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May 27, 2005
Saks closing at Old Orchard
Last month, I speculated about the anchor situation at Old Orchard, given the pending merger of Federated and May. Who would have expected that the anchor to make the first move would actually be Saks Fifth Avenue, which has announced that they are closing their Old Orchard location at the end of July.
Recently, the parent of Saks (Saks Incorporated) started the process of unloading chains in the company portfolio that didn't quite fit with their preferred direction. Recently, they sold off their southern department stores division (Proffitt's, McRae's) to Belk, Inc., which operates stores in the Southeast and Midwest. They have also expressed an interest in selling off all or parts of their northern department store division, which would include Chicago's own Carson Pirie Scott.
It seems the strategy that Saks is taking involved breathing new life into their Saks Fifth Avenue stores, stepping up to compete with Federated Macy's and Bloomingdale's. According to the Chicago Sun-Times, "The Saks Fifth Avenue store, a major presence at 72,000 square feet, opened at Old Orchard 27 years ago. The Off 5th store, measuring 33,000 square feet, opened two years ago... Saks' new focus centers on Saks Fifth Avenue stores that average 100,000 square feet."
Here's the official press release about the closing:
Saks Fifth Avenue and Off 5th to Close in Skokie, Ill.
May 26, 2005NEW YORK--(BUSINESS WIRE)--May 26, 2005--Saks Fifth Avenue Enterprises ("SFAE"), a business segment of retailer Saks Incorporated (NYSE: SKS) ("Saks" or the "Company"), today announced it plans to close its 72,000 square foot Saks Fifth Avenue store and its 33,000 square foot Saks Off 5th store, both located in the Old Orchard Shopping Center in Skokie, Illinois (metropolitan Chicago). The stores are expected to close by the end of July 2005. Both locations are leased.
Fred Wilson, Chairman and Chief Executive Officer of Saks Fifth Avenue Enterprises, commented, "This announcement is consistent with our strategy of focusing our energy and resources on our larger and more productive units. We remain very committed to metropolitan Chicago, and we will be able to enhance our merchandise assortments and service offerings at both our flagship Saks Fifth Avenue Michigan Avenue store and our Highland Park location in order to better serve our many loyal Chicago-area customers."
SFAE also will continue to operate its two other Off 5th stores in metropolitan Chicago, located at Gurnee Mills and Woodfield Village.
Approximately 70 associates are employed in the Old Orchard Saks Fifth Avenue store, and approximately 50 associates are employed in the Off 5th location. All affected associates either will be offered transfer opportunities or will receive appropriate severance packages. "We are very grateful for the dedicated Old Orchard team, and we will make every effort to provide needed assistance to our associates during this period," Wilson continued.
Saks Incorporated operates Saks Fifth Avenue Enterprises (SFAE), which consists of 57 Saks Fifth Avenue stores, 52 Saks Off 5th stores, and saks.com. The Company also operates its Saks Department Store Group (SDSG) with 232 department stores under the names of Parisian, Proffitt's, McRae's, Younkers, Herberger's, Carson Pirie Scott, Bergner's, and Boston Store and 43 Club Libby Lu specialty stores. On April 29, 2005, the Company announced that it had entered into an agreement to sell 22 Proffitt's stores and 25 McRae's stores to Belk, Inc. The sale is subject to various closing conditions, including the expiration or termination of all waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act. The Company expects to complete the sale in the second quarter of 2005.
Now the speculation can begin regarding what Westfield will do to fill this vacant space. Saks is located at the northern tip of the mall, covering the already dead and highly-vacant section known as The Promenade. This is a huge blow to occupancy rates.
But, as the Sun-Times recaps, "Old Orchard, whose owner recently dropped the name 'Shoppingtown,' is no stranger to change. Ten years ago, Chicago investor Sam Zell led a $100 million renovation and expansion that resulted in a shift toward more luxury stores. Bloomingdale's opened at the center, and Nordstrom replaced Montgomery Ward."
Posted by Tannerman at 10:59 AM
May 26, 2005
Fountain + Person = Good
Remember what security told me about taking photos at Old Orchard? Here's a refresher:
If you are taking a photo of another person outside while in the mall, that is allowed.
