Silicon Valley Mall Celebrates Major Milestone
100 new retailers are on board with a recent mall expansion project in California. The Westfield Valley Fair shopping mall in Santa Clara, near San Jose, recently completed a $1.1 billion renovation that was just about complete two years ago when you-know-what happened. But, according to a recent article on Hoodline.com, patience won out and so did 100 new retailers, who have since lined up to become part of the Westfield Valley Fair’s renaissance. “We have cultivated a great mix of retailers, these include Eataly and Bowlero. The ICON movie theater is a big draw,” said Sue Newsom, Westfield Valley Fair’s general manager. Hoodline noted that Valley Fair’s unique layout features a grand plaza that features live music performances on weekends. “We have brought the outdoors inside the mall,” Newsom added.
Cautious Optimism and Economic Bright Spots Balance Recession Talk
The falling price of gasoline is one of the bright spots that has economists feeling a little better about the state of the economy in the United States these days. Another tidbit that has caught their eyes: retailers are opening new stores in shopping malls despite fears of a recession. Cautious optimism is the word from economists despite talk of recession in the United States and elsewhere globally. In a recent Reuters article, Oren Klachkin, lead U.S. economist at Oxford Economics in New York, said, “The recovery’s best days are clearly in the rear-view mirror, but this doesn’t mean a downturn has begun. Fundamentals are strong enough to prevent a recession this year.” The National Retail Federation is also looking to be a little more optimistic. In a recent article on Convenience Stores News’ website, NRF Chief Economist Jack Kleinhenz said he doesn’t see a recession in the near future. “Back-to-back contractions have heightened fear of a recession, but while the economy has lost momentum heading into the second half of the year, economic data is not yet consistent with a typical recession,” Kleinhenz said. Oh, and the gasoline bright spot? Where average gas prices were once recently above $5 per gallon, the national average has since dropped to $4.14, according to AAA, and at least one financial news website is seeing gas dip below the $3 mark in the near future.
It’s All a Part of the Natural Evolution of the Shopping Center
An interesting article caught the eye of your humble e-newsletter editor this week. It was a report about Macy’s getting into smaller strip malls with its smaller-footprint concepts, Market by Macy’s and Macy’s Backstage. According to a recent piece on MarketPlace.org, consumers have learned that it is easier to do their shopping with curbside pickup or in stores where it is easy to run in and out quickly, particularly in the COVID-19 era. “How far you have to walk from where you park, how you get to the store itself, the ease of entry. Those things are just much more conducive in a strip-like situation as opposed to a mall,” said Christina Boni, a retail analyst at Moody’s. Plus, open-air retail centers naturally were favored and experienced growth thanks to safety-related shutdowns in many areas. Interestingly, the success of smaller strip malls such as these, the article notes, is dependent on having reliable anchors like a Macy’s or a Target, giving them room for growth and expansion, into, say, perhaps, a shopping center? It’s evolution, shoppers.
Spotlight on a Top 10 Growth Market Center:
Orlando International Premium Outlets
Top 10 Growth Market Center: Visitor traffic has grown by 17.87% in the second quarter compared to the first quarter of 2022.
Orlando International Premium Outlets
4951 International Dr.
Orlando, FL 32819
Simon Property Group
Gross Leaseable Retail Area
773,527 sq. ft.
Saks Fifth Avenue OFF 5th, Finish Line, Skechers, DKNY Jeans, St. John Apparel, Perry Ellis, OshKosh B'gosh, adidas Outlet, Lacoste, Chickpeas, Sarku Japan, Mimmic Fashion Jewelry, Elizabeth Arden, Claire's, GNC, VShop
Top 10 Growth Market Center. Orlando International Premium Outlets has seen visitor traffic grow by 17.98% in the second quarter compared to the first quarter of 2022.
According to trade area analysis available on ShoppingCenters.com:
- Mobile Data Metric – Current Rolling 12 Month Count for Visitor Traffic: 396,413 Primary Market Population: 2,075,733
- Average Household Income: $96,630
- Number of Households: 765,925
“I Didn’t Know That.” Meet Commercial Retail Real Estate Lease Expert, Knowledge Provider, Dan O’Connell, Founder of Premier Retail Support
DMM recently did an interview with the Founder of Premier Retail Support, Dan O’Connell. Dan is a valuable resource to his subscribers (they always tell him, “I didn’t know that!”) for hot points in shopping center lease clauses, franchise issues and location insight. He’s seen it all in a more than 30-year career that took him from Time-Out Family Amusement Centers to Sunglass Hut, GNC corporate and franchising, Family Dollar / Dollar Tree, and United Franchise Group. His advice for potential franchisees? “If someone is going to go through the time and effort to start a business, they need to build a solid foundation based on a sound education of every facet of the business before signing on the dotted line.”