Biggest U.S. Mall Owner Shows Two Sides: Innovator and Traditionalist

Mall owner Simon Property Group is pursuing an unorthodox business strategy, smashing the foundation of the traditional industry model on the one hand while trying to glue certain elements of it back together with the other. Simon has been in talks with Amazon.com Inc. to convert department stores into warehouse distribution hubs, say people familiar with the matter, an innovation that could plug large holes filled by ailing tenants such as Sears Holdings Corp. and J.C. Penney Co. But the move would challenge a long-held industry belief that anchor tenants are crucial for attracting foot traffic to other stores.