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This week’s updates led to a debate over which retail real estate format has a brighter future: strip malls or mall-malls.
In one corner...there’s Kohl’s, which plans to reopen 25% of its stores by next week. CEO Michelle Gass told CNBC that Kohl’s has a “strategic asset” for the new normal: Its stores aren’t located in traditional malls.
- With curbside enthusiasm at an all-time high, shoppers prefer stores surrounded by clean, open air. Nowadays, that’s Kohl’s and its strip mall compatriots.
In the other corner...there’s mall owner Brookfield Asset Management, which plans to invest $5 billion in struggling retailers. Brookfield’s eyeing noncontrolling stakes in brands with pre-crisis annual revenue of $250+ million.
- What’s really happening: Brookfield’s cutting checks to retailers that could be behind on rent at Brookfield properties. In a roundabout way, funding its tenants might keep Brookfield’s lights on.
Keep in mind:Both businesses naturally think their store model is a Terrific Kid. But so far, shoppers seem to side with Kohl’s. The only crowds at newly reopened malls profiled by the AP were the ghost kind. And in an April 20 poll, only one-third of Americans said they’d feel safe shopping in a reopened mall.