The Retail Industry In America Is In Danger.

The death list of shopping centres

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The decline of shopping centres is already a cliche.

From Sears, J.C. Penney, and so on, chain stores to Coach, Gap and other specialized brand stores have closed many stores in the past few years.

Worries about shopping malls were actually born in the early 1990s, but today's reality has confirmed this trend in a broader context.

In Owings Mills shopping center, some department stores and regional chain stores for middle and low consumption groups have already withdrawn from here.

Founded in 1986 and rebuilt in 1998, Owings Mills shopping center is still a relatively young shopping center.

But not good geographical location, changing consumption habits and demographic changes have led to its decline.

"There is no doubt that some shopping centres will be able to survive, but the trend is that people will gradually stay away from shopping malls," says Mark Hinshaw, a Seattle urban planner.

The popularity of online shopping is widely regarded as a major factor affecting the physical shopping center.

But a survey shows that the impact of online shopping is also limited, with less than 10% of physical store turnover being replaced by online shopping.

The fundamental problem is the fact that physical stores have been everywhere in the United States, resulting in saturation of supply. This is the product of the development of commercial property over the past decade in the United States.

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Christopher Zahas, a city planner in Portland, said that "it is impossible for consumers to continue to fill more and more shopping centers", said Christophe, a city planner.

So far, 80% of the 1200 shopping centers in the United States are operating healthfully, with a vacancy rate of less than 10%, but this proportion was 94% in 2006.

About 15% of the shopping center vacancy rates reached 10% to 40%. In 2006, only 5% of the shopping centres had such a high vacancy rate.

The "death" list will be longer and longer. The vacancy rate of shopping centers in 3%~4% is more than 40%. The vacancy rate of these shopping centers is considered to have reached the critical value of "death vortex".

Foreign media said that by 2024, about 15% of the shopping centres would officially be included in the death list.

Many shopping center executives have also admitted that since the financial crisis, the business of shopping malls has faced a break.

"You see those A-class shopping centers or flagship stores are doing business very well," says Steven Lowy, joint CEO of Westfield, a commercial real estate company.

Founded in Australia, Westfield now has a large number of shopping centers in North America and Europe. Its location is concentrated in areas such as London, Milan and the East and west sides of the United States.

Another shopping center executive also said: "those B and C shopping centers that focus on low-end consumers will die like dinosaurs, but A-class shopping centers perform well."

The expansion of the income gap has brought the prosperity of high-end shopping centers, and the "two bureaux differentiation is very serious". "Green Street" consultant D. J. Busch (D.J.) said, "rich people are still frequent customers of those high-end shopping centers, but the growth of bottom consumption is very slow."

Especially in the big cities like the New York and Losangeles, consumers from all over the world are gathered in the most luxurious shopping areas in these cities.

Data also show that the highest growth in turnover is concentrated in these luxury shopping centers and outlets.

For example, the most expensive shopping center in the United States is South Coast Plaza, located in Orange County, south of Canada. This shopping center almost attracts all top brand retailers, and every holiday season is crowded.

According to the statistics made by foreign media in 2014, the top five shopping centers in the United States are Bal Harbour Shops in Florida, The Grove in Losangeles, Pioneer Place in Portland, Woodbury outlets in New York, and Forum Shops at in Las Vegas.

The five shopping centers reached an annual sales of 1500~3000 dollars per square foot.

According to Retail Sales data, the average sales volume of the regional shopping centers in the United States is only 341 US dollars / square feet. The average retail sales of the 20 best retail stores in the United States are 787 dollars / square feet, and the average sales volume of the apple store is more than 4000 dollars / square foot.