Mall Owners Begin to Feel the Pain of Brick & Mortar Retailers

Wednesday, May 18, 2016
By Paul Martin

by Wolf Richter
WolfStreet.com
May 17, 2016

Previously “pent-up” real-estate demand to “fizzle.”

Retail landlords are on edge. Their tenants in malls across America are reporting awful revenues and earnings, and they’re shuttering stores, and some are going bankrupt. And they’re all getting their clocks cleaned by ecommerce.

Ecommerce sales in the first quarter jumped 15% from a year ago to $86.3 billion, not seasonally adjusted, or $92.8 billion seasonally adjusted, the Census Bureau reported today. They accounted for 7.7% of total retail sales. Over the last four quarters, ecommerce also jumped 15%, to 354.3 billion.

Meanwhile, much of brick-and-mortar retail is stuck in a quagmire. Total retail sales inched up 3.3% year-over-year. A third of that “growth” was inflation as measured by CPI. Another third was the impact of ecommerce.

The Rest…HERE

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