Mainstream Media Masterfully Muses Malls’ Morbidity Myth
We don’t usually like to highlight articles found on the internets that include the words “Mall” and “Death” or “Dying.” But in this case, we’ve made an exception for two recent mainstream media articles that have those words, but recognize the opposite is happening – that malls are living life large. For the USA Today and CNN, the realization came courtesy of a recent report (The State of the American Mall) from industry analyst Coresight Research, which found that malls have bounced back post-COVID. The report found that mall traffic, sales, occupancy rates are all on the rise since COVID ended. “The death of the mall is wildly exaggerated. The other side of that is the opportunity is more significant,” said Coresight Research founder and CEO, Deborah Weinswig, to USA Today. Brookfield Properties‘ Kirsten Lee, executive vice president and director of Luxury Leasing, told CNN that “Traffic is up, and sales are up. In many of our centers, we have a waiting list of tenants to get in.” CNN noted even all-digital brands continue to get on the B&M gravy train, including Warby Parker, Allbirds and Wayfair.
Smaller Macy’s Stores to Grow
Macy’s has released plans to grow the company’s smaller-footprint stores. Retail Insight Network recently reported that four new 30K-50K square foot small-format stores are expected to open in four U.S. cities this quarter, including Highland (IN), Boston (MA), Las Vegas (NV) and San Diego (CA). Full-size Macy’s are typically between 150K to 250K square feet. The new smaller footprint shops will feature fashion, on-trend beauty, luxury fragrances and more. “As a growth vector for Macy’s, small-format stores offer a curated shopping experience celebrating discovery and convenience.
These stores optimize our physical store footprint and bring us closer to existing and desired customers while encouraging more frequent visits,” said Macy’s chief store officer, Marc Mastronardi. At the end of last year, there were eight Market by Macy’s stores operating in several markets including near Dallas-Fort Worth (Market By Macy’s Southlake Town Square) and St. Louis (Market by Macy’s Chesterfield Commons).
Removing a Retail Past to Create a Retail Future
A mall that’s been in Massachusetts for more than a half-century is being taken down to make way for a new experience in its place over the next two years. MassLive.com recently reported on the former Eastfield Mall in Springfield, MA, which was sold by Mountain Development for a reported $4.5 million. Onyx Partners will spend up to $85 million to re-develop the 46-acre site, which was purchased for $4.5 million. The new project is known as Eastfield Commons, and will reportedly include retail outlets, offices and other services. Brian Kaplan, vice president of development with Onyx, told New England Public Media it would be an “Open-air shopping center, 360,000 square feet, some large national tenants, but a mix of local tenants, as well … mostly in the restaurant and services side.”
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Spotlight on a Top 10 Growth Market Center:
Belgate Shopping Center
Belgate Shopping Center
7105 University City Blvd
Charlotte, NC 28262
Website
Owner/Developer
Site Centers
Gross Leaseable Retail Area
910,893 sq. ft.
Year Opened
2013
Retailers Include
Burlington, Hobby Lobby, Marshalls, PetSmart, Walmart, ULTA Beauty, Mattress Firm, Rack Room Shoes, Culver's, Starbucks
According to the trade area analysis available on ShoppingCenters.com:
- Primary Market Population: 1,049,859
- Average Household Income: $102,390
- Number of Households: 420,239
- Average Shopper Age: 37.3
- Projected Five-year Income Growth: 13.02%
Two of the Top 5 PRIZM® consumer segments at Belgate Shopping Center include: Kids & Cul-de-Sacs (age <55, they represent an Upscale Middle-Age Family Mix, they own an Infiniti, and eat a Qdoba) and Country Squires: (a Wealthy Older Family Mix age 45-64, they represent a Wealthy Younger Family Mostly w/ Kids, they own an Acura, fly American Airlines, and watch the NHL Stanley Cup).
Click here for details on improved site selection, center tenancy planning, and target marketing via quick access to segmentation and lifestyle behaviors & preferences.
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The Growth of Service Oriented Uses: Medtail & Edutail
Back in the day, you could go to the mall to play the latest arcade games, see a movie, have a meal, and buy clothes for the entire family. Of course, you can still do that, but the services your local open-air shopping centers or “lifestyle centers” offer may have changed, or “evolved,” as we like to say.
Today’s shopping centers often feature “Medtail” and “Edutail” services. The former is described as “a mishmash of medical and retail” services that cover personal fitness, health, and wellness. The latter refers to “educational concepts in a retail environment.”
Both concepts are considered to be “internet-proof,” which brick & mortar shopping centers LOVE. Retail real estate consultant Gary D. Rappaport, a former ICSC chairman and author of three editions of Investing in Retail Properties, recently posted an article on the ShoppingCenters.com website, “‘‘Medtail’ and ‘Edutail’ drive traffic and loyalty to open-air community centers.” In the piece, Rappaport notes such unique experiments in retail are part of a growing trend critical to shopping centers.
“Swim schools are also in high demand at neighborhood and community shopping centers because they take over vacant big-box spaces and offer families easy access to a vitally important life skill, which can’t be outsourced or purchased online,” Rappaport says.
Locate these opportunities for Edutail and Medtail tenants by accessing DMM major shopping center and mall dataset today. Request trial access today!
