Department stores must close 800 mall locations: Green Street

Sales per square foot numbers have fallen sharply since 2006

TRD New York /
Apr.April 25, 2016 09:05 AM

Major department store chains might soon be closing hundreds of locations at malls across the country, if they follow the advice of Green Street Advisors.

Retailers must close about 800 locations in total — about a fifth of all anchor spaces at U.S. malls — if they want to restore the sales-per-square-foot productivity of the mid-2000s, a study by the analytics firm said.

Sears Holdings alone would have to close about 300 stores, or roughly 43 percent of its locations nationwide to regain productivity levels, the Wall Street Journal reported.

“Department stores used to be a great catchall for different brands,” Green Street’s DJ Busch told the Journal, “but today many of the brands have stores of their own, and shoppers can also find them online.”

Sears and other retailers have already cut hundreds of stores in recent years, in the face of competition from discount retailers and online platforms such as Amazon.com. But cuts haven’t been deep enough, according to Green Street.

Macy’s has sought to sell many of its prime real estate properties in recent months as well, including equity stakes in its flagship Herald Square location. [WSJ]Ariel Stulberg


Related Articles

arrow_forward_ios
Barney's at 660 Madison Avenue with Ashkenazy Acquisition Corporation's Daniel Levy (Credit: Getty Images, LinkedIn)

Barneys’ flagship Madison Avenue spot will stay open — but with a smaller footprint

Magnum Real Estate Group's Ben Shaoul (Credit: Getty Images and iStock)

Ben Shaoul uses Bitcoin to sell retail condo for $15M

(Credit: iStock)

It’s over for Barneys: Luxury retailer to be sold, stores closed

Barneys creditors want to review a revised offer that would keep stores open. (Credit: Getty Images)

Barneys creditors push plan to salvage the company

Vornado chairman Steven Roth (Credit: Getty Images)

Vornado slashes Forever 21’s rent, dimming 2020 outlook

47 Greene Street and President & CEO of Acadia Realty Trust Kenneth F. Bernstein (Credit: Google Maps)

Acadia plows ahead with $122M retail investment in Soho

A Victoria's Secret store in New York (Credit: Getty Images)

Victoria’s Secret sues WTC landlord amid store closures and layoffs

Former WeWork CEO Adam Neumann (Credit: Getty Images, iStock)

WeWork founder scrambled for $100M loan before $1.7B bailout

arrow_forward_ios