Jamie Salter and David Simon, one a licensing expert and the other a mall operator, are reshaping the shopping landscape by acquiring bankrupt brands like Brooks Brothers and Forever 21. Major tenants like the.Now the company is investing millions to prop up some failing retailers, in hopes of keeping occupancy rates up and rent payments coming in.“They’ve got to keep mall occupancies at the right level, so they’re looking at these deals as a bet on the future,” said Bob Phibbs, chief executive of the Retail Doctor, a New York-based consultancy. A handful of store closures, analysts say, can quickly lead entire mall corridors to go dark, leaving Simon with few choices during the pandemic.“It’s normally a sign of distress when you’re having to invest in your tenants, but it’s the least bad option right now,” said Scott Crowe, chief investment strategist at CenterSquare Investment Management. “They’re looking at Brooks Brothers and Lucky as pretty solid brands that are being sold at fire sale prices. Mr. Salter’s brands have “variable rent” contracts with Mr. Simon’s malls, meaning their rent goes up and down with their sales and, in a lucrative arrangement, most don’t have minimums. They say the SPARC strategy treats brands and stores less like hothouses of creativity that need careful tending, and more like chess pieces to be moved around for maximum, if momentary, gain.That suspicion has been hard to shake for Mr. Salter. It also is reportedly in,The company’s foray from landlord to owner shows just how deeply the coronavirus crisis is reshaping the retail industry. They were also interested in Mr. Salter’s marketing prowess and his brands, which they figured could eventually turn into stores at their malls.“At the beginning, Simon just wanted ‘get my rent,’” Mr. Salter said. In the D.C. area, its portfolio includes Fashion Centre at Pentagon City, Leesburg Premium Outlets, Potomac Mills, Arundel Mills and St. Charles Towne Center.“Without question, the pandemic has obviously had a dramatic impact,” chief executive David Simon said in an August earnings call. "In these challenging times, we made the decision that we will not open on Thanksgiving Day, instead allowing our associates to spend the holiday with their loved ones," David Simon, the company's chairman, CEO and president, said in the statement.The company said its mall properties will be open on Black Friday.Simon's pivot appears to be following a retail trend emerging during the pandemic, said John S. Talbott, director of the Center for Education and Research in Retailing at Indiana University's Kelley School of Business.The announcement to close on Thanksgiving follows similar decisions from major retailers such as.In recent years, retailers have kicked off Black Friday sales on Thanksgiving, with sales promotions starting even earlier. It also is reportedly in talks with Amazon to turn space once filled by Sears and other department stores into e-commerce warehouses. The biggest individual investor after Mr. Salter, whose family owns about 20 percent, is Shaquille O’Neal, whose brand is managed by the Authentic Brands. Mall owner Simon and Authentic Brands make $305 million bid for bankrupt Brooks Brothers, aiming to keep over 125 stores open Published Thu, Jul … It delayed more than $1 billion in redevelopments. “The alternative is way worse: Letting these retailers go bankrupt, and having to deal with a whole lot of empty space at a time when the rest of the world is also dealing with the same problem.”.Simon’s long-term strategy, he said, is be the last major mall owner standing. Simon Property Group’s pursuit of Brooks Brothers, Lucky Brand and J.C. Penney illustrates how deeply the pandemic has reshaped the retail sector. department store,” Mr. Salter said. But the novel coronavirus accelerated consumers' dependence on online shopping as department stores and other nonessential businesses were forced to closed.The U.S. Department of Agriculture said U.S. retail e-commerce sales for the second quarter was a seasonally-adjusted $211.5 billion, an increase of 31.8% from the first quarter and 44.5% over the same period last year.Some shoppers are likely to still flock to stores on Black Friday. “It’s not about a love of the brand or the goods. The longer the history, the better.” The potential to cut costs was another.For years, Mr. Salter led a division of Hilco, a financial firm, as it snapped up the intellectual property of bankrupt retailers.At Authentic Brands, Mr. Salter pulled off an early coup by acquiring the exclusive rights tied to Marilyn Monroe, whose likeness drew the interest of everyone from Dolce & Gabbana to Walmart.
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