Malls anchored by Sears, J.C. Penney, and Macy’s could be at risk
Department stores may eventually need to close as many as 800 locations, which could spell trouble for the malls they anchor, according to research by Green Street Advisors referenced in The Wall Street Journal.
The report notes that, since 2006, departments stores’ average sales per foot has dropped 24 percent to $165.
To return to 2006 productivity levels, Sears will have to close as many as 300 stores; Penney may need to close 320; Nordstrom, 30; and Macy’s, 70, said Green Street, as reported by Business Insider. That would be as much as 30 percent of those chains’ current total.
A Green Street analyst noted that brands that used to be available exclusively in department stores can now be purchased online.
The research company notes these closures could threaten the malls those department stores typically anchor.
“‘Troubled’ malls anchored by Sears, J.C. Penney, and Macy’s are at the greatest death spiral risk,” the report says.
Green Street said it could not make the report available to JCK.