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What Amazon's Move to Malls Means for Shoppers

Vacant mall stores could become Amazon distribution centers, allowing Amazon to extend same-day delivery, offer its Prime Now service in more cities, and potentially cut down on emissions from delivery vans working from out-of-town fulfillment centers.

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"There are far too many diesel-powered vans delivering parcels for residents and businesses."

If negotiations are successful, Amazon would take over vacant Sears and JC Penney stores and turn them into fulfillment centers. In a way, Amazon has destroyed brick and mortar shopping—and now it will inhabit the corpse. This local presence would let Amazon offer even faster delivery options to downtown areas, but at the cost of yet more delivery traffic.

“I would like to see Amazon working with other distributors to set up single shared hubs with shared deliveries by electric vehicles,” University of Westminster Emeritus Professor of Urban Regeneration, and qualified town planner Nicholas Bailey told Lifewire via email. “Amazon going it alone is not a sustainable solution.”

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Local Storage

According to the Wall Street Journal, Amazon has been in talks with the Simon Property Group since before the pandemic, but with COVID-related bankruptcies from JC Penney and others, there’s now a lot more ex-retail real-estate available.

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These would be fulfillment centers, although the possibility of adding Amazon Lockers or some other kind of pickup service would surely be possible. The main advantage for Amazon here is that it gets to put a warehouse in the heart of a town or city, making deliveries faster and cheaper. Malls are perfect for this because they are already set up for receiving large deliveries, and because they have ample parking. 

Prime Now

If Amazon adds fulfillment centers closer to downtown, then Prime Now deliveries could potentially be made available in many more cities.

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Prime Now is Amazon’s fastest delivery tier. Unlike same-day delivery, Prime Now lets subscribers pick short delivery slots for a limited range of goods. The service launched in 2015, and is now available in many, but not all, US states. Orders can arrive unboxed and are just handed over to you. 

“There are far too many diesel-powered vans delivering parcels for residents and businesses,” says Professor Bailey, “when consolidation and co-ordinated 'last mile' deliveries by EVs and cargo bikes will reduce congestion and improve air quality for all.”

The loser is, as ever, the existing retail industry. First, Amazon competed with department and big-box stores. It also put pressure on specialist retailers like camera stores, and, of course, book stores. Now, with the option of same-day convenience, combined with the current pandemic, who would bother to leave home to go shopping? Pretty much the only time I go to an actual store is if I need something right away.

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