Last Word: Readers of 2PML Knew That This Was Coming
Today, Macy’s announced that 15% of their stores will close, moving them closer to 2006 levels of sales per square footage. Dillard’s, JC Penney, and Sears will surely cut costs but it’s Nordstrom that will be the most damaging to A-Level Mall’s like Columbus’ Easton Town Center.
Nordstrom and Macy’s are closely aligned with luxury brands: Ralph Lauren, Michael Kors, and Coach. Each brand has determined that they are pulling back from department store resellers to focus on direct to consumer marketing strategies (i.e. native eCommerce and potentially Amazon).
If a mall is anchored by Nordstrom and a Macy’s and they both close doors, the mall will close with it. Not immediately, but certainly within the next 8-12 quarters.
I’ve written about this tide since issue 32, “Why Brick and Mortar is Dying.” I’ve touched on how brands like Victoria Secret will be affected by the brick and mortar mall crumble. But most importantly, read: “The death of malls and how it’ll happen.” Ironically, I used a photo of Macy’s for the blog’s header.
See more of the issue here.