Simon Property Says Boston Numbers Exceeding Pre-Pandemic Performance

While concerns have lingered in recent years about the surge of online shopping and effects of COVID-19 on the retail landscape, Simon Property Group malls and premium shopping outlets in Greater Boston have seen foot traffic and sales numbers that exceed even pre-pandemic numbers.

“In 2021, Simon revenue increased more than $500 million and cash flow increased $1.3 billion across the entire company portfolio,” Laura Schwartz, Regional Vice President of Leasing for Simon tells GlobeSt.com. “These numbers tell a very different story than the one that people seem to think to be true regarding mall visitors in general. Our centers in Boston, in particular, are performing better overall now than they were pre-COVID.”

In fact, Boston-area Simon mall sales are up 20% compared to 2019, and occupancy rate of all Greater Boston properties is well over 90%. Simon credits this success with its agility and forward-thinking strategy that has allowed the largest mall operator in the country to reinvest in its assets and create hospitality-driven destinations that allow for a better experience than shopping online.

“We consider our Boston centers as places where people can experience a lifestyle more than anything else,” Schwartz said. “This has resulted in increased visits, as well as higher overall sales. Burlington Mall and Northshore Mall, both part of our Boston portfolio, have been completely redeveloped with new retailer categories that focus on entertainment in addition to traditional shopping options.”

These new retailer categories include the likes of CAMP, a family experience at Burlington Mall, which blurs the line between “store” and “activity” for families by offering shopping, activities and entertainment, such as magic performances, that the whole family can enjoy. 

At South Shore Plaza, Space Zero trampoline park opened this spring, offering a new retail category to one of Greater Boston’s most established malls.

E-Commerce and Luxury Go Brick-And-Mortar 

According to market research firm Forrester, shopping in physical stores will make up for 72% of US retail sales by 2024. With the desire to shop in-person showing continued growth, Simon is expecting to see sales and traffic continue to grow, as well.

“We offer a place for people to get outside, socialize, eat, and even work out,” said Schwartz. “When the mall is an environment that supports a variety of activities, it’s only natural that guests will stay and shop.”

As retailers across the country look for a competitive advantage to beat out a congested industry and dynamic e-commerce landscape, Simon has maneuvered to provide best-in-class retail that is often first-to-market or even brick-and-mortar outposts of e-commerce brands.

Warby Parker, Fabletics, and UntuckIt, all e-commerce brands, have opened physical stores at Burlington Mall. Joss & Main, the furniture e-tailer, will open its first brick-and-mortar store there this year.

For legacy stores and luxury brands, physical retail will continue to be crucial. Balenciaga opened its first Boston boutique at Copley Place, a Simon center, this Spring, and joins a group of premier luxury brands at the center that are seeing higher sales overall than in 2019. The luxury shopper is spending more dollars than ever, and most of these dollars are being spent in-store.

From new experiential retail to brick-and-mortar e-commerce and luxury, Simon’s Boston centers have proactively evolved to pursue the retail landscape of the future.