The month of May was especially brutal for a number of US and Australian retailers. In the US, GAP, L Brands, Macy’s Nordstrom and others reported weaker than expected or declining sales and profits. While in Australia, Wesfarmers announced an A$1bn write-down in the discount department store, Target, while the troubles with Big W remain ongoing. US Mall owners suffered. While the US REIT index climbed +2.3% for the month, leading Mall owners Simon Property (-1.2%), Macerich (+0.9%) and General Growth (-4.4%) underperformed. The sentiment is weak. Are we witnessing a structural change in the Mall industry, or is this simply a case of poor retailers that will ultimately be replaced by better operators?