Macy’s and the American mall crisis

Published: May 27th, 2014
Written by: Editorial Team

Anyone who does not see the problems that retailers are facing with reduced store traffic, should listen to what the Chief Executive of Macy’s, Terry Lundgren, has to say

He met with executives and mall developers to determine if this was a problem and whether everyone working together would solve it. The group agreed on both aspects.

The group is set to meet again to discuss options to drive shoppers back into stores, but Mr. Lundgren would not elaborate on the actual plans. Mr. Lundgren said department store anchors should be the ones to drive traffic to the malls.

The one problem facing many malls is the closure of stores by Sears and JC Penney. Both stores were go-to anchors for many mall developers in the past. These stores anchored almost half of the 1050 outdoor and indoor US malls.

To get more shopper visits, malls have added entertainment, including golf courses and high-end restaurants, along with same day delivery services.

The founder of ShopperTrak, which uses devices to track shopper visits to malls, stated that mall traffic has been consistent since 2007, however shoppers are not visiting as many stores when they visit a mall.

Read recent Malls Money issues →