The Mall is Dead, the second SlideShare in a series exploring the future of retail from North American Properties - Atlanta (NAP), examines the decline of malls and how the hottest retail and restaurant concepts are increasingly choosing walkable, urban mixed-use locations instead of malls.
The first SlideShare in The Future of Retail series, “The Secret Sauce: Why Retail and Mixed-Use Projects Need Local Chefs,” was launched at the International Council of Shopping Centers (ICSC) RECon Convention in Las Vegas last month.
12. Green Street Advisors, June 2012
10%of the 1,000 malls
in the U.S. will
FAILin next 10 years
13. ARE MALLS OVER?
AMERICA’S ABANDONED
MALLS ARE PLACES OF
NIGHTMARES
-BEAUTIFUL DECAY
NORTHTOWNE SQUARE MALL FIRST TOLEDO
MALL TO JOIN “DEAD MALLS OF AMERICA”
-EXAMINER.COM
15. (But it wasn’t always this way...)
Yep, things are
NOTLOOKINGGOOD
for shopping malls.
16.
17. Sales / occupancy rates at
malls are stagnant; only fortress
malls continue to thrive
2009
More than 60 new malls
larger than 400,000
square feet open in U.S.
80s–90s
First enclosed regional
mall, Southdale Center,
opens in Edina, MN
1956
First megamall opens
in Alberta, Canada with
over 800 stores
1981
Mall of America opens
with more than 35 million
visitors in the first year
1992
18. FORTRESSMALLS
are still succeeding due to population
growth, a desirable tenant mix,
sophistication of nearby residents,
and high-end amenities offered.
Some
19. In 2012, these two fortress malls
surpassed $1 billion in sales!
South Coast Plaza
Costa Mesa, CA
2.8 million sq. ft.
Northpark Center
Dallas, TX
2 million sq. ft.
20. So, who is to blame
for killing the traditional
shopping mall?
41. Don’t write off these new,
higher expectations as
MILLENNIALS
BEING
MILLENNIALS*
42. * Millennials are stereotypically assumed to be spoiled, demanding, etc.
MILLENNIALS
BEING
MILLENNIALS*
Don’t write off these new,
higher expectations as
43. This evolution within the retail
industry extends beyond adults
ages 18 to 35. There is a
NEWCLASSOF
CONSUMERS
44. They expect
a new kind
of shopping
experience
that has…
Walkability
Experiences Connectivity
46. The new-class consumer
provides instant feedback.
She posts pictures of what
she likes on Instagram and
complains on Twitter about
bad customer service. She
spends money in places
where she enjoys being.
The smart retailers are
taking this feedback and
evolving their visions and
merchandising strategies.
!
Liz Gillespie
VP Marketing
North American Properties
48. We've had a real
estate strategy of not
bundling or taking
weaker malls, and
we go to [lifestyle]
centers… which allow
us to really drive our
business through
community.
Christine M. Day
Lululemon Athletica
Former President and CEO
49. We rarely do malls. Our preference is to be on the
street. In a suburban market, we want to be in a
village atmosphere that has pedestrian as well as
vehicular traffic.
!
Wade McDevitt
Representative for Anthropologie
50. And they aren’t alone.
Countless restaurants and
retailers are choosing this…
56. And they aren’t alone.
Research shows that top brands and
up-and-comers, alike, are moving
AWAYFROMMALLS
57. 2 STORES OPENED THIS YEAR
4 MORE OPENING
The Woodlands in The Woodlands, Texas
(Lifestyle Center / March 2014)
Shops Around Lenox in Atlanta, Georgia
(Open-Air Center / May 2014)
University Park Village in Fort Worth, Texas
(Lifestyle Center / Summer 2014)
The Summit in Birmingham, Alabama
(Lifestyle Center / Fall 2014)
Avalon in Alpharetta, Georgia
(Mixed-Use / Fall 2014)
Classen Curve in Oklahoma City, Oklahoma
(Mixed-Use / Fall 2014)
58. 3 STORES ANNOUNCED
TO OPEN THIS YEAR
Belvedere Street in Tiburon, California
(Standalone / June 2014)
North Hills in Raleigh, North Carolina
(Lifestyle Center / June 2014)
Avalon in Alpharetta, Georgia
(Mixed-Use / Fall 2014)
Planning to open another 5-10 before
the year’s end; haven’t announced
where or when
59. 78 FREESTANDING STORES
The McLaughlins seek buildings with
character on street locations, occasionally
open in lifestyle centers, and shun malls.
