Amazon could be opening up smaller distribution centers in malls across America. The company is said to be in talks with Simon Property Group about utilizing empty department stores by turning them into distribution centers.
Patrick Penfield is an assistant professor of supply chain practice at Syracuse University’s Whitman School of Management. He says the smaller sites could help Amazon drive down delivery times even further and help struggling malls with empty storefronts.
Penfield says:
“Amazon needs more locations in order to capture same-day sales and this would be a great move. They have always been aggressive in testing new business models. Placing mini distribution centers into existing malls would allow them to decrease their delivery times further and capture even more online sales, especially with perishables items such as groceries. This would also be an outstanding opportunity for mall owners since they are seeing more empty storefronts because of retail bankruptcies. Malls would be able to stop the retail lease space ‘hemorrhaging’ and stay in business. This could be a win-win for both parties!”
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