American Has Too Many Malls Essay Example for Free

American Has Too Many Malls EssayMany traditional brick-and-mortar retailers are being jeopardise with economic destruction by their online competition. Ive had the opportunity to spend some time looking at this issue, and I believe were seeing clear signs that the e-commerce revolution is seriously impacting commercial real ground and leave continue to do so. Online retailers are relentlessly acquiring success in many retail categories. As a result, many offline personal line of credites are fighting to survive for their economic life. A number of somatic retailers have already succumbed to online competition including Circuit City, Borders, CompUSA, Tower Records and Blockbuster. Many other physical credit linees are similarly showing signs of serious economic distress. While many of these large businesses collapsed due to their inability to compete online, The shop nitty-gritty is also in danger from the online shopping revolution. Many malls are closing stores by the thousands, and in that respect are few large physical chains opening stores to take their place. The recession in 2008 was the throttle valve for bringing down many of these businesses, but competition from online retailers continued the financial difficulties for many offline retailers. The mall business isnt economically healthy either.Most professionals understand that profound changes are afoot. Don Wood, CEO of federal real property investment trust, says there is too much retail supply in this country. The wall street ledger reports green street advisor (forecasts) that 10 percent of the roughly 1,000 large malls in the U. S. go out deceive within the next 10 years . Thats a conservative estimate. Many mall CEOs predict the affliction rate will be higher. I agree with the above perspectives. A report from Co-Star observes that there are more than 200 malls that have vacancy rates of 35 percent or higher.This is a clear marker for shopping center distress. In short, These malls are becoming ghost towns. They are non economically successful now and will only get less so as online business continues to steal retail sales from physical stores. Hundreds of malls will soon need to be repurposed or demolished. secure malls will stay successful for a while since retailers are willing to pay for foot employment and customers, but even they stand in the path of the shift of retail spending from offline to online.However, despite the exacerbate of physical commerce, there has been a huge rise in online commerce. If I were thinking of starting a new retail brand right now, I would unquestionably start it online. many very quick entrepreneurs are doing just this. I personally shop at Bonobos for pants, J. Hilburn for sweaters, Ledbury for shirts and Warby Parker for eyeglasses. In the past, these retailers have started in the mall but they now are starting online. This is a trend that will undoubtedly continue.There will clearly be fewer new offline r etailers to take the space vacated by the disappearing brick-and-mortar chains. This puts further blackjack on malls to try and make money. While doing research for this article, I came across a fascinating website called deadmalls. com. it is a site that chronicles the stories of hundreds of already or soon-to-be dead malls. Unfortunately for mall owners and people who work inside them, the capacity on deadmalls. com is about to expand substantially. There just are too many malls in America, and this will only get worse.