A Post-Pandemic Reality
While shopping center retailers are undoubtedly being affected by COVID-19, there is still positive growth and activity for shopping centers as they learn to adapt to the ever-changing consumer sentiment, the rapid advance of technology, and now, the coronavirus. Many department stores, the leading drivers of foot traffic, are leaving behind malls and centers after filing for bankruptcy.
Over 3,000 stores have confirmed closures, and an estimated 15,000 are expected to follow by the end of 2020, following the record 9,300 shuttered stores in 2019. The pandemic has curtailed consumer spending by 50.5 percent, as 75 percent of shops around the U.S. have announced temporary closures.
The drastic decrease in spending has pushed stores to utilize technology and update operations and systems to catch up with times. Each shopping center subtype is reacting to COVID-19 differently, with shopping malls seeing the biggest disruption.
In this article, Matthews™ analyses how shopping centers are addressing the concerns brought on by the pandemic.