Today’s brick and mortar “shopping malls” are much different than those from decades ago. What were once busy and bustling venues have been diminished into quiet, sparsely occupied, and sometimes even vacant spaces with little to no customers. Malls that remain operational are scarce, and they all too often only echo of past vibrancy and success. Before online shopping, physical stores were necessities, and they experienced heavy and continual traffic flow; however, this trend has been forever changed by factors like the incredible progress of technology, the comfort and convenience of shopping from home, financial crises, and of course, the COVID-19 pandemic.
M&As (Mergers and Acquisitions) have been popular and effective strategies utilized by companies to try to increase traffic flow and revenue by combining businesses. These deals can enhance operations and profit margins by expanding and improving the company’s products and services, growing their consumer base, and maximizing their access to new and innovative technology and countless other opportunities. Unfortunately, while mergers and acquisitions assist in creating successful combined or new businesses, they also hinder existing companies and competitors.
A myriad of shopping malls have been negatively impacted by M&As, and countless stores and entire centers have even been shut down altogether. Many malls still operate, and some have repurposed retail spaces into food and drink venues, while others have been sold and transformed into housing or offices. Some shopping plazas have decided to convert their lots into outlet malls or discount stores.
Many of these mergers and acquisitions are defensive moves and ultimately increase the combined company’s assets and capabilities. Their consumer base is expanded, often on a global scale, and they sometimes end up monopolizing the market completely. With enhanced assets and operations, merged businesses also enjoy better leasing and location options as well. M&As may benefit corporations substantially but they also tend to leave traces of headaches, hassles, and heartbreak for smaller businesses in the process. Today’s economy and available shopping options are constantly changing, and customers will always alter their shopping patterns accordingly. A wise tip is to conduct plenty of research and stay informed about current shopping trends and changes.