E-commerce, one of the the most cited the culprits behind America’s dying malls, may soon to become the shopping center. Signal The X-Files theme music.
The country’s main shopping center owner, Simon Property Group, is said to be in talks with Amazon to host distribution centers in some of their department store real estate, people aware of the le journal Wall Street. The companies discussed the conversion of stores previously occupied by JC Penny and Sears, once the hubs of mall traffic that drained revenue and formwork shops left and right in recent years, leaving behind huge desolate spaces that never lack give me goosebumps.
And all of those big box spider web spaces have apparently left an equally huge hole in Simon’s bottom line, otherwise I doubt they’ll consider giving their main real estate retailer a distribution center. Every tenant is better than no tenant, after all. Even though the rent for warehouse space is cheaper than that of department stores, as the Journal notes, at around $ 10 per square foot, compared to between $ 4 and $ 19 per square foot depending on location.
When it comes to Amazon, one of the most expensive and time consuming steps in the shipping process is that last mile Before the package arrives at your doorstep, the possibility of setting up their distribution centers closer to customers is therefore a matter of course. Last mile cost reduction was the driving force behind its Delivery Service Partner Program, a service launched in 2018 that Amazon push local deliveries to independent contractors. Last year, Amazon Logistics, the company’s in-house delivery arm, delivered a record 2.5 billion packages in the United States alone, per Forbes.
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According to the report, these talks have been going on for months, that is, before the coronavirus pandemic exploded in America and Simon’s stocks were inflated. almost 60% since the beginning of the year. It is not known exactly how many stores inside Simon malls are being considered for the move to distribution centers.
People familiar with the discussions told the Journal that Simon and Amazon are exploring buying occupied space at retailers in some cases, so it looks like even stores still open aren’t safe from Billots. Not that either the big chain seems long for this world: JC Penny filed for bankruptcy in May and Sears announced in November its intention to close 96 other stores, leaving the company with less than 200 locations nationwide.
It’s nice to see that even as an estimate 25 million Americans struggling to cover their basic living expenses after uninsured benefits drop during a literal pandemic, one of the world’s richest companies is still shoveling industries in its yawns, as usual. First liquor stores, then whole houses, health insurance… The sky is the limit for Bezos and co.! Or rather, it would be, if Amazon was not also space travel as well.
[[[[le journal Wall Street]