[8/31/16] America’s most iconic retailers are closing stores, and it’s left many speculating about the future of shopping malls.
Macy’s recently announced it is closing 100 stores, following similar announcements from Sears, Gap, and Abercrombie & Fitch.
The decline in traffic has been stunning: In 2010, there were 35 million visits to malls, according to the real-estate research firm Cushman and Wakefield. By 2013, there were 17 million visits — a 50% decline.
Analysts expect upcoming data will show an even steeper drop in mall traffic.
“The shift in how people are shopping means the future of retail fulfillment is no longer just about more stores or shopping centers,” Cushman and Wakefield analysts wrote, adding that stores would need to invest in online options.
About 15% of malls will disappear in the next decade, according to a study by Green Street Advisors.
There are numerous reasons for the brick-and-mortar apparel industry’s decline.
Americans are increasingly choosing to spend on technology and experiences like vacations, leaving less money for apparel. This has led to a spike in discount retailers like TJ Maxx. When people do shop at traditional full-price retailers…CONTINUE READING