There Is Less Need for People to Go to Malls: Sitt

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Feb. 5 (Bloomberg) –- Thor Equities Founder & CEO Joseph Sitt discusses America’s over abundance of shopping malls, how technology impacts retail and what can save J.C. Penney with Scarlet Fu and Matt Miller on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

They were bustling.

But malls are not busy these days.

Business changes, it's cycling.

There is less capital and money in people's pockets to go to the mall him and fewer reasons to go.

One is the perspective of where the money is going.

I often say technology.

A playstation or an xbox and what comes with it, on an average person's spend per household could eat .9 shopping -- could eat 29 shopping chances at other places.

He -- because you could easily spend $1000 on an xbox or playstation.

Or both.

Some people buy both.

We grew up in the 80's and i'm a child of going to the mall on the weekends.

According to the international council of shopping centers, there are 23.8 square feet of mall space per person in america, versus almost four in japan and almost five in the u.k.. that is a huge differential.

It is massive.

I have lived in germany and the u.k.. i shop a lot no matter where i am, but i'm shocked at that chart.

We are american.

Everything we do, we go big.

When people wanted shopping malls and it was all about consumer spending, we went eight.

Now it is a bit of turnover.

Now people want to live in the cities.

Suddenly, you have underserved retail in major metropolitan cities in the united states, but you are overwhelmed and over-retailed.

How are malls in the city different from malls in suburbia?

It is not so much malls in the city.

It is predominately about the street.

It could be shopping on bowery, shopping in lido -- in a lido or soho.

The neighborhood.

Shopping in the neighborhoods or the major streets, the major arteries.

Out in california a could be shopping on rodeo drive.

But we also have in white plains, the westchester small -- mall is a pretty nice mall and where i'm from in columbus, ohio, it is a pretty nice mall and pretty packed.

But in these small towns or mid tier towns that are completely abandoned.

Except for the anchor stores.

If you are a retailer, you need that flagship store to build the brand.

Let the customer know you have that billboard, but in terms of the mall, a lot of folks are doing what you and i are trying to do.

Why a new care of shoes, boom, boom.

I will go to bloomingdale's and get something nice, or go to tj and get something cheap.

But i won't go to jcpenney.

What can they do?

By the way, you hit the nail on the head when you said t.j. maxx as an example.

They are eating the lunch of companies like jcpenney.

To be blunt, if a penny and kmart, they are all dinosaurs.

They are not run by merchants.

They bought -- got bought by financial guys who thought they were good investment.

And the financial guys said, you know, i'm going to try to when that business.

Jcpenney was run by a retail guy for a wild, ron johnson.

You know him, right?

He did a fantastic job at apple.

Coming from the king of retail stores to going to jcpenney -- you just said it.

You had steve jobs's brain and ingenuity and the hottest products.

It was more about how to display it.

In the case of jcpenney, they are selling good old fashion clothing and not doing it like t.j. maxx or marshall's, giving you great value, or like companies like forever 21 or h&m that are giving you value.

Kids and those in their 20's that are going to those stores, they do not even think about paying $200 for a pair of jeans.

It sounds like, if anything, ron johnson should have close more stores.

There are a lot more stores than we need.

Ceos of retailers tend to use that expanding through getting -- getting their gross numbers to restore openings.

It seems like a broken model these days.

It is.

And it was quite a challenge.

He went from selling coca-cola to gold.

Here he had the challenge of reinventing an american institution.

The world changed.

You've got to be with it.

Also, in the case of at least

This text has been automatically generated. It may not be 100% accurate.

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