I discovered an Old Orchard photo on Flickr today that took advantage of this somewhat obscure, undocumented policy. The author from Madison, WI, simply captions, "Old Orchard is a GREAT mall!"
This photo was taken at the fountain found in The Promenade section of the shopping center, which sits on the north end.
Posted by Tannerman at 04:45 PM
May 19, 2005
Signage migration begins at Old Orchard
During a recent trip to Old Orchard, Amy and I noticed that Westfield has begun the promised removal of the word "Shoppingtown" from their branding.
Besides cutting down the official name to something shorter, the new branding also changes the font used to spell the mall name, in this case "Old Orchard." A horizontal white line has also been removed. According to my graphic designer friend Chris Arndt of Arndt Design, "what's distinctive about the new font is the 'r' and 'a'. It's clean and contemporary. Part of the class is going from upper case to title case." So there you have it!
Posted by Tannerman at 02:34 PM
May 16, 2005
Sometimes the "Westfield" sticks, sometimes it doesn't
Today I came across a rather juvenile blog post by a high school senior who, based on the context of her postings, must live in the Chicagoland area. Using the rather insanely hard-to-read text messaging-format of writing, she talks about going to the mall with a friend, and in turn compares the mall to Old Orchard:
ok so i had to wake up at 10:00 cuz asma's friend had a b-day party at the westfield mall which is 40 minz away, at BUILD-A-BEAR...so we decided to take her there n jus hang out...n omg that build-a-bear place is sooo cool... i jus walked around at the mall n checked out a few thingz n omg itz huge n itz niiice...itz one of the best mallz, better than lincolnwood n old orchard...n they had the cutest clothez EVER!!!
Based on the geography mentioned and Build-A-Bear store locations, I assume that this author visited either Hawthorn Center (Vernon Hills, IL) or Fox Valley Center (Aurora, IL).
What I find interesting about her blog post is that while she refers to the mall she visited as "the westfield mall," she later describes two other north-of-Chicago shopping centers by name, "lincolnwood" (as in Lincolnwood Town Center, Lincolnwood, IL - owned by Simon) and, of course, "old orchard" (as in Westfield Shoppingtown Old Orchard, Skokie, IL).
What's unique about this is that this author inadvertently uncovered what the biggest problem is with the Westfield rebranding campaign... it attempts to reprogram the human need for short description of a place/location. You see it happen with sports stadiums all the time, where fans ignore the ridiculously long corporate names attached to stadiums in favor of a short version, minus the branding. For example, in Chicago, the United Center is often referred to as "the UC." U.S. Cellular Field is called "the Cell" or, even better, "Sox Park" or the traditional "Comisky Park."
The author above shows how simple use of the words "lincolnwood" and "old orchard" in the context of malls is all you need. What is contrasting with this argument, however, is that she calls the shopping center she actually visited simply as "the westfield mall." Talk about branding confusion!
Posted by Tannerman at 12:42 PM
May 13, 2005
MSNBC = Westfield Shoppingtown?
Over on Joe Sherlock's blog, he humorously comments that he "read last week that MSNBC is changing its name. Maybe it will be renamed Westfield Shoppingtown."
Ouch. You see, Westfield, you are earning a bad, bad reputation! Knock it off already.
(Oh, and for those wondering, "MSNBC" is rumored to be renamed "NBC News Channel", pending NBC terminating their partnership with Microsoft).
Posted by Tannerman at 07:32 PM
May 11, 2005
Discovering Gymboree Play & Music
On a recent visit to Old Orchard, Amy and I discovered a storefront we had not noticed before. Tucked away in a hidden walkway off The Promenade is Gymboree Play & Music. It's not really a retail storefront; rather it's more of a daycare-type facility that is probably using previous office space that was unleased.
Apparently the chain was started in California in 1976 by a lady who was looking for a "safe, fun and nurturing place for new parents and children to play together." (I wonder if Gymboree owned this back then or if it was a buyout later).
In any case, she started up this concept which offered parent/child programs devoted to the "physical, emotional and social development of children." Now, I guess they are some sort of big name in this field, even though I've never heard of the spin-off (of course, we don't have kids either). There are now over 530 locations in 27 countries.
