Amazon Eyeing J.C. Penney, Sears for Fulfillment Centers

Amazon has been in discussion with Simon Property Group, the largest mall owner in the U.S., about turning some of Simon’s department stores—particularly J.C. Penney Co. and Sears Holdings Corp. spaces—into Amazon distribution hubs. The advantage for Amazon would be more fulfillment centers closer to residentials areas to speed up last-mile deliveries, and for Simon, it would provide a profitable and steady tenant. Discussions have been going on for months, even before COVID-19, with the companies exploring options for the department store locations within Simon’s properties—both vacant and occupied. Amazon is already working with a number of U.S. malls, renting parking lots, and Simon is still considering other options to fit its needs, including possibly schools, medical offices or senior living.