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Amazon Begins Moving Warehouses Into Malls It Helped Put Out of Business (inc.com) 220

"It's easy to think of Amazon executives going home every night and bathing in their cynicism," writes Inc. columnist Chris Matyszczyk: It's often contended that Amazon has put an enormous amount of pressure on shopping malls. So much so that many of those malls are shutting their doors. Yet, as the Wall Street Journal reports, Amazon is now moving into precisely those derelict malls. Why? To use the space for its vast and, some might say heartless, fulfillment centers...

It's the perfect way to ramp up Amazon's promise to make one-day delivery the norm. The malls were specifically built to give access to large urban swathes. To make that even easier, they were built with good access to highways. Amazon's avowed intention to offer free one-day delivery for Prime members involves creating the reverse flow. Where hordes once flowed toward the malls, now convoys of vans carrying packages will flow from the malls to the malls' former customers... Meanwhile, we sit back, mourn the death of malls and can't wait to get our new underwear delivered just that little bit more quickly.

The article concludes that Amazon's move "would delight the most Machiavellian of cynics with its sheer beautiful gall."
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Amazon Begins Moving Warehouses Into Malls It Helped Put Out of Business

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  • Recycling (Score:5, Funny)

    by jfdavis668 ( 1414919 ) on Sunday May 19, 2019 @04:37PM (#58619742)
    I like it.
    • by drnb ( 2434720 )
      Standard Oil thought that way too. Put a competitor out of business. Recycle their corner gas/service station into a Standard Oil one.
    • Re:Recycling (Score:5, Insightful)

      by Aighearach ( 97333 ) on Sunday May 19, 2019 @05:21PM (#58619956)

      If the fulfillment center is heartless, so was the mall.

      Not only are they recycling the buildings, they're even recycling the heartlessness!

      There is a lot of things I dislike about Amazon, but "they're bad for malls" isn't one of them.

      Mail order and malls are equally bad for independent stores, which are the thing of value that is being lost.

      • Independent stores are sadly lost. And malls suck and are going away. So I agree with you. Rather than have the empty shells sit around, converting them into something that is useful seems like a great idea.
  • You won't get me shedding a tear for shopping malls, full of over priced, high margin products.

    • Re:So what? (Score:4, Interesting)

      by drnb ( 2434720 ) on Sunday May 19, 2019 @05:10PM (#58619894)

      You won't get me shedding a tear for shopping malls, full of over priced, high margin products.

      And full of entry level jobs, upward mobility to better jobs, etc.
      And full of employees that you could talk to to get advice and info about your purchase.

      • Re:So what? (Score:5, Insightful)

        by war4peace ( 1628283 ) on Sunday May 19, 2019 @05:13PM (#58619910)

        And full of employees that you could talk to to get advice and info about your purchase.

        Literally WUT?
        Most mall employees are clueless as to whatever the fuck they sell, with very limited exceptions.

        • Re: (Score:2, Insightful)

          by drnb ( 2434720 )

          And full of employees that you could talk to to get advice and info about your purchase.

          Literally WUT? Most mall employees are clueless as to whatever the fuck they sell, with very limited exceptions.

          New hires, but someone who has been there for a little while was often useful. And there was usually such a more experienced person on the floor. Sorry grew up in the days where you could ask the dork with a tie in the radio shack a question about a TRS-80 and they could usually answer.

          • Re: (Score:3, Informative)

            by mykie242 ( 2449478 )
            News flash, the TRS-80, Radio Shack, and knowledgeable mall shop employees are things of the distant past.
            • by drnb ( 2434720 )

              News flash, the TRS-80, Radio Shack, and knowledgeable mall shop employees are things of the distant past.

              The false claims I responded to included the past. There are also examples in recent times. I went to a mall department store that sold a brand of watch that I had, I needed a new battery. The clerk said they don't do it on site and have to send it out. She asked if I snorkeled or scuba dived with the watch. After I responded yes she said that there are two processes, one more expensive that maintains the 100M water resistance of the watch, the less expensive that does not. She made sure I got the right one

      • No. (Score:5, Insightful)

        by Anonymous Coward on Sunday May 19, 2019 @05:52PM (#58620120)

        And full of entry level jobs, upward mobility to better jobs, etc.

        Upward mobility to what? Store manager? Pfft! Another shit job with no benefits or health insurance.

        Now, if you implying that one could start there and be CEO one day - never happen. Seriously, a 45 year old CEO started off as a minimum wage clerk in a retail store?

