More trouble for malls: A new wave of closures from Gap, Victoria's Secret and others

[Applewood]

More trouble for malls: A new wave of closures from Gap, Victoria's Secret and others

Mall and shopping center owners across the U.S. are preparing to be hit by more store closures, following a brutal year that included department store chains like Bon-Ton and Sears going bankrupt, Toys R Us liquidating and even Walmart shutting dozens of its club stores.

Now, a slew of specialty retailers like Gap and L Brands are getting serious about downsizing, which will leave more vacant storefronts within malls until landlords are able to replace tenants.

…

All things considered, U.S. mall owners like Simon, Macerich, Taubman, Seritage, Brookfield and Unibail-Rodamco-Westfield must look for new ways to fill these gaps, as there aren't many retailers today opening new stores at the same size and scale as before the Great Recession.

More at:

https://www.cnbc.com/2018/11/29/a-wave-of-closures-from-gap-victorias-secret-and-others-to-hit-malls.html?&qsearchterm=malls

[Applewood]

A number of stores are trying  to renegotiate their leases with mall owners.  Owners have been gouging retailers on rent and providing little other than space in return.  If malls are going to survive, they have to be willing to renegotiate and provide more services such as better security.  Otherwise, the malls are dead.

[goodwithagun]

A number of stores are trying  to renegotiate their leases with mall owners.  Owners have been gouging retailers on rent and providing little other than space in return.  If malls are going to survive, they have to be willing to renegotiate and provide more services such as better security.  Otherwise, the malls are dead.

One of the issues is that the mall owners have to heat and air conditioning tons of cubic feet of hallway, sometimes going all the way up to the roof. That’s not cheep. The brick and mortars that are still doing okay are strip malls.

[Restored]

It only takes a few shootings to kill an upscale mall.

[Applewood]

One of the issues is that the mall owners have to heat and air conditioning tons of cubic feet of hallway, sometimes going all the way up to the roof. That’s not cheep. The brick and mortars that are still doing okay are strip malls.

The mall near  me had a McDonald's in the food court that was doing a booming business.  Then one day  the McDonald's was no more.  Story I heard was that the rent wax too high and that it did not include utilities.  There was also an extra fee for maintenance of the common dining area McDonald's shared with the other concessions in the food court.    There is a stand-alone McDonald's on the highway about 5 minutes away from the mall.  If what I heard about the rent at the mall is true, I guess McDonald's figured it was more cost effective to dump the mall location and keep the stand-alone restaurant.

[mirraflake]

It only takes a few shootings to kill an upscale mall.

Yep, as Chris Rock quotes "There are malls white people go to and malls where people used to go to"

@Restored 

[Frank Cannon]

following a brutal year that included department store chains like Bon-Ton

They have to drag in some regional shit store that had been mismanaged for decades as a sign mall trouble? They were barely anchor stores to begin with.

[dfwgator]

It only takes a few shootings to kill an upscale mall.

Or allow public transit access to a mall.