- Amazon is in talks with the largest mall owner in the U.S. to take over retail space and turn it into giant Amazon retail centers, The Wall Street Journal reported Sunday.
- The deal could see Amazon take over spaces previously occupied by Sears and JCPenney, both of which have filed for bankruptcy and closed dozens of stores.
- Amazon would benefit from getting well-placed warehouse space in cities and could reduce delivery times on orders, but follow-up centers would not attract many customers to harmful shopping centers.
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Shopping malls in the US – struggling to stay in business as customers increasingly turn to e-commerce – could soon be transformed into Amazon tracking centers.
Amazon is reportedly in talks with Simon Property Group, the largest owner of the mall in the U.S., to turn empty retail space into Amazon warehouses that process and ship orders online, according to a Wall Street Journal report.
As part of the deal, Amazon was able to take over former anchor department store spaces previously occupied by Sears and JCPenney, both of which have filed for bankruptcy and closed dozens of stores in recent months. Simon intends a purchase of JCPenney, which would give the landlord more control over how current and former retail spaces are used.
The deal could benefit Amazon by providing well-stocked warehouse space in U.S. cities, allowing the online retailer to reduce its delivery times on shipments. Some of Amazon’s existing follow-up centers have already occupied old comic centers that have gone out of business.
Amazon spokesman Rachael Lighty told Business Insider that the company would not comment on “rumors or speculation.”
Shopping center rentals typically prioritize finding hookers that will bring in new customers, such as shops and gyms. Amazon tracking centers would not sign people other than their own employees. But amid the COVID-19 pandemic, traditional retail stores have been weighing in revenue, while Amazon sales have increased.
