Back in the good old days, malls were known as the local hangout spots, with brands filling up nearly every store spot available. This attracted huge crowds that generated immense profits on a weekly basis.
However, the rise in e-commerce platforms has made it more convenient for shoppers to purchase from their favorite brands without the need to enter a physical store.
Over the last few years, it has been said that malls are becoming a dying business because they are simply not what they used to be. The same goes for its staple brands, which have planted themselves at almost every local mall for what seems like forever, becoming essential mall staples but now can barely afford the expensive lease prices.
The high-value great real estate lying underneath malls has led to the demolishing and repurposing of them in hopes of bringing in greater profit. But, in spite of the tumultuous last few years, 2025 might just be the year for malls to regain their throne.
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According to the latest mall index by Placer.ai, malls reported higher foot traffic in 2024, with an overall retail foot traffic increase of 0.4% year-over-year and visits lasting longer in general.
Mall owners and contributors began noticing this unexpected spike and saw the potential of resurrecting this business.
The Brickell City Centre shopping mall with Apple Store, Chanel and escalators.
Jeff Greenberg/Getty Images
JCPenny merges with SPARC Group to form a new company to reign over malls
JCPenny and SPARC Group on Jan. 8 agreed to merge both companies and form a new organization called Catalyst Brands.
SPARC Group is a fashion industry leader that owns mall staple brands such as Forever 21, Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand, and Nautica, all of which have filed for bankruptcy in recent years. This group is also financially backed by Simon Property Group, which is known for helping mall brands exit bankruptcy.
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This new merger company comprises six retail brands, including Simon Property Group (SPG) , Brookfield Asset Management (BAM) , Authentic Brands Group, and SHEIN as shareholders, with JCPenny and Sparc Group as the equity deal drivers.
According to the announcement, the new merger company Catalyst Bands is launching with revenue of over $9 billion, 1,800 store locations, 60,000 employees, and $1 billion of liquidity. The companies expect this venture to generate significant strategic and operational value.
JCPenney files for bankruptcy and gets rescued by mall owners
In May 2020, JCPenney filed for bankruptcy, blaming its downfall on the Covid-19 pandemic, although the company hadn’t been profitable for the last 10 years before then.
To nurse its business back to health, the retail company developed a turnaround plan, in which it planned to borrow $450 million from its lenders to continue operations while its business was reorganized.
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However, JCPenney was eventually acquired by Simon Property Group, the largest shopping center owner in the U.S., and Brookfield Asset Management, a global investment firm that owns multiple malls. In a $1.75 billion deal, both companies became the owners of JCPenney’s entire retail and operating assets.
This acquisition could almost be seen as the mall owners’ thank-you gift and proof of loyalty to the once incredibly lucrative retail company that provided profitable contributions to the mall industry for many years.
It also prevented Simon Property Group’s malls from having huge empty anchor spaces from potentially closed JCPenney stores.
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