Shopping malls closing
The reasons why malls across the US are closing down more than ever
The American shopping mall is in crisis. We explore the variety of reasons why malls cannot keep their stories afloat and are becoming vacant wastelands. Some insiders are saying that a third of all U.S. shopping malls are projected to close as ‘Space Available’ signs go up all over the U.S.
It’s not about laziness. Going to the mall eats up half your day. Going online and buying what you need can be done before breakfast. And you don’t have to fight for a parking spot. People have busy lives. They don’t have time to mess around at an overpriced mall and fight the crowds.
Two important points I think were missed in the video: Class B and C malls account for most of the closings – elite class A malls are doing just fine, and are expected to out live the others through the next 10 years. Also, outdoor malls are faring better than indoor malls. I’m guessing it is the more prestigious shops that wish to more fully control the customer experience.
Shopping malls closing
About one-third of malls in the U.S. will shut their doors in the coming years, retail analyst Jan Kniffen told CNBC.
Macy’s and its fellow retailers in American malls are challenged by an oversupply of retail space as customers migrate toward online shopping. As a result, about 400 of the country’s 1,100 enclosed malls will fail in the upcoming years. Of those that remain, about 250 will thrive and the rest will continue to struggle.
My first post about this situation came out last year, actually it was on November 23rd 2016. If you missed this post, here is a direct link: Real Estate Bubble 2017
My second post about the situation came out February 28 of this year. Again, if you missed this post here is a direct link: Commercial Real Estate Bubble
Shopping malls closing
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Class B and C malls account for most of the closings – elite class A malls are doing just fine, and are expected to out live the others through the next 10 years. Also, outdoor malls are faring better than indoor malls. I’m guessing it is the more prestigious shops that wish to more fully control the customer experience.
People are much fatter today than in 1980’s. They don’t want to park their huge SUV’s in huge parking lot, and walk hundreds of feet to enter the mall and walk all the way to the store and shop.
It’s not about laziness. Going to the mall eats up half your day. Going online and buying what you need can be done before breakfast. And you don’t have to fight for a parking spot. People have busy lives. They don’t have time to mess around at an overpriced mall and fight the crowds.