The Death Of The Great American Mall
COVID-19 readjusted the depth of our memory, but even prior to the outbreak the recent past feels as though it was a lifetime ago. This time last year I was in Hawaii, yet I have the impression that the trip was 5 years ago, however exactly 5 years I visited Alaska. Both trips feel like a distant memory.
Everyone is trying to make order in their memory and restore the timeframe of one's personal history. It's hard to comprehend that we had an ordinary normal life, spent hours shopping in malls, travelling around the world, shaking hands with people, not wearing masks, and simply enjoying the days freely. But our limitation appears bigger to the possibility to start a new life after Corona. But this new life has already started.
Our sages stated firmly: the rain is not going back to heavens, the place where it originally came from.The genie will not return the to the bottle after escaping once. Corona gave a powerful push to all of us and raised our head into the cloud. From the cloud we are looking down at our old life and old habits, after half a year in seclusion we may realize that the new world will actually be better than our old life was, our old life is history.
Commuting daily 2 -3 hours is not in, running around in shopping centers is passé, making 8 business trips a year across the world is not necessary. We can do business with ZOOM, Facetime and whatsapp. The virtual world is overtaking the real one. The dramatic change in values are reflected clearly in the stock markets.
Stocks in Microsoft, Apple and Facebook, reach sky high prices and Amazon has overtaken the traditional retail business. Consumers spent 2.7 % more this year than last July and the total retails raised 1.2 %. But in July of 2020. US E-commerce sales rose 25% since the beginning or March 2020.
Amazon is taking over empty JC Penny and Sears stores and will use them as a distribution center. It’s the End of the Mall says Prof Cohen from Columbia Business School. Amazon will reduce last mile delivery and reduce shipping cost and time.
Will the new E-commerce customers revert to their old habits and go back to shopping in crowded malls? I don’t believe so. Facebook has told employees to work from home until Summer 2021.
My son,Itzik - Leibish USA COO works every second day from home and admits that he accomplishes twice as much from home as from the office. If millions of Americans will continue to work from home surely they will not be running around to shop in Malls or even Luxury retailers. Still I am surprised that our internet sales are growing and the tickets are getting larger every month.
Shopping habits are changing, but human behavior will remain intact- women and a man alike will continue to love colorful jewelry