Simon Property Group, the largest shopping center owner in the U.S. and an S&P 100 company, has been in talks with Amazon.com Inc., about using some of the JC Penney and Sears stores that are currently closed as Amazon fulfillment centers, according to The Wall Street Journal report on Sunday, citing people familiar with the matter.
Simon Property Group and Amazon have explored the possibility of turning some of the property owner’s anchor department stores into Amazon distribution centers, said in the report.
“For Amazon, having more fulfillment centers close to residential areas will speed up the crucial last mile of delivery,” The Wall Street Journal said in the report.
Simon’s discussions with Amazon have been under way for months and began before the coronavirus pandemic, according to the report.
JCPenney, the 118-year-old company, has filed for Chapter 11 protection bankruptcy in May. JC Penney announced the closing of 154 stores as a part of its store optimization strategy. Sears announced last November that it plans to close 96 stores.