The model worked until it apparently didn't. If Amazon and online shopping hadn't happened, we'd still be going to the malls.
A large number of retailers fell not to online shopping, but instead to lowering quality of service and goods. Sears, Circuit City, JC Penny, and Kmart each have analogous stores and former competitors that remain and are doing well.
Outside of disposably fast fashion like Shein, it's usually more convenient to try clothes on shotgun fashion. In person.
Fragrance, jewelry, luxury goods. All better done in person.
Home Depot is peerless and will never be replaced with an online equivalent.
Touching and trying things on is an experience that just can't be matched online (sans metaverse, if it actually delivers).
Amazon is aggressively expanding physical retail presence. They're focusing on convenience, which is probably the biggest reason people avoid shopping in person.
People love shopping. And if the shopping experience is modern and fun, and interspersed with drinking and dining, they love doing it with friends. It's a social activity too.
If malls morph into "live-work-play" hubs like this old sears factory [1] or this entirely new construction in that mold [2], they'll absolutely flourish.