Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Struggling malls suffer when Sears, Penney leave
Wall Street Journal via Yahoo News ^ | May 12, 2014 | Suzanne Kapner and Robbie Whelan

Posted on 05/13/2014 3:28:27 AM PDT by John W

NORFOLK, Va.—With J.C. Penney Co. and Sears Holdings Corp. racing to close stores, America's weakest malls are being pushed to the brink.

Nearly half of the 1,050 indoor and open air malls in the U.S. have both of those struggling chains as anchor tenants, according to real-estate research firm Green Street Advisors. Of those malls, nearly a quarter are struggling with sales below $300 per square foot and vacancy rates above 20%, meaning they will have a hard time finding new tenants if old ones leave.

For an already-weakened mall industry, the negative turn for two once-reliable anchors is promising more stress at a time when the Internet is steadily stealing traffic. And the pressure is only growing. Sears Chief Executive Eddie Lampert last week said he plans to close more stores to help return the company to profitability.

(Excerpt) Read more at finance.yahoo.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: bhoeconomy; obamasfault; retail; suburbia
Navigation: use the links below to view more comments.
first 1-5051-100101-128 next last
Don't bother looking for the paragraph, or for that matter even the sentence, that mentions The Obama Economy in any great detail. Pay no attention to The Failure Behind The Curtain.
1 posted on 05/13/2014 3:28:27 AM PDT by John W
[ Post Reply | Private Reply | View Replies]

To: John W

And of course, increasing the minimum wage only accelerates this trend, as small businesses can’t afford to hire new workers.


2 posted on 05/13/2014 3:31:49 AM PDT by samtheman
[ Post Reply | Private Reply | To 1 | View Replies]

To: John W

I could live out my life perfectly happy to never go to another mall. Hate them.


3 posted on 05/13/2014 3:34:54 AM PDT by ilovesarah2012
[ Post Reply | Private Reply | To 1 | View Replies]

To: John W

Don’t they know that they’re not supposed to report this, like homelessness? Interesting that that problem has vanished since Bush left office.


4 posted on 05/13/2014 3:36:08 AM PDT by St_Thomas_Aquinas ( Isaiah 22:22, Matthew 16:19, Revelation 3:7)
[ Post Reply | Private Reply | To 1 | View Replies]

To: John W

The two biggest Internet stores are Amazon and Rakuten - both reliable and offer tens of thousands of items at best price. There is no longer a need to drive to the mall when you can shop online and have any thing you want shipped directly to your door with the click of a mouse.

The mall-driven brick business door model is becoming rapidly obsolete in our digital e-economy.


5 posted on 05/13/2014 3:40:00 AM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
[ Post Reply | Private Reply | To 1 | View Replies]

To: John W

There is a certain irony in this, given that Sears started as a mail order business.


6 posted on 05/13/2014 3:41:06 AM PDT by Lonesome in Massachussets (This is known as "bad luck". - Robert A. Heinlein)
[ Post Reply | Private Reply | To 1 | View Replies]

To: John W
Sure signs of a dying mall.

Radio Shack moves out.
Food Court Shrinks.
Retail space is leased to local government.
Anchor restaurants away from the food court close.
Stores like Old Navy and shoes stores move out.
Parking lot looks like a third world nation road.

7 posted on 05/13/2014 3:45:35 AM PDT by cva66snipe ((Two Choices left for U.S. One Nation Under GOD or One Nation Under Judgment? Which one say ye?))
[ Post Reply | Private Reply | To 1 | View Replies]

To: goldstategop

I ordered fish food from Amazon Prime. Was supposed to come yesterday. Wasn’t on porch at 9:00 last evening but delivery must have come during the night direct from one of their two local warehouses as it was here this morning at 4:30.


8 posted on 05/13/2014 3:46:32 AM PDT by Portcall24 (aer)
[ Post Reply | Private Reply | To 5 | View Replies]

To: cva66snipe

Malls worked as long as people had no place else to go. That was true in the pre-Internet Age economy.

