Simon Property Launches Initiatives To Drive Mall Traffic

Simon Property Group Inc. (NYSE:SPG) has been making concentrated efforts to drive footfall at its properties. In sync with these, the company recently launched a few initiatives to help its shoppers in every possible way and turn things around in the current retail environment, where stores are opting for closures and retailers are filing for bankruptcies.

Notably, among the initiatives launched, an exclusive one includes wherein the shoppers can visit each property’s site, and get to know exactly what each brand and store sells. This is expected to aid shoppers in planning their trip to the shopping center in an efficient way and save time.

Further, Simon Property is collaborating with MyPark, which is an application that helps shoppers reserve parking spaces. With this collaboration, shoppers will be able to reserve parking at eight of the company’s properties, with four others joining soon.

Another initiative by Simon Property is 'What's New Now'. This helps shoppers to get the best deals at the shopping centers. The deals are offered to individuals through websites, emails and social media platforms. The response for the same has been phenomenal and has been one of the most successful programs launched by the company.

Mikael Thygesen, Simon property’s chief marketing officer informed, "Everything we do at Simon is centered on creating the retail experience of the future through a seamless blend of physical and digital enhancements that deliver ease and excitement to our shoppers."

Notably, mall traffic continues to suffer due to the rapid shift in customers' shopping preferences, with e-retail taking precedence. In fact, with e-commerce gaining market share from brick-and-mortar stores, retailers are compelled to reconsider footprints and eventually opt for store closures while others, unable to cope with competition, are filing bankruptcies.

This also resulted in tenants demanding substantial lease concessions, which mall landlords find unjustified. Retail real estate investment trusts like Simon Property, GGP Inc. (NYSE:GGP) , Kimco Realty Corp. (NYSE:KIM) , Macerich Company (NYSE:MAC) and others have felt the heat, and the companies’ share prices have been suffering for the past 12 months.

However, amid these, Simon Property is sparing no efforts to survive the changing market and is undertaking all steps to make the best use of its properties to drive the footfall higher.

Encouragingly, in the past month, this Zacks Rank #3 (Hold) stock has outperformed the industry. While the company’s shares have gained 5%, the industry has recorded growth of 2.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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