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Amazon and other e-commerce darlings could save the mall

E-commerce pioneers from Warby Parker to Amazon (AMZN) are opening up more physical locations just as traditional retailers are closing their doors. And that could mean good news for the country's malls.

During its fourth-quarter conference call this week, General Growth Properties (GGP)--the second-largest retail property REIT that owns 97 of the country's 457 high quality malls--offered some unexpected evidence to support its belief that malls are far from dead.

Specifically, CEO Sandeep Mathrani revealed that Amazon is slated to open 300-400 bookstores, a significant brick-and-mortar presence when compared to Barnes & Noble's (BKS) current store count of 640.

An expansion into physical locations by e-commerce-focused companies reflects a growing trend.

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Online eyewear seller Warby Parker, which launched in 2010, opened its first retail showroom store in New York's SoHo in 2013 and has expanded to over 20 locations across the country.

Bonobos, which specializes in men's clothing, launched as an online-only operation in 2007 and has been expanding its physical locations to supplement its online success. After opening its first location in 2011, the company inked a partnership with Nordstrom (JWN) in 2012 and now has 20 guideshops. CEO Andy Dunn told Yahoo Finance in November that "it's not just about online. People still want to touch and feel clothes. They still want to have a great one-on-one interaction."

Birchbox, the online beauty product subscription service that launched in 2010, opened its first Soho store in 2014 and plans to open two additional stores this year.

This brick-and-mortar expansion strategy from e-commerce pioneers reflects a broader omni-channel strategy being embraced by retailers that incorporates physical locations with online efforts. After all, 95% of all soft goods are bought in brick and mortar stores, according to Mathrani, who explained that "if you've got the product, the consumer is doing their research on their mobile device and come into the mall to shop."

Fast fashion brands -- or companies known for their quick turnaround of new selections -- have also been expanding their offerings. According to Mathrani, over the past year, his properties have seen store growth from key fast-fashion names. H&M has added 220,000 square feet in 10 stores and Uniqlo has added 40,000 square feet in four stores. L Brand's (LB) PINK Victoria's Secret, known for its "treasure hunt" shopping experience, has added 40,000 square feet in nine stores over the past year.

Meanwhile, consumers are still seeking in-person shopping experiences. Mathrani said that personal services like SoulCycle and DryBar are key mall tenants along with entertainment venues and restaurants.

Importantly, Amazon's brick-and-mortar strategy -- which was hinted at in November after it opened its first book store in Seattle -- has been framed by the company as part of its e-commerce growth efforts, a point which could have broader industry implications. Amazon will use data from its e-commerce site including sales and customer ratings to inform which books to stock, and it will also sell gadgets including the voice-activated Echo speaker and Fire TV streaming service. The consumer showcase locations for Amazon may also be a strategy for the company to manage inventory. Amazon said on its fourth quarter conference call last week that full warehouses added to its fulfillment expenses, which rose 33% year-over-year.  As online retailers look to showcase their merchandise and manage their fulfillment centers, physical locations could be the answer.

The bottom line: Much-hyped e-commerce growth, while accelerating, could continue to become much more aligned with physical locations. This is an important point, especially as we remain in early stage of e-commerce development; In 2015, retail and food service accounted for 30% of US GDP and e-commerce accounted for about 2%, according to Mathrani.

Note: On Wednesday, General Growth Properties clarified that comments made by its CEO were not intended to represent Amazon's plans.