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Why U.S. Malls Are Disappearing

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Shopping malls in the U.S. were already in decline before the Covid-19 pandemic as consumers shifted away from traditional brick-and-mortar stores to e-commerce. The outbreak has only exacerbated the challenges at malls as social distancing has placed restrictions on stores, movie theaters and restaurants. So what will become of malls in America after the pandemic ends?

Shopping malls across the U.S. have been reeling as restaurant and retail tenants struggle to keep their doors open.

Data compiled by Coresight Research shows about a quarter of U.S. malls could close over the next three to five years, accelerating a trend that began before the pandemic.

Simon Property Group — the nation’s biggest mall owner — said earlier this month that its fourth-quarter revenue dropped by 24% on a year-over-year basis to $1.1 billion.

However, some analysts think Simon — with its portfolio of A-rated malls and a healthy balance sheet — will benefit as distressed malls operated by its rivals close their doors. The company is also expected to see gains from new additions like hotels and luxury residences.

“Unfortunately there are a lot of centers that don’t fit that high profile and that have lost their competitive edge,” said Piper Sandler analyst Alexander Goldfarb. “The thing about Simon is they’ve been really focused on maintaining it, and that’s both been through a combination of culling the lower productive centers as well as making sure that they keep investing in their top centers.”

Simon Property Group CEO David Simon said the company is also getting a lift from increasing traffic at some of its locations and from tenants paying their rent on time.

Malls are a big tax driver for the communities they serve and employ lots of people locally. Watch the video above to find out more about the struggles U.S. malls face and what could become of them after the pandemic ends.

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Why U.S. Malls Are Disappearing

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35 Comments

35 Comments

  1. @WLyons9856

    January 29, 2024 at 9:47 am

    Malls aren’t dying, the stores that were in malls are dying.

  2. @david51532

    January 29, 2024 at 9:47 am

    why aren't we using the empty malls for housing?

  3. @jaya-squishiehuntr019

    January 29, 2024 at 9:47 am

    I like going to malls💜👍

  4. @EricPham-gr8pg

    January 29, 2024 at 9:47 am

    Is mall or airport which one is better for mobile team ? 🤔

  5. @EricPham-gr8pg

    January 29, 2024 at 9:47 am

    Mall are best for hightech corporation do research in everything from basics to large logistic and good for mobile team shelter and clean up or give it to the homeless

  6. @jackilynpyzocha662

    January 29, 2024 at 9:47 am

    This is sad; Eastfield Mall in Springfield, MA is(or has been) demolished. I grew up going to that mall.

  7. @jackilynpyzocha662

    January 29, 2024 at 9:47 am

    It isn't just because of the online shopping, "Covid-19" did not help matters.

  8. @deborahharris4035

    January 29, 2024 at 9:47 am

    It's really sad how the world is changing and Amazon has taken over and malls will be a thing of the past. I don't know about the future for our grandkids and all these changes with social media it's just really sad

  9. @mgk920

    January 29, 2024 at 9:47 am

    Whenever I hear 'pandemic' (or similar word or words), the first thing that comes to my mind is 'politicians with a personal agenda'.

  10. @ryan2130

    January 29, 2024 at 9:47 am

    If you want to know why nobody goes to malls anymore, take a look at the places people do go to: Walmart and Amazon.

    Walmart is a department store, meaning it sales different types of items in different sections of the store (tools, electronics, food, etc). Amazon, too, sales different types of items.

    People don't go to malls anymore because they don't have to.

    Malls could attract people again, provided they start to offer experiences you can't get elsewhere. Malls should lower prices, too, that would help attract people.

  11. @geechie-don7157

    January 29, 2024 at 9:47 am

    People got tired of looking like everyone else around town. Catalog shopping in order to look different was replaced by Internet shopping. Distribution killed malls…

  12. @jacque4697

    January 29, 2024 at 9:47 am

    Amazon and the rise of online shopping.

  13. @Retsler54

    January 29, 2024 at 9:47 am

    It seems one problem is the stores in the malls do not co operate by sharing the ownership of the space? So outsider foreign owned are the owners and try to get the highest rent possible and the stores of the malls cannot cope with it.

