Shopping malls have experienced fluctuations in consumer foot traffic in recent years, prompting major property owners to seek new strategies to attract visitors. Simon Property Group has responded to these challenges with a digital advertising campaign aimed at driving engagement and revitalizing interest in mall visits. Additionally, potential changes in U.S. tariff policies may provide further advantages for domestic retailers. These efforts come at a time when shopping behaviors continue to evolve, with e-commerce competition influencing traditional retail spaces.
Over time, commercial real estate firms have attempted different strategies to keep mall spaces relevant. Simon Property Group, known for its ownership of shopping, dining, and entertainment properties, has previously adapted by incorporating experience-based attractions and mixed-use developments. However, digital marketing campaigns focused on nostalgic elements appear to be a newer approach for the company. In this instance, the company looks to appeal to younger generations by emphasizing the social and recreational aspects of mall visits, drawing inspiration from past decades.
How Is Simon Property Group Promoting Mall Visits?
The company has introduced a national digital advertising campaign, “Meet Me @themall,” which highlights the appeal of malls as social hubs. The campaign, launched across major streaming platforms and social media channels, seeks to remind consumers of the communal aspects of visiting shopping centers. Simon Property Group reported positive reception to the initiative, noting increased engagement and foot traffic in its locations.
Simon Property Group Chairman, CEO, and President David Simon commented on the campaign’s success, stating:
“Our national advertising campaign is all about talking about how it’s fun to go to the mall and hang out just like in the ’80s and ’90s. We’ve had a very good reception to it.”
What Role Could Tariff Policy Changes Play?
Another potential factor influencing retailers in Simon Property Group’s malls is the proposed elimination of the U.S. “de minimis” tariff exemption. This rule currently allows packages valued under $800 to enter the country without tariffs. The change could impact foreign eCommerce businesses that rely on the exemption to ship lower-priced goods to U.S. consumers.
David Simon expressed support for the potential policy adjustment, stating:
“If enacted, that will give a real shot in the arm to retailers that don’t purposely try to send their goods to get under the $800 limitation — not to say it’s also more green, it saves packaging costs, etc.”
The company anticipates that if the modification is implemented, it could benefit domestic retailers operating within Simon’s properties.
Simon Property Group’s financial results indicate improvements in certain operational metrics. Occupancy rates at its malls and premium outlets increased to 96.5% by the end of 2024, reflecting a 0.7% growth over the previous year. Additionally, base minimum rent per square foot saw a 2.5% increase. However, retailer sales per square foot declined slightly, suggesting that while mall visitation may be rising, spending trends remain varied.
The company’s recent marketing strategy signals a shift toward nostalgia-driven promotions, a trend that has been leveraged by other brands in different industries. By emphasizing the mall experience rather than just retail transactions, Simon Property Group aims to reinforce shopping centers as multipurpose destinations. Meanwhile, the potential tariff rule adjustment could reshape the competitive landscape for retailers, potentially benefiting businesses operating in physical stores. Future developments will determine the extent to which these strategies influence long-term consumer behavior.
