When most of us were growing up, our parents would take us to the mall during the holiday season to see Santa, shop for gifts and maybe get an Orange Julius. Going to the mall to see the decorations and to browse in all the stores was once a great American holiday tradition for many families, but this could be the last year.
Malls and their largest renters are facing a make or break holiday season. Giant department stores like Neiman Marcus, Sears and J. C. Penny that were iconic a few generations ago are now on the brink of disaster.
It isn’t just the large stores that are suffering. Mall staples like Claire’s, Charlotte Russe, Payless, GNC and David’s Bridal are all in some kind of financial trouble. With so many mall stores in jeopardy, will malls be able to stay open in the future?
Last year Toys’R’Us was in deep financial trouble and needed a great Christmas shopping season to bail them out. Unfortunately for the classic toy retailer, it was stores like Target and Walmart that drove prices down and forced made it very difficult for Toys’R’Us to have a good year. In 2018 they closed the doors and liquidated their assets.
Next year, what store will be liquidating their assets?
Target and Walmart are not going to let up on the local retail level and neither is Amazon on the digital front. Amazon’s earnings grew 29% since this time last year. They continue to sell and ship more products everyday and are expecting a record-breaking holiday season. Something that none of the other retailers are saying on this list.
Businesses like Amazon, Target and Walmart are sensing the blood in the water and they are going to attack. This holiday season we can expect amazing deals at Target and Walmart, sales that cut much lower than any store at the mall could offer. Amazon will be there to deliver whatever else people want and for the most part, shoppers can get whatever they want without ever going to a mall.
The retail battle is good for shoppers, but it could be the last year with any semblance of what we remember as a kid going to see Santa and walking around the mall.
Will you be shopping at a mall this year? Let us know in the comments below.