Let me just tell you that it isn't cheap to go here. According to their brochure, 6 weeks will cost you close to $100 on their "Ultimate Flexibility" plan. And with only 3 locations in the Chicago area (Arlington Heights and Northbook are the others), you don't have many competitive options. That said, they seem to offer quite a diverse mix of times, days, and classes for ages 6 months through 5 years.
Posted by Tannerman at 07:06 PM
Westfield Web Watch: Macy's Hate
Since Old Orchard is owned by real estate giant, it's often helpful to keep tabs on what others are saying about the parent company. As it currently stands, Westfield operates more than 120 shopping centers in four countries, providing about 29 million square feet of space. Company trends and observations found elsewhere may add insights to the future of Old Orchard. The Westfield Web Watch is a recurring feature that takes a look at this online conversation!
Pasiphae rants about corporate name changes, namely the renaming of Bon Marché to Macy's, which may foreshadow what we will experience at Old Orchard and the Marshall Field's name. Interestingly, like so many others, the author is not so happy with the whole "Westfield Shoppingtown" branding either:
... And now you're dropping "Bon" all together and just making it Macy's. You know what? I don't want to shop at "Macy's." If I go into your store it will be to shop at the Bon. I'm going to continue to call your store the Bon. Which won't be any different than what I've been calling it these past few years, because I can't think of ANYONE that calls your store by its stupid "official" name in regular conversation. So much for corporate strategy, huh?
It's gonna be an uphill battle to get us to stop calling it the Bon. Just like we refuse to call Southcenter Mall by the ridiculous, [screwed] up name "Westfield Shoppingtown Southcenter" [Seattle, WA]. Nobody calls it that.
Posted by Tannerman at 06:42 PM
More Anti-Shoppingtown Fun!
Following up a report about a Westfield property in Wilmington, NC dropping "Shoppingtown" from their name is this article from The Desert Sun (Palm Springs, CA):
Westfield mall to ditch 'Shoppingtown' moniker
Chris Bagley
The Desert Sun
May 11, 2005For many it's been a tongue twister, for others a puzzlement and now, for all, it will be no more.
Westfield Shoppingtown Palm Desert is becoming just plain Westfield Palm Desert.
Australian mall owner Westfield will drop the word "Shoppingtown" not only in Palm Desert but at most of its 66 other shopping centers in the United States, company officials said Tuesday.
While the "Shoppingtown" appellation is common in Australia it never took off in the United States, a company spokesman said.
The malls will change their logos over many months, said Laurel Munson, an official in the company's Los Angeles-based U.S. division. New logos could show up first on business cards and doors.
Signs on buildings and stone monuments would likely be the last to drop the word, Munson said. She said a specific timetable for altering the signs was not known. "Obviously it's going to take time," Munson said.
An administrative assistant in Palm Desert said the name change would become apparent as the mall routinely replaces signs, food-court trays and other items. The mall hasn't yet changed anything, the employee said.
The company added "Shoppingtown" to its U.S. locations about five years ago, Munson said, as it expanded its U.S. presence. The current rebranding isn't part of a larger marketing effort.
Westfield acquired its first U.S. center in Trumbull, Conn., in 1977. It acquired the Palm Desert shopping center in 1999.
Source: The Desert Sun
Posted by Tannerman at 04:57 PM
May 09, 2005
Security doesn't like photos
I came across this Old Orchard photo on Flickr today, a community-oriented photo-sharing website. I had to chuckle at the description the author provided:
As I took these pictures, solely focusing on the dead or dying flowers, several security guards passed me, looking mystified and slightly alarmed.
Those Westfield Mall Cops sure get freaked out for no reason!
Posted by Tannerman at 09:28 AM
May 07, 2005
About the Professional Building
Hey, are you looking for office space? Perhaps you are opening a dental practice... or something medical like that. I guess Old Orchard has medical office space in their Professional Building. Yeah, it's so true! Now you can go to work and then shop the mall on your breaks. Not many people have that sort of opportunity (well, I did when I worked at Randhurst, but that's another story).
