Simon says, “Open the malls.”

Simon says, “Open the malls.”
In January I tried to purchase the distressed mall-staple Forever 21, but was outbid by Simon Property Group, who owns a bajillion malls and outlets around the country. 

And now Simon is trying to take another calculated risk, by reopening their malls in the middle of a global pandemic.

The question they should be asking isn’t “when should we reopen the malls?”, but “should we reopen the malls?”

If you look at the data out there, the answer is “probably not”.

People aren’t too hyped to shop right now. In fact, 45% of people say they are going to avoid malls, even after the lockdown is over. And that they’d rather step foot in a movie theater or public transportation than a mall. 

So while Simon may say, “get to shopping in our malls”, I say that’s a bit of a stretch at this point. 

Retail needs to get on the e-commerce train, because it’s already left the station. Meanwhile, brick and stores are permanently delayed with an “engine issue”.

Reopening malls won’t fix brick and mortars problems...the only thing it’s reopening is old wounds. It’s not worth the risk at this point….and I’m not sure it ever will be, honestly. 

I believe that post-COVID, there’s going to be significantly less demand for brick and mortar stores .
You don’t have to believe me...listen to the data instead.

But I’ll continue to bet on e-commerce.

- Tai Lopez