Malls could lose long-time anchor stores

[Zayre88]

We all know that Sears and Kmart are struggling, both chains are losing market share and have lower sales month after month, year after year.  They keep closing stores.  At this pace, their future is uncertain.

Now, JCPenney keeps posting negative results and just reported a third-quarter loss that was larger than analysts estimated at $123 million.  The retailer’s third-quarter sales fell a whopping 27 percent to $2.93 billion...

Hundreds of Malls are anchored by Sears, JCPenney or both! They will have to rethink their strategies should Sears and JCPenney announce major store closings soon and there is a good chance this will happen.  Malls have often been anchored by Sears, Kmart or JCPenney for 25-30-40 years.

Looking at Maine and New Hampshire for example, JCPenney, Sears and Kmart are the chains with the most outdated stores and one can understand why these 3 chains are struggling.  Malls with these stores will either be happy or sad to see these stores go. 

They can be happy if they quickly secure a new tenant that will be more attractive, more modern and pay higher rent.

They can be sad if they lose one or two anchor stores without prospect tenants to fill the void. 

Mall owners will have to wait and see but Sears and JCPenney could soon join Montgomery Ward and Kmart could soon join Zayre, Caldor and Bradlees...

[Pikapower]

^ Perhaps the only tenants that could go into those empty anchor store are those temporary Halloween haunted houses, a Spirit Halloween store (that could only take up half it), an Ollie's Bargain Outlet store, a Big Lots store, or some sort of flea market.

[Zayre88]

^ Perhaps the only tenants that could go into those empty anchor store are those temporary Halloween haunted houses, a Spirit Halloween store (that could only take up half it), an Ollie's Bargain Outlet store, a Big Lots store, or some sort of flea market.

Right, but for some malls this would be «downgrading» although better than nothing.

I see Kohl's as a potential replacement for some Malls but Kohl's already has free-standing stores close to where malls are.  I think they also prefer free-standing stores in thriving big-box centers than being in traditional enclosed malls.

[Pikapower]

^I could see a former mall JCPenney becoming a Kohl's. but as for a former mall Sears, those places that I've said before are the most likely candidates for Sears' replacement.   

Another thing that could go into former mall anchor is a Toys "R" Us/Babies "R" Us with Toys "R" Us being on floor and Babies "R" Us being on the other floor for former mall anchors with two floors.

[shore72]

I hadn't thought about it but I agree that this could put some places in a real bind. Both local malls have Sears/Penneys, with Kohls operating newer freestanding stores within a mile or two. Boscovs and Macy's are already there. Smaller department stores might eye the space. I've been watching Peebles; my wife doesn't like shopping there anymore because she says they have been catering too much to an older crowd. Their recent advertising seems to be pushing more of a youth theme and they are doing an extensive remodel of our nearest store in Seaford, DE. They seem to stick with somewhat smaller towns but they did have a location in the old Salisbury Mall (the one that is now demolished).

[Pikapower]

^ You do have a point about Kohl's not wanting be be a in mall setting.

Some other candidates for former mall Anchor stores

. Burlington Coat Factory
. TJ Maxx
. Marshall's

[ynkeesfn82]

This could give Bon-Ton, Boscov's, and Dillard's the opportunities to expand into areas where they currently don't operate stores. Shop-ko too.

[Zayre88]

This could give Bon-Ton, Boscov's, and Dillard's the opportunities to expand into areas where they currently don't operate stores. Shop-ko too.

In Canada, Sears has decided to sell some locations to Nordstrom.

[EddieJ1984]

This could give Bon-Ton, Boscov's, and Dillard's the opportunities to expand into areas where they currently don't operate stores. Shop-ko too.

Boscov's already tried expanding when all the strawbridges that closed instead of becoming macys (usually due to malls having both) and it led them to file for bankruptcy, closing some stores that were not even opened a full year yet (like oxford valley mall) or never opened stores that were coming soon (like in willow grove mall).