*By Justin Chermol*
The latest sign of the growing impact of e-commerce on brick-and-mortar stores? Mall vacancies have hit their highest level since 2012 and are closing in on all-time records.
Shopping centers saw 8.6 percent of their retail space unoccupied in the second quarter, up from 8.4 percent at the start of the year, according to research released by real-estate data firm Reis on Tuesday. The vacancy rate peaked at 9.4 percent in 2011.
Strip malls and local shopping centers are suffering the most, with more than a tenth of their space vacant. Occupants abandoned nearly 3.8 million square feet of property in the space between April and June.
The latest report comes days after now-bankrupt Toys ‘R’ Us closed its last U.S. locations on Friday. One-time retail giants such as Macy’s, Sears, JCPenney, and Bon-Ton have also closed dozens of locations nationwide.
And the trend towards online shopping affects more than just the retail industry. Local governments are seeing lower tax revenues as jobs are lost and spending decreases. And property owners are looking for alternatives for their spaces, with [some landlords](https://www.wsj.com/articles/malls-never-wanted-gyms-now-they-court-them-1511697600?mod=article_inline) converting former stores into call centers, gyms, or even churches.
But brick-and-mortar may not be totally dead. E-commerce giants like Amazon are actually opening physical locations. The company is [reportedly](https://www.geekwire.com/2018/revealed-amazon-gos-new-seattle-location-signals-tech-giants-growing-ambitions-checkout-free-retail-concept/) getting ready to launch its second cashier-less Amazon Go store in Seattle this fall.
Walmart, which became the nation’s largest retailer by making low prices a priority, has found itself in a place it’s rarely been: Warning customers that prices will rise for goods ranging from bananas to car seats.
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American businesses that rely on Chinese goods are reacting with muted relief after the U.S. and China agreed to pause their exorbitant tariffs on each other’s products for 90 days. Many companies delayed or canceled orders after President Donald Trump last month put a 145% tariff on items made in China. Importers still face relatively high tariffs, however, as well as uncertainty over what will happen in the coming weeks and months. The temporary truce was announced as retailers and their suppliers are looking to finalize their plans and orders for the holiday shopping season. They’re concerned a mad scramble to get goods onto ships will lead to bottlenecks and increased shipping costs.
Shopping expert Trae Bodge discusses how talks between the U.S. and China is good news for now, but uncertainty remains for back-to-school and the holidays.