According to the sign in the Old Orchard parking lot, leasing for the Professional Building is handled by NAI Hiffman, the Chicago area representative for NAI – the world's largest commercial real estate organization (or so they say on their website). NAI Hiffman is the largest full-service, privately owned real estate services firm in the Midwest. How exciting!
Oh, it gets better. Here's what they proclaim: "We deliver results that combine our best real estate practices with your strategic business goals. Every professional service that we provide is focused on your bottom line. We view real estate as a dynamic road map that leads our services to your needs. Wherever you need to be, NAI Hiffman is already there." Wow, you can't lose with these guys!
Believe it or not, the Professional Building actually looked a little different just a few years ago. I don't if anything has changed on the inside, but the exterior has undergone some noticeable changes.
Before the Westfield Borg took over Old Orchard Center ("You will be assimilated – resistance is futile"), the top of the Professional Building displayed the words "Old Orchard" in such a way that you could locate the mall from miles away. It was a grand icon.
Since the Westfield takeover, however, a new sign proclaiming "Westfield Shoppingtown Old Orchard" now caps the 8-story building. I think this might be a cloth-based sign with lights behind it, as I've seen it ripple in the wind on occasion.
The building itself straddles the open-air walkway of the mall below, technically falling in The Promenade section of Old Orchard. Directly underneath the building lies Crate & Barrel, Starbucks, and Banana Republic. Surprisingly, there is a cozy feeling when you are underneath the building. The decor isn't so sterile as to turn you away, but it's not all warm and fuzzy either.
The building is located on the north side of the shopping center. Interestingly, it possesses its own underground parking garage that can be found on the Old Orchard Road side of the mall, right near Bloomingdales. I've never set foot in either the Professional Building itself or the parking garage. Maybe one of these days...
Posted by Tannerman at 06:57 PM
May 06, 2005
"Why are there 2 Sunglass Huts?"
A few weeks ago, we were walking through Old Orchard and Amy commented, "why are there two Sunglass Huts?" And doing a double-take, she was right? There was a stand-alone store on the north side of Pear Lane, and a combination Sunglass Hut/Watch Station on the south side of Pear Lane.
However, as of Wednesday night, there is now only the combination location, because a demolition crew was there gutting the stand-alone store. By the next day, there were construction walls around the space. What was odd is that demolition was actually taking place during mall operating hours, typically a no-no for liability and aesthetic reasons. But apparently, Westfield doesn't care about such things.
Sunglass Hut/Watch Station are owned by Luxottica Group, which is also the parent of LensCrafters, among other things. It's the largest retailer of sunglasses in North America. The company was founded in 1971 and acquired by Luxottica in 2001.
Posted by Tannerman at 05:36 PM
Busy serving overpriced ice cream
When Amy and I stopped by Old Orchard this past week, we noted that Cold Stone Creamery not only had the construction walls down, but also was hoppin' with business. It does look like a great location with Theaters 7-12 right across the way and a couple restaurants around the corner. We'll probably know better come summertime.
No word yet on how the custom flavor of Skokie Crunch tastes.
Posted by Tannerman at 05:18 PM
"Sea-Derived Skincare" sails to new port
When Rogers & Hollands wanted a corner location, this prompted H2O Plus to find a new home. They're constructing a new location right next to the new Landau store on Pear Lane.
No word on when this new location is going to open, but it's probably a lot cheaper in rent than their previous spot.
Posted by Tannerman at 05:11 PM
Get there in style with Liberty Travel
Looks like Old Orchard is opening a Liberty Travel location. I assume this is a travel agency. It's going to be located in the Hawthorne Way section of the mall, right next to Potbelly's and Theaters 1-6. I can't say this is an ideal location for a travel agency, then again, what is? Wouldn't this better fit in a more hidden area of the center, like the Professional Building or the Arcade Shops? Maybe they are banking on visibility to generate business.
Posted by Tannerman at 05:00 PM
New Location: PacSun
Not too long ago, the rather large Record Town/Sunday Matinee which was located in The Vineyard closed for good. It was located right next to Theaters 7-12. But hey, who still shops at record stores in the mall? There's nothing but overpriced goods to be found there, thus, they're closed.
The small Pacific Sunwear of California location that was previously found in The Garden has moved into the now-subdivided Record Town/Sunday Matinee storefront. Rebranded simply as PacSun, this is a larger store in a far more visible area.
