In the CFO magazine article, “Denim’s Decline Challenges Mall Operators,” Partner Victor Sahn examines how the decline in denim sales has forced mall operators to be especially particular when evaluating potential tenants. “They need to carefully evaluate the future of that company and the industry it’s in,” says Mr. Sahn. “When you have brick and mortar locations and nobody’s coming into the store, the cost factors in holding the real estate are highly problematic.”
Though denim sales were down 6 percent in 2014, Mr. Sahn is not certain that this decline is necessarily permanent. “I equate denim to Barbie Dolls,” he says. “They’ve been around an awfully long time. Sometimes new toys come around and Barbie sales go down, but they usually come back with the newest thing isn’t so new anymore.” However, Mr. Sahn admits that if denim doesn’t make its return, the many specialty stores found in malls that rely upon denim sales to drive their business will be damaged over the long term.
