Business

The US Economy – Closing Shopping Malls May Affect Some Towns Severely

US economy
US economy

Highlights

  • The US economy is in danger in this pandemic
  • Shopping malls provide $400 billion in the local tax revenue per year
  • Shopping malls in America may go extinct by the year 2021 because of the E-Commerce popularity

The US Economy in COVID-19 Pandemic

The COVID-19 pandemic is accelerating the destruction of the US economy. The shopping malls are in real trouble in the US, and this trouble can result in a severe blow in a few towns which rely on them.

When a shopping mall goes down, people not only lose a place to get their fancy dresses, cosmetics, or groceries but also lose the chance to have a slice of pizza. In some towns, these shopping malls are like an economic engine. These malls hire thousands of workers for maintenance and for taking care of the customer’s demand. Thus, every week, these shopping malls spend a decent amount of money for them.

Shopping malls and centers in the USA provide approximately $400 billion in the local tax revenue per year. The International Council of Shopping Centers has revealed this information. Overall, across the entire USA, there are 1,000 malls (including both publicly and privately held). According to the Green Street Advisors, these 1,000 malls are still active in the country.

Pre-Pandemic Scenario at the Malls

Before the pandemic, these malls were ideal places for teenagers to have their first jobs. Also, kids prefer hanging there after their school hours. The mall walkers also used the open space inside the mall before the stores got opened.

The appearance of the E-Commerce business has made the people visit the malls in these years. In addition to this, the pandemic hit has made the situation even worse for the shopping mall owners. Some shopping malls like Northwood Retail in Durham, North Carolina, are closing their business. Experts predict that one-third of America’s shopping malls may go extinct by 2021.