In order to strengthen its relationship with customers,
Simon Property Group Inc.
) disclosed its brand re-launch and marketing program. In
particular, this strategy includes the initiation of new programs
and events for upgrading services and amenities provided to
Starting today, Simon Properties' revitalized brand will be seen
across its U.S. assets, through out-of-home advertising in select
markets and all other media channels. Also, the company plans to
share this news with its industry partners at the International
Council of Shopping Centers global convention in Las Vegas this
The company that already experiences traffic of two billion
shoppers and retail sales of over $70 billion annually at its
properties, is aiming to increase the figure by funding
redevelopments of its assets for about $1 billion
With the economy showing signs of recovery, the spending power
of richer consumers is improving and the company is strategically
leveraging on this trend. We believe that the move will enhance the
shopping experience of its customers at its premium retail
portfolio and simultaneously boost the footfall. This will, in
turn, boost the company's rental revenue, going forward.
As a matter of fact, the application of the omni-channel
strategy has been on a rise among the retailers. Simon Property is
also trying to follow that path, through several ways including
usage of new technologies at its properties and assisting customers
with their shopping.
In connection to this, last month, the company collaborated with
a subsidiary of
NRG Energy, Inc.
) to install Electric Vehicle (EV) charging stations at its
properties. Particularly, the installation of these stations was
aimed at catering to the increasing usage of EVs in the greater
Washington D.C., metropolitan area.
Additionally, Simon Property's same-day delivery deal with Deliv
in December is noteworthy as customers would no longer be required
to carry bags from each store. Through this deal, the company would
leverage its nationwide real estate properties - mall and retail
outlets - and use them as distribution centers. These initiatives
bode well for this leading retail real estate investment trusts'
(REIT) long-term growth.
Simon Property currently carries a Zacks Rank #3 (Hold).
Investors interested in retail REITs may consider stocks like
General Growth Properties, Inc
Regency Centers Corp.
). Both stocks carry a Zacks Rank #2 (Buy).
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