        Here's how it works: they recruit these people from Ivy League schools - sorry State grads, you're stuck in the bottom rungs of white collar cubicle Hell.
        Those Ivy grads are then placed in "fast track" programs - or whatever - and then at 24 they are in management. We peons MAY get there when we are 40 years old.

        Then they move up - just because they were able to get an Ivy league education: which is NO better than state.

        Now, do you understand why people of means pay $500K+ to get their kid into good schools?

        This idea that we're a meritocracy is just a myth. A con to get us lower class people to devote our resources and go into debt (to billionaires). Sure, we can get some OK Middle class six figure job (Six figures is needed to live a truly middle class life of supporting a family of four, a house, a car, HEALTH insurance, DENTAL, VISION, and other things that the poor DO NOT have.).

        The median income in the USA is about $60K. NOT Middle class.

        And all it takes is your job being sent overseas to be screwed. "If you don't have a job, then you're no good!": unemployed, old, minorities, name it....

        Labor laws? EEO? ADA? Ahahahahhahaha - "You just don't have the skills! YOU PROVE that I'm breaking laws!" (Enjoy the legal expenses...and good luck getting compensated for them IF you win! Thanks Republicans!!)

        So, suck it peasants! Oh, several thousand more engineers are going to be laid off at the end of the Summer - for some BS reason. Enjoy!

        And I'm shutting upnow.

      • And full of entry level jobs, upward mobility to better jobs, etc.
        And full of employees that you could talk to to get advice and info about your purchase.

        Yeah. The alternative of independent shops that provide the same service while paying their staff more is so horrible. Yay malls full of the same trash companies that pay the bare minimum wage and invest any additional capital in ensuring the minimum wage stays low. Such fantastic mobility. Yay malls.

        Also advice and info about your purchase? May I interest you in a bridge? It's not just any bridge like all those other people who have bridges to sell you, this is a special one for the incredible gullible. An

        • by drnb ( 2434720 )

          And full of entry level jobs, upward mobility to better jobs, etc. And full of employees that you could talk to to get advice and info about your purchase.

          Yeah. The alternative of independent shops that provide the same service while paying their staff more is so horrible.

          We weren't discussing that alternative. We are discussing the alternative of Amazon, which is inferior to malls in this regard.

  • "It's the Ciiiircle of Liiiiife...
      And it moooves us aaaaaaallllllll..."

  • They forced thousands of small local stores out of business, not because of price, much more about the convenience of one-stop shopping. Think of them as the Wal-Marts of the 1970's-2000s.

    Very often stores in malls wouldn't have exactly what you wanted in stock, so they would usually order the item(s) for you to be delivered to the store, for pickup, which could take a week or so.

    Amazon cleaned their clocks with 2 day delivery.

    Oh and most malls were never in urban areas, they were in the suburbs, for convenience and easy access and free parking,

    • by drnb ( 2434720 )

      They forced thousands of small local stores out of business, not because of price, much more about the convenience of one-stop shopping. Think of them as the Wal-Marts of the 1970's-2000s.

      True. It sucked going from owner of a small shop on main street to manager of a store in the mall. You know what sucks worse? Stuffing boxes at the Amazon fulfillment center. At least you only have to do it until robotics advances.

  • Notice that snaky smile in their logo? Wonder if that was intentional.
  • Here's a better article from CNBC:
    https://www.cnbc.com/2019/01/3... [cnbc.com]

  • by Radiophobic ( 1973144 ) on Sunday May 19, 2019 @05:00PM (#58619854)
    Amazon is simply an evolution of what the mall used to offer. Getting upset about Amazon turning malls into warehouses is kind of like getting upset when a teenager throws out their toys to make room for teenager stuff.
    • by v1 ( 525388 )

      Amazon may be the face of change but it was never the core. The internet, combined with big-box stores, have been taking the market from malls and small businesses everywhere.

      But it's just a business pressure that most shops are feeling, and those shops either need to evolve or die. Some make good changes, some make bad changes, and the rest just try to continue along with business-as-usual and live in the denial that somehow their house will be spared from the flood.

      Radio Shack is the poster child for "h

      • by Megane ( 129182 )

        Don't forget those HDMI cables! They had an amazing number of $35 6-foot HDMI cables in the final clearance sales. When HDMI was new, the cables probably would sell for that much, but when Wal-Mart sells them for under ten bucks, you do not continue to pad your shelves with them. By the time RS died, Wal-Mart was selling a bunch of commodity cables and parts, and they had late night hours too.

        And from what I read, it wasn't so much the cell-phone accessories as it was an upper management obsessed with cell

  • Thus saith the LORD, Hast thou killed, and also taken possession? And thou shalt speak unto him, saying, Thus saith the LORD, In the place where dogs licked the blood of Naboth shall dogs lick thy blood, even thine.

