US Mall owners – Lee Chandler

Right after the government’s decision to start the daily working routine all
around the states. A new wave of COVID-19 cases hit America just in the
5th day of reopening, which alarms the government to reconsider this
decision again.
Which lead the US mall owners to decide to close the malls again!!!
Take an example, Simon and Unibail-Rodamco-Westfield decided to close
their malls for at least 10 days.
Simon Property Group said it reached its decision to close all of its malls
“after extensive discussions with federal, state, and local officials.”
Government officials this week have been requesting, and in some cases
ordering, that Americans avoid non-essential activities and that retail
stores limit the number of shoppers allowed inside to enable greater social
distancing.”
Unibail-Rodamco-Westfield, which owns Westfield Garden State Plaza in
New Jersey, one of the top-performing malls in the country, said its malls
will remain closed until at least March 29, at which point it “will reevaluate
the situation.”
After that big announcement, a lot of tenants might abandon the malls even
if some of the mall’s owners decide to stay open due to the increases in the
numbers of cases affected by COVID-19.
Side by side, these current circumstances, many retailers filed for
bankruptcy during the COVID-19 pandemic.
Brands like J.Crew, Brooks Brothers, and New York & Co. parent company
RTW Retailwinds. Department store chains Neiman Marcus, J.C. Penney,
and Stage Stores.
And when landlords own tremendous stores decide to file for bankruptcy,
it’s the golden opportunity for big corporations like Simon to dominant the
market. Moreover, he didn’t try to hide this desire.
Many tenants request a rent relief from landlords for the current time, til
they can hit the market and do some profits. Although they are using online
marketing and websites as an alternative option, still the absence of making
deals in person, hurt the business badly.
I searched a lot in all the trusted sources to cover the most important
question which is for how long the business will be on hold?
For how long the stores will be shut down?
So far no-one answered those questions yet.
References:
https://www.forbes.com/sites/joanverdon/2020/03/19/largest-us-mall-operator-simon-shuts-d
https://www.cnbc.com/2020/07/19/mall-owners-are-trying-to-save-retail-as-coronavirus-hikes-bankrupt
cies.html
https://www.ft.com/content/53471576-6fa5-4020-8ded-f188ab5ee732
https://www.usatoday.com/story/money/2020/07/14/coronavirus-closings-retail-mall-closures-sho
pping-changes/5400200002/

 

Writing by Rewan Emam

LinkedIn Account

 

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