tag:blogger.com,1999:blog-9158467536239735339.post6288726624153320521..comments2023-10-19T05:19:01.550-08:00Comments on American Dirt: A tale of two (floundering) malls.AmericanDirthttp://www.blogger.com/profile/04600555386886915000noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-9158467536239735339.post-70237662969174357922009-08-09T20:03:41.241-08:002009-08-09T20:03:41.241-08:00Thanks for your post, Matt--definitely right on ta...Thanks for your post, Matt--definitely right on target. I didn't think about category killers--the Petsmarts, the Office Depots, the Best Buys. It would be interesting to see whether they have posed bigger competition to in-line mall stores (i.e., smaller outlets such as KB Toys going out of business) or department stores, which have obviously seen their share of mergers and bankruptcies. Granted, even some category killers such as Linens 'n Things or Circuit City failed to remain solvent in recent months. <br /><br />As for aging retail and its excesses, check out my posting on a dead strip mall in an otherwise thriving area at http://dirtamericana.blogspot.com/2009/07/why-is-retail-so-fickle.html that explores this in greater detail.AmericanDirthttps://www.blogger.com/profile/04600555386886915000noreply@blogger.comtag:blogger.com,1999:blog-9158467536239735339.post-5877318143605814452009-08-07T18:28:04.716-08:002009-08-07T18:28:04.716-08:00Eric-- whew, long post! Good analysis, as always....Eric-- whew, long post! Good analysis, as always. Interesting to note that in the Phila. area, several malls are hurting, but are countering the downward trends by turning outward. <br /><br />I think the decline is due to a few things, all very simple:<br /><br />1) Malls are aging.<br />Americans like new things. We see it with housing. Retail is really no different.<br /><br />2) The Rise of "Category Killers" (chain stores).<br />The built environment is driven by what the most popular retail companies decide. The most popular retail companies are category killers, not traditional department stores. They decide to locate in strip malls and lifestyle centers, not malls-- so that's what happens.<br /><br /><br />3) Overabundance of retail space.<br />There's just way too much retail space out there. Just like housing in the south and west. The market is correcting itself, but the new retail is proving most popular (see #1).<br /><br /> I know this is oversimplification. But I think #2 is especially important. Think about it. Malls started declining in the 1990s, at the same time that stand-alone power centers started emerging near the malls and at highway interchanges. Coincidence? I don't think so. The recession is simply escalating the trend.Matt E.noreply@blogger.comtag:blogger.com,1999:blog-9158467536239735339.post-22835552694594161212009-07-29T23:46:38.606-08:002009-07-29T23:46:38.606-08:00This comment has been removed by a blog administrator.Anonymousnoreply@blogger.com