  • For those that look at science fiction for prophetic images in the future, Virtual Light, predicted the deathnell of modern shopping malls at the time. That prediction pre-dates Amazon for the most part or e-commerce as we know it today.

    Originally published: September 6, 1993

    So there you go as we transform into yet another novel or movie or even song.

    Red Barchetta
    Song by Rush

    My uncle has a country place
    That no one knows about
    He says it used to be a farm
    Before the Motor Law
    And on Sundays I elude the eyes
    And

  • by Kohath ( 38547 ) on Sunday May 19, 2019 @05:11PM (#58619900)

    We're supposed to mourn the loss of the malls. But not really mourn, pretend to mourn. Because there's a story to be told about the sad, dramatic death of the malls. And we must play our parts in the story as the mourners for our beloved malls.

    But we never loved the malls. The drama in the story is fictional. The villainy of the malls' opponent is fictional. Malls were okay, never great, sometimes liked, sometimes hated, very rarely loved.

    Phony drama is a product worthy of being sold in in one of these failed malls. We're not going there. We're not buying it.

    • by Matheus ( 586080 )

      We did love one mall... Eden Prairie Center in Eden Prairie, MN. The one where Mallrats was filmed :)

  • Not a big fan of Amazon, but what the fuck would you miss about malls?
    • Not a big fan of Amazon, but what the fuck would you miss about malls?

      I actually quite like them. You may not enjoy shopping but I find it a nice way to spend some time now and then. Personal preference obviously. I enjoy walking through them with my wife and daughter and we have some fairly nice ones near where I live. Basically my point is that obviously a lot of people do enjoy going to them for various reasons. You don't have to join them if it isn't your thing.

      That said, I do a LOT of online shopping these days. Going to the mall is more for entertainment than to a

    • Not a big fan of Amazon, but what the fuck would you miss about malls?

      I miss the fountains. Malls don't have those anymore so I won't miss malls when the last one dies.

  • by Wrath0fb0b ( 302444 ) on Sunday May 19, 2019 @05:34PM (#58620022)

    Critics upset that after putting stablehands, farriers, saddle-makers and hay-turners out of business, they had the temerity to repurpose the old stable building as a car dealership.

    As a gesture of good faith, Ford is offering all the stablehands an opportunity to try out as used car salesmen, betting that they are already adept at slinging pure horseshit.

  • Cynics are never delighted about anything.

  • Good. The death (or at least great diminishment) of B&M is a good thing. I do have some worries about monopoly issues but I think Walmart will eventually shape up into a decent Amazon competitors.

    On the flipside, it remains to be seen just how long America's "service based economy" is going to sail along before unemployment starts becoming a serious issue. I really, really wish both sides of the aisle would start talking about replacing minimum wage with something that doesn't punish employers for h
  • It sure seemed like the big anchor retailers were already circling the drain long before Amazon became a credible threat - mostly due to short-term profit taking and good old-fashioned mismanagement on the part of their own leadership groups.

    But yeah, I'm in agreement with most of the comments already posted here. I was never a fan of malls, and I grew up in their heyday.

  • Malls are mostly a place you go for upscale consumer goods (besides K-Bee toys which somehow survived as a discount retailer in Malls until they were Bained).

    What killed malls is a shrinking middle class. There's fewer people to buy $50-$100 shirts and $10 orange juice. Same thing happened to Mervyns. They were replaced by Walmart as incomes dropped and the percentage of folks in the middle class ("middle class" not being the literal numeric definition but defined as people with significant disposable i
    • What killed malls is a shrinking middle class.

      When I was a kid, a two-car family was upper middle class. Now, I walk my dog through a middle-class neighborhood, and notice how few houses have only two cars in the driveways.

      And then there's the computers (which didn't exist when I was a kid). But as a young adult, a lot of families had one. Now, one (or more) per person living in a typical middle-class area. Plus the cellphones (one per person), which have more computing power than the first three compu

  • How about as startup incubators? You get a few thousand square feet of space. There's usually a food court somewhere, as well as restroom and shipping/receiving facilities. Take your dying mall, work a deal with the owners, and start selling out storefronts for startups/tech ventures at a buck or two per square foot. Cheaper than traditional space (in most big cities), you have built-in transit (big malls almost always are on a transit line, or act as a small hub), food, lots of parking, and plenty of s
  • by sjbe ( 173966 ) on Sunday May 19, 2019 @06:44PM (#58620348)

    It's often contended that Amazon has put an enormous amount of pressure on shopping malls. So much so that many of those malls are shutting their doors.

