Struggling shopping malls let high schools, doctors move in where

The latest numbers from the business data and analytics company NPD Group shows that e-commerce sales rose to 19% of total apparel sales in 2016, up from 11% in 2011.


“Online’s continued growth has come at the expense of in-store sales, affecting the more traditional apparel department, national chain, and specialty channels,” NPD wrote in a Monday report.

Stores across the retail spectrum are closing doors as part of a business transformation to better compete in a multi-platform shopping world, from Macy’s Inc. M, -3.40% to J.C. Penney Co. Inc. JCP, -4.79% to Crocs Inc. CROX, +0.99% , which just announced about 160 store closures by the end of 2018 in its latest earnings report.

“We’d also note that the number of store closures in 2016 (3,500) actually represents a multi-year low (peaked at 7,000 in both 2001 and 2008), but the difference is the size of the stores that are now being shuttered (big, high-volume boxes such as department stores),” Wells Fargo wrote.

While some of the blame for the e-commerce shift can be placed on consumer preference, another part of it is the in-store experience. Retailers have failed to give shoppers a reason to show up.

“There appears to be a portion of the real estate industry that views store-traffic declines as a self-inflicted issue for retailers (at least partially) due to a lack of investment in the store fleets,” said Wells Fargo. “We believe there is a kernel of truth here, as the few retailers that are performing well in the brick-and-mortar channel (like Coach Inc. COH, -0.13% , Foot Locker Inc. FL, -0.71% ) have been investing in store renovations/upgrades to make for a more compelling store experience.”

Investing in store associates could also help.

Retail experts interviewed by MarketWatch in October said associates need to be “brand experts” with the ability to handle in-store as well as digital sales in order to keep up with customers who are armed with information gathered online prior to a store visit. Higher wages can help retailers retain happy, productive workers.

“With retailers already facing secularly declining brick-and-mortar traffic, employee satisfaction is becoming an even more important weapon to stabilize economic models at physical stores,” wrote UBS in a note published Friday. Analysts say retailers can “harness the near-term lift to employee satisfaction from wage raises” to create “more engaged sales forces, higher employee productivity, and lower turnover costs.”

“We think there’s a link between companies receiving high employee satisfaction scores and companies that have built reputations for superior customer service,” UBS said.

Among the companies that consistently score high marks for employee satisfaction are Costco Wholesale Corp. COST, -2.07% and Starbucks Corp. SBUX, -0.74% Wal-Mart Stores Inc. WMT, -0.21% , Lowe’s Cos. LOW, -0.81% , and L Brands Inc. LB, -1.72% are among the names that experienced the biggest increases in compensation satisfaction.

>>118765
The malls aren't going to come back because of the internet. Kind of like how manufacturing jobs aren't ever coming back because of robots.

>>118816
shh don't let the fly overs know that.

>more mom-and-pop stores
I don't care what anyone says, I'm in favor of that. It's just a shame they have to operate their businesses in a mall. Fuck malls.

>>119102
I agree with this post, this is a good post.

malls and stores are stupid. every store should be a delivery service.

i don't want to get murdered for shopping

>>119125
bad post.

>>118766
What about implementing federal taxation for online retailers? That's something that has been delayed numerous years thanks to Amazon lobbyists crying that the industry is too young and small to handle it.

>>119136
That's starting to change. My state is going to start collecting tax from Amazon next month and lots of other states have similar legislation in the works.

Funny thing is that it's not going to be enough to stop most retail stores from eating shit. I'd gladly pay a bit of tax in order to drive the death nail into malls and retail mouthbreathers.

>brick and mortar cant compete with online business
>news
Who is this news to, nursing home occupants?

It's for the better that all these old crusty ass malls are finding new life as mixed use commerce/community service centers. I damn well would be pleased if my local library had a mom & pop coffee shop in the same building. Hell, some of these malls would make great conversions into apartments, kind of like how old factories & warehouses are often converted to artists lofts. You know what actually brings me to my local mall though? A locally owned bowling alley/bar that occasionally closes the lanes to host concerts on a fold-out stage...

>>119117
>>119135
there are no upvotes/downvotes, only (you)s

>>119151
>some of these malls would make great conversions into apartments
That would depend upon the layout. Malls have a lot of open space that apartments probably couldn't make use of, yet has taxes levied upon it. Might have to be upscale apartments to cover the costs.

>>119174
They turned the first mall into apartments and it turned out pretty cool

http://www.curbed.com/2014/8/29/10054364/americas-first-shopping-mall-is-now-stuffed-with-micro-homes

>>119187
Yes, this was the example I was thinking of when reading this thread. Corridors are very narrow and the bottom floor retailers are probably subsidizing the rentals above, even if there's a waiting list. And it's a niche market.

>their clientele are "young kinds that just graduated." They "are at the bottom-end of the totem pole and don't have that dining room set that grandma gave them," Abbott said. "They travel really light. They might have a bike and two suitcases."

I'm not saying there isn't a need for this kind of housing, but it's not a permanent solution either.

>>119140
>>119136
New taxes?? What republicans would vote for that?