Last Leg of Revamp Begins at Simon Property's The Shops
Simon Property Group SPG has been making concerted efforts to drive footfall at its properties. The company has been actively restructuring its portfolio on the back of comprehensive redevelopments.
In fact, the company announced the final phase of the transformative redevelopment of its New Jerseyluxury shopping center — The Shops at Riverside.
The third phase of redevelopment will focus on the dramatic overhaul of the south mall adjacent to Bloomingdale's. The existing shops will be remodelled to create a luxury loop focused around the “Grand Court”. Also, part of the second floor will be done with, in order to provide a soaring 35 feet ceiling.
The renovation plan also includes a luxury lounge, covered garages and an updated parking assist system aimed at greater ease and convenience of its patrons.
Notably, the mall will add two new retailers — CH Carolina Herrera and Sephora — to enhance its retail options. While Sephora is set to open a 5,000-square-foot store, formerly occupied by Saks, CH Carolina Herrera will unveil an outlet in August. Further, Barnes & Noble is expected to relocate to the dining and entertainment section, near the new Cheesecake Factory.
The first phase of the redevelopment resulted in the creation of a dining and entertainment district, along with the strategic repositioning of The Cheesecake Factory, and introduction of AMC’s premium cinema with a lounge and bar service. The second phase was mainly focused on the property’s interior and exterior redesigning.
These efforts by the company indicate its ability to elevate value for its properties and ensure best use of its properties. Further, successful revamp of properties will strengthen its customer relationship, enhance merchandise and support omni-channel strategy.
In fact, it will help drive traffic in the company’s malls that continue 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 the brick-and-mortar stores, many retailers are compelled to reconsider their footprint and eventually opt for store closures, while others, unable to cope with competition, have been filing bankruptcies.
This also resulted in tenants demanding substantial lease concessions, which mall landlords find unjustified. Retail REITs like Simon Property, GGP Inc. GGP, Kimco Realty Corp. KIM, Macerich Company MAC and others have felt the heat
Simon Property has a Zacks Rank #3 (Hold). The stock has gained 6.9% in a month’s time, while the industry grew 2.2%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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