    I can't speak for every mall being acquired by Amazon but I can talk about two in particular. Amazon has taken over two malls in northeast Ohio (Randall Park and Euclid Square) both of which failed. These malls failed for reasons that had NOTHING at all to do with Amazon and their decline was well under way looooong before Amazon became a serious retail force. I grew up near these malls and was in both during the 1980s and 1990s. They were already in steep decline during the 1990s primarily for demographic reasons as well as some retail consolidations. When they were built their locations made sense but over time the local economies of each shifted in ways making them impossible to remain profitable.

    Euclid Square Mall [wikipedia.org] was largely vacant by 2006. Most of the anchor tenants were already leaving in the late 1990s.

    Randall Park Mall [wikipedia.org] started its decline in the early 1990s when the mall's owner died and anchor tenants started leaving throughout the 90s. Basically all the retail had left the mall by 2008.

  • The Sears nearest to me went out of business a while a go, and I'm wondering if it's going to be converted to an Amazon shipping point or warehouse. Someone is doing something with it but we can't see inside or get near enough to tell what's going on with it.

    If so, that would give me a 15 minute delivery time for Amazon orders, lol.

  • and the malls were the death of our local, small business stores and they moved the community to their soulless spaces.

  • Fleets of brightly coloured delivery drones all charging in designated areas of the parking fields.
    Roof lined with solar collection grids to offset the cost of electric power consumption.
    Internal sections separated into content categories.
    Walk-through access for people that actually want to do some eyes-on shopping, and drive-up pickup for discounted orders.
    All that, with picker-bots scurrying around from department to department, shunting collected orders to the delivery department for drone dispatch (road

  • by Dereck1701 ( 1922824 ) on Sunday May 19, 2019 @08:20PM (#58620696)

    Amazon was just the final nail in the coffin of the American mall, not the primary cause of its demise. Malls have been in decline for decades, they grew up in one of the heydays of the nation when people had plenty of disposable income and limited retail options. They were also the economic development sinks of their day, drawing in massive tax breaks that brought plenty of investors. Most of those tax breaks have since moved on to other sectors. Then the low price mega-stores (Walmart, Costco, etc) started expanding their selection while maintaining low(er) costs, finally online retail began consuming much of the remaining specialty item market.

    • Malls have been in decline for decades, they grew up in one of the heydays of the nation when people had plenty of disposable income and limited retail options.

      Disposable income is not the reason for the decline of malls; the actual reason is product choice. In the last 20 years I went to malls less frequently because they had very little to appeals to men. I stopped buying clothes there because they were inferior products. It was blatantly obvious that there were 5x the choice in clothing for women. T

  • by MSTCrow5429 ( 642744 ) on Sunday May 19, 2019 @08:22PM (#58620710)

    ...to think that decades ago now, Amazon decided to hollow out shopping malls to place fulfillment centers in them.

  • I tried to avoid malls as much as I could. It is simply a common sense savings effort. It has become pretty much standard for businesses to locate on the busiest roads it can get. That land is always way too expensive for a business to use and they end up leasing the land or a business space and that makes prices on their goods and services way too high. In the ideal case a business would open on a less traveled road by buying a lot and building a store out of pocket with no mortgages or rents neede
  • It's called progress. Who the hell wants to drive through traffic, fight the lDIOTS to find a place to park, battle the crowds and on and on, when, you can go click click and have it sent right to your door! The way this article talks, I'm surprised they aren't getting upset about the automobile replacing the horse and buggy.
  • Those malls put the mom & pop stores out of business and largely killed small town commercial centers entirely.

    We're supposed to feel sorry for them as their fate is dealt by Amazon?

  • Retail outlets can't compete with online on price.

    In fact they often supply the presale customer service for an online retailer, at their own expense.

    But you can't generally move serivices online.

    Try getting haircut, manicure, and restaurant meal from Amazon.

    This is the transformation that we're seeing in malls. It means that there's fewer customers for the space, which means they have to be less selective with renters, which in turn affects their marjin one way or another.

    But, as at the moment, you can still survive as a mall.
  • And I hear that they are parking cars where the horse grooms used to work!!! The gall!!!!!
  • Wal-Mart: We have successfully driven out all of the mom-and-pop retail stores. There is nothing left to do but revel in our victory and count our money!

    Amazon: Hold by beer...

  • by kenh ( 9056 )

    Better to re-use vacant space than to tear it down and build new.

    Shopping malls are a thing of the past - many will survive, but many more will fail, better to find new purpose than to rot on the side of the road.

  • I don't know anyone who mourns the malls. Everyone I know avoids those places like the plague.

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