As some states slowly begin to unwind COVID-19 shutdown restrictions, Simon Property Group, the largest U.S. mall owner, is reportedly planning to open some malls where allowed by government officials. This will be a gradual process, involving scaled back hours, plus extensive health and safety measures for both employees and shoppers. Many stay-at-home households will be looking for a chance to go back to visiting stores even on a limited basis. Some retailers, including mall anchors, may not reopen due to financial duress. Further, the increased numbers of unemployed will be a significant damper on consumer spending. But re-opening of malls and main streets is a welcomed start, even if things will be different in the COVID-19 period. Mercator’s recent Viewpoint, COVID-19 Transmits Chills To 2020 U.S. Merchant Landscape further discusses these issues. https://www.mercatoradvisorygroup.com/Services/MerchantServices/
The following Retail Dive article reports more on this topic which is excerpted below:
Simon Property Group plans to begin the “phased reopening” of its mall properties soon, contingent on state and regional closure orders and criteria issued by the federal government, according to a message from Simon Malls President John Rulli to tenants obtained by Retail Dive.
Simon plans to open five malls in Arkansas, Oklahoma and South Carolina on May 1, with more malls to follow in the first weeks of May, per the memo. Simon did not respond to Retail Dive’s request for comment.
As it opens malls, Simon is rolling out COVID-19 safety protocols, including limited hours, occupancy limits, spacing configurations to promote social distancing, employee screening for symptoms, employee training and face mask requirements for workers, among several other steps.
Simon was among the first major REITs to voluntarily shut down its mall properties, doing so the third week of March, after a steady stream of announcements from major retailers that they would temporarily shutter their national footprints and as states took progressively stricter steps to limit the disease’s spread. Since then, most parts of the U.S. have implemented restrictions on what businesses may open and when residents may leave their homes.
Overview provided by Raymond Pucci, Director, Merchant Services at Mercator Advisory Group.
