The Name That Mall REIT Investors Should Be Shopping
Were it just one major retailer presenting the prospect, it could be dismissed as brainstorming. When two different retailers bring up the same idea at the same time in the midst of a "retail apocalypse," though, perhaps there's something to it.
The first of those retailers in question is department store chain Macy's (NYSE: M). Along with a preliminary look at its fourth-quarter numbers last week, the company explained part of its rebuilding plan included closing 125 mall stores within the next three years, yet added it would explore "off-mall formats." Translation: adding strip mall stores. Beauty venue Sephora, owned by LVMH (OTC: LVMHF) (OTC: LVMUY) -- better known as LVMH Moet Hennessy Louis Vuitton -- also announced last week it aims to open 100 new stores this year, most of them not in malls.
It's hardly a death blow to the American mall. But it's likely a glimpse of what's to come. As such, retail real estate investors may want to start shifting their focus to real estate investment trusts (REITs) with a little more exposure to neighborhood shopping centers and a little less exposure to traditional malls. In that regard, one stands out above the rest.
Source Fool.com
