Is This the Future of America's Malls?
Before the so-called "retail apocalypse" began causing havoc with mall stalwarts, leaving holes in even high-end shopping centers, top-tier operators like Simon Property Group (NYSE: SPG) held a lot of power. They could demand long-term leases, fairly inflexible terms, and sometimes even a cut of the profits.
That's because while some older shopping centers struggled, through the 1990s and into the early part of the current decade, malls have been a growth business. Over the last 20-plus years, in fact, retail sales have steadily (and dramatically) grown, which helped companies like Simon, the largest mall operator in the United States.
Now, of course, retail has changed. The rise of digital, led by Amazon, has caused mall staples including Radio Shack, Abercrombie & Fitch, Sears Holdings (NASDAQ: SHLD), BCBG, Gymboreee, and Macy's (NYSE: M) to either close entirely or shutter stores. That's only a sample of the chains closing locations in 2017, with more closures expected in years ahead.
Source: Fool.com
Simon Property Group Stock
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