The nation’s largest mall owner is shutting down all of its U.S. properties, putting 10 Southern California centers temporarily out of business as the economic wallop of the coronavirus outbreak grows.
Area shopping centers will close at 7 p.m. Wednesday through March 29 and include the Brea Mall; Camarillo Premium Outlets; Carlsbad Premium Outlets; Del Amo Fashion Center, Torrance; Desert Hills Premium Outlets, Cabazon; Ontario Mills; The Outlets at Orange; The Shops at Mission Viejo; Fashion Valley, San Diego; Las Americas Premium Outlets, San Diego.
Simon, whose U.S. malls generate $60 billion in sales annually, owns 204 retail properties in 37 states.
Simon Property Group in a statement said it made the decision to close its malls after discussions with federal, state and local officials and “in recognition of the need to address the spread of COVID-19.”
“The health and safety of our shoppers, retailers and employees is of paramount importance and we are taking this step to help reduce the spread of COVID-19 in our communities,” said David Simon, chairman, CEO and president of Simon.
Simon’s decision comes two days after South Coast Plaza, owned by the Segerstrom family, opted to close the massive luxury mall in Costa Mesa. The closure came as mall operators learned a store employee at the Christian Louboutin boutique had tested positive for the coronavirus.
Mall operator Unibail-Rodamco-Westfield also said it is shutting down all of its U.S. malls, including centers in Canoga Park and Sherman Oaks. The centers will be closed Thursday, March 19, through Sunday, March 29, or until otherwise instructed by health authorities, according to the Paris-based mall giant.
In response to the COVID-19 containment, J.C. Penney Co. also announced Wednesday it was temporarily closing its stores and business offices, effective at 7 p.m. local time. The stores and offices are scheduled to reopen April 2.
Fashion giant Nordstrom said on Tuesday it will close more than 360 stores temporarily to stem the outbreak. Macy’s and Bloomingdale’s also joined a growing list of retailers saying they would close their shops until the end of March. Apple, Nike and Allbirds had already shut down their stores.
Discount retailer Target, however, has lobbied to stay open saying shoppers need many of its products. Many governments have limited store openings to only merchants selling “essential” items.
The retail shutdown will have broad economic effects. UCLA economists say the nation’s already in a recession, a downturn that will hit California hard. And the loss of sales tax revenues is forcing many California cities to rethink their spending plans.
Simon shares have fallen 70% this year, shaving $30 billion off its market value to $14 billion at Wednesday’s close.
Staff writer Olga Grigoryants contributed to this report.
