In the case of apparel retailer Chico's FAS, which targets women over 35, management found that malls were no longer catering to the demographic it was trying to target, said Michael Elleman, that company's SVP of real estate. Malls have become more teen-oriented and the parking configurations don't allow for quick in-and-out shopping. "She doesn't want to battle the regional mall," Elleman said in respect to his company's 580-store chain with just 30% of its units in malls.
However, at the company's 280-store White House/Black Market concept, which caters to younger women as well as the over-35 age group, half in are malls and half are in open-air developments.
Some developers are trying too hard to force upscale lifestyle centers in areas that don't have the demographics to support those stores, Elleman said. "I think we need to be very careful in some of the greener areas."
In the past two years, Ann Taylor Stores has made a bigger effort to enter lifestyle centers, especially with its 464-unit Loft concept, said Nelson Daza, director of lease administration at that apparel chain, which has a similar consumer to Chico's. At Ann Taylor about half of its stores are in malls, while the other half are in open-air locations.
But Daza still has faith in enclosed venues. "I still believe that our client is looking for a higher-end shopping-mall experience," he said.
What has changed is what the customer is looking for in that experience. Now venues are expected to have more entertainment choices, such as gourmet grocers, theaters and bookstores, he said.
Times are certainly different than before the 1990s, when lifestyle centers started popping up across the country and regional malls were the main shopping option, observed a partner at Westerville, OH-based consulting firm Asset Strategies Corp. "Retailers had it very easy for 40 years," he said. "For 40 years, retailers just had to follow developers."
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
