American Consequences - December 2017

By American Consequences Editorial Staff

Did You Make 20% or More From the ‘DEATH OF MALLS’?

T he downtown department store was the retail king for about 60 years. The suburban malls that replaced it have enjoyed a reign nearly that long, and many are now long in the tooth. Many department stores successfully rode that wave of change, enjoying a symbiotic relationship with the malls. They became the malls’ anchor tenants, helping them lure billions of shoppers each year. But that’s changing... American shoppers never stop evolving. There are outlet malls now – outdoor clusters of manufacturer-branded stores. And of course, Internet shopping has changed everything. You can now buy anything you want without leaving the couch. Indeed, U.S. Internet sales have grown 18% per year from a mere $27 billion in 2000 to $400 billion-plus this year.

And this holiday season, the massive shift from brick-and-mortar stores to online retailers continues... More Americans shopped online than in physical stores on Black Friday and over the Thanksgiving holiday weekend. To thrive in this new retail world, mall operators will need to be nimble and spend considerable cash to stay out in front of the changing environment. And about a year ago, the analysts at Stansberry’s Investment Advisory recommended “shorting” the worst mall operator of the bunch. Below, we’ve featured an edited excerpt from what they wrote, originally published in September 2016. Did you read it?...

More Americans shopped online than in physical stores on Black Friday and over the Thanksgiving holiday weekend.

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44 | December 2017

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