![]() ![]() continues to rise, getting close to customers means building fulfillment centers in smaller spaces, which goes against the giant outer-city warehouse model that retailers have relied on for decades. But as the population density of the U.S. To get to a place where most retailers can reliably compete with - or even surpass - Amazon's delivery schedules, experts argue that products are going to have to get closer to the customer. "And Amazon has now said, 'We can get anything to you pretty much next day.'" "It's kind of that Amazon effect, where shipping used to take a week for your retail order," said Mitch Hayes, the VP of retail and ecommerce at Swisslog, a logistics automation company. Long before the pandemic kept people at home in front of their computers, buying everything they needed to see out lockdown online, malls were on the decline and ecommerce was on the rise. But soon, it may also be their savior - sort of, at least. The company isn’t letting a few antitrust investigations slow down its expansion efforts - quite the opposite, it seems.Ecommerce has decimated American malls. With Prime Day delayed but seemingly inevitable, Amazon is on the lookout for any and every opportunity to increase its operations, even if that comes at the expense of smaller business owners. Penney and Sears have online shipping options, too, but they just can’t match the shipping power of Amazon.Īmazon’s move into mall spaces would be perhaps the most on-the-nose display of the company’s parasitic tendencies yet. ![]() The ongoing COVID-19 pandemic has exacerbated that downward trend to an immense degree. But it would also deal a massive blow to the swiftly dying mall industry.ĭepartment stores are long-standing institutions in the U.S., but they’ve been struggling for some years now, thanks to the rise of e-commerce led by Amazon. Good for Amazon and Simon, bad for malls - If an agreement were to be reached between Simon and Amazon, both companies would benefit monetarily. Experts estimate that space in those once-coveted plots could be as low as $4 per square foot, where many Amazon warehouse locations pay close to $10 per square foot. Penney stores and 11 Sears stores, according to its public filings. WSJ’s sources said that it wasn’t clear how many stores are under consideration for Amazon’s purchase and that the deal could definitely still fall through if the companies fail to reach an agreement.Īs of May, Simon owned 63 J.C. If it comes to fruition, the move would be a savvy one for Amazon and a death knell for the mall industry.ĭetails are scarce - Specifics about the potential deal are still very much under wraps. Both department store chains have filed for chapter 11 bankruptcy protection and shut down locations across the country.Īmazon has made no comment or announcement about its discussions with Simon just yet. Penney and Sears stores to order fulfillment centers, according to people familiar with the matter. The e-commerce giant has been in talks with Simon Property Group - the largest owner of mall properties in the United States - to convert old J.C. ![]() Yes, the very company that’s forced brick-and-mortar stores across the country to shut down is now looking to buy up those properties for its own empire. Amazon’s latest expansion effort involves taking over abandoned mall spaces, The Wall Street Journal reports. ![]()
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