The Daily Mall Reader: Mall Madness

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"Mall madness"
Anchor exits cause concern, but create opportunities for slumping properties

San Antonio Business Journal - January 26, 2001

(Excerpt) Several San Antonio malls, already hit by competition with power centers, have taken another blow.

The Chapter 11 bankruptcy reorganization of Texas retailer Stage Stores has led to the closing of four Bealls stores, three at local malls. Then, anchor tenant Montgomery Ward announced it was filing for bankruptcy liquidation, closing its stores at Windsor Park Mall, Crossroads Mall, Westlakes Mall and McCreless Mall.

To retail analysts, the situation for lower-end malls looks bleak. Some expect surviving retailers will slash operations further in an effort to cut costs in a belt-tightening market, resulting in more vacancies. In fact, this week J.C. Penney announced that it would close 50 stores.

Town centers such as the Derby Street Shoppes here are the latest answer. Because all stores can be entered from the parking lots, these topless malls satisfy busy shoppers' desire to run in and out.

Read the full article here.