National Outlet Shopping Day
INNOVATION ■ We complement investments in our physical product with investments in technical innovations focused on improving the shopping experience and driving shopper traffic. ■ Launched the first-of-its-kind Simon Search capability, providing shoppers with center-wide visibility into participating store inventory. Onboarded more than 40 retailers and continue to add more every month. ■ Launched the Simon American Express Credit Card powered by Cardless. Unique to the industry, the card offers shoppers 3% to 5% discounts on spend at Simon centers. ■ Expanded the number of live streaming shopping events from our tourism centers in partnership with ShopPremiumOutlets.com, expanding the reach of those stores in both domestic and international markets. ■ We also invested in technology that helps drive our operating costs down, hence our best-in-class operating margin. ■ We are making smart investments in companies that provide support services to our retailers, including delivery, returns and other logistical services.
PLATFORM INVESTMENTS ■ We have made astute, opportunistic investments in brands involved in retail operations, intellectual property assets and licensing and e-commerce marketplaces. ■ Our retail investments include SPARC Group and JCPenney. SPARC includes seven brands—Aéropostale, Brooks Brothers, Eddie Bauer, Forever 21, Lucky Brand, Nautica and Reebok. 2022 was a solid year for these brands following a terrific 2021. We purchased these brands at distressed prices and have been successful in stabilizing and growing them. ■ We own approximately 12% of Authentic Brands Group (“ABG”), a world-class intellectual property, brand development, marketing and entertainment company. The ABG licensing platform includes more than 40 brands and generates more than $25 billion in global annual retail sales through its network of over 1,200 partners. Our relationship is both as a significant shareholder and as a partner in JCPenney and our SPARC joint venture. At ABG’s current valuation, we have a 9X profit on our cash investment.
■ Created digital display and video campaigns to support local centers, resulting in over 400 million video views, more than 10 million clicks to Simon websites and over 5.5 million property visits. ■ Expanded the VIP Shopper Club and Mall Insider programs to nearly 18 million members, with messaging focused on new store openings, local programs, retailer deals and special promotions. ■ Generated nearly 1 million QR code scans from on-center signage, an increase of 168%, driving shoppers to retailer deals, sign-up for VIP Club access and special events. SIMON BRAND VENTURES ■ Simon Brand Ventures continues to provide brands and retailers with unique opportunities to engage shoppers through a variety of media and activation opportunities, both online and in our centers. ■ Brands want access to our large customer base and the millions of visitors to our portfolio. ■ Our unmatched go-to-market strategy leads the industry, consistently outperforming industry benchmarks and delivering significant impact for our Company, including revenue growth of 22% in 2022.
VII
2022 ANNUAL REPORT
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