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Amazon taking over empty Sears & JCP, won't save U.S. malls

Former Sears - Canada CEO, Mark Cohen, calls BS on the idea that Amazon's move to absorb vacant Sears & JC Penny space would save American malls:

  • Amazon is in talks with Simon Property Group (SPG) — the biggest mall owner in the U.S. — to convert current or former Sears and J.C. Penney stores into monstrous distribution centers.

  • Amazon could get access to prime real estate on the cheap in a bid to speed up last-mile deliveries and reduce shipping costs.

  • Amazon's location decisions are predicated on their ability to better connect/deliver to their customers.

  • A problem for Simon, however, is that an Amazon fulfillment center wouldn’t really be a traffic driver to the mall other than employees showing up to go to work. Anchor stores such as J.C. Penney and Macy’s for decades served as the primary traffic driver for malls throughout the country.

#Covid19 #Malls #SimonPropertyGroup #AMZN #Sears #JCP

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