Simon says mall sales are back to pre-pandemic levels in June

Simon Property Group saw sales at its malls and factory centers rebound to pre-pandemic levels in its last fiscal quarter, as Americans purchased clothing, shoes and other items.

Simon Property chief executive David Simon told analysts on Monday that retail sales of his properties in June were on par with June 2019 levels, and up 80% from the previous year. Parts of the United States saw sales above 2019 levels, he added.

America’s largest mall owner is hoping the improvement trends will lead companies to sign new leases. The company has sought to fill the space vacated by brands that have gone bankrupt or had to close stores.

For the three-month period ended June 30, Simon Property’s occupancy rate was 91.8%, down from 92.9% a year ago and 94.4% two years earlier .

“We continue to see demand for space across our portfolio, from healthy local, regional and national tenants, contractors, restaurateurs and mixed-use demand… it is increasing by day by day, “said David Simon.

“We still have a hole to dig because of the bankruptcies we had to face during the pandemic,” he added. “But I am very happy with the activity.”

Simon shares rose nearly 3% in extended trading. The stock has risen more than 48% since the start of the year. Simon Property Group has a market capitalization of $ 41.5 billion.

Retail observers expect a strong start to the school year, as children eager to return to class and adults to return to the office. In recent days, Kohl’s retailers at Home Depot have reimposed mask warrants for workers, hoping to contain a recent surge in Covid-19 cases. A highly contagious delta variant has spread, largely among unvaccinated Americans.

Asked about the delta variant, David Simon said the company will not force vaccines on buyers and tenants, but will continue to encourage them.

“We have not seen in a closed shopping mall a slight increase in Covid cases,” he said. “We have to mask ourselves. We are going to mask ourselves. And I think the consumer … is moving forward in this environment right now.”