  14. @HoppyRabbit101

    January 29, 2024 at 9:47 am

    Why spend a ton of money at the mall when you can spend a fraction of the price online on products that are way higher in quality.

  15. @robertnobody

    January 29, 2024 at 9:47 am

    The answer is oblivious, it was right in front of you the whole time…..The INTERNET killed malls and people stopped shopping at them.
    Everybody cries afterwards, but you did it to yourselves, the customers killed malls by not supporting their local stores and buying everything off the internet.

  16. @user-vn1ow4hi7i

    January 29, 2024 at 9:47 am

    Macaroni grills and toysrruses ar closing to 1:27

  17. @user-vn1ow4hi7i

    January 29, 2024 at 9:47 am

    No I miss Westminster mall

  18. @lazarusblackwell6988

    January 29, 2024 at 9:47 am

    I havent been to the mall in a long time.

    I just dont feel like wasting my time there.

    I shop in small village stores.

  19. @lazarusblackwell6988

    January 29, 2024 at 9:47 am

    Malls are a symbol of mankinds greed and waste of money and resources.

    So many family shops were closed so that the big corporations could binge for a while.

  20. @NewCoke-PepsiMan84

    January 29, 2024 at 9:47 am

    Read the comments. Mostly full of sheep 🐑

  21. @NewCoke-PepsiMan84

    January 29, 2024 at 9:47 am

    US is dying in general

  22. @ilovegodandjesusjohn316

    January 29, 2024 at 9:47 am

    John 15:5
    I am the vine, ye are the branches: He that abideth in me, and I in him, the same bringeth forth much fruit: for without me ye can do nothing.

  23. @dlagrua

    January 29, 2024 at 9:47 am

    I always intensely disliked malls and am thrilled to see them go. Malls were a curse to humanity and I will tell you why. What they did was to bankrupt the smaller ma and pa retailers that existed on Main Streets of the small towns and replaced those retailers with those owned by the multi-national corporations.

  24. @Inucroft

    January 29, 2024 at 9:47 am

    1) Car dependency
    2) Collapse of the middle and lower class disposable income
    3) Lack of actual variety within the malls
    4) Extortionate rates charged by the Mall to storeholders
    5) Oversupply of Commerical Space resulting in an overabundance of Malls

  25. @TWOCRUNK4U

    January 29, 2024 at 9:47 am

    The internet cut out the middle man

  26. @emmanueljaramillo

    January 29, 2024 at 9:47 am

    Where I live (Colombia) malls only work if they have a major groceries store in it. Actually their whole marketing strategy is telling people which groceries store they have so people can think of going there. Since people does not have a lot of money, groceries is a main issue. Malls know that and focus on that necessity. Buying clothes is a side activity for the regular consumer. And since groceries are the core of the malls and groceries cannot be bought on Amazon, therefore malls in Colombia are conceptually secure despite the raise of E-commerce. Also there is not a so Internet dependent culture in my country, so rich people tend not to buy too much from amazon (despite being able to). They rather go to buy the object by themselves.

  27. @leorodriguez5015

    January 29, 2024 at 9:47 am

    People prefer to buy online cuz they’re so fat and lazy

  28. @julyseven808

    January 29, 2024 at 9:47 am

    People are buying online. Malls are dying but discount stores and dollar stores are doing OK.

  29. @KBlessed69

    January 29, 2024 at 9:47 am

    Flash Mobs will be the death of U.S. Malls…

  30. @tirebiter1680

    January 29, 2024 at 9:47 am

    When your average democrat walks through an empty mall, he thinks there are 2 uses for this place. That big parking lot is a place for hundreds of homeless veterans to pitch their tents and the empty stores can be made into homes for thaosands of illegal aliens.

  31. @unknownuser6757

    January 29, 2024 at 9:47 am

    Not good

  32. @thiemgiaminh8533

    January 29, 2024 at 9:47 am

    Amazon & EBay take all

  33. @m.c.o.3068

    January 29, 2024 at 9:47 am

    This mini documentary, is an interesting short history and summary of current U.S. shopping malls.

    – The documentary almost calls attention to the lost opportunities to re-develop under-used shopping malls.