Posted by Tannerman at 04:52 PM
Now Open: Rogers & Hollands
As previously mentioned, a new Rogers & Hollands was being built in a corner location in The Park section of Old Orchard. That location is now open. Nothing too spectacular to report. It's your typical jewelry store.
Posted by Tannerman at 04:28 PM
May 03, 2005
Will Old Orchard get FAT?
Ah, you have to love Paul Pressler. He's currently the President and CEO of Gap, Inc. But before that, he spent 10 years running the Disney theme park empire into the ground. If that was his goal, he did a fine job. You see, he wasn't a creative guy. He was a business-oriented, retail guy, having gained favor at Disney via his successful reign with The Disney Store. Eventually, he left Disney due to various factors and started at Gap in September 2002.
What does this have to do with Old Orchard? Well, for one thing, the center already has a Banana Republic, in addition to combination Gap/Gap Body and Gap Kids/Baby Gap stores. Old Orchard also offers Talbots and J. Jill. Why mention those retail locations? Because Gap is launching a fourth store brand targeted directly at the same market... with Chicago being a testing ground for 4 new stores called Forth & Towne. The name refers to the company's fourth store brand (after Gap, Banana Republic, Old Navy) and "Towne" is supposed to convey a sense of community.
Chicago a 4-store lab for Gap's Forth brand
Becky Yerak
May 3, 2005The Chicago market soon will be a retail laboratory for Gap Inc.
When the San Francisco-based merchant begins testing its Forth & Towne format in Chicago this fall, it'll try new approaches to see what works and what doesn't. Four Forth & Towne stores will open in yet-to-be-announced malls and shopping centers in the Chicago area. A fifth will open in New York.
"We'll experiment with different ideas across the five stores to understand what really resonates and then apply what we learn to future openings," Gap Chief Executive Officer Paul Pressler said in an April 21 conference call. "This includes testing the right combination of store experiences, styles, quality, fit and value."
Finding the winning formula for Gap's fourth retail concept is important because Forth & Towne seeks the affections of women who are 35 and older
That demographic is increasingly coveted by retailers because it's growing rapidly and earns the highest average income of any age group of women, Pressler said. Typical customers at the company's namesake chain are 18 to 34. It also owns Banana Republic and Old Navy. While younger women typically shop at specialty stores, older ones tend to default to traditional department stores. "They don't feel there's a viable alternative," Pressler said.
Forth & Towne prices will fall somewhere between Gap and Banana Republic. The test stores range in size from 8,000 square feet to 10,000 square feet. That's bigger than other specialty retailers wooing that demographic.
For example, Janeville stores, launched last year by Gymboree Corp. for women in their mid-30s and older, are 3,000 square feet. The typical store of Chico's FAS Inc., whose clothes are known for their forgiving fit, is 2,600 square feet.
Stocking a wider array of sizes will be a Forth & Towne hallmark. "We want to make sure we offer a broad size range" so we can serve shoppers with different needs, Pressler said.
The fitting rooms will be in the center of the store, surrounded by "neighborhoods" of merchandise. Gap executives, echoing recent comments by Federated Department Stores Inc. CEO Terry Lundgren, are waxing poetic about how a decent dressing room helps convert store traffic into sales.
Gap expects to have about 30 Forth & Towne stores through 2007.
The chain is being developed by Gap veterans and new talent based in New York. "They're functioning like a start-up," Pressler said.
Chicago was picked as a test market because it's centrally located and has a "great demographic" of women 35 and older, a Gap spokeswoman said.
Source: Chicago Tribune
No word has been made yet regarding which shopping centers in the Chicago area will get the 4 test stores. Also odd is the spelling of the name "Forth & Towne". As mentioned by Snarkmarket.com, they misspelled both "fourth" and "town". Go figure. And over at SnarkHunting.com, it's illustrated how Gap was smart to use the ampersand in the new store name rather than spelling out the word, as the initals for the chain would then reflect Forth And Towne. Would that really describe the 35+ women's market?
We here at the Observer will keep you posted on future developments!
Posted by Tannerman at 01:55 PM