Is J.C. Penney Closing Just the Beginning of More to Come?
The announcement of the closing of the J.C. Penney Store in the Quincy Mall last week was not a good way to start off 2015. This closure is much more than just losing the Penney's store. The ramifications of this closure are far reaching. Not only does it leave a void in the Mall, but it may be a prelude to other stores closing as well.
Occupancy rates are extremely important in attracting new companies to a mall. The occupancy rate is still quite high for the Quincy Mall, but rumblings about Sears closing have been circulating for months. If Sears were to leave, the future wouldn't look pretty.
Retail stores are facing some tough times ahead thanks to online sales increasing. Buying what you want without leaving the comfort of your home is a challenging problem for store owners who depend on customers coming into their stores.
This problem has a domino effect as well. When people travel to the Quincy Mall, they, in many cases, stop at a fast food restaurant or coffee shop as well. Those surrounding businesses depend on the success of the Mall and other retail outlets. Combatting the online sales by customers should be #1 on the minds of store owners.
Knowing the problem is one thing. Solving the problem is another.