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Large shopping malls in the United States, which suffer to stay in business as shoppers turn to e-commerce, will soon become Amazon distribution centers.
Amazon is in talks with Simon Property Group, the largest mall owner in the United States, to empty retail spaces in Amazon stores that process and ship orders online, the Wall Street Journal reported Sunday.
Under the agreement, Amazon can simply take over the spaces of flagship branches occupied in the past through Sears and JCPenney, any of which filed for bankruptcy and closed dozens of outlets in recent months.Simon is proceeding to get JCPenney, which would allow him to increase the use of those commercial spaces, The Journal reported.
The agreement can benefit from Amazon by offering a well-located storage area in U.S. cities.But it’s not the first time And allow the online store to meet shipping delivery times.Some of Amazon’s distribution centers already occupy areas in former linear malls that have ceased operations.
An Amazon representative, Rachael Lighty, told Business Insider that the company would comment on “rumors or speculations.”
Mall owners sometimes prioritize the location of tenants who will attract new customers, such as retail stores and gyms. Amazon distribution centers wouldn’t attract anyone but their own employees. But the COVID-19 pandemic, classic retail stores saw their revenue vary while Amazon’s sales increased.