BUSINESS

Simon, Mall Giant, is bullish on large retail centers, even as significant retailers move to stand-alone stores.

Written by buzzonlineadmin

The U.S.’s largest mall owner is increasing its message that brick-and-mortar retail is here to stay.
David Simon, the chairman, president, and CEO of Simon Property Group, spoke to analysts on Monday in a conference call. He stated that physical retail is growing faster than e-commerce worldwide and that there is a strong demand for space in Simon Property Group’s malls.

Bullish messaging is coming as consumer prices have soared past 40 years and after the U.S. economy pulled back for the second consecutive quarter, causing recession fears. Despite these headwinds, Simon stated that he would continue to buy back stock from his company. Retailers expressed a desire for space in malls and Simon agreed.

According to the property group, mall sales in Q2 increased by 7%. Simon signed nearly 1,300 leases covering more than 4,000,000 square feet in Q2, bringing its total for signed leases for this half of the year up to 2,200. The Q2 occupancy rate was 93.9% at the close of business, an increase of 210 basis points. Tenant terminations were at an all-time low.

Simon stated, “The enclosed mall industry is strong, but there are naysayers that don’t believe in it, however, we believe it,” pointing out tailwinds for business such as the return to international and domestic tourism.

This positive outlook is also because, traditionally, larger retailers are moving their stores to smaller off-mall locations. Macy’s last month announced that it would open three small-format, off-mall stores this fall. It also plans to close 125 stores in lower-tier malls before 2023. Target, DSW, and Kohl’s also have plans to open smaller stores.

According to Coresight Research’s U.S. Shop Tracker Extra, in June 2022, there were 4,283 store openings for the year. This was more than the 1,766 store closings. Aerie, Athleta and Dick’s Sporting Goods, Dollar General. Hibbett Sports.

Simon stated that the company has never seen any retailer pull out of property deals. He also said tenants have varied from entertainment and restaurants to value-oriented retailers and high-end brands. Simon also stated that he is seeing growth in Las Vegas, Florida, and California.

He said, “Let’s all hope that the U.S. doesn’t screw up.” “I believe our economy is still relatively healthy. The consumer is in good health. I think the U.S. will continue to grow and that the future here is bright.The U.S.’s largest mall owner is increasing its message that brick-and-mortar retail is here to stay.

David Simon, the chairman, president, and CEO of Simon Property Group, spoke to analysts on Monday in a conference call. He stated that physical retail is growing faster than e-commerce worldwide and that there is a strong demand for space in Simon Property Group’s malls.

Bullish messaging is coming as consumer prices have soared past 40 years and after the U.S. economy pulled back for the second consecutive quarter, causing recession fears. Despite these headwinds, Simon stated that he would continue to buy back stock from his company. Retailers expressed a desire for space in malls and Simon agreed.

According to the property group, mall sales in Q2 increased by 7%. Simon signed nearly 1,300 leases covering more than 4,000,000 square feet in Q2, bringing its total for signed leases for this half of the year up to 2,200. The Q2 occupancy rate was 93.9% at the close of business, an increase of 210 basis points. Tenant terminations were at an all-time low.

Simon stated, “The enclosed mall industry is strong, but there are naysayers that don’t believe in it, however, we believe it,” pointing out tailwinds for business such as the return to international and domestic tourism.

This positive outlook is also because, traditionally, larger retailers are moving their stores to smaller off-mall locations. Macy’s last month announced that it would open three small-format, off-mall stores this fall. It also plans to close 125 stores in lower-tier malls before 2023. Target, DSW, and Kohl’s also have plans to open smaller stores.

According to Coresight Research’s U.S. Shop Tracker Extra, in June 2022, there were 4,283 store openings for the year. This was more than the 1,766 store closings. Aerie, Athleta and Dick’s Sporting Goods, Dollar General. Hibbett Sports.

Simon stated that the company has never seen any retailer pull out of property deals. He also said tenants have varied from entertainment and restaurants to value-oriented retailers and high-end brands. Simon also stated that he is seeing growth in Las Vegas, Florida, and California.

He said, “Let’s all hope that the U.S. doesn’t screw up.” “I believe our economy is still relatively healthy. The consumer is in good health. I think the U.S. will continue to grow and that the future here is bright.

About the author

buzzonlineadmin

Leave a Comment