Roughly a quarter of U.S. shopping malls will most likely shut their doors within the next five years, according to new research from Credit Suisse.
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In a research note published earlier this week, the bank estimated that roughly 220 to 275 shopping centers (or between 20% to 25% of the nation’s 1,100 shopping malls) would close by 2022.
The analysts also cited Nordstrom (NYSE:JWN) and Bloomingdale’s as the “most valuable” properties at shopping malls, with retailers Macy’s and JCPenney taking the backseat with the “least valuable” ratings.
Credit Suisse predicts that e-commerce will continue to pull shoppers away from bricks-and-mortar retailers and by 2030, they estimate that apparel sales will represent 35% of all e-commerce, which would be a 17% rise from today.
The prediction isn’t shocking as major retailers such as Macy’s (NYSE:M), JCPenney (NYSE:JCP), Sears and Michael Kors have announced store closings—around 3,600 stores in total, according to the report. Credit Suisse estimates that number will more than double by the end of the year, to about 8,640 stores.
Meanwhile once-popular brands such as American Apparel, Limited, BCBG, Wet Seal and Payless ShoeSource have filed for bankruptcy.