Lower price is the main appeal of outlet malls, of course, and the reason why apparel sales rose nearly 18% last year, compared to an increase of just 2.5% at department stores. But just how much cheaper are outlet malls really?
Roughly one out of every 11 store sites is empty at traditional malls around the country. That’s the highest mall vacancy rate in over a decade, even though rents at these properties are likely to have decreased or leveled off recently. At the same time, outlet malls—where both rent for businesses and prices for consumers [...]
One suggestion that may make financial sense, but that’ll probably make for a seriously uncomfortable conversation around the dinner table, will begin with you asking: “Hey dad, I was thinking of taking a life insurance policy on you. When do you think you’ll die?”
Apparently, some flashy entertainment and interactive fun are likely to put shoppers in the mood to buy.
The current scene at many malls—new ones in particular—is more ghost town than teeming shopping hub. More than 10% of retail space at U.S. shopping centers is vacant, up from 8.4% a year ago. And 30% of malls that opened their doors this year did so with at least 50% of their storefronts empty.
The shopping mall, that wonderfully iconic, most American of places, is changing, and the economic downturn bears a lot of the responsibility. Store names that were once ubiquitous have disappeared. Vacancy rates are seriously high. And just about everybody is discounting merchandise and looking for new ways to connect to consumers.
What the heck is an Aetna outpost doing sandwiched in between Lids and Mrs. Fields Cookies at the mall? Why, it’s trying to sell you health insurance, of course, just like Lids is trying to sell you hats.
