December 12, 2017

Malls closing across the country

CNN - Experts predict that a quarter of American malls will close in five years -- around 300 out of 1,100 that currently exist.

"When anchor stores close, it causes big problems for mall owners and other retailers in the mall," says Howard Davidowitz, chairman of New York-based retail consulting and investment banking firm Davidowitz & Associates. "And I'd say this problem is only in its second inning."Brown said he expects the weakest malls to enter "death spirals."

Sears, which had operated nearly 3,800 stores as recently as a decade ago is now down to 1,104 stores. Macy's  closed 68 stores this year, and JCPenney  was set to shutter 128.

It's not just department stores that have mall owners worried.

When Starbucks  announced that it was closing its Teavana tea line and wanted to shutter all of its stores, mall operator Simon Property Group countered with a lawsuit. Simon cited in part the effect the store closures might have on other mall tenants.

Earlier this month, a judge upheld Simons' suit, ordering Teavana to keep 77 of its stores open.

No comments: