Simon sez: Let’s get even bigger

You’d think they were already big enough.

But Simon Properties Group Inc. – the largest shopping mall owner in the country — wants to get bigger.

It currently has about about 350 malls, including Miller Hill Mall in Duluth.

Now it wants to acquire the No. 2 mall owner, General Growth Properties, Inc., which has more than 200 malls in 44 states.

Simon Properties has offered $10 billion to buy struggling General Growth which is in the middle of Chapter 11 bankruptcy proceedings and trying to restructure its debt.

If the takeover is successful, Simon Properties would have 550 malls, at least one-third of the U.S. market, The Wall Street Journal reports.

And it would have nearly half the country’s 319 most lucrative malls when it comes to sales.

So what’s wrong with that?

Surely, creditors and shareholders would be happy to see some kind of return on their investment.

But, pointed out the Journal, Simon Properties would have a monopoly. And it would give Simon Properties "unmatched power" over retailers and control over the look and atmosphere of the malls.

In other words, every one of their malls could look pretty match the same.

 

9 thoughts on “Simon sez: Let’s get even bigger

  1. Great article about the troubles of mall operators, including the one Simom is looking to acquire: http://online.wsj.com/article/SB124294047987244803.html

    I wish Simon would get with the times and renovate the exterior of the Miller Hill Mall. What’s the name of that new store, Cold Creek somethingorother? That looks really nice, but it looks weird compared to the bland and dull red brick of JC Penney.

    But then again I also wish the mall would stop adding so many sorostitute stores. There are shoppers in the northland who aren’t girls and don’t wish to have “JUICY!” displayed on their backsides.

  2. I personally think the “mall craze” has peaked and they are on the downhill slide around the country. Up here with the extended bitter cold weather we have, enclosed malls will probably hold on for a few more decades….but if you travel outside of the midwest you’ll see that the traditional enclosed “mall” as we think of is pretty much a thing of the past. We always do seem to hold on to the ways of the past for a few more decades than most of the rest of the country anyway….so nothing odd there.

    I too have pretty much eliminated the “mall” from my shopping experience other than heading into Barnes and Noble every month or so. It just seems that it’s filled with overpriced and many times outdated clothing stores.

  3. Someone else ought to buy the mall and do a high quality renovation and bring in a real upscale department store like Nordstrom!

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