May 9, 2016
Although it seems as if many retail chains are cutting back or shutting down completely, some analysts believe more stores need to close. This is especially the case for malls dealing with with struggling department stores. According to Green Street Advisors, mall department stores are closing at too slow a rate to promote profitability.
In its recent “Mall Sector Special Report,” Green Street pointed out that, while anchors are still important mall components, department stores are not, especially as other “traffic drivers” are in existence. With department store sales and square footage dropping by 20% since 2006, “to restore balance between sales and profitability, a greater pace of store closures is necessary,” the report said.