But Amazon came along and changed it all.


9 posted on 05/13/2014 3:47:17 AM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
[ Post Reply | Private Reply | To 7 | View Replies]

To: cva66snipe
Sure signs of a dying mall.

And urban ferals start using it as a fight club.

10 posted on 05/13/2014 3:49:17 AM PDT by ScottinVA (Obama is so far in over his head, even his ears are beneath the water level.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: Portcall24

Free overnight delivery has been the one thing that has extinguished the mall. Amazon Prime is a pretty good deal at $79 a year and the fee more than makes up for the price because one saves a bundle on shipping costs. Amazon is very profitable.


11 posted on 05/13/2014 3:49:54 AM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
[ Post Reply | Private Reply | To 8 | View Replies]

To: John W
I'm no fan of Obama, but this goes way beyond him. This nation has been plagued with a problem of overbuilt retail space for decades. If you look at the ratio of retail space to population in this country since World War II, you'll find that this was relatively stable until the 1980s then increased dramatically after that.

The simple truth is that even without the growth of internet sales, we don't need all the shopping centers that have been built over the last 50 years.

12 posted on 05/13/2014 3:52:55 AM PDT by Alberta's Child ("What in the wide, wide world of sports is goin' on here?")
[ Post Reply | Private Reply | To 1 | View Replies]

To: ilovesarah2012
I don't always "carry", but when I do, it's always at a mall.
The vast majority of what I used to buy at malls I now buy online. No great loss.
13 posted on 05/13/2014 3:55:42 AM PDT by Psalm 73 ("Gentlemen, you can't fight in here - this is the War Room".)
[ Post Reply | Private Reply | To 3 | View Replies]

To: Alberta's Child
I see you've changed your tagline:
("What in the wide, wide world of sports is goin' on here?")

Who's better than Slim Pickens?

14 posted on 05/13/2014 3:58:26 AM PDT by Psalm 73 ("Gentlemen, you can't fight in here - this is the War Room".)
[ Post Reply | Private Reply | To 12 | View Replies]

To: ScottinVA

Thats probably most of it.


15 posted on 05/13/2014 3:58:53 AM PDT by hopespringseternal
[ Post Reply | Private Reply | To 10 | View Replies]

To: John W
Sears Chief Executive Eddie Lampert last week said he plans to close more stores to help return the company to profitability.

Go on Eddie...rip up the planks of the deck to make a fire to keep warm. That will keep your ship seaworthy....

16 posted on 05/13/2014 4:00:10 AM PDT by relictele (Principiis obsta & Finem respice - Resist The Beginnings & Consider The End)
[ Post Reply | Private Reply | To 1 | View Replies]

To: goldstategop

Why cant the gays make up the differance in all those gay freindly stores?


17 posted on 05/13/2014 4:00:53 AM PDT by Craftmore
[ Post Reply | Private Reply | To 9 | View Replies]

To: goldstategop
But Amazon came along and changed it all.

Seriously so did Walmart/Sams. A mall in my county has a competitive use restriction on the property held by guess who? It seems a small parcel was purchased to expand to a super store and a use stipulation on the rest of the 50 acre parcel the mall sits on was put into place. The mall sits empty as new strip malls prosper and increase.

I'd still rather go to a specialty store especially for something I need yesterday and want to see first before purchase. About the only thing I use Amazon for is occasionally buying hard to find CD's and I buy most CD's in a second hand book/CD store for prices Amazon can't even meet.

18 posted on 05/13/2014 4:01:26 AM PDT by cva66snipe ((Two Choices left for U.S. One Nation Under GOD or One Nation Under Judgment? Which one say ye?))
[ Post Reply | Private Reply | To 9 | View Replies]

To: John W

True, people don’t have discretionary income to spend.

I’m in stores a few times per week shopping with a friend that can afford to do so. Basic items, mostly.

Most operations are ghost-towns. With the exception of a few restaurants and one particular open-air mall, the rest haven’t seen much traffic in 5 years.

