Who’s going to survive and who’s going to succumb to the economic dislocations stemming from the coronavirus measures? John McNellis’ at wolfstreet.com insights:
Some Green Shoots, but Finding them Is Tricky.
A year ago, our shopping centers were shuttered, and our tenants so crushed we forgave their April rent. Believing the world would reopen by mid-April, we thought our merchants would have a couple weeks of free-rent to make up for March’s closure. We couldn’t have been more wrong.
A year later and we’re still forgiving and deferring rent for our hardest-hit tenants. And hoping the Governor will finally permit them to operate at 100 percent capacity.
Where are we today? Starting with what you already know, second and third tier malls, particularly enclosed malls, are dead and gone and aren’t coming back. Their dinosaur anchors—Sears, J.C. Penny, Macy’s, and the like—were sinking in the tar pits long before the virus’s coup de grace.
In counter point, discounters like Marshall’s, TJ Maxx and Ross have thrived in the last year—Ross’s stock has doubled—suggesting it’s neither the virus nor e-commerce that killed off the mall habitués; rather it’s the mismanagement of the Jurassic retailers themselves.