“Frankly, the mall atmosphere diminishes
the brand.” – Kevin McLaughlin
61. THE GROVE’S
AWARD-WINNING
CONCIERGE
SERVICES
Personal shopping
Dining reservations
Package check
Store, area and
tourism information
Foreign language
assistance
Events and activity
assistance
The Grove Gift Cards
by American Express
62. ONE OF THE BIGGEST
TOURIST ATTRACTIONS
IN CALIFORNIA WITH
18+ MILLION
VISITORS PER YEAR
THAT’S MORE THAN
DISNEYLAND!
63. THE AMERICANA
AT BRAND’S
CONCIERGE
SERVICES
Bellman service,
package assistance,
package check
Restaurant and travel
reservations
Assistance with
concert/event tickets
Postage, mail, shipping
and delivery assistance
Gift giving and
shopping assistance
Gift cards by
American Express
64. THE AMERICANA
AT BRAND HAS
16+ MILLION
VISITORS PER YEAR
GENERATES ANNUAL
SALES OF $1,100 PER
SQUARE FOOT OUT
OF ITS 70 STORES
66. The Southeast’s preeminent
experiential development – a place
where resort-inspired hospitality, specialty
retail, entertainment, restaurants,
residences, offices, hotels and public
spaces come together to create a
truly unique experience.
75. $600M MIXED-USE DEVELOPMENT IN ATLANTA
SUBURB GETS GREEN LIGHT
—COMMERCIAL PROPERTY EXECUTIVE
ALPHARETTA’S AVALON
PROJECT SNAGS 1ST TENANT
—ATLANTA BUSINESS CHRONICLE
One of Atlanta’s
Hottest
Restaurant
Groups Signs
at Avalon
— North American Properties
“ALPHARETTA’S AVALON IS
DRAWING IN-TOWN RESTAURANT,
RETAILERS” —11ALIVE
“ALPHARETTA LIVE-WORK-PLAY DEVELOPMENT
TAKES NEXT STEP” —WSB–TV
“AVALON GROWTH APPROACHING
TO BOOST ALPHARETTA” —GEORGIA NEWS
82. Feel free to share it with your
friends or leave a comment, and let
us know what you think!
DIDYOUENJOYTHIS
PRESENTATION?
83. Shutterstock / 35694751
AMC, The Walking Dead (Fair Use Doctrine)
Shutterstock / 148370285
Wikimedia Commons
Wikimedia Commons
Flickr / “South Coast Plaza, Costa Mesa, 1980s"
by Orange County Archives
Flickr / "(Formerly) My Drive Home" by SteevzStuff
Flickr / "Northpark Center" by Terrance Gilbert
Shutterstock / 160438778
Atlantic Station / North American Properties
Flickr / “The Grove in Los Angeles” by Eric E. Johnson
Angie Mosier
Shutterstock / 3666347
Atlantic Station / North American Properties
Shutterstock / 119152066
Lululemon / Media Assets
Flickr / “Anthropologie" by Dave Pinter
Wikimedia Commons
Kendra Scott Blog
Flickr / “Vineyard Vines Hingham in-Store" by Jeff Cutler
Flickr / "The Grove (Los Angeles)" by Prayitno Photography
Flickr / "LA Farmers Market" by Prayitno Photography
Flickr / "The Americana at Brand" by Chris Yarzab
Shutterstock / 94124290
CREDITSSlide 2, 3, 4
Slide 5, 6
Slide 8
Slide 10
Slide 11
Slide 16
Slide 19
Slide 22, 23
Slide 26-29
Slide 30, 31
Slide 36
Slide 38
Slide 40
Slide 41
Slide 45
Slide 48
Slide 49
Slide 52, 53
Slide 54, 55
Slide 65