Macy’s sees no harm from General Growth-Simon deal

Macy’s would see only minimal impact from a purchase of bankrupt General Growth Properties by its larger rival, Simon Property Group, said Terry Lundgren, chief executive officer of the department store chain. A number of smaller retailers have expressed concerns that a combination of the two largest US mall operators could set the stage for higher rents. Simon has bid for General Growth, which has spurned that offer and is looking at others. Lundgren said on Thursday that Macy’s clout as the anchor tenant at hundreds of malls owned by both companies would not be diminished if the two companies merge. “Our rents are very low,” Lundgren added, explaining that Macy’s stores draws shoppers to the benefit of the mall owners and other, smaller tenants. “The malls would have a very hard time if we leave,” Lundgren said at a Bank of America Merrill Lynch investor conference in New York.

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