Amazon looking at closed JCPenney and Sears stores as fulfillment centers


Could Amazon being coming to a mall near you? Possibly. Amazon is talking with mall-owner Simon Property Group about using J.C. Penney and Sears stores that have closed as Amazon fulfillment centers.

IRONY

It it partly because of Amazon's huge success in E-commerce that stores like J.C. Penney and Sears just couldn't compete. These department stores have seen a drastic reduction in foot traffic over the last few years and the pandemic really accelerated some of those closings.

What else were you going to do with those large spaces? Amazon has always focused on their "last mile" delivery.

  • Delivery drivers
  • Drones
  • Amazon lockers

The potential of these fulfillment centers which are closer to residential areas will benefit customers with last minute deliveries.

GROWING TREND

  • In June, J.C. Penney said they would be shutting down 154 stores this summer.
  • Sears announced last November it had plans to close 96 stores (including some Kmart locations).
  • Both have filed for bankruptcy in recent months.

Simon Property Group, the largest U.S. mall owner by number of malls with 204 properties.

More on this story at CNBC.COM


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