How they stay afloat is beyond me. It must be loans because there certainly isn’t the traffic there to survive.

A friend’s store is meager business and I doubt he makes enough to pay the rent each month. He switched locations because his last place didn’t come close to paying the rent nor utilities, etc.

He’s in a cheaper place but it ain’t no great shakes.

I expect we’ll see a lot of empty store fronts, malls, restaurants in the next couple years.

The outer mall areas, some of those stores are empty now, having done a small amount (but not enough) business 5 years ago.

We’re in Depression II, IMHO. Some folks just haven’t realized it yet.


19 posted on 05/13/2014 4:02:53 AM PDT by F15Eagle (1Jn4:15;5:4-5,11-13;Mt27:50-54;Mk15:33-34;Jn3:17-18,6:69,11:25,14:6,20:31;Ro10:8-11;1Tm2:5-6;Ti3:4-7)
[ Post Reply | Private Reply | To 1 | View Replies]

To: John W

Another factor is high rent. Many stores can’t keep up with the payments. So they move to a strip shopping center or build a standalone store far away where the feral city youth can’t get to them. Cheaper and keeps the business safe from thieves and lowlifes.


20 posted on 05/13/2014 4:03:03 AM PDT by fatnotlazy
[ Post Reply | Private Reply | To 1 | View Replies]

To: Craftmore

Sure didn’t work for J.C. Penney’s.

Now the NFL is going to give it a try.

Who are the people buying the jerseys?

Wait, don’t answer that.


21 posted on 05/13/2014 4:04:48 AM PDT by F15Eagle (1Jn4:15;5:4-5,11-13;Mt27:50-54;Mk15:33-34;Jn3:17-18,6:69,11:25,14:6,20:31;Ro10:8-11;1Tm2:5-6;Ti3:4-7)
[ Post Reply | Private Reply | To 17 | View Replies]

To: ilovesarah2012
I used to like the malls pre-Internet. During the 1980s, I would hang out there. I'd get a book or a magazine, an Orange Julius or an Au Bon Pain coffee, and just sit in the food court while my wife or girlfriend shopped. I'd watch all those 1980s girls walk buy with their Pat Benatar haircuts and their best Molly Ringwald "pouty" expressions. The guys all tried to look like George Michael - but never figured out why.

The Food Court always had some interesting food items, like shish kabobs, giant pretzels, and tacos - which were a novelty food back on those days. The shops in the mall were pretty much 90% women's clothes. Didn't have Apple Stores, mini-Best Buys and Sharper Images like they do today. They did have a Radio Shack, which was just as awful then as it is today.

Don't forget the CD stores. Except I never bought one there because they always seemed to charge $17.99 for a CD at the mall. They did have "cut-out bins" with discounted music but they always seemed to be filled with Pablo Cruise, Toto and Huey Lewis & The News recordings.

22 posted on 05/13/2014 4:05:04 AM PDT by SamAdams76
[ Post Reply | Private Reply | To 3 | View Replies]

To: John W

The low lifes start hanging out at the mall and decent people find that buying on line is a lot safer spells doom for the malls. Plus mall owners are big demorats and ban concealed carry. Screw ‘em.


23 posted on 05/13/2014 4:08:52 AM PDT by HANG THE EXPENSE (Life's tough.It's tougher when you're stupid.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: F15Eagle

It’s already been termed the Great Recession. They’ve also stopped talking about the dips.


24 posted on 05/13/2014 4:09:58 AM PDT by meatloaf (Impeach Obama. That's my New Year's resolution.)
[ Post Reply | Private Reply | To 19 | View Replies]

To: John W
Another mall killer I haven't seen mentioned is the introduction of bus routes and terminals to local malls - often at the insistence or threats of local pols.

Gee, you mean people don't want to shop with roving packs of feral youths?

25 posted on 05/13/2014 4:10:03 AM PDT by AAABEST (Et lux in tenebris lucet: et tenebrae eam non comprehenderunt)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SamAdams76

One Toto song I liked

http://www.youtube.com/watch?v=zwqBLQPwYvw

And one, gasp, Huey Lewis -— it’s a remake.

http://www.youtube.com/watch?v=njrhymfC1WU

As for the rest, I try to avoid it.


