In 2016, the Indianapolis-based company and a consortium of investors that included New York-based licensing firm Authentic Brands Group and mall owner General Growth Properties, now owned by Brookfield Property Partners, finalized the $243.3 million purchase of teen apparel chain Aéropostale. Simon Property Group has become adept to evolving its business model, Talbot said. The company's longevity, expertise and internal data provide insight into which brands might be good to salvage. "It's kind of like when suppliers decide that they want to go directly to consumers, and you know, as you go upward in the food chain, the margins get better," he said. Talbott likens Simon's growing sideline of retail ownership to moving up a food chain. "We're very selective in what we're looking at. We're not playing in a lot of them," said Simon, who declined to address speculation about whether the company is pursuing J.C. "There's been a lot of bankruptcy this year. President and CEO David Simon provided analysts some insight into the company's strategy during its second quarter earnings call on Aug. Industry watchers say Simon Property Group is building on its shared acquisition of teen apparel chain Aéropostale. But retail experts such as Talbott and others interviewed by the IndyStar, part of the USA TODAY Network, say the recent purchases reflect an ongoing change that seizes upon opportunity. Simon Property Group did not respond to requests for an interview. More Lord + Taylor stores closing: Liquidation sales are underway as part of company's bankruptcy amid COVID-19 Talbott, director of the Center for Education and Research in Retailing at Indiana University's Kelley School of Business.ĬOVID-19 pushing retail changes: Can shopping malls survive the coronavirus pandemic and a new slate of permanent store closings? "I think they finally figured out that they know the difference and maybe they should start getting in the game of helping innovative, good retailers to succeed through capital and expertise," said John S. malls was facing the global pandemic, it was contending with the so-called retail apocalypse. Before the largest owner and manager of U.S. Penney, which also has filed Chapter 11 bankruptcy. In mid-August, Simon Property Group in a joint venture agreed to buy Brooks Brothers and Lucky Brand Jeans out of bankruptcy for $325 million and $140.1 million, respectively.Īccording to market speculation and other reports, Simon Property Group and rival mall owner Brookfield Property Partners could partner to buy J.C. Watch Video: Can malls survive COVID-19 pandemic and permanent store closings?
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