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Simon Property Group Inc.

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Simon Property recently announced that Flying Tiger Copenhagen — the Danish brand — will open outlets in four of its shopping centers. The company also sued Starbucks refraining it from closing 78 of its Teavana stores in Simon’s malls. Notably, Simon’s efforts to support omni-channel retailing, portfolio-restructuring initiatives and a healthy balance sheet augur well for long-term growth. However, mall traffic has been facing challenges due to a shift in shopping patterns, with online shopping taking precedence over in-store purchase. Though the company is making efforts to counter the pressure through various initiatives, implementation of such measures is anticipated to limit any robust growth in its profit margin in the near term. Also, rate hike have added to its woes. Amid these, shares of the company have underperformed its industry year to date.

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