Sears to close 43 more stores to cut costs

A Sears department store is pictured in La Jolla, California, U.S., March 22, 2017.
REUTERS/MIKE BLAKE

“Sears Holdings Corp (SHLD.O) is closing eight of its namesake department stores and 35 Kmart locations to cut costs and square footage in an effort to return to profitability, Chief Executive Officer Eddie Lampert said on Friday. The store closings are in addition to 150 the company announced in January.

“This is part of a strategy both to address losses from unprofitable stores and to reduce the square footage of other stores because many of them are simply too big for our current needs.”

As anchor tenants like Sears retreat, smaller adjacent retailers will suffer from reduced foot traffic. Where possible, increasing density utilizing Sprawl Repair techniques can return jobs and tax revenue to communities.

Brick & mortar vs. Amazon: Mall stores getting Amazonned into deep doo-doo

Horton Plaza. Important retailers started deserting it not long after it opened. A huge part of it has been ripped down.

The need to retrofit failing malls is becoming ever more urgent:

“On May 31, the big bank Credit Suisse predicted that 25 percent of malls would be gone in the next five years. Earlier forecasts had also been dire, and results prove them to have been accurate. Malls used to be anchored by big department stores — Sears, JCPenney, Macy’s, and the like.

All are now in deep doo-doo and closing stores, upsetting the malls that relied upon them as consumer draws and sources of revenue. The smaller mall stores, which pay higher rent per square foot than the anchors, are having trouble, further biting into mall revenue and traffic.”

Commentary: The mall is dead — long live the mall

Jun 20, 2017:  Orlando Sentinel Editorial Board spoke to Joshua Harris, director of the Dr. P. Phillips Institute for Research and Education in Real Estate at the University of Central Florida, to ask about malls:

“Q: Did shopping malls ever serve a purpose in society, beyond retailing? What changed, if anything?

A: Shopping malls became the de facto “town square” during the suburban development boom of the ’70s and ’80s. They were the place to go, hang out and be seen. Thus, the urban resurgence that began in the late ’90s, and really intensified in the past 10 years, has taken the “town square” back to the more natural walkable, urban environment. Places like Winter Park, Winter Garden, Thornton Park and now even Baldwin Park (close to 95 percent leased after suffering massive problems during the recession) are all the “hot” places to go on a Friday or Saturday. In reality, history will show that the suburban mall was the aberration, driven by urban decay and rising crime. With urban renewal and major declines in crime, the mall does not fit as well as it did for those few decades. There will be life for existing malls, but likely after being repurposed and designed to feel more like town centers.”

 

Where logical transportation and community infrastructure already exists, sprawl repair techniques can be used to add residential, office, entertainment, and public open space to spur an entire region with new, walkable Town Centers.

 

The Mall of the Future Will Have No Stores

PHOTO: FORD LAND At Fairlane Town Center in Dearborn, Mich., Starwood Capital brought in Ford, which converted a former department store into a workspace for its engineering and purchasing staff.

Shopping-center landlords are rethinking the traditional mall model—and shops aren’t necessarily part of the equation

As retailers close bricks-and-mortar stores at an accelerating pace, shopping-center landlords like Starwood Capital are facing a vexing question: What to do with all this empty space?

Some landlords plug empty spaces with churches, for-profit schools and random enterprises while they figure out a long-term plan. Others see a future in mixed-use real estate, converting malls into streetscapes with restaurants, offices and housing. And some are razing properties altogether and turning them into entertainment or industrial parks.

Many mall owners are trying to liven up the experience, bringing more dining and entertainment tenants and eschewing the traditional mix.

Can Australia avoid the death of local malls?

Abandoned Malls by Seph Lawless-Source-Supplied

As Amazon nears offering service to Australia, Economist Jason Murphy hopes Australian malls can avoid the current American syndrome of dying malls. He offers the following suggestions that can also offer hope for our American malls through Sprawl Repair and Retrofit:

“Number one is probably to reduce their reliance on risky “anchor tenants”. Coles, Woolies, Target and Big W are shopping centre stalwarts, but none of them is certain to still be succeeding in a decade’s time. One or all of them could find the going a lot tougher in a world where Amazon is trying to win over our wallets.

The next big idea for shopping centres is to offer experiences not just goods. Amazon sells stuff you can get delivered to your door. But experiences — haircuts, manicures and massages; meals, coffees and movies — are still things people want to meet in person for.”

By increasing density and diversifying uses, dying malls can become innovative employment and social hubs that enrich the surrounding neighborhoods.

Regency’s retrofit: A model for Chesterfield?

Regency Square Mall in Richmond, Virginia is undergoing what’s called a suburban retrofit, a term used for taking aging malls, office parks and other suburban properties and transforming them into more sustainable, urban and mixed-use developments.

Both Regency Square and Chesterfield Towne Center opened in 1975 (back then the latter was the Chesterfield Mall), and the rejuvenation of Regency Square may offer a blueprint for Chesterfield Towne Center in the years to come.

Robert Gibbs, president of Gibbs Planning Group and author of the book “Principles of Urban Retail Planning and Development,” says Regency Square’s strategy may prove successful.

“I have seen those kinds of conversions work,” Gibbs says. “It’s when they turn the mall inside out and put the internal stores on the street.”

As department stores like Macy’s and Sears continue to struggle, Gibbs says the future is grim for the majority of America’s suburban malls.

“There’s about 2,000 of them, and we estimate that about 1,500 of them will close in the next five years, and that’s because they’re depending on department stores to stay open,” Gibbs says. “Without the department stores, it’s really hard to get people to go inside the mall.”

That said, Gibbs says malls in good locations can “right-size,” reducing their retail square footage and bringing in housing, entertainment and office space to create a walkable development where people can live, work and enjoy themselves.