In order to boost customers’ shopping experience, General Growth Properties, Inc. (GGP - Snapshot Report) strategically joined forces with the world’s leading digital coupon provider, RetailMeNot, Inc. (SALE - Snapshot Report), for availing digital coupon facilities across its properties.
Chicago-based General Growth Properties operates several renowned malls across the U.S such as Tysons Galleria (Washington), Water Tower Place (Chicago), and Ala Moana Center (Honolulu). This choice of RetailMeNot as a preferred digital coupon provider is a strategic fit for General Growth Properties and is aimed at increasing footfall at its properties.
Moreover, the availability of such services would help General Growth Properties to prosper in this era of advanced technology in the retail arena. The deal is expected to enhance sales volume at the tenant stores, consequently boosting the demand for the mall properties.
Notably, with the rise in online shopping, the competition has intensified among physical and online retailers and General Growth Properties has been seeking opportunities to combat this competitive pressure through opportunistic partnerships.
Consequently, in December, General Growth Properties collaborated with Deliv to offer same-day delivery service to retailers. Though initially available in select malls, this deal facilitates the company to leverage on its nationwide properties and use them as distribution centers. Other mall operators – Simon Property Group Inc. (SPG - Analyst Report) and The Macerich Co. (MAC - Analyst Report) – joined forces with Deliv for a similar deal.
General Growth Properties is scheduled to report its first-quarter 2014 results on Apr 28, after the closing bell. The Zacks Consensus Estimate for first-quarter FFO is currently pegged at 30 cents per share, reflecting a year-over-year increase of 18.9%. Currently, the company carries a Zacks Rank #2 (Buy).
Note: FFO, a widely used metric to gauge the performance of REITs, are obtained after adding depreciation and amortization and other non-cash expenses to net income.
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