Very few corners of the retail market are cheery and easy right now.
To be sure, there are several glimmers of hope, particularly in the discount space. Private labels, discount retailers like TJ Maxx and Marshalls, and wellness brands are certainly having success.
But broadly speaking, it's been pretty rough out there.
This is especially the case for mall retailers. The shopping landscape at indoor malls has been particularly strained over the past several years.
Related: Luxury home decor retail chain closing majority of stores forever
Malls had already been in something of a popularity decline prior to Covid. Foot traffic fell as more accessible or affordable options became available.
Some of these options included online retailers, discount retailers, and outlet malls that offered brand names for significantly lower prices.
But the Covid pandemic further accelerated the decline of the shopping mall. After months of social distancing, fewer of us wanted to go inside of a massive enclosed facility and hunt for clothes or shoes the way we used to.
Besides, as life gets more expensive, it's harder to justify paying full sticker price at a department store. Especially when you know you're more likely to find it on sale online or at a discount retailer at an outlet mall closer to home.
Image source: Shutterstock
Shopping malls are struggling
Many shopping malls now sit vacant or are grossly under-trafficked.
Yet at the height of their popularity in the late 1980s and 1990s, the average U.S. shopper spent about 12 hours per month inside a shopping mall.
That's partly because going to one is a bit of an undertaking.
More closings:
- Popular local Dairy Queen rival suddenly closing, no bankruptcy
- Another big Mexican chain closing down restaurant, no bankruptcy
- UPS suddenly closing more stores amid chaotic new change, layoffs
- Popular fast-food burger chain closes all restaurants in key area
First, a customer must hunt for a parking spot in the appropriate area, then weave through the entry point (which is often an anchor department store, and tends to be a maze in and of itself).
Once you're inside the physical mall, you have to locate the store you're looking for, and pick through all the inventory just to find what you're looking for.
If you've got hours to burn, that prospect might not seem entirely unpalatable.
But these days, when most consumers want near-instant gratification, 12 hours per month seems like a daunting commitment.
JCPenney makes a closure
Few retailers have struggled the way JCPenney has.
The large mall anchor store used to be an iconic destination during the indoor shopping mall's heyday. Now, however, fewer folks visit department stores for big purchases.
So JCPenney has been embarking on a turnaround plan.
Related: Home Depot store closing indefinitely after scary incident
And in June, JCPenney announced it will close a large Texas warehouse. The closure of its Alliance Supply Chain facility in Haslet, Tex. will see about 300 people laid off and is slated to shutter by November 2025.
The warehouse, which functioned primarily as a logistics center, was dubbed a necessary closure in an attempt to “adapt and enhance our operations with the goal of providing a better experience for our customers,” according to a company statement.
“While this decision was difficult, it was necessary to build a stronger, more competitive company,” it continued.
