Abandoned mall stores may become Amazon next fulfillment centers

Simon Property groups is in talks with Amazon to convert its abandoned malls into Amazon distribution hubs; this is a good step during the COVID-19 pandemic.

Simon Property to sell malls to Amazon
https://www.flickr.com/photos/national1/

Simon Property Group, one of the biggest shopping mall real estate in the United States, has been in talks with Amazon to transform its department stores into Amazon distribution hubs, according to the Wall Street Journal.

In the case of Simon Property, the anchor departments like Sears and J.C Penney are now a burden to the retail real estate manager. Moreover, transforming their pale mannequins into Amazon warehouses makes complete sense.

The transformation from showroom to the storehouse will include everything from sweaters and books to electronics and kitchenware. However, this isn’t the first time that Amazon has turned the mall real estate into fulfillment centers.

Back in 2019, the online retailer obtained a physical footprint in Akron, which later turned into a distribution center.

Now the days are gone when teens and parents stood in lines around the retail stores. Now, shoppers prefer to do all the shopping online.

These days Mall is lifestyle affairs that provide every kind of boutique branded shop. The big boxes spaces which Amazon is negotiating are 100,000 square foot multi-story giants that aren’t going anywhere for a long time.

The Journal stated that if the deal becomes successful, Simon will rent the place for a discount. The rents would be as low as $4 per square to $19 per square.

The Wall Street Journal
https://www.flickr.com/photos/sarahmarshall/

Nowadays, shopping malls are inviting anything which offers them money. They have already tried schools and medical stores, however, the COVID-19 pandemic has affected all those plans badly. Every shopping retail has suffered badly due to the global pandemic.

The Journal stated that malls are in places that make them attractive distribution hubs. Amazon has already bought some of these sites.

Currently, this is the best move for the company. The Amazon ownership will be a better deal for the real estate than totally abandoning and leaving the place.

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