In order to strengthen its relationship with customers, Simon Property Group Inc. (NYSE: SPG) disclosed its brand re-launch and marketing program. In particular, this strategy includes the initiation of new programs and events for upgrading services and amenities provided to specific customers.
Starting today, Simon Properties' revitalized brand will be seen across its U.S. assets, through out-of-home advertising in select markets and all other media channels. Also, the company plans to share this news with its industry partners at the International Council of Shopping Centers global convention in Las Vegas this week.
The company that already experiences traffic of two billion shoppers and retail sales of over $70 billion annually at its properties, is aiming to increase the figure by funding redevelopments of its assets for about $1 billion annually.
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With the economy showing signs of recovery, the spending power of richer consumers is improving and the company is strategically leveraging on this trend. We believe that the move will enhance the shopping experience of its customers at its premium retail portfolio and simultaneously boost the footfall. This will, in turn, boost the company's rental revenue, going forward.
As a matter of fact, the application of the omni-channel strategy has been on a rise among the retailers. Simon Property is also trying to follow that path, through several ways including usage of new technologies at its properties and assisting customers with their shopping.
In connection to this, last month, the company collaborated with a subsidiary of NRG Energy, Inc. (NYSE: NRG) to install Electric Vehicle (NYSE: EV) charging stations at its properties. Particularly, the installation of these stations was aimed at catering to the increasing usage of EVs in the greater Washington D.C., metropolitan area.
Additionally, Simon Property's same-day delivery deal with Deliv in December is noteworthy as customers would no longer be required to carry bags from each store. Through this deal, the company would leverage its nationwide real estate properties – mall and retail outlets – and use them as distribution centers. These initiatives bode well for this leading retail real estate investment trusts' (REIT) long-term growth.
Simon Property currently carries a Zacks Rank #3 (Hold). Investors interested in retail REITs may consider stocks like General Growth Properties, Inc (NYSE: GGP) and Regency Centers Corp. (NYSE: REG). Both stocks carry a Zacks Rank #2 (Buy).
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