Bloomingdale’s and other high-profile closures are causing malls to rethink their basic concept.
In the old days, mall economics were so simple: Plunk down two big department stores as anchors and sandwich smaller shops in between. Open doors.
But the past 20 years, the draw of the major department store has begun to erode, with many sold or shuttered as aging malls struggled to modernize. Remember Dayton’s? Donaldson’s? Powers?
The news last week that Bloomingdale’s is leaving the Mall of America comes just after Sears’ recent announcement that it was closing 25 of its “full-line” stores nationwide — most of which are in anchor malls, although none in the Twin Cities.
“Department stores are not exactly dead, but they’re obviously troubled,” said retail historian Jack Thomas, who runs the websitewww.deadmalls.com. “Everyone wants one-stop shopping. The problem with department stores and malls is nobody wants to go to multiple stores to get what they need.”
After word that Bloomingdale’s will be shutting its doors in March, retail followers wondered whether the Bloomington megamall — the nation’s largest — would be left with a gaping hole in its grin of retail offering. read the rest (Source: Star Tribune)