Wall Street Journal: Mall Owners Find Relief From Unlikely Source - Online Retailers
From The Wall Street Journal:
Online retailing has been chipping away at mall revenue for years. Now it is starting to make a contribution as well.
Retailers are converting empty mall space into makeshift distribution centers used for package pickup and returns of goods bought online. At the same time, online merchants are opening physical stores to reach more customers, either via short-term leases in pop-up stores or long-term tenancies like Amazon.com’s upcoming move into Manhattan’s Time Warner Center.
Amazon has been the most active, with 31 pop-up stores in shopping centers around the U.S., and it plans to roll out grocery stores.
Analysts and landlords still expect to see a dip in demand for retail space across the country as more retailers rethink their physical footprint.
“E-commerce doesn’t mean the death of the American shopping mall. But there are clearly too many malls in the U.S. and hundreds are likely to close or become irrelevant retail destinations over the coming decade,” said Andy McCulloch, managing director of real estate analytics at Green Street Advisors, a research and advisory firm.
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