Amazon Fulfillment Centers in Malls? Sounds Like a Desperation Move.
Many malls were struggling long before COVID-19. However, the pandemic has ratcheted up the pressure by decimating customer traffic and driving many key mall tenants into bankruptcy.
This is forcing U.S. mall REITs to get even more creative about how they use their real estate. Recently, sector leader Simon Property Group (NYSE: SPG) has had discussions with Amazon.com (NASDAQ: AMZN) about converting some department store space into fulfillment centers, according to The Wall Street Journal.
Expanding into mall space formerly occupied by department stores could help Amazon in its efforts to meet surging demand and reduce shipping times. Yet such an arrangement wouldn't bolster the prospects of the attached malls, making Simon's apparent interest appear like a desperation move.
Source Fool.com
