The day the malls stood still - Top Stocks Blog - MSN Money
 
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The day the malls stood still

Posted Dec 31 2008, 09:43 AM by Minyanville
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Goodbye, malls. Paltry sales at retailers have finally taken a toll on the buildings that house them, and many economists are predicting serious trouble ahead for mall owners.

According to an article on CNBC.com, “the dismal holiday shopping season… could take down some US malls struggling with vacancies, softening rents and their own large debt loads.”

Some mall staples, like KB Toys and Circuit City, have already filed for bankruptcy. The International Council of Shopping Centers estimates national chains closed approximately 6,100 stores in 2008, and fourth-quarter mall vacancy rates could top 7%, the highest since regional mall performance was first measured.

Moreover, anchor stores like Sears or Macy's, critical to a mall’s well-being, are suffering badly.

Malls, originally part of the post-World War II suburban sprawl, have become a sort of flagship for American consumerism. Convenience. Bounty. Air-conditioning. When Americans packed up and left the cities in droves, leaving downtown districts dilapidated and impoverished, all that wealth went straight to the mall.

Now where will we go?

An abandoned mall is an eerie thing indeed. At Deadmalls.com, you can see this for yourself: Unsettling photographs of empty food courts, deserted department stores, and escalators arrested in mid-motion.

Nothing drives home the reality of our economic situation like a darkened storefront, empty parking lot, or vacant restaurant. These are the tangible signs of a landscape in crisis - and the panic they inspire helps keep what money we have left in our wallets.

Luxury malls, anchored perhaps by a glittering Saks or Nordstrom, are particularly at risk for a major slowdown. Terrified consumers are unlikely to drop that extra $400 on cashmere.

Malls, however, have always been more than the sum of their parts: They’re also the place where we spent a thousand teenage nights, the place where we tossed pennies into fountains and played air hockey at arcades. As the 1995 film classic Mall Rats makes clear, malls aren’t just a place to shop - they’re also a place to steal, fight, fall in love, and fornicate in elevators.

Malls have always been about possibilities. Where else can one hop effortlessly from a Piercing Pagoda to a Sunglass Hut?

As usual, no one captures the wonder of malls better than Homer Simpson.

“I want to shake off the dust of this one-horse town. I want to explore the world. I want to watch TV in a different time zone. I want to visit strange, exotic malls... I want to live, Marge! Won't you let me live?”

Mall owners are probably asking all of us the same question.

Top Stocks blogging partner Todd Harrison is founder & CEO of Minyanville.com. This post was written by Minyanville Contributor Cory Bortnicker.

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Comments

 

Malls are dying because there is no variety. They have alot of the same if not exact tenants. I can go to a mall in Boston and see the same stores in San Francisco. Because the rents are so high, the stores have to charge more. Besides, lets face it when the economyi is in the toilet, everyone shops at Wal-Mart!

One of the posts makes it seem like the malls are out to take over the world on a retail level.  Much thought should be placed on what WalMart is doing...destroying the livelihood of many Americans.  Jobs are being shipped overseas, retailers are being put out of business, malls are being hurt, etc..  In case you don't know this Walmart is in the process of getting a strong foothold in both the banking and the grocery business.  We should not depend on Walmart for all our shopping.  Very often they are not the cheapest choice as they like to preach.  Walmart = Brainwash.  Don't allow this to become The United States of Walmart.

The last I check, it was the radical Muslim faction that is trying to overthrow governments and plung everyone back into the dark ages........you know the DARK AGES........that which happened after the fall of the Roman Empire.........and that was brought down by who?  YEP....the barbarian muslims from the east.

If you get out of this country and visit other counties, you will find that we are the model for what most of the civilized worlds wants........they have become somewhat "americanized".

The ones lying are those who are trying to kill all of us "infedils" off........now who might that be........oh yea.........your friendly neighborhood radicals.

Reasons Why US Malls are Closing.

1) Who will purchase a $14.99 Star Wars Action Figure at the Mall when you can purchase it cheaper anywhere else? I saw the exact same action figure for $9.99 at Toy$-R-Us and *7.99 at Wal-mart.

2) The Staff at the mall are usually teenage punks that could careless if you purchased anything or not, OR you  have to look around several departments to find an employee to check-out! Yes, I'm talking about Sears, JcPenny's and Dillards!

3) The Teens, letting the teens roam around is like letting animals into the mall. The teens drive business away from the mall. Duh

4) Junk Stores, the number of junk stores is ridiculous! No Head Shops, Hippie Shops or Urban Culture Stores! Most of the time these stores are empty or a few weirdo's are hanging around make for an eyesore.

5) Cops, having lots or cops hanging around is really a bad thing. Most people want to shop in a pleasant environment not a security zone. Place the cops outside the mall intercepting the teens, punks and trash.

Until these basic problems are solved, most malls will die.

Here is an example of the state of the "MALL ECONOMY".  I own a coin-operated amusement machine company(video games, internet juke boxes, etc.).  We were recently called to take over an arcade at a 'tier one' mall in suburban Buffalo, N.Y. The previous operator was an independent and just could not make pay off despite being in a prime location across from the last of the national electronics retail chains.  The deal the mall management made to me was compelling to say the least; six months, fully renewable, for 3,700 sq. feet at a cost of 310-dollars per month...no fees or utilities of any kind.  Dead, cold storage would cost me more.  If I owned commercial retail space right now, I would be scared to death.

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