Report: Amazon In Talks With U.S.’ Largest Mall Owner To Turn Former J.C. Penney, Sears Stores Into Fulfillment Centres

There are no details on how many stores are under consideration for Amazon, and it is still possible that the deal could fall through, the Journal reported, citing people familiar with the matter.

Both J.C. Penney and Sears have filed for chapter 11 bankruptcy protection, with  the companies have shutting dozens of stores across the country as part of their plans.

Simon’s malls have 63 J.C. Penney and 11 Sears stores, the Journal reported, citing the mall owner’s most recent public filing in May.

The report adds that Simon Property could rent the space at a considerable discount compared to what it charges another retailer, estimating that rent could be as low as $4 per square foot for Amazon, while warehouse rents average about $10.

Fulfillment centers in malls, typically located close to residential areas, could help Amazon speed up its last-mile delivery and get deliveries out to customers faster.

While the coronavirus pandemic has severely impacted the brick-and-mortar retail industry, e-commerce companies like Amazon have seen a boost in business.