First, the department store closes. Then, the apparel shops try to scoot out of deals. This is a one-two punch that could trigger a wave of malls shutting for good over the next 12 months.
More than 50% of the department stores anchoring America’s malls are going to close permanently by the end of next year, a new report by Green Street Advisors predicts. There are about 1,000 malls still open in the U.S. And roughly 60% of those have department store retailers, such as Macy’s, as anchor tenants, the commercial real estate services firm said.
The coronavirus pandemic that has slammed the U.S. economy is speeding up the demise of department stores. As Covid-19 forced the likes of J.C. Penney, Macy’s, Nordstrom and Neiman Marcus to shut shops temporarily, the circumstances became even more dire for these already struggling companies. Slumping sales and an overhang of debt could push some into bankruptcy. Strained for cash, these retailers are scrambling for additional liquidity….