The e-commerce giant is reportedly in talks with Simon Property Group, the largest mall owner in the United States, to convert stores run by JCPenney and Sears—which have both filed for Chapter 11 bankruptcy protection—into distribution hubs. Both Simon Property Group and Amazon declined to comment to CNBC. (The Wall Street Journal, CNBC)

 

Talking point: The move could be a possible lifeline for hard-hit retailers and the malls that house them. More than 40 U.S. retailers have filed for bankruptcy this year, and permanent store closures have surpassed 4,000. Meanwhile, Amazon reported in its second-quarter earnings results that it doubled its net profit year over year to US$5.2 billion. While it isn’t clear yet how many such locations Amazon is considering, such an arrangement could be “a win-win for both sides,” said former Target executive and retail blogger Chris Walton. “Simon gets an anchor tenant and Amazon gets a more localized fulfillment centre. For Amazon, the deal would also give it ‘a front row seat into developing the mall infrastructure for the future.’”