Local Retail Shopping Malls Regaining Traction – As Amazon Fulfillment Centers
An ingenious move, with daunting capital and a surplus of retailers transitioning their shops to focus on online commerce, Amazon has been shopping and buying up empty shopping malls.
Between 2016 and 2019, an analysis by Coresight Research found that Amazon had purchased and converted 25 shopping malls into distribution centers. With the pandemic affecting shopping greatly, a report by UBS predicts that as many as 80,000 U.S. Retail stores could close by 2026.
Due to the pandemic, in-person big mall retailers have suffered while demand for online products have soared. Due to the increase in product demand, Amazon has sought to ramp up their amount of distribution centers. Mall conversions to distribution centers have gone surprisingly well due to their ample space for storing products and accommodations to Amazon Trucks.
Amazon has seen their popularity increase substantially in the past 5-10 years. The move to expand their real estate will ensure that they stay ahead in the online commerce trend and maintain their respected business standing.