Amazon Wants To Buy Stores Of JCPenney And Sears

Amazon Wants To Buy Stores Of JCPenney And Sears

Amazon has been in negotiations for some time with Simon Property, the largest mall operator in the US. According to the news in Business Insider, Amazon wants to buy some stores of JCPenney and Sears. The retail giant plans to turn these centrally located stores into a warehouse. In this way, Amazon will further expand its logistics network in the USA. JCPenney and Sears had filed for bankruptcy protection. Simon Property, which bought Sears, is about to buy JCPenney as well.

Amazon Wants To Minimize The Delivery Time Of Orders

Simon Property owns 11 stores of Sears. It will have acquired 63 stores of JCPenney. After the two brands filed for bankruptcy protection, they closed many stores. No information was given as to how many of these Amazon wants to buy. Buying stores from brands that have gone bankrupt is not new for Amazon. Many of the warehouses the company currently uses belonged to brands that went bankrupt. The retail giant wants to minimize the delivery time of orders and gain a serious advantage in the competition by establishing warehouses in central points.

For shopping center businesses, it is not very profitable to sell the shops to a warehouse

For shopping center businesses, it is much more profitable to rent or sell stores to brands that will attract people to the mall and generate traffic. For this reason, it is not very profitable for the operator to sell the shops to a warehouse where only Amazon's own employees will be located. Moreover, warehouse rents average $ 10 per square meter, for example, this number increases several times in restaurants. However, the abandonment of shopping centers by customers due to the corona virus epidemic may cause Simon Property to somehow agree with Amazon to generate revenue.