Why do many smaller cities not have upscale stores in their shopping malls?

Answer 1

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Not enough upscale people to buy the products. 

Answer 2

if there isn't enough people to shop in them than they wouldn't stay open for long

Answer 3

Expensive stores tend to be where people have more disposable income and more other people to 'show off' to, ie big cities. 

Anyway, brick & mortar shopping malls are history, fading fast. Fortunately, rent's cheaper on the internet, and open 24 hours.