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How E-Commerce Might Rescue Dying Malls
Mall owners may have discovered an unexpected savior of sorts. The booming e-commerce sector that has helped cause so much angst across the traditional retail industry is finding a use for closed stores and parking lots.
Some of that space is being envisioned as staging grounds for last-mile deliveries, or pick up points for customers’ online orders. Online retailers could use the strategy to reduce shipping costs for home deliveries, as well as for customer service locations.
In markets with high density and few options to build a distribution facility, repurposing space in shopping malls may make sense since they typically are closer to where people live, thus will help expedite orders.
A version of that strategy, typically in higher-income areas, involves mall owners installing Amazon Lockers where customers can buy online and pick up orders.
Analysts estimate that more than 8,600 retail locations are expected to close this year.
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