The outlook for malls gets darker and darker.
Department stores have been getting clobbered since 2000.
Clothing stores have not kept up with inflation. Covid just hit food services.
The death of the mall is a Blow to the Towns That Depend on Them.
When a mall goes dark, a community loses more than just a place to shop and grab a slice of pizza at the food court’s Sbarro. In many neighborhoods, the mall is an economic engine, hiring hundreds, if not thousands, of workers and providing a significant amount of dollars to the local tax base.
Malls and shopping centers across the country provide $400 billion in local tax revenue annually, according to the International Council of Shopping Centers, the retail real estate industry’s trade group. And there are about 1,000 malls — both privately and publicly held — still operating in the U.S. today, according to commercial real estate services firm Green Street Advisors.
The acceleration of e-commerce, along with a shift toward more consumers wanting to live downtown instead of the suburbs, has led to fewer people frequenting malls over the years. And as the pandemic hit, malls were boarded up, along with the stores in them. Some, including the Northgate Mall managed by Northwood Retail in Durham, North Carolina, are now closing for good. Former department store executive Jan Kniffen has predicted a third of America’s malls will vanish by 2021.
Malls Are Dying
America’s malls are dying.
“Malls can be redeveloped and released, but it often will never replace the impact [to towns] the mall had in their heydays,” Retail Strategies’ Beasley said.
Many will point a finger at Covi-19. However, the coronavirus is not to blame.
Demographics and Amazon sealed the fate long ago.
Millennials do not care about 10% off or even 20% off at JCPenney or Kohls.
Questions of the Day
What do aging boomers need that they do not already have?
Does anyone want to drive anymore when Amazon delivers for free?
30% Failed to Make Housing Payments in June
A study shows Missed Payments Stabilize In June At Alarming 30% Level.
Unemployment Claims Tell a Bleak Story
Continuing claims have now topped the 5 million mark for 11 consecutive weeks, and the 20 million mark for 7 weeks.
For details, please see Continuing Unemployment Claims Tell a Bleak Story
Hugely Deflationary Setup
This is a hugely deflationary setup.
The Fed won’t admit that, but the panic in their actions should be obvious.