The Death of Retail Property | Is traditional retail dead? Are shopping malls fast becoming ghost towns?
The answer is yes and no. Traditional retail is dying but not dead yet. Many retailers are unable to adapt to the fast-changing consumer behavior and the impact of the Internet. Since the retailers are struggling, the landlords and developers will need to change their outlook fast to survive.
The Independent reported about the slow death of retail in the UK. Several retailers went into administration; and according to the report, analysts predict another 140 chains could be at risk.
Times of India quoted a survey conducted by the Associated Chamber of Commerce and Industry of India (Assocham) to report that Mall occupancy in India has dropped to 50% and retailers lose money. According to the report rate of vacancy in malls in Delhi-NCR is 55%, while in Mumbai it is 52% followed by Ahmedabad (51%), Chennai (50%), Hyderabad (48%), and Bangalore (45%).
The Week in a report says that the enclosed shopping centers in the US are closing by the hundreds. According to the report, the vital signs are not good. Even before the recession hit, consumers had developed mall fatigue, and the classic enclosed shopping mall was in decline. More than 400 of the 2,000 largest malls in the U.S. have closed in the past two years.
In another report the Week wrote, Empty malls tell the real story of the great American disaster. According to the report, across the past 40 years some 200 cities built pedestrian malls. Today, only 30 remain.
It appears that malls are dying across globe. The vital data are suggesting the slow death of shopping malls across all economies.
So, What happens when a mall dies? Use the comment section below to tell us about your experience.
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