AMZN) enters the mall by turning once occupied department stores into massive fulfillment centers.
told Yahoo Finance’s The First Trade.
But speculation has commenced in full force this week that Amazon will soon be the next generation mall’s primary anchor tenant.
now bankrupt department store.
Amazon didn’t immediately return Yahoo Finance’s request for comment. The always colorful CEO of Simon Property Group David Simon was tight-lipped about a deal with Amazon during an earnings call on Monday. But, he didn’t flat out say that a deal is not in the works.
“Well, I’m really not in any position to respond to market rumors or speculation. So, that’s really with respect to that. I mean, generally, I’d say, the important thing going on that we’re seeing is that more and more retailers are distributing their e-commerce orders from their stores. And so, they’re fulfilling from their stores and they’re also — the curbside pickup or all sorts of fulfillment options are available. That’s a good trend long-term for us. But beyond that, I don’t want to get into logistics or any kind of speculation really around JCPenney and/or Amazon, and we should leave it at there,” Simon told analysts.
But at the end of the day, a tie-up between Amazon and Simon makes all sorts of sense. For Amazon, it could get access to prime real estate on the cheap in a bid to speed up last-mile deliveries and reduce shipping costs. For Simon Property Group, it could get a true long-term anchor in its malls that it won’t have to worry about paying on time…or going bankrupt.
As for Qurate Retail CEO George, he doesn’t need either Amazon or Simon Property. His business is close to firing on all cylinders during the coronavirus pandemic as people stay home and order online or from watching the TV channel.
The stock is up 37% year-to-date, outperforming the S&P 500’s 4% gain.
Says George, “We really saw a nice movement and nice growth in TV home viewing and QVC and HSN networks and nice growth in visitors online. And, I think we can sustain that kind of growth.”
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