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WSJ: Department Stores Become a Liability for Shopping Mall Owners

WSJ: Department Stores Become a Liability for Shopping Mall Owners

By    |   Tuesday, 23 February 2016 11:35 AM

The growth in online shopping and changing consumer tastes are pressuring mall owners who say large department stores are not bringing in foot traffic the way they used to.

Department-store chains like Macy’s and Sears would need to close about 500 stores to have the same sales a square foot as 10 years ago, according to The Wall Street Journal, which cites a report by real-estate research firm Green Street Advisors.

Losing major anchor tenants puts major pressure on malls that aren’t in prime locations near major interstates or commercial centers. Some of those mall owners are trying to fill vacant space with restaurants, movie theaters and grocery stores.

“Those are the new anchors,” Daniel Busch, a senior analyst at Green Street quoted by the WSJ. “No longer should you have five department stores.”

Macy’s, which operates the Bloomingdale’s and Macy’s store chains, on Tuesday said that same-store sales fell 4.3 percent during the holiday season, saying warmer weather kept shoppers away. In January, the retailer announced plans to close stores and cut more than 2,000 jobs to cut costs.

The company's net income fell to $543 million, or $1.73 per share, in the three months ended Jan. 30, from $793 million, or $2.26 per share, a year earlier, according to Reuters.

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The growth in online shopping and changing consumer tastes are pressuring mall owners who say large department stores are not bringing in foot traffic the way they used to.
department stores, retail, mall, shopping
214
2016-35-23
Tuesday, 23 February 2016 11:35 AM
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