Located in Waterford, Connecticut, just off Route 85, Crystal Mall once played a key role in the region’s retail economy. Spanning over 780,000 square feet, it was one of the state’s largest shopping centers and housed more than 100 stores at its peak. For decades, the mall served the surrounding communities of Groton, New London, Norwich, Stonington, and Waterford, becoming a retail hub in southeastern Connecticut.

Growth, Renovation, and Competition

Opened in 1984 by New England Development, Crystal Mall was the area’s first major enclosed shopping complex. Initially, it drew significant foot traffic and gave nearby strip malls stiff competition, prompting some to rebrand in order to stay relevant. The original anchor lineup featured well-known department stores such as Sears, JCPenney, Filene’s, and Jordan Marsh—the latter of which transitioned to Macy’s in the mid-1990s.

By the late 1990s, the mall began showing signs of age. In 1997, management undertook a large-scale interior renovation to modernize the space. A brighter design replaced the darker original palette, lighting was upgraded, and the food court received a facelift. However, its exterior and store mix remained largely unchanged, which drew ongoing criticism as consumer preferences evolved.

A Steady Retail Decline

In the 2000s and 2010s, shifts in shopping behavior and the rise of e-commerce began to erode Crystal Mall’s relevance. After the 2005 merger that created Macy’s, duplicate stores at various New England malls were shut down—including Filene’s at Crystal Mall in 2006. Its space was later divided between Christmas Tree Shops and Bed Bath & Beyond, both opening in early 2008.

Anchor closures became more frequent in the years that followed. Sears exited in 2019 as part of its broader exit from physical stores. Macy’s closed in early 2021 as it focused on more profitable locations. Bed Bath & Beyond ceased operations in early 2023, followed by the closure of Christmas Tree Shops later that same year due to supply chain issues and debt. JCPenney, the final remaining anchor, shut its doors in May 2024, leaving the mall without a single major retail tenant.

A New Chapter: Electric Boat Moves In

In a surprising turn of events, June 2025 brought news of a major redevelopment. General Dynamics Electric Boat, the primary U.S. Navy submarine contractor, acquired the former Macy’s space. The company plans to retrofit the 121,000-square-foot facility for engineering, training, and lab functions to support its work on the Columbia- and Virginia-class submarines. Located just over five miles from its Groton shipyard, the new site is expected to employ 700 people by 2027.

Broader Implications for the Region

This strategic repurposing of former retail space reflects broader trends in American infrastructure reuse and industrial expansion. Electric Boat’s investment not only brings new jobs to the area but also solidifies southeastern Connecticut’s role in national defense manufacturing. With federal support and high retention rates, the company stands as a model of adaptation in a changing economic landscape—breathing new life into what was once a struggling commercial property.