Skip to comments.Struggling malls suffer when Sears, Penney leave
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 ...
And of course, increasing the minimum wage only accelerates this trend, as small businesses can’t afford to hire new workers.
I could live out my life perfectly happy to never go to another mall. Hate them.
Don’t they know that they’re not supposed to report this, like homelessness? Interesting that that problem has vanished since Bush left office.
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.
There is a certain irony in this, given that Sears started as a mail order business.
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.
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.
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.
And urban ferals start using it as a fight club.
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.
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.
Who's better than Slim Pickens?
Thats probably most of it.
Go on Eddie...rip up the planks of the deck to make a fire to keep warm. That will keep your ship seaworthy....
Why cant the gays make up the differance in all those gay freindly stores?
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.
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.
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.
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.
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.
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.
It’s already been termed the Great Recession. They’ve also stopped talking about the dips.
Gee, you mean people don't want to shop with roving packs of feral youths?
One Toto song I liked
And one, gasp, Huey Lewis -— it’s a remake.
As for the rest, I try to avoid it.
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.
“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!
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
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.
Sure, they gotta cover for their lying king.
As long as they can....
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.
Still is..... Lands End is a Sears company
Great site with state by state info on malls that died.
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.
I know of one personally that closed for that reason. And yes, it’s on dead malls dot com.
It is 99 dollars a year now but still a bargain.
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.
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.
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.
Used to be a nice mall, in the 80’s.
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.
I’m wondering what fools will be in the stands cheering on the Rams.
Oh well. Not the America I used to know.
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.
They may have to pay fans to watch but not the first few games but after that definitely.
“It started when women started feeling unsafe at the mall. Ill 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...
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.
“Were in Depression II, IMHO. Some folks just havent 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.
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.