According to a Wall Street Journal report, Simon Property Group (SPG), the largest mall owner in the US, is in talks with Amazon to convert empty JCPenney and Sears stores into distribution centers to enhance the company’s delivery capabilities.
SPG stated in a recent public filing there are 11 Sears and 63 JCPenney stores available for use. It is not known at this time the number of stores in discussion or their locations. The effects of bankruptcy and store closings for both retailers has been felt throughout the retail sector as the traditional retail strategy and landscape continues to change.
“It is a win-win for both sides,” said Chris Walton, a former Target executive and current CEO of the retail blog Omni Talk in a statement. “Simon gets an anchor tenant and Amazon gets a more localized fulfillment center. For Amazon, the deal would also give it “a front row seat into developing the mall infrastructure for the future.”
Amazon continues to expand its reach of distribution centers to alleviate supply demands and delivery times with fulfillment centers housing electronics, kitchen appliances and other inventory for speedy delivery.