Beginning in 1986, increased competition from other regional malls such as Stanford Shopping Center and in particular Valley Fair (renovated into an indoor shopping mall that year) began to cause Vallco trouble. Foot traffic began to rapidly decline, and tenants began to move to these competing malls. In July 1988, an $20 million expansion for Vallco was announced, which added a lower level and 50 stores, increasing the total store count from 140 to 190. Ultimately, this expansion was completed in August, 1988, adding a total of 60 stores.