Simon Property Group Inc. (SPG - Free Report) has been making rigorous efforts to drive footfall at its properties. In sync with that, the company in association with Electrify America recently announced the launch of California's first 350 kW electric vehicle (EV) charging station at San Francisco Premium Outlets.
In particular, 10 DC fast chargers were installed at San Francisco Premium Outlets for public use. The company informed that chargers are co-located with 20 Tesla Superchargers, which led to San Francisco Premium Outlets standing out as one of the country's largest multi-standard fast charging sites. Apart from this, Electrify America will engage itself in installing charging systems at Simon sites throughout the nation. This includes 17 centers in California, with 95 additional chargers.
Simon Property has been undertaking every possible step to ensure that footfall remains high at all of its properties. With the rising use of EVs in the United States, we view this transaction as a strategic fit for Simon Property and expect it to increase footfall at its properties. This move is also in sync with the company’s sustainability strategy.
In fact, Simon Property has been undertaking several efforts to combat the declining mall traffic, which continues to suffer due to the rapid shift in customers' shopping preferences, with e-retail taking precedence. In fact, retailers are compelled to reconsider footprints and eventually opt for store closure while others, unable to cope with competition, are filing bankruptcies as e-commerce is gaining market share from brick-and-mortar stores.
This resulted in tenants demanding substantial lease concessions, which mall landlords find unjustified. Retail real estate investment trusts like Simon Property, Kimco Realty Corp. (KIM - Free Report) , Macerich Company (MAC - Free Report) , Taubman Centers, Inc. (TCO - Free Report) and others felt the heat.
However, Simon Property is investing billions to transform its properties with an intention of creating value and driving footfall at its assets. The transformation plans included the addition of hotels, restaurants, residences and luxury stores. In addition to the above, Simon Property is exploring mixed-use development option, which has gained immense popularity in recent years as it helps in catching the attention of people, who prefer to live, work and play in the same area.
Eventually, the aim is to transform retail shopping centers to make those appear as a one-stop destination, where not only people can shop, live and work but also entertain themselves, socialize and exercise, and even visit doctors or relax at the spa. Such measures will likely help boost traffic and drive sales.
Simon Property currently has a Zacks Rank #3 (Hold). The company’s shares have increased 12.3% in the past six months against its industry’s decline of 7.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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