26 posted on 05/13/2014 4:10:21 AM PDT by F15Eagle (1Jn4:15;5:4-5,11-13;Mt27:50-54;Mk15:33-34;Jn3:17-18,6:69,11:25,14:6,20:31;Ro10:8-11;1Tm2:5-6;Ti3:4-7)
[ Post Reply | Private Reply | To 22 | View Replies]

To: John W
"Don't bother looking for the paragraph, or for that matter even the sentence, that mentions The Obama Economy in any great detail. Pay no attention to The Failure Behind The Curtain."

Well it isn't helping but brick and mortar stores are mostly dying because of the internet. The time and effort saved when you sit down in front of a computer and check out your fav retail sites OR use Google/Bing etc. to search is hard to beat. Especially when gas is near 4 bucks a gallon and everything at the malls is usually more expensive.

27 posted on 05/13/2014 4:10:57 AM PDT by Mad Dawgg (If you're going to deny my 1st Amendment rights then I must proceed to the 2nd one...)
[ Post Reply | Private Reply | To 1 | View Replies]

To: cva66snipe

“Sure signs of a dying mall.”

You left out “Tattoo parlors renting space”...

Here in NJ we had a “stillborn” mall; the Xanadu mall in the Meadowlands (next to Giants Stadium) was completed years ago and never opened due to lack of shoppers. The retailers that were signed on all opted for the minimum space they could occupy, and it never opened its doors. It is a big ugly thing, complete with indoor ski slope; very eerie when you stand outside it.

A couple of years after it was finished without opening, officials admitted it was built for foreign tourists to NYC. In the meantime, every Saturday the “replacement Americans” (mainly Hispanic & Asian) flock to the Meadowlands flea market in the adjoining parking lot to buy tools and household goods from the Americans that no longer use them - all transactions in cash, of course. Right on about the Third World road!


28 posted on 05/13/2014 4:12:15 AM PDT by kearnyirish2 (Affirmative action is economic warfare against white males (and therefore white families).)
[ Post Reply | Private Reply | To 7 | View Replies]

To: Portcall24

I ordered a machinist tool from McMaster Carr and it was delivered to my doorstep in the boondocks early the next day by FedEx. They both seem to work together and now have my patronage


29 posted on 05/13/2014 4:12:52 AM PDT by Recompennation (Constitutional protection for all not ju st selectively for Democrats.)
[ Post Reply | Private Reply | To 8 | View Replies]

To: SamAdams76

But they were overpriced to begin with. It wasn’t a problem as long as they had captive customers.

Once that was gone, they began hemorrhaging cash and malls began closing left and right.

They’ll still exist but they’re a shadow in the retail economy of what they used to be in the 70s and 80s.


30 posted on 05/13/2014 4:13:36 AM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
[ Post Reply | Private Reply | To 22 | View Replies]

To: meatloaf

Sure, they gotta cover for their lying king.

As long as they can....


31 posted on 05/13/2014 4:14:03 AM PDT by F15Eagle (1Jn4:15;5:4-5,11-13;Mt27:50-54;Mk15:33-34;Jn3:17-18,6:69,11:25,14:6,20:31;Ro10:8-11;1Tm2:5-6;Ti3:4-7)
[ Post Reply | Private Reply | To 24 | View Replies]

To: John W

Malls started failing long before Zero’s attack on the economy and before Internet shopping. It started when women started feeling unsafe at the mall. I’ll leave it up to you to speculate why.


