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I wonder how Apple will respond if malls start collapsing. (I’ve heard rumor that) they pay just pennies on the dollar for their store leases because they draw
by dwighttk 6y ago
I wonder how Apple will respond if malls start collapsing.
(I’ve heard rumor that) they pay just pennies on the dollar for their store leases because they draw so much foot traffic to the malls.
I can’t imagine them keeping stores open in the middle of a nearly empty mall, but I’ve only ever seen pictures of an Apple store that wasn’t in a mall or strip mall.
- djrogers 6y agoMy guess would be they’d move their mall based stores to better locations. They have a lot of non-mall stores to use as examples, including every one of their flagship stores.
- dwighttk 6y agoI just can’t picture what the flagship store model would look like in e.g. Charlotte NC
- gdulli 6y agoThe only Apple product I have are some gifted Airpod Pros. I can confirm they stopped working repeatedly and got me into a mall 3 times.
- supertrope 6y agoSome leases are conditioned the presence of an anchor tenant. So a department store failing can trigger these clauses allowing rent reductions or early termination for smaller retailers.
- dwighttk 6y agoNot sure Apple would be hoping for a rent reduction if they are already paying a tiny amount of rent. If all US malls (mostly) shut down in the next (say) 8 months and never open again it seems Apple will have hundreds of stores to relocate.
- shard 6y agoHere is Apple asking for 50% rent reduction in the UK: https://www.businessinsider.com/apple-reportedly-trying-to-negotiate-rent-reductions-in-uk-stores-2020-8 https://www.businessinsider.com/apple-reportedly-trying-to-n...