(U.S.) Mall owner turns focus to Brazil

[Judi Lynn]

Source: Houston Chronicle/Bloomberg News

Feb. 12, 2008, 8:24PM
Mall owner turns focus to Brazil

By DANIEL TAUB
Bloomberg News

General Growth Properties, the second-largest U.S. owner of malls behind Simon Property Group, will delay the redevelopment of malls at home and expand in Brazil to cope with slowing U.S. retail sales, Chief Executive John Bucksbaum said.

"Difficult times call for difficult decisions, and we are not afraid to make them," Bucksbaum, also chairman of the Chicago-based company, said Tuesday during a conference call with analysts and investors. "The world we live in now has changed dramatically from just six months ago."

Sales at U.S. retailers may rise no more than 1 percent this month as consumers trim spending amid falling home values and a shrinking job market, the International Council of Shopping Centers and UBS Securities said. The forecast follows the worst holiday season for U.S. retailers since 2002 and the slow January sales growth.



Read more: http://www.chron.com/disp/story.mpl/business/5536500.html

[salin]

1. Is it that just running/managing the malls isn't profitable?

Is it that the only way to make profits is to open new malls? Or is it that "current profits" are never enough? Or that in the current corporate groupthink that amassing debt (new acquisitions, new development etc.) is still a good thing in the search for increasing profits. Whatever happened to reining in spending during times of constriction, making steady profits and setting aside reserves to use and invest when the business cycle moves back to expansion?

I am not even an MBA but can see that todays conventional thinking among corps is skewed compared to old business models, and frankly while they may amass more short term profits - they are also amassing huge levels of debt, even at times where it seems unwise to do so.

[bulloney]

2. The corporate mindset is that you can't just have profit.

You must have profit at a much faster rate every year. If not, the year is a failure.

Why Brazil? Is their economy growing to where it's surpassing any growth in the U.S.?

[salin]

3. that would be the implication

interesting, eh?

[xchrom]

4. fewer malls being built in the u.s.?

:applause: :woohoo: :applause: :woohoo: :applause: :woohoo: :applause: :woohoo: :applause: :woohoo: :applause: :woohoo: :applause:

[noonwitch]

5. They just opened a new one in northern Macomb County, MI

Partridge Creek, with a Parisian and a Nordstrom (to open in the spring). It's an outdoor mall, where you can even bring your dog.
It's down the street from Lakeside Mall, that has the traditional Macys, Lord & Taylor, Sears and Penneys as anchors. You can hit both in the same day without driving all over town, so I love it, or at least I will once Nordies opens.