Currently, retail businesses in the USA are not performing well, and most prominent mall owner in the USA David Simon is worried about country’s retail stores. He thinks some of them might go for bankruptcy in 2019. While giving an interview, David Simon said that he and his company is worried about some retailers who might not be able to sustain their businesses in 2019. Although Simon did not reveal any names of those companies which he thinks are on a verge of bankruptcy but it seems like a retail industry in the US is in big trouble. Simon Property Group which is one of the largest real estate company in the US is worried because of recent bankruptcy of Sears. A few days largest retail company Sears declared that they’re shutting some of their stores around a country which is a concerning thing. According to Simon most of the retail stores are not in the great financial situation and soon they might file for bankruptcy since they don’t have any other choices.
However, Simon thinks that country is not going to see that much bankruptcy in the retail industry this year as compared to last two years. He thinks previous two years was worst for retail businesses since many of them did not perform up to investors expectations and hence they filed for bankruptcy under chapter 11. There are many e-commerce companies which cost all those traditional retail malls a considerable amount of money due to which real estate companies have also got hit. However, while talking about his company, Simon said that they are in better financial position as compared to his competitors because company managed to earn approximately $661 per square foot which shows Simon Property group owns highly valuable properties.