How To Profit From The Death Of Malls In America

Sales at U.S. department stores — traditional mall anchors — declined from $87.46 billion in 2005 to $60.65 billion in 2015, according to eMarketer.com, citing U.S. Department of Commerce data. Sales per square foot dropped by 24% over the past decade to $165 per square foot, according to real estate consulting firm Green Street Advisors. Sears would have to close half its locations, about 300 stores, and JC Penney would need to shutter about a third, 320 locations, to return to the sales per square foot they enjoyed 10 years ago. Research conducted by Green Street Advisors found 44% of the total value of U.S. malls can be found in just 100 properties, says Scott Rothbort. He serves as a professor of finance and chief market strategist at Seton Hall University’s Stillman School of Business. Some 900 other malls make up the remaining 56%. Rothbort explains the driving forces behind the death of malls in America and recommends some stocks and exchange traded funds to profit from the trends. Read more at Forbes.