Will brands shine in a new online platform for shopping outlets?
Simon Property Group, the giant shopping center operator, is not taking online competition lying down. The company has announced the beta test of a new online shopping platform to help boost traffic and sales of tenants at its outlet malls in both the digital and physical world.
SPO (Shop Premium Outlets) is specifically designed for outlet lovers who, Simon says, can save up to 65 percent off full retail prices on the new platform. The mall operator is currently piloting the SPO platform with members of its VIP Shopper Club. The test includes over 300,000 products from around 2,000 brands. Simon plans a public launch during the spring.
“We’re utilizing the powerful equity and consumer connectivity of our Premium Outlets platform to drive incremental traffic and sales for brands and retailers, both online and in-store,” said David Simon, chairman, CEO and president of Simon. “This is not your typical marketplace and the brands will be the heroes of the experience and will not get lost in the crowd.”
Simon is looking to drive sales of the brands it works with while continuing to support traffic to its physical sites. The company currently generates 48 percent of its net operating income from U.S. malls and 42 percent from outlets, according to the Indianapolis Business Journal. The remaining business comes from international properties.
- Simon Launches New Retail Platform – Simon Property Group/PRNewswire
- Indianapolis-based Simon launches online shopping platform – Indianapolis Business Journal
DISCUSSION QUESTIONS: How do you expect SPO to affect the overall sales of the brands selling on the online platform? Will the platform enable Simon to drive incremental sales both online and at its outlet malls as it expects?