32 posted on 05/13/2014 4:14:41 AM PDT by dangerdoc
[ Post Reply | Private Reply | To 1 | View Replies]

To: kearnyirish2
Had to look that up


33 posted on 05/13/2014 4:16:14 AM PDT by F15Eagle (1Jn4:15;5:4-5,11-13;Mt27:50-54;Mk15:33-34;Jn3:17-18,6:69,11:25,14:6,20:31;Ro10:8-11;1Tm2:5-6;Ti3:4-7)
[ Post Reply | Private Reply | To 28 | View Replies]

To: Lonesome in Massachussets

Still is..... Lands End is a Sears company


34 posted on 05/13/2014 4:17:42 AM PDT by bert ((K.E. N.P. N.C. +12 ..... History is a process, not an event)
[ Post Reply | Private Reply | To 6 | View Replies]

To: John W

Dead malls.com

Great site with state by state info on malls that died.


35 posted on 05/13/2014 4:17:47 AM PDT by exit82 ("The Taliban is on the inside of the building" E. Nordstrom 10-10-12)
[ Post Reply | Private Reply | To 1 | View Replies]

To: AAABEST

Actually, the businesses in the mall are often the strongest advocates for those mass transit facilities. They rely on this for their low-income employees.


36 posted on 05/13/2014 4:23:30 AM PDT by Alberta's Child ("What in the wide, wide world of sports is goin' on here?")
[ Post Reply | Private Reply | To 25 | View Replies]

To: dangerdoc; exit82

I know of one personally that closed for that reason. And yes, it’s on dead malls dot com.


37 posted on 05/13/2014 4:23:59 AM PDT by F15Eagle (1Jn4:15;5:4-5,11-13;Mt27:50-54;Mk15:33-34;Jn3:17-18,6:69,11:25,14:6,20:31;Ro10:8-11;1Tm2:5-6;Ti3:4-7)
[ Post Reply | Private Reply | To 32 | View Replies]

To: goldstategop

It is 99 dollars a year now but still a bargain.


38 posted on 05/13/2014 4:27:18 AM PDT by napscoordinator (Governor Scott Walker 2016 for the future of the country!)
[ Post Reply | Private Reply | To 11 | View Replies]

To: F15Eagle

An absolute disgrace; when our government sold the US public on the benefits of globalization years ago, they never told Americans this would mean that if they were lucky, they’d be serving wealthy foreigners in a mall food court for minimum wage...

I was shocked how they were able to keep that mall out of the Super Bowl coverage; it is right there.


39 posted on 05/13/2014 4:29:10 AM PDT by kearnyirish2 (Affirmative action is economic warfare against white males (and therefore white families).)
[ Post Reply | Private Reply | To 33 | View Replies]

To: AAABEST

You’re right. The gangs have wrecked a couple of malls in my area. Many of these malls invested little to nothing in security, so the gangs roamed the malls trashing them, assaulting customers and stealing merchandise. The parking lots, particularly at night, were unsafe. One local mall has spent some money and effort on better security. There is even a local police substation in the mall. Much of the problem has been relieved.


40 posted on 05/13/2014 4:29:11 AM PDT by fatnotlazy
[ Post Reply | Private Reply | To 25 | View Replies]

To: F15Eagle

Who are the people buying the jerseys?

Sam’s jersey is selling like hotcakes right now. However, that won’t last. Tebow was the same selling like crazy, now you can see them in the dollar rack and free on E-Bay. Tebow and Sam are fads.....quickly rise and quickly fall.


41 posted on 05/13/2014 4:29:21 AM PDT by napscoordinator (Governor Scott Walker 2016 for the future of the country!)
[ Post Reply | Private Reply | To 21 | View Replies]

To: John W
I'll tell you what has happened to the Gallery at Military Circle, formally known as Military Circle Mall on Norfolk. It's become “Military Ghetto Mall.” With all the cheap transportation from the low income areas of Norfolk, the hoods started hanging out there, driving the paying customers away. There have been shootings in the parking lot. The last time I went there was when Sears was still open. I went straight into Sears, got my tools, and went straight out. Too dangerous for a Caucasian to be there.

Used to be a nice mall, in the 80’s.

42 posted on 05/13/2014 4:30:57 AM PDT by fredhead (Join the Navy and see the world.....77% of which is covered in water.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: cva66snipe

In 2008, a mall inside Columbia, SC went up for sale for the asking price of $24 million. Sale price was $4 million. Could not have bought the concrete for that price. Lucky seller.