    Internet retail shopping and even grocery shopping – is more time efficient and provides customer reviews as well as easy comparison shopping.

    Malls however, are still carefully designed, covered spaces, with large graded parking lots; and importantly, malls are specifically located in population centers.

    True enough, there is less on the ground local shopping.

    However, there are still as many on the ground local errands.

    Families with two working parents, are challenged by the time and effort involved in these errands.

    The "retro" shopping malls would serve a useful purpose if they could be developed as ERRAND MALLS.

    Errands such as:
    internet ordered grocery pickup – trattoria style hot meals to go – internet orders, unboxed pickup (packaging recycled) – child daycare drop off and pickup – elder day room drop off and pick up – a home health care "spa" (with an elder barber, hair stylist, bathing assistance, hearing aid, podiatrist etc.) – an urgent care exam room – an elder lunch room – dry cleaning pickup – excercise machines gym – etc., all planned as age and activity associated areas within the mall.

    Re-developed malls could be planned and designed to make routine errands convenient.

    The malls would evolve from a former, pleasant chaos to a current, more focused activity, but still pleasant, familiar environment, and a useful community errand center.

  34. @Alejandro67317

    January 29, 2024 at 9:47 am

    I miss the mall near my house it use to be my childhood place

  35. @undecidedmarkus

    January 29, 2024 at 9:47 am

    Namdar is one of the reasons..

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How Visa Became The Most Popular Card In The U.S.

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$6.7 trillion. That is how much Americans spent using their debit or credit cards in 2019. More than 60% of those purchases were made using cards from Visa, a company that has long dominated the payment card industry. As payment cards become more essential in our daily lives, Visa has quickly grown to become one of the most valuable companies in America. So how exactly does Visa make money and why does it dominate the payment card industry? Watch the video to find out.

Clarification: The 10% mentioned in the video at 11:45 refers to 10% of the average 2.2% of the swipe fee charged to merchants.

Americans are increasingly using plastic to spend their money, enabling Visa to grow its dominance in the credit and debit card space.

People in the U.S. spent $6.7 trillion through credit and debit cards in 2019, up 88% from 2009, according to a 2020 report by HSN Consultants. Of those transactions, more than 60% were made with Visa cards.

This has helped Visa grow into one of the world’s most valuable companies. As of Oct. 19, Visa has a market valuation of more than $491 billion. Its shares are also up more than 170% over the past five years.

However, some retailers argue that Visa’s success has come at the expense of merchants who rely on them to process payments. Some have even said the fees imposed by Visa are too high for businesses to survive.

“I know a lot of business owners and it saddens me because so many people have come to accept it as it is what it is,” Hub Convenience Stores CEO Jared Scheeler said. “These prices are so ridiculous. The amount we pay in swipe fees is so high that we have to do something about it, somebody has to do something about it.”

Swipe fees collected by Visa and Mastercard ballooned to $67.6 billion in 2019 from $25.6 billion in 2009, according to data from the National Retail Federation. The overall processing fees paid by U.S. merchants to accept all card payments jumped to $116.4 billion in 2019, up 88% since 2009.

“This is a central part of the problem with their dominance,” Merchants Payments Coalition executive committee member Doug Kantor said. “The exact way they were set up was to be this dominant price-setting entity and the fact that it’s gone on this long is a problem for everybody else in the economy.”

Visa declined to comment on this story.

To be sure, those in support of Visa argue the company is on the merchants’ side.

“Visa on some level is a victim of their own success in the sense that they’re so ubiquitous and so secure and so easy to use that people begin to take it for granted,” MoffettNathanson analyst Lisa Ellis said. “Visa’s business structure is very balanced and if anything is actually skewed, believe it or not, towards the merchants. They actually get the majority of their revenue from the banks and the ecosystem that’s supporting the merchants.”

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Why BMW And Mercedes Made Cheap Cars That Failed

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Luxury cars are typically meant to symbolize prestige, wealth, and even excess, but sometimes they can come pretty cheap. Every so often premium automakers like BMW and Mercedes push out cars with starting prices well below the market average. However, in their quest for even greater volumes, some premium automakers are trying to see if they can net a few more buyers down at the lower end of the price range, and sometimes it doesn’t work out.

