Date post: | 22-Jan-2018 |
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Business |
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Shopping Malls Aren’t Dying, and Here’s the Proof
Topics of Discussion:
1. More than 96% of Malls Are Performing Just Fine
2. Net Operating Income Grew Solidly in 2014
3. The Real Competition Isn’t from Online Shopping
4. Mall Franchises Are Still Booming
#1 More than 96% of Malls Are Performing Just Fine
To qualify as “dying,” a mall needs to have at least a 40% vacancy rate. After reviewing an analysis of malls that truly
are “dying,” only 3.4% of America’s malls qualify in this criterion. This means that the other 96.6% are performing up to par. Furthermore, only 20% of malls in America are
even operating with 10% vacancy.
#2 Net Operating Income Grew Solidly in 2014
According to the International Council of Shopping Centers (ICSC), mall occupancy is the highest it has been since the
year of 1987. Rental rates in malls are steadily rising, and net operating income continues to climb as well. The ICSC states that net operating income is at the fastest growth rate we’ve
seen since 2000.
#3 The Real Competition Isn’t from Online Shopping
One of the general myths surrounding the decay of malls is that they’re becoming moot from other forms of shopping
and consumer demand, such as online shopping. But studies show that online shopping still only comprises about 7% of
retail purchases. The real competition for malls is a combination of demographics and competition from other
malls. In terms of demographics, declining populations and
struggling middle-class wages are the culprit. Areas with smaller populations means less customers, and areas with struggling middle class sectors means less money can go
into any form of shopping, including malls. So don’t believe the hype that shopping malls are an ancient form of
accessing the goods and services that customers need and want.
For more information, please visit our blog at: http://www.greatamericancookiesfranchise.com/uncategorized/shopping-malls-arent-dying-and-heres-the-
proof/
Or visit our website at:http://www.greatamericancookiesfranchise.com/
Disclaimer: This information is not intended as an offer to sell, or the solicitation of an offer to buy, a
franchise. It is for information purposes only. Currently, the following states regulate the offer and sale of
franchises: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North
Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. If you are a resident of or want to locate a franchise in one of these states, we
will not offer you a franchise unless and until we have complied with applicable pre-sale registration and disclosure requirements in your state. Franchise
offerings are made by Franchise Disclosure Document only.