Skip to main content
No. of Recommendations: 7
To your point, a key facet of this might be an ‘adapt or die’ mentality. “Stick to your core” only goes so far when your core is in structural, long-term decline and a pandemic does quite a lot to accelerate that decline.

If I were SPG’s CFO, my first priority would be aggressively extending debt maturities as far as I could while the Fed is so aggressively subsidizing borrowing. Immediately thereafter, or probably around the same time, I would be looking for ways to adapt the business model to improve its resilience for a world that is more comfortable shopping online and capable of streaming first run movies on their home entertainment systems.

SPG may be the best mall operator out there, but that only gets you so far.

To be clear, I do believe we are closer to the end of the COVID pandemic than the beginning. It has gone on long enough, though, that I’m not convinced consumer behavior will bounce back to how it was before. There has likely been some permanent shift in behavior that the need to adapt to if they want to continue being the best as we get back to whatever the new normal looks like.

Regards,
-Chuck
Discovery/HR Home Fool

Disclosure: I own some SPG bonds.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.