Kohl’s, Macy’s looking to sublease space
We’d file this under the “good idea if you can find someone dumb enough to do it” . . .
Department store operators Kohl’s Corp (KSS.N) and rival Macy’s Inc (M.N) are betting on a potential money-spinner – carving out prime space within their sprawling stores and leasing them to other retailers.The move underscores the pressing need for the two chains to better monetize their real estate assets at a time when fewer people are visiting malls and instead shopping online for everything from clothes to home decor items.
Source: Kohl’s, Macy’s turn landlords in bid to unlock real estate value | Reuters
At the malls in the Northern Virginia area, the parking is always best near the anchor stores. Why? Because no one shops there, so no one parks there.
The parking is tightest at the center of the mall — where all the restaurants and movie theaters are, which seems to be the only reason to go to the mall these days.
So why would a retailer pay top-dollar to lease bad space from a retailer struggling with foot traffic? It would seem to us that Macy’s and Kohl’s should be giving away space to others that would bring in traffic through their stores. Either that, or maybe Amazon (AMZN) should use it for in-store pickup areas for your Amazon Prime orders.
