CHARLOTTE, N.C. — We all know the COVID-19 pandemic is having a major impact on retailers, with everyone from big box stores to small boutiques feeling the brunt of a weeks-long shutdown.
With several stores filing for bankruptcies and hundreds of independently owned shops closing up, coronavirus could soon change how shopping malls make money.
A research tracking firm says as many as 25,000 stores could close this year. In fact, a number of them have already filed for bankruptcy, including Neiman Marcus, J. Crew and JC Penney.
Most of these retailers went into the pandemic already in debt, making the crisis that much tougher to take. Of those 25,000 stores that may close, research shows that at least half of them are in malls. This means major malls are at risk of losing anchor stores, and researchers said about 25% of malls were predicted to close in the next couple of years. And that was before COVID-19.
With all those vacant store fronts, some malls are getting creative. We're already seeing that happen with some malls shifting to more "experiences" rather than retail shops. Things like Sea Life aquarium in Concord Mills come to mind, while other malls are taking that space and turning it residential.