What: The US mall giant is very confident about the future thanks to excellent Q3 postings.

Why it is important: The cost of e-commerce returns in the US makes an argument in favour of physical retail, which is in addition the best way to convey an experience. As a consequence, Simon Property Group is still very confident in the mall business, even though the group has diversified recently by also taking shares in mixed-use retail developers.

David Simon spoke to WWD in order to emphasise to what extent physical retail is still very much alive, especially in malls. E-commerce is of course necessary, but it is not possible to make a full living out of it.

He bases his declarations on the SPG Q3 2022 results, which showed a +14% profitability per sqm year-over-year, as well as a 25% increase of income to $679.9m and an occupancy rate of 94.5% compared to 92.8% last year.

Taking the inflationary context into account, he still believes that SPG is well positioned to weather the storm, as, for him, physical retail is where the action is and the demand for spaces and deals is still very strong.

David Simon sees momentum in physical retail