Should A Retailer Rent Space In A Shopping Mall?


Retailers who are considering renting a space in a shopping mall, should consider the opportunities and challenges that are present in today's market. 

The coronavirus epidemic seems to be slowing down, although there is still the risk of a second wave. 

Mall operators, such as Taubman Centers and Simon Property Group, are starting to reopen malls, with department stores, such as Macy's and JC Penney, opening their brick and mortar locations. 

While the reopening of malls is good news for retailers who are looking to rent spaces in malls, retailers should be aware that many shoppers might still be reluctant to shop where the crowds are.

On the other hand, since malls are struggling to fill much of their vacant space, this might be the perfect opportunity for a retailer to negotiate a great deal on the rent.

It is crucial that a retailer visit the mall in person, and determine what the competition is like, and more importantly, see if her products are a good match for the mall's shoppers. 

If the mall is a suitable location for the store, then it's time for the retailer to carefully crunch the numbers. A retailer, alongside his accountant, should carefully add up all the expenses, add that number to the total cost of his merchandise, and subtract that amount from his likely sales. The retailer will then know if the location can be profitable.