A retail CEO says that malls aren't dying
"The malls are far from dead," Foot Locker CEO Dick Johnson said on a conference call with analysts Friday morning, the Wall Street Journal reported. The footwear retailer announced a 4.7% rise in comparable sales on Friday.
One of the main reasons shopping malls are struggling is because department stores - aka "anchor stores"- are closing. When a Sears, Macy's, or JCPenney closes, a mall loses its biggest tenant.
In an attempt to save themselves, many malls are replacing traditional anchor stores with places like restaurants and movie theaters, The Wall Street Journal recently reported. After all, malls have historically been more than just a place to a place to shop.
Malls are "a place for social interaction with their friends," Johnson said.
But that may be changing. When Business Insider recently polled 110 teens, the majority - 59.26% - said the mall wasn't a cool place to hangout.
In May, retail consultant Jan Kniffen told CNBC that he expected that one in three American malls would shutter. In April, real estate research firm Green Street Advisors noted that the shuttering of anchor stores could lead to the closures of hundreds of malls. Macy's announced earlier this month its plans to close 100 stores.
Meanwhile, photos of dead malls serve as relics of bygone days.
