does well for everybody here,” Raguseo said.
Like Raguseo, junior Izabel Graziani, who goes to American Dream twice a month, said online shopping has taken business away from traditional retail stores.
“Many people cannot afford to splurge on clothes or food from the mall anymore, so they cook at home and work more.”
“Personally, I don’t shop online as much, but when I do, I recognize how quick and effortless it is,” Graziani said. “It is just easier to shop online nowadays, so I think most people resort to shopping from the comfort of their home instead of having to drive all the way to the mall.”
Graziani said the increase in costs of overall goods and services may have also contributed to the decline in sales.
“Many people cannot afford to splurge on clothes or food from the mall anymore, so they cook at home and work more,” Graziani said.
Economic Research Service published in its Food Price Outlook that there was an increase in the Consumer Price Index. Food prices were 3.7% higher in September this year compared to the same time last year.
Graziani said she likes the welcoming environment at American Dream.
“American Dream has bright, white lighting and upbeat music that keeps me awake and energized as I shop,” Graziani said. “I don’t enjoy shopping in other malls, and they are much farther away. Not to mention, American Dream is my favorite place to spend time with friends because there is not much to do in [Lyndhurst].”
Despite its interior, some shoppers dislike the logistics associated with the megamall. Economics of Business teacher Mr. Newman said one of the reasons he does not visit American Dream is because of the cost of parking. According to American Dream’s official website, parking is free for the first 30 minutes, but after that, visitors must pay a $5 flat fee.
“[Westfield] Garden State Plaza, Bergen Town Center, the Shops at Riverside and Paramus Park Mall are all closer malls to my house that have free parking,” Newman said.
According to a 2021 study by researchers affiliated with the Rutgers Center for Advanced Infrastructure and Transportation, American Dream potentially caused new traffic and congestion problems.
However, Newman said he does not believe American Dream is to blame for traffic in the area.
“The perception of traffic… and even the building being visually intimidating are all reasons why they have not been nearly the success they aimed to be,” Newman said. “They fail to really bring in the common mall-going traffic that we have all over New Jersey. Coupled with events at MetLife Stadium and the traffic that can bring, I think a lot of common mall-goers stay away from American Dream.”
