JCP - More Bad News for Macy's and J.C. Penney Investors
While malls can replace traffic by filling empty stores with food halls or entertainment options, that's not going to help struggling clothing retailers, including Macy's (NYSE: M) and J.C. Penney (NYSE: JCP).
About 25% of clothing sales in the United States have moved online, according to a new survey from UBS. That number should grow to 31% by 2023, according to a CNBC story on the UBS data. That might even be a cautious take on online apparel sales expansion, as new technology like digital tailors and augmented reality (AR) may drive the numbers even higher.
"Shoppers say they increasingly go to the mall to eat at the food court or just hangout instead of visiting a big box store," UBS analyst Jay Sole told CNBC. "Since the mall is no longer the place consumers discover fashion, it makes sense the reasons they visit the mall are changing."