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Amazon to convert its mall spaces in fulfillment centers

Amazon is reportedly considering converting its mall spaces into fulfillment centers as reported by The Wall Street Journal.

The E-commerce giant has had talks with Simon Property Group in lieu of the same which started much before the arrival of the COVID pandemic which has redefined the concept of shopping globally. The latest shopping mall casualties have been the likes of   Lord & Taylor, JCPenney, and Nieman Marcus which rudely shook the traditional shopping establishments by filing for bankruptcy.

The coronavirus has classically redefined the concept of brick and mortar stores being replaced by the likes of online stores which grew by leaps and bounds during the pandemic as people strictly adhered to social distancing norms and shifted to the virtual concept.

Having its fulfillment center warehouses closer to residential areas would help Amazon improve on efficiency and adhere to quicker deliveries, commented on the WSJ.

Simon is amongst the biggest mall owner in the US but is now looking to fill empty retail spaces, particularly those vacated by its star tenants like Sears and JCPenney.

Some malls across the US rent parking lots to Amazon vehicles already, but it would be unusual for a company like Simon to lease retail space directly to Amazon, as pointed out by the WSJ. Also, it is unclear as to where or how many stores Amazon is considering, or how smaller mall tenants might feel about sharing a roof with the likes of Amazon.

 For Amazon the pandemic has been a rollercoaster journey as it pushed most retailers to the brink, the e-commerce giant reported its second-quarter earnings results that it doubled its net profit year over year to $5.2 billion.

James Miller
Author: James Miller

I am passionate about technology and writing. I have 10+ years of experience in working with different digital media companies. If you have an interesting story, please feel free to send a mail to [email protected]

Author

I am passionate about technology and writing. I have 10+ years of experience in working with different digital media companies. If you have an interesting story, please feel free to send a mail to [email protected]