As Simon Property Group faces 2026 tariff impacts and retail bankruptcies, what happens to The Shops at Riverside in Hackensack? Explore the future of luxury malls
the staff of the Ridgewood blog
Hackensack NJ, In the heart of Hackensack, The Shops at Riverside stands as a beacon of high-end retail. Managed by Simon Property Group (SPG), this two-level luxury destination—famed for its “Restaurant Row,” Bloomingdale’s, and AMC Dine-In Theatre—has long been the crown jewel of Bergen County shopping.
But as we move further into 2026, even the most polished marble floors can’t hide the cracks forming in the broader retail landscape. While SPG remains “cautiously optimistic,” a perfect storm of economic headwinds is forcing the nation’s largest mall operator to rethink everything.
The 2026 Reality Check: Tariffs and Tenant Troubles
Despite high occupancy rates nearing 96% at premier locations, Simon Property Group CEO David Simon has issued a sobering outlook for the year ahead. Here is what’s keeping mall developers up at night:
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The 2026 Tariff Cliff: While retailers survived the initial shocks of 2025, the full impact of new tariffs is expected to hit mid-sized retailers hard this year, potentially squeezing their ability to pay premium Bergen County rents.
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The “Experience” Shift: Inflation and high interest rates have triggered a “cost of living” pivot. Shoppers are increasingly choosing high-end dining and experiences over luxury goods, forcing malls to evolve or empty out.
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The Bankruptcy Watchlist: Even with a resilient portfolio, the threat of tenant bankruptcies remains a “key watch point.” Simon has famously stepped in to save brands like J.C. Penney in the past, but the strategy is now shifting toward core real estate rather than retail bailouts.
Why The Shops at Riverside is Different
For Bergen County residents, the question is: Is our mall safe? Simon Property Group is aggressively pivoting toward a “Class A” strategy. This means they are shedding underperforming “Grade B” malls and doubling down on “fortress” assets like Riverside. To stay relevant in the age of e-commerce, Riverside is no longer just a place to buy shoes; it’s a mixed-use ecosystem.
Simon’s Survival Playbook includes:
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Mixed-Use Transformation: Turning vacant department store footprints into luxury residential units and office spaces.
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Liquidity as a Shield: With a massive $11 billion liquidity cushion, Simon has the capital to weather a downturn that would bankrupt smaller developers.
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The Luxury Insulation: High-end shoppers are typically more resilient to macroeconomic pressures, keeping Riverside insulated from the struggles seen at “commodity” malls.
The Bottom Line: Adapt or Fade
The Shops at Riverside remains Simon’s primary asset in Bergen County, and its success is a bellwether for the local economy. While the market might be “complacent” about the long-term risks of e-commerce, SPG is betting billions that the future of retail isn’t dead—it’s just becoming more exclusive.
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Other than restaurants, the mall is a ghost town
Tariffs?
Maybe it’s just trying to sell crap at a very high price.