Simon Property Group Leverages Live Events to Drive 13.9% Retailer Sales Growth

Simon Property Group reported a 13.9% increase in trailing 12-month retailer sales per square foot to $838 as of June 30, according to company data released August 10.

U.S. Mall and Outlet Operating Statistics

Operating statistics for Simon Property Group’s U.S. malls and premium outlets remained steady or grew year over year through the second quarter ending June 30. According to a company press release, occupancy for these properties held at 96%.

The company reported that base minimum rent per square foot rose 6.3% to $62.42. A supplemental presentation released August 10 shows that U.S. malls and premium outlets generated 76.9% of the company’s net operating income during the second quarter.

Impact of Event-Based Retail Strategies

Executives linked the sales growth to “unique activations” designed to increase foot traffic. During an August 10 earnings call, CEO, president, and chief operating officer Eli Simon stated that shopper traffic accelerated during the quarter and retailer sales volume grew solidly year over year.

The company specifically cited the fifth annual National Outlet Shopping Day, held June 11-14 at 90 premium outlets and other destinations. According to a June 8 press release, the event is designed to rival Black Friday through exclusive offers. Simon reported that this year’s event saw a 25% year-over-year increase in retailer participation, alongside growth in both shopper traffic and sales.

Simon also implemented programming to leverage the momentum of the World Cup. According to a May 28 press release, these summer experiences included:

• Large-scale block parties and soccer watch parties at select locations.
• Exclusive Adidas product releases.
• In-store activations.

Eli Simon told investors during the August 10 call that the response to these events demonstrates the company’s ability to turn “major moments into large-scale real-world experiences” for consumers and brands.

Portfolio Reach and Market Positioning

The company’s portfolio consists of shopping, dining, entertainment, and mixed-use destinations. While the second-quarter data focused heavily on U.S. performance, the company maintains operations across North America, Europe, and Asia, according to the August 10 press release.

Eli Simon stated during the earnings call that the current sales and traffic trends provide evidence that the company’s properties are “the places where shoppers and tenants want to be.”