Customers return to the malls in a state of euphoria

There is something of a state of euphoria in the actions of shoppers who have had the opportunity to return to shopping malls.

According to David Simon, general manager of Simon Property, the largest mall owner in the U.S., footfall at malls is increasing day by day. The retail environment is improving, and more and more shoppers are going shopping in conventional stores. More importantly, there is a kind of euphoric state when people who are tired of being cooped up can finally get back to their usual way of life.

David Simon refused to make any long-term predictions, saying such an upsurge may well be short-lived. In a year like this, it is impossible to predict what the situation will be. Moreover, he noted that this situation is not observed in all regions of the country. For example, stores in California and New York are still struggling because of declining tourist traffic.

Overall, however, the company is optimistic. It has even improved on earlier forecasts. Whereas previously operating earnings were expected to be between $9.50 and $9.75 per share, now it’s said to be between $9.70 and $9.80 per share.

For fiscal 2020, which ended March 31, the company’s U.S. mall occupancy rate was 90.8%, compared to 94% a year earlier. Total revenue, meanwhile, fell to $1.24 billion from $1.35 billion. Base minimum rent per square foot rose to $56.07 from $55.76 last year.