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Why Rich Rebuilds Is Opening A Tesla Repair Shop

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Rich Benoit runs the popular YouTube channel, Rich Rebuilds, where he takes broken-down Teslas and brings them back to life. Now he and his business partner, a former parts manager at Tesla, are opening up a repair shop to help stem some of the demand for Tesla service. Tesla customers have often complained about having to wait weeks to get their cars serviced.

Benoit has been enchanted with Tesla since it introduced the Model S. He turned his curiosity into YouTube fame in 2016, cranking out videos about the cars, including how to buy, fix and mine wrecked Teslas for spare parts.

Today, his YouTube channel “Rich Rebuilds” is approaching half-a-million subscribers. The most popular episode—”Can you drown a Tesla motor?” — has garnered 2.3 million views and counting in less than a year.

His followers frequently send payments to support his video blogging habit, and random items for his cars, home and garage. Someone sent him a life-sized poster of Elon Musk. Someone had pizza delivered to his house, which Benoit liked. On the weirder side of viral video stardom, a fan sent Benoit a puppy preserved in formaldehyde in a jar.

Eventually, he partnered with a former Tesla parts manager, Chris Salvo, who is also the owner of EV Tuning to open up their own repair shop. While they both hold down day jobs, this spring they broke ground on their “Electrified Garage” in Seabrook, New Hampshire.

“I was never thinking of opening my own shop,” Benoit said. “But I’d been denied so many times by Tesla that I really started thinking there’s got to be a bigger picture here, another player who can help others and get parts as well. Now that there’s a place where people can go for third-party EV repair.”

The Electrified Garage is getting customers who are out of warranty with their Model S’s, and people who own Model 3’s but can’t get Tesla service centers to do work for them because they have after-market parts that negated their warranty Benoit said.

While CEO Elon Musk has long promised to ramp up the company’s service in North America, Tesla is currently in a belt-tightening phase, recovering from mass layoffs and still under pressure to cut costs. Until they’re ready to invest in opening more service centers, hiring more technicians and mobile service “Rangers” – who drive to the customers’ door to fix their cars – there are upstarts like the Electrified Garage ready to repair, modify or rebuild.

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How Chicken Became An American Obsession

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Chick-fil-A has long dominated the chicken sandwich category in fast food. After Popeyes Louisiana Kitchen launched its own version of the chicken sandwich, other fast food chains like Wendy’s, McDonalds and Shake Shack got into the battle. Here’s how chicken took over America.

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The Next Frontier Of Space Tourism — Going To The Stratosphere In A Balloon

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Commercial space flight is becoming more and more common with companies including SpaceX, Blue Origin and Virgin Galactic all having flown paying customers into space over the last several years. But soon, those interested in seeing the earth from an unusual vantage point may have another option. A number of startups are hoping to hoist tourists to the stratosphere using pressurized capsules and massive gas-filled balloons. CNBC spoke to three of them, France-based Zephalto, Florida-based Space Perspective and Arizona-based World View.

The experiences would not take passengers all the way into space, the start of which is generally accepted by the U.S. government to be around 80 km or around 50 miles above the earth’s surface. Still, the companies we spoke to said passengers would be able to experience the “overview effect,” a common, highly emotional phenomenon felt by astronauts when they see the earth against the blackness of space. The rides would also be much smoother, avoiding the bone rattling experiences of rocket-powered space tourism.

A single trip would last about 6 hours and ticket prices range from $50,000/seat with World View to around $184,000/seat with Zephalto. All the stratospheric balloon companies we spoke to are still developing and testing their systems. Space Perspective and World View would not give CNBC an exact date for when they plan to begin commercial flights, but Zephalto said the company is aiming for 2025.

Chapters:
00:00 Introduction
02:27 The stratospheric experience
07:00 Stratospheric balloons
10:58 Regulation and safety
13:52 Road to commercial flights

Produced, Shot and Edited by: Magdalena Petrova
Additional Camera: Lisa Setyon
Animation: Jason Reginato, Emily Rabbideau
Supervising Producer: Jeniece Pettitt
Additional Footage: NASA, Getty Images
Additional Sources:National Air and Space Museum, Federal Aviation Administration, Newspapers.com

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