![]() “That’s where the return on investment is - and so even if we may slow down next year or even into the holiday season, I don’t think the growth from our existing business is going to slow down because the demand for new deals and space is there. “Physical retail is where the action is,” he said. ![]() And it’s that simple because the returns on e-commerce just aren’t quite what everybody talked about.” And if they’re in the retail business, and they want to grow, they’re going to open stores. “So the flight toward brick-and-mortar is real,” he said. And I would tell you…that where they’re seeing most of the pressure is in the e-commerce business. And you’re always going to have a deal here or there that falls apart for all sorts of different reasons, but nothing based upon the macro conditions. “We have yet to see any pullback in opening new stores or renewals,” he said. The CEO acknowledged the macro-economic troubles vexing the world and consumers, particularly on the lower end of the income spectrum, but said his empire was well positioned. dollar, rising interest rates and inflationary pressures.” Simon noted that the bump up in the forecast “comes in the face of a strong U.S. INDIANAPOLIS, J/PRNewswire/ - Simon is excited to announce the following new developments in major growing U.S. Base minimum rent per square foot increased 1.7 percent to $54.80.įor the full year, Simon is looking for comparable FFO per share to range from $11.83 to $11.88 - an increase, at the midpoint, of 12 cents from the guidance given in August and 26 cents from the forecast in February. malls and premium outlets, occupancy rose to 94.5 percent at the end of the quarter from 92.8 a year earlier. But the mall giant’s comparable funds from operations - the standard yardstick in real estate - inched up 1.4 percent to $1.1 billion, or $2.97 a diluted share. 30 slipped to $539 million from $679.9 million a year earlier. Simon’s net income for the quarter ended Sept. “We reported another record in the third quarter of $749 per square foot for the malls and outlets, which was an increase of 14 percent year-over-year.” “Our shopper remains resilient,” he said. Now, his brick-and-mortar belief is resonating more broadly with e-commerce growth rates back to their historical norm and open storefronts in malls being snapped up. Could Authentic Brands be the lynchpin in J.C.NewJeans Puts Edgy Spin on Y2K Style for Lollapalooza 2023 Chicago in Raw-edge Pleated Miniskirts.Penney be renewed under new ownership? – RetailWire Simon Property Group, Inc.’s (SPG) CEO David Simon on Q1 2021 Results – Earnings Call Transcript – Seeking Alpha.Simon CEO says Americans are experiencing ‘euphoria’ as they return to malls – RetailWire.Simon and ABG have teamed up to acquire the Brooks Brothers, Eddie Bauer and Lucky Brand. ABG was not part of the $800 million deal in the end, but the three companies have a history of working together to buy distressed retailers on the cheap, including Aeropostale and Forever 21. ![]() Simon also spoke with some excitement about the prospects of new brands, including those owned by Authentic Brands Group (ABG), which could be in stores late this year or early 2022.Įarly reports about the bidding process for Penney had ABG joining SPG and BPP in making an offer. He said it was normal for vendors to be somewhat leery when working with a retailer post bankruptcy and Penney was “seeing more and more confidence from the vendor community” as time goes on. Simon said growth will be the focus going forward, starting with rebuilding ties with vendors that may have felt burned by Penney’s bankruptcy, while also bringing in new brands. This follows earlier job cuts and store closures announced earlier this year. The job cuts affect employees at the retailer’s corporate headquarters, field offices and stores. Penney announced last week that it is cutting 650 jobs, about 1.5 percent of its workforce. I’ve been proud of the execution, and so far, the results.” “Obviously, that’s harder to do in COVID, when people are working remotely. “The first goal is to rightsize the company, strengthen the financial capabilities, repairing a vendor relationships that we need to do, stabilize the morale and so on,” said Mr. He pointed to strong liquidity and low debt levels as strengths as the company begins its rebuilding process. Simon said Penney’s co-owners are pleased with early results from the retailer as it has performed ahead of plan. SPG and Brookfield Property Partners (BPP) acquired Penney out of bankruptcy last year and expected the chain to put itself on a positive path once free of the massive debt load it had been carrying for years. That’s the assessment of David Simon, CEO of Simon Property Group (SPG), the co-owner of the department store chain, as told to analysts on an earnings call this week. Penney is moving in the right direction, but it is still a work in progress.
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