Thousands of mall-based stores are shutting down in what is being described as one of the biggest waves of retail closures in decades. More than 3,500 stores nationwide are expected to close in the next couple of months -- including JCPenny, Macy's, Sears, Kmart and others.
“The fact that more people are shopping online or the need to be more prevelant online is one factor, but there are issues related to demographics, there are issues related to real estate or whether there's too much real estate,” says George Kelemen, president and CEO the Texas Retailers' Association.
“It means more than just having a website and having a website you can purchase from,” he says. “Its the social media aspect of it and its the ease to the consumer. Do you deliver to the home? Do you allow purchases online and deliver at the store? All these different conveniences that consumers are expecting more and more of.”
Kelemen says the entire mall concept is being questioned.
“Depending on where a given mall might sit geographically or the demographics around that mall, or the real estate around that mall, that could bring about a lot of changes that may not look so good, at least to the naked eye,” he says.
Macy's has closed eight stores in Texas, including Greenspoint, West Oaks and Pasadena. JCPenny will close nine stores across Texas.