What Simon's Macerich Bid Says About the Retail Landscape
Simon's hostile takeover bid for rival mall operator Macerich is the talk of retail analysts, and not only because it values Macerich at $22.4B. The move also speaks volumes about the current state of retail real estate. Coming at a time when many shoppers have abandoned sprawling malls in favor of digital retailers, Simon's aggressive move to expand its shopping center dominance could seem illogical. But malls have come to be yet another illustration of the growing divide between the haves and have nots, with Class A malls that cater to affluent shoppers thriving while middle of the road centers hemorrhage customers.
Indeed, Simon, which owns the Forum Shops in Vegas among other (somewhat less) splashy complexes, is looking to bolster its existing lead in the upscale sector with the Macerich move, according to retail experts. And the takeover target is a valuable one: Macerich shares rose 7% yesterday on the heels of the Simon news, suggesting that the $22.4 valuation may be a lowball figure. [NYT]
