Simon's Gambit: Betting on Experiences and Loyalty to Redefine Retail

INDIANAPOLIS, IN – November 24, 2025 – As the holiday season kicks off, the retail landscape is fraught with mixed signals. While the National Retail Federation projects modest sales growth, other forecasts suggest consumers are tightening their belts. In this uncertain climate, real estate investment trust (REIT) giant Simon Property Group is not merely decorating its 220+ properties with festive lights; it is launching a comprehensive, multi-pronged strategy designed to prove the resilience of the physical mall.

Through a combination of curated new brands, large-scale entertainment attractions, and a sophisticated new loyalty program, Simon is making a significant bet that the path to stable returns lies in transforming its properties from simple shopping centers into dynamic, multi-generational community hubs. The company’s holiday press release outlines a vision that extends far beyond the transactional, aiming to embed its malls into the social and digital lives of consumers.

"Simon has something for everyone this holiday," said Lee Sterling, Simon's Chief Marketing Officer, in the announcement. "From discovering the perfect gift, to enjoying our festive events and experiences, Simon makes every moment of the season a bit merrier." This statement encapsulates a strategy that is less about surviving the digital onslaught and more about fundamentally redefining the mall's value proposition.

Beyond the Storefront: The New Mall as an Entertainment Hub

The most visible component of Simon’s strategy is its aggressive pivot towards experiential retail. Recognizing that modern consumers, particularly younger generations, prioritize experiences over possessions, the company is integrating a new class of entertainment and dining tenants that transform its properties into all-day destinations. This move directly counters the convenience of e-commerce by offering something online platforms cannot: tangible, shareable, real-world engagement.

Attractions like the first-ever Netflix House at the King of Prussia mall, the immersive art of Meow Wolf, and high-energy concepts like F1 Arcade and Puttshack are no longer fringe novelties but core to the business model. These are not just amenities; they are powerful traffic drivers designed to increase consumer dwell time and, by extension, ancillary retail spending. By creating destinations where visitors can shop, dine, and be entertained, Simon is building a more robust ecosystem. The logic is simple: a family that comes for the Immersive Van Gogh Experience or a group of friends meeting at a trendy restaurant like Bartaco is more likely to browse adjacent stores than a consumer making a targeted online purchase.

This trend, known as "placemaking," is critical for the survival and growth of large-scale retail properties. Malls that successfully reinvent themselves as vibrant social spaces are proving more resilient. Industry data supports this shift, indicating that integrating compelling leisure and dining options can directly lead to increased foot traffic and stronger sales figures for traditional retail tenants. Simon's investment in this area is a calculated effort to future-proof its assets by making them essential parts of their communities' social fabric.

Courting Gen Z: A Strategic Refresh of the Retail Roster

Alongside its experiential push, Simon is meticulously curating its tenant mix to capture the attention and spending power of the next generation of shoppers. The company is actively bringing in hundreds of new stores, with a notable focus on brands that resonate with Gen Z consumers. The inclusion of digitally native, trend-driven brands like Edikted, Gymshark, Princess Polly, and Pop Mart—many in their first-ever physical retail locations—is a clear signal of this strategic focus.

Take Gymshark, for example. The UK-based activewear brand built a billion-dollar valuation primarily through a direct-to-consumer model fueled by social media influencers and a deep connection with its fitness-focused community. Its move into Simon properties represents a symbiotic relationship: Gymshark gains a physical footprint to engage its community offline, while Simon attracts a digitally savvy, loyal demographic that might otherwise bypass the mall. This strategy acknowledges a key truth about Gen Z: while they are digital natives, they still crave authentic in-person experiences and use physical stores for discovery and social connection.

By balancing these hot new brands with the expansion of established favorites like lululemon, Aritzia, and Zara, Simon is creating a diverse retail ecosystem that appeals across generations. This balanced approach is crucial for maintaining broad appeal while simultaneously cultivating the next wave of loyal mall shoppers, ensuring the long-term vitality of its properties.

Simon+: The Digital Glue for an Omnichannel Future

Tying the physical and digital experiences together is the newly launched Simon+ loyalty program. Introduced just in time for the holiday rush, Simon+ is designed to be the connective tissue for the company's entire omnichannel strategy. The program moves beyond the simple punch cards of the past, offering members cash back, points, and perks for spending money both in its physical centers and online through the ShopSimon.com platform.

In a fragmented retail market where consumers are bombarded with loyalty offers, the potential for "program fatigue" is a real risk. However, Simon+ aims to differentiate itself by creating a unified rewards ecosystem that spans hundreds of retailers within its portfolio. A shopper can earn points buying shoes at one store, redeem them for a discount on dinner at a participating restaurant, and access an exclusive online offer from a third retailer, all within the same program. This integration is a key advantage over competing mall operators, whose loyalty offerings are often less comprehensive.

More importantly, Simon+ provides the company with an invaluable stream of data on consumer behavior across channels. Understanding how, when, and where customers shop allows for the kind of personalization that modern consumers now expect. This data can inform everything from tenant mix decisions to targeted marketing promotions, creating a virtuous cycle of engagement. The program represents a sophisticated effort to build durable customer relationships and increase 'share of wallet' in an environment where loyalty is increasingly hard-won.

Navigating a Cautious Holiday Climate

Simon's multifaceted strategy is being deployed against a backdrop of economic uncertainty. While the NRF's forecast for 3.7% to 4.2% holiday sales growth appears healthy, S&P Global Ratings notes this growth may be driven more by inflation than by a genuine increase in purchasing volume. Other analyses, like PwC's, are even more bearish, predicting a drop in average consumer spending. In this environment, every dollar is being contested.

Simon's approach appears designed for this very challenge. The experiential attractions provide a compelling reason to visit, even for those not on a primary shopping mission. The refreshed, Gen Z-focused retail mix offers novelty and excitement that can spur impulse buys. Finally, the Simon+ loyalty program provides a tangible value proposition—cash back and rewards—that directly appeals to budget-conscious consumers looking to maximize their spending.

By investing in these three pillars, Simon is not just hoping for a strong holiday season; it is building a more resilient and adaptable business model. The company is positioning its properties to capture consumer spending by offering a superior, integrated experience that competitors—both online and offline—will find difficult to replicate. The coming weeks will serve as a crucial test, but the strategy itself provides a compelling blueprint for how premier retail destinations can navigate economic shifts and continue to generate stable, long-term returns.