Simon: The Impact of Brick and Mortar Shopping

EXECUTIVE SUMMARY

The retail landscape is evolving at a rapid pace, with innovations in retail formats and ways to deliver goods. Because of these changes, consumers now have more choices to purchase a wide variety of products than ever before. While retailers work hard to deliver convenience and meet customer expectations, shopping behaviors do have socioeconomic and environmental impacts. Simon undertook this analysis to better understand the economic, social, and environmental impacts of our shopping centers across the company’s U.S. portfolio. The results of this study provides us a baseline from which to measure future progress and help us shape our business strategy towards best serving our retailers and customers. We are choosing to share this report to advance the conversation— within Simon and at other retailers and the communities in which we operate—about how we can improve our environmental and socioeconomic impact within the ever-evolving retail ecosystem. The findings in this report highlight the scale of the impact that retail destinations continue to have on local communities: —The development, construction, and operation of shopping centers support local and national economies through job creation, small and local business development, and trigger other investments that contribute to the community’s local economic development . —Shopping malls generate carbon emissions, send waste to landfills, and consume water throughout daily operations, but present many opportunities to reduce environmental impact . —Brick and mortar shopping is not just about consumers purchasing goods and services; shopping malls also contribute to improvements in quality of life and the communities’ wellbeing , for example our properties work with community members to provide fundraising relating to youth education and development. — Shopping centers create new destinations for consumers to shop, dine, entertain, and have in-person connections and experiences with friends, family, and community members in the ever-growing age of digitalization.

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