Mall Operators Should Bet on Amazon, Not J.C. Penney
By rescuing a barely relevant retailer, Simon and Brookfield are squandering an opportunity to reimagine their spaces for a post-Covid world.
Simon and Brookfield would be better off with a thriving Amazon warehouse in their space than a fading J.C. Penney.
Photographer: Luke Sharrett/BloombergJ.C. Penney Co. has a fresh shot at returning itself to retailing relevance. The department store chain said Wednesday evening it had reached an agreement to be rescued from bankruptcy by mall operators Simon Property Group and Brookfield Property Group in a deal valued at $1.75 billion. But is this the best outcome?
There are upsides to sparing this mall stalwart from liquidation. The acquisition has preserved tens of thousands of jobs and staved off more disruption at U.S. shopping centers, which are reeling from widespread store closures and pandemic-related shopper caution. Still, the deal could turn out to be short-sighted for the mall operators, a squandered moment to reimagine their spaces for the future instead of just trying to survive.