The writing’s been on the wall for out-of-town shopping malls for years – but now it’s starting to look official.
Hundreds of complexes could be effectively killed by major department stores pulling out, a shock report claims.
Macy’s, JCPenney and the like need to close 800 locations to keep their profits up amid the ongoing struggles of bricks-and-mortar retail, according to research firm Green Street Advisors.
The report predicted a “death spiral” for locations hit by two or more big closures in succession.
It underlines how hard life has become for department stores, which used to be major money-spinners before the advent of online shopping.
Via Business Insider:
“…sales have been declining industry-wide for nearly a decade. Overall, departments stores’ average productivity — or sales per square foot — has dropped 24% to $165 per square foot since 2006, according to the report.”
The economics are hard to argue with – and could change a hallmark of American life forever.