43 posted on 05/13/2014 4:31:06 AM PDT by The_Media_never_lie (The media must be defeated any way it can be done.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: napscoordinator

I’m wondering what fools will be in the stands cheering on the Rams.

Oh well. Not the America I used to know.


44 posted on 05/13/2014 4:31:43 AM PDT by F15Eagle (1Jn4:15;5:4-5,11-13;Mt27:50-54;Mk15:33-34;Jn3:17-18,6:69,11:25,14:6,20:31;Ro10:8-11;1Tm2:5-6;Ti3:4-7)
[ Post Reply | Private Reply | To 41 | View Replies]

To: Recompennation

I’ve never heard of McMaster. Just looked at their web page and it’s very cool how it is arranged with the small photos of merchandise.


45 posted on 05/13/2014 4:32:46 AM PDT by Portcall24 (aer)
[ Post Reply | Private Reply | To 29 | View Replies]

To: F15Eagle

They may have to pay fans to watch but not the first few games but after that definitely.


46 posted on 05/13/2014 4:33:03 AM PDT by napscoordinator (Governor Scott Walker 2016 for the future of the country!)
[ Post Reply | Private Reply | To 44 | View Replies]

To: dangerdoc

“It started when women started feeling unsafe at the mall. I’ll leave it up to you to speculate why.”

Good point; the carjacking murder at the Short Hills mall here in NJ around Christmas didn’t help (a few gibsmedats in one of their mother’s cars stealing an SUV from white people). This mall is in a very wealthy area, but the gibsmedats figured out a way to get there. Internet shopping has further reduced the already-minimal contact between makers & takers...


47 posted on 05/13/2014 4:33:11 AM PDT by kearnyirish2 (Affirmative action is economic warfare against white males (and therefore white families).)
[ Post Reply | Private Reply | To 32 | View Replies]

To: kearnyirish2

I knew it would have the result it did, when I started hearing the buzzword around the offices I worked.

Even as a kid when manufacturing moved offshore and steel mills began to close, you could see it.

There’s a steel mill in a town not too far from me. It has been a ghost town since the 1980’s.

One building has been taken over and used by a new business.

But you see all the other buildings and the housing around there.....ain’t never coming back.

If it couldn’t come back in the 80’s and 90’s, it sure won’t now.


48 posted on 05/13/2014 4:35:10 AM PDT by F15Eagle (1Jn4:15;5:4-5,11-13;Mt27:50-54;Mk15:33-34;Jn3:17-18,6:69,11:25,14:6,20:31;Ro10:8-11;1Tm2:5-6;Ti3:4-7)
[ Post Reply | Private Reply | To 39 | View Replies]

To: F15Eagle

“We’re in Depression II, IMHO. Some folks just haven’t realized it yet.”

At this point everyone but government workers realize it. Dems are still in the game because their media has convinced people that it would be worse under white male Republican leadership. It is the only way the Dems can stay in business - lies.


49 posted on 05/13/2014 4:36:15 AM PDT by kearnyirish2 (Affirmative action is economic warfare against white males (and therefore white families).)
[ Post Reply | Private Reply | To 19 | View Replies]

To: St_Thomas_Aquinas
Don’t they know that they’re not supposed to report this, like homelessness?

Don't worry. When, if ever, the Emmanuel Goldstein Party gets back in power, the MSM will be all over issues like homelessness and chronic unemployment. Every 12 or 16 years or so, the powers that be like to offer up someone from the so-called "opposition" party for President. It provides a fresh focus for hatred. I mean, at this point, most sheeple have only a very dim recollection of George Bush.

50 posted on 05/13/2014 4:38:20 AM PDT by Flick Lives ("I can't believe it's not Fascism!")
[ Post Reply | Private Reply | To 4 | View Replies]


Navigation: use the links below to view more comments.
first 1-5051-100101-128 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson