« May 2005 | Main | July 2005 »
June 29, 2005
Now Open: Sephora
Hey, just in case you have a need to go out and buy a bunch of cosmetics, the Sephora store located in the Fountain Court area of Old Orchard is now open. I must say, I'm impressed by the amount of glass used in the storefront and how nice the lighting is. You never would have guessed it would look this way when the construction walls were up. It seems very welcoming and warm. Almost like it could be a central focus in Fountain Court. So far, so good.
Posted by Tannerman at 06:24 PM
Now Open: Tiger Lily Boutique
It's not often that you can report on a store actually OPENING in The Promenade section of Old Orchard. That area is full of vacant stores for some reason. It's often used by management to hold seasonal locations or temporary stores when the there is a remodel. Recently we noticed the Tiger Lily Boutique which opened across from the children's play area (near Bloomingdale's).
It appears it's a clothing chain that is based out of Madison, WI, as evidenced by various bags they had displayed in the windows with other location addresses. They haven't done much to renovate the store, so I have to wonder if this is also a short-term lease. The space in question has been vacant for well over a year. The clothing looks like it would be targeted more at junior high, high school, and maybe college age. I'm not fashion expert, so don't quote me on that. The fact that there were actually people INSIDE the store shopping was a good sign.
Posted by Tannerman at 06:17 PM
Now Open (again): Sunglass Hut
Remember back in May when we asked the question, "Why are there 2 Sunglass Huts?" At the time, there was a stand-alone location on the north side of Pear Lane and a Sunglass Hut/Watch Station combination store on the south side of Pear Lane. We witnessed the stand-alone location being demolished.
Well, it looks like that location was actually undergoing a renovation rather than a removal. The next day a white construction wall was put up. A few days later, there was a sign noting that the store was "Closed for Remodel". Then, shortly after that, the store was reopened as Sunglass Hut once again. And frankly, the front of the store looks very similar to the old store. Maybe the interior is different; I can't really tell. At the time of demolition, it looked like they were ripping everything apart, so I'm impressed with how quickly the store reopened.
Posted by Tannerman at 06:05 PM
Renovation: Papyrus
The Papyrus store located on Pear Lane is walled off for renovation these days. In the meantime, they've got a temporary location over in Vacancy Alley (The Promenade). Papyrus is the retail division of Schurman Fine Papers, "one of the finest organizations in the social expression industry." I didn't realize that there was a "social expression industry." Apparently that's more fancy that "paper and greeting card crap industry."
Posted by Tannerman at 05:52 PM
Sara Lee closes all 11 Inner Self stores
I bet you didn't know that Sara Lee owned a retail store concept designed to take on Victoria's Secret. It's true, and was called Inner Self, "a special intimate apparel/loungewear retail environment and experience that pampers, relaxes and soothes." Not that it matters, as Sara Lee has closed all 11 of these concept stores. They want to focus on the other brands they own (such as Playtex, Wonderbra, Hanes, and Champion -- nobody doesn't like Sara Lee!)
Frankly, they had to be a little crazy to think they could battle Victoria's Secret in this space. Sure, they tried to modify their target audience, going after a niche in the women 25-55 category, average dress size of 12. At the time, Sara Lee attempted to "provide an alternative to the often-unattainable, sexy ideal promoted by Victoria's Secret, and declining service at department stores."
Nevertheless, the chain is dead, and now there is a vacancy in the Fountain Court section of Old Orchard. We never saw people actually in that store, which only seemed to be around for a little longer than a year. In fact, when it first opened, it had to close for a few days due to a water leak. Telling signs of what was to come.
Posted by Tannerman at 05:43 PM
Coming Soon: Sisley
According to their website (which is rather risqué), "Sisley features men and women's collections whose basic objective is to be always on the same wavelength as those who follow fashion and keep themselves abreast of the trendiest tendencies. The collections, in fact, include sporty and casual wear, formal and elegant dresses - therefore an all-round offering for every moment of the day and for various needs."
Um, OK. They are owned by the Benetton Group (you know, the United Colors of Benetton folks) and are "the Group's most trend-setting brand, at the forefront of fashion." As Old Orchard already has a United Colors of Benetton store (located on Pear Lane), Sisley makes sense as a new addition. Look for it soon down in The Garden.
Posted by Tannerman at 05:22 PM
Coming Soon: Misako
Misako is a Spanish retailer that specializes in "affordable chic" cloth handbags selling for around $32 each, regardless of size or style. According to the International Council of Shopping Centers, "Misako's selection of handbags, which make up 85 percent of the merchandise, will change rapidly as new collections rotate into the shops, generating repeat visits."
You'll be able to check this place out for yourself once it opens in The Park section of Old Orchard. This seems like the second "value" addition in recent months to Old Orchard's retail mix (the other being costume jewelry store Landau). I wonder if this is a strategic move by Westfield or just a situation where they are just glad to have a paying tenant! Oddly, Misako doesn't have a website.
Posted by Tannerman at 05:06 PM
From one snooty jewerly store to another
Over in The Park section of Old Orchard, we've recently seen the exit of jewelers Christian Bernard, which had a prominent corner location on the edge of The Park and Hawthorne Way. I remember when my wife and I were shopping for wedding rings, we stopped into this store and did not have a good experience at all. So I don't shed any tears.
However, it appears that we're getting another jeweler in the same space. This time around it's Helzberg Diamonds (formerly known by the more tacky "Jewerly3" name). Oh joy. We also stopped at one of these stores in search of wedding rings. They tried to amaze us with this one diamond by taking us into the "steaming room" to see how reflective it was once it was steam cleaned. And they gave us free coffee. But beyond that, it was a joke. We ended up buying our rings at a local jeweler and have been very happy ever since.
Anyway, like Rogers & Hollands when it was under construction, Helzberg Diamonds has artwork on their construction barricades that tries to tie together the concept of "jewelry" and "carpentry". Yeah, I don't get it either, but it's a cute attempt nevertheless.
Posted by Tannerman at 04:56 PM
Coming Soon: Foot Locker
With the exit of Record Town/Sunday Matinee in The Vineyard, their space was divided into two smaller stores. The Old Orchard Observer has already covered the first tenant in the western half of the space (PacSun's new location).
We're proud to announce that the eastern half of the space will be occupied by Foot Locker. This is an interesting move, as the mall just saw the exit of Lady Foot Locker and soon will see the entrance of NikeWoman. There is already a Finish Line store located on the other side of the mall. The new Foot Locker will be situated near Theaters 7-12, Maggiano's Little Italy, and Barnes & Noble. Interesting neighbors, to say the least. Perhaps they are hoping for the youth traffic spurred by the movie theater.
Posted by Tannerman at 04:42 PM
Crabtree & Evelyn is moving
It looks like Crabtree & Evelyn may be positioning for a higher traffic spot in Old Orchard, as they've announced that their moving from Fountain Court to The Park. This is near a primary entrance to the mall as well as the theaters, so I would imagine that you'll see more folks around this area when compared to their previous location. In the meantime, their old location has closed and they have a temporary spot in Vacancy Alley, my nickname for The Promenade. No official word has been given regarding when their new space will open.
Posted by Tannerman at 04:31 PM
Now Open: Lacoste
The Croc has ripped through those temporary barricades and opened! It's situated in a pretty cozy location in The Garden (next to the new Rogers & Hollands, maybe even in their old location), one of my more favorite "off the main path" parts of Old Orchard. Hopefully this tucked-away location will provide them enough food traffic to succeed.
Posted by Tannerman at 04:13 PM
Now Open: Landau
It's time for an update on the fake jewelry folks at Landau. Their new store is now open on the corner of Pear Lane and Fountain Court, located right next to Clarks, a shoe retailer. The store seems, well, out of place if you ask me. I also think they aren't taking advantage of their window space very well. Perhaps that will change as they get operations going. We'll see. With Clarks and Landau open, there is only one more store on this corner that needs to shed the construction walls: H2O Plus.
Posted by Tannerman at 04:07 PM
Now Open: Liberty Travel
The construction walls are gone! Liberty Travel recently opened up their new story, located on Hawthorne Way. Frankly, it's a bland looking store that doesn't seem to have much design or class at all. It sort of looks like a Kinko's or UPS Store, as a matter of fact. Probably the only redeeming quality of the location is that there was a Disneyland 50th Anniversary poster in the window when we walked by. It's situated right next to Potbelly's and the movie theatre... I wouldn't think a very prime location for a travel agency. Go figure.
Posted by Tannerman at 03:59 PM
Forth & Towne coming to Old Orchard
Back in May, we at the Observer discussed the possibility of Old Orchard being a test site for one of Gap's new store concepts, Forth & Towne. Well guess what? We were right!
A few months ago, Z Gallerie vacated their two-story store located in The Promenade, right next to the soon-to-be-closed Saks Fifth Avenue. Shortly thereafter, construction walls went up, but no mention was made regarding a replacement. We speculated regarding what would replace this store and whether or not it would take up all the square footage on both floors or if it would be subdivided.
Not too long after, a listing on HotJobs.com [thanks Chicagoist!] revealed that the four locations slated for Illinois were Old Orchard, Woodfield (Schaumburg, IL), Fox Valley (Aurora, IL -- and another Westfield zombie), and Algonquin Commons (Algonquin, IL).
We then saw officially labeling on the walls at Old Orchard, formally announcing that Forth & Towne would be arriving in the fall. What's interesting is that Gap still hasn't launched a website destination for this new concept (however they have reserved "forthandtowne.com", so I guess that will be coming soon).
What remains to be seen is whether Forth & Towne will occupy both floors of the old Z Gallerie space. It does appear that they are doing demolition/construction work to both parts at the same time, so my gut is yes. Keep it tuned right here on the Old Orchard Observer for future developments!
Posted by Tannerman at 03:49 PM
Outside the Orchard - 06.29.05
That's right, there's been more activity in the blogging world regarding Old Orchard. Like our first Outside the Orchard installment, we'll keep you up-to-date on the buzz...
LiveJournal user sialagogue writes in I love it, but I hate the taste [Saturday, June 25]:
Doug went to Old Orchard with some people...
I hope Doug had a good time!
Meanwhile, on Dear Knucklehead, Mike provides his thoughts regarding those who hang out at Old Orchard, based on his observations at the Howard L station [Monday, June 27]:
As Howard is the terminal point of one train line and the starting point for two others, the collection of people here is somewhat more diverse than you'll find elsewhere. Guys from the South side who work in the Skokie industrial corridor, college students on their way to Northwestern, thugs with nothing else to do spending some time at the Old Orchard mall, upperclass folks on their way to a Cubs game or downtown for their twice-a-year el ride. And I'm always surprised at the number of people who are on their way to the Skokie courthouse.
Being commuters of various sorts who have their own destinations and goals in mind, there isn't much mixing, but I notice that people there tend to gravitate to and stand by their peers. With the exception of college students who are constantly hitting on each other, there's no real interaction between many of these groups.
Leah in Chicago is just happy that Nordstorm provides lots of shoe sizes [Sunday, June 5]:
Then it was time for shoes. Oy. Shoes are a weakness, which is hard when you wear an 11. But we hit DSW and searched for a brown shoe in an 11. If I didn't find it, I wasn't going to allow myself the purple Franco Sarto mules. The brown shoe didn't materialize, but a sexy (and I mean sexy) Kenneth Cole black pump did. Yum.
From there is was to Old Orchard -- to Nordstrom's, because they carry size 11s. Alas, brown is not in for the summer and there were no brown pumps in size 11 in the house. On a whim, we popped into Aldo's and I asked the sales girl (with a TON of attitude on my part), "do you even carry an eleven?" "In some shoes." "In this one?" Attitude, attitude, attitude. All from me, not from the salesgirl. I am so used to not being served that I assume they can't/won't help me.
To my surprise she came back with a box and handed it over. "Um, what about these shoes?" She had those too! I walked out with one great pair of tan pumps and headed towards Steve Madden. Just to make sure I was happy with what I had.
It's one thing to travel to the mall to get shoes. It's completely another to travel to Old Orchard only to find a restaurant not open, such as what angelkutty wrote about on Echo Park [Monday, June 13]:
...finally we decide to go to Champs in Old Orchard to watch Game 2 of the NBA finals. we go to Old Orchard and the Champs is under construction, so we just decide to go to Buffalo Wild Wings in Skokie.
Now, I have no record of Champps (note that's spelled with two P's officially) being rennovated or anything like this, so this was just an odd remark. That said, I've been to both Champps and the Buffalo Wild Wings mentioned... the wings were the better choice anyway!
Finally, recent Northwestern University (Evanston, IL, very close to Old Orchard) grad Ashley is spending a year in Japan as an English teacher, posting her adventures via The World of Ashley. Apparently, the Old Orchard "style" is evident on the other side of the world [Monday, June 27]:
...yesterday I went with a group of people to an American style outlet mall - that looked exactly like Old Orchard! trippy.
Posted by Tannerman at 09:35 AM
June 27, 2005
Outside the Orchard - 06.27.05
Every now and then, I like to see what other blogs are writing about in reference to Old Orchard. Outside the Orchard is a recurring feature that takes a look at this online conversation! We keep tabs on Old Orchard conversation... because no one else is crazy enough to!
Like myself, Doodlehead doesn't like Old Orchard's Westfieldized name [Sunday, May 8]:
This morning I stopped by the Apple Store at Westfield Shoppingtown's Old Orchard (I say the full name since it displeases me so)...
Chicago Sun-Times columnist Neil Steinberg offered his take on the news that Old Orchard was looking at expanding [Wednesday, June 8]:
For your shopping convenienceOld Orchard is expanding? It's not big enough? As anyone who has ever gone to the massive outdoor mall in Skokie -- or tried to -- knows the place is enormous already, sprawling and jammed with customers. You'd think they were giving stuff away, as opposed to charging for it.
Hence, I suppose, the expansion. Some days the parking lot is completely filled.
To be fair, Old Orchard does have the benefit of being outdoors -- you don't get that suffocating, get-me-outta-here feeling that can come over you after too long in an enclosed mall, a condition I call "mall burn." Still, you can't look at the packs of disaffected teens drifting through it on a Friday night, for want of anything better to do, and not wonder what our country has come to.
This, of course, generated feedback in the blogosphere, such as this post over at Mental Multivitamin [Wednesday, June 8]:
Ayup.
Reminds me of a mall story and a recommendation.
The Old Orchard expansion story has prompted many folks to more seriously compare Woodfield (the largest mall in Chicagoland) with our Skokie outdoor shopping center. In many cases, such as on Blob Dog Attacks Geordi, there is no comparision [Tuesday, June 7]:
I hate Woodfield. While it has a great Apple Store (the first in Chicagoland) among other stores, I can't stand Woodfield. Perhaps I was too spoiled when I lived near the more generally upscale Old Orchard and Northbrook Court, but I hate that Woodfield is the closest mall to me now... Now, I read that Old Orchard and other malls are contemplating facelifts with nary a mention of Woodfield. This mall I'm stuck with might be in its current state for a long time.
I've never seen the movie Mean Girls, but apparently LiveJournal user hyperfocused has. She writes in her blog The Occasional Poet Dreams of Stardom [Sunday, June 5]:
Watched Mean Girls for the first time today. I hadn't realized it was set on the North Shore, more specifically at Evanston Township High... The mentions of Old Orchard Mall and Walker Brothers pancakes had me feeling nostalgic for my youth, though the movie itself made me damn glad I was 37 not 17.
Speaking of LiveJournal, user rebel_prince15 writes in his blog about the hunt for a piece of furniture [Saturday, June 4]:
Water Tower Place had more stores in it. C bought a FOM pillow he saw and I wanted the puzzle cube ottoman at Old Orchard. It's $375, maybe someday I can buy it. Ha!
Amy and I wondered where you could buy a puzzle cube ottoman up at Old Orchard. I'm thinking either Pottery Barn or one of the anchor stores. Who knows?
So, as you can see, I'm not the only weirdo who writes about Old Orchard out there!
Posted by Tannerman at 06:43 PM | Comments (0)
June 22, 2005
Saks selloff could harm State Street
Saks continues to shop around their Carson Pirie Scott chain for new buyers. As previously reported, the company has already sold off their southern department stores division (Proffitt's, McRae's) to Belk, Inc. They are looking to find a home for their northern stores as well, intending to focus solely on their flagship brand, Saks Fifth Avenue (which will be leaving Old Orchard at the end of July) and Parisian, which offers merchandise slightly above the level of its mid-range department store chains.
The northern group of stores up for sale includes Boston Store (WI), Carson Pirie Scott (IL, IN), Herberger's (CO, IA, MN, MT, NB, ND, SD, WI, WY), Bergner's (IL), and Younkers (IA, IL, MI, MN, NB, SD, WI), as well as Club Libby Lu.
Of interest to those in the Chicago area is how this potential sale will affect the retail landscape on State Street. Our sister blog, SteveandAmySly.com has been chronicling the State Street Christmas Windows produced by the "big 3" on State Street: Marshall Field's, Carson Pirie Scott, and Sears. An exit by Carson's would not only make their window displays disappear (which have been quite lame over the past few years anyway), but also provide a potential lack of shopping downtown. The Chicago Sun-Times has more details on this development:
Renewed speculation on Carson's Loop siteSource: Chicago Sun-Times
June 21, 2005
BY SANDRA GUY Business ReporterCarson Pirie Scott's parent company, Saks Inc., took new steps Monday to hold off its debtors, and speculation bubbled about the future of the Carson's store on State Street.
Saks is trying to sell the Carson's department store chain, and that could open up new possibilities for the historic Carson building at 1 S. State.
The building's owner, Joseph Freed and Associates LLC, has built a reputation as a developer of mixed-use projects such as the Arlington Town Square with Ann Taylor Lofts, Jos. A. Bank Clothiers, California Pizza Kitchen and a six-screen movie theater.
"There's unlimited numbers of things you could do [with the Carson's store on State Street]," although condos would never work, said Jeff Renkert, Freed's vice president of marketing.
The space is too cumbersome and the building's landmark designation too restrictive for condos, he said.
The building, a masterwork designed by Louis Sullivan, could keep a scaled-down Carson's store and open up space for specialty boutiques, or it could house a new retailer altogether, even a big-box retailer such as Target.
Other possible tenants include a grocery store to serve the many new residents living downtown, and a student center for the 55,000 college students who attend classes in the State Street corridor, said Ty Tabing, executive director of the Chicago Loop Alliance, formerly the Greater State Street Council.
A $17 million upgrade of the 600,000-square-foot Carson's store heightens the possibility that new tenants will move in. The building's original cornice is being replaced, and the floors, elevator banks, communications systems and heating-and-air-conditioning systems upgraded. Another 400,000 square feet is occupied by offices.
Retail experts have argued that State Street required three "anchor" department stores to attract shoppers, and those anchors are Carson's, Marshall Field's and Sears, Tabing said.
"With Block 37 coming, a new anchor could emerge," he said, referring to retailers that will be part of the planned redevelopment of the long-vacant parcel between Field's and the Daley Center.
Furthermore, new retail could better serve the residential development springing up around the Carson's building: A 33-story condo building is going up on the Walgreens site at State and Randolph, a condo tower is proposed behind buildings at 21-39 S. Wabash, and people already live above H&M, Nordstrom Rack and the Children's Place on State Street.
Retail analyst Lois Huff said a private-equity firm such as Bain Capital, which is rumored to be a potential bidder for the Carson Pirie Scott chain, would look to make money from Carson's real estate.
"The downtown store is, at best, a store that could stand some reinvention, but it is great real estate," said Huff, senior vice president of Retail Forward, a Columbus, Ohio-based retail strategy consulting firm.
Carson's, along with other mid-tier department stores, is stuck in an untenable position between discounters such as Target and Wal-Mart and fashionable luxury stores such as Bloomingdale's, Nordstrom, Neiman Marcus and Saks Fifth Avenue, Huff said.
"The Carson's [on State Street] would be extremely vulnerable for Carson Pirie Scott, but extremely attractive" for a new owner looking to profit from its real estate, she said.
Meanwhile, Saks Inc. announced Thursday that it would offer its bondholders a special payment to persuade them not to force Saks to default on $1.22 billion in debt.
Saks now wants another two months, until Oct. 31, to file its financial statements with federal regulators. Saks is being investigated by federal authorities for allegedly improperly collecting $20 million in vendor markdowns in its 1999-2003 fiscal years. Stores take markdowns when goods don't sell at full price, and they ask their suppliers to eat some of the cost.
Posted by Tannerman at 11:46 AM
June 20, 2005
Field's Watch: Name may stay after merger?
A recent article in the Chicago Tribune provides hope that the Marshall Field's name will remain after the Federated-May merger is completed. According to the article, the Lord & Taylor name may be the one to get the ax instead. We'll see.
Field's likely to keep its nameSource: Chicago Tribune
By Becky Yerak
Tribune staff reporter
Published June 18, 2005The chances that the Marshall Field's name will survive might be better than expected, according to two Wall Street analysts.
When Federated Department Stores Inc. announced plans in February to buy May Department Stores Co., some retail observers said the deal spelled doom for the Field's name, a Chicago-born chain owned by May.
Federated has a track record of changing the names of its regional department stores to Macy's. The May acquisition is expected to close in the third quarter.
Two retail analysts expressed optimism, however, about the future of the Field's name in a Women's Wear Daily report on Friday about the New York flagship of Lord & Taylor, another May asset.
"The L&T banner is not going to be the one that survives," Citibank Smith Barney analyst Deborah Weinswig told the trade publication. "Marshall Field's has been chosen as the one to survive."
Weinswig couldn't be reached Friday to elaborate.
Also in the article, Deutsche Bank analyst Bill Dreher noted Field's "tremendous following."
"I wouldn't expect Federated to move away from that name but rather expand it in the Midwest," he said.
A Federated spokeswoman would not comment on the report. "We've got nothing to say on that right now," she told the Tribune on Friday.
Posted by Tannerman at 09:56 AM
June 08, 2005
Sunset at Old Orchard
Sometimes, a pre-summer night visit to Old Orchard reveals unexpected beauty...
Posted by Tannerman at 11:06 PM
June 06, 2005
Proposed Expansion: Old Orchard Goes Lifestyle
Here at the Old Orchard Observer, we've talked about consolidation in the retail industry, especially as it pertains to mall anchors. With Marshall Field's being acquired by Federated, 3 out of 5 anchors at Old Orchard will be owned by the same company. Then just last week it was announced that Saks Inc. would be closing the Saks Fifth Avenue store at the mall, resulting in another unknown for Old Orchard Center. In short, anchors are going to be lost. So what do you do instead?
Traditionally, large malls have been built on the assumption that anchors draw you to the center. Hence the label, "anchor." Often, the appeal of a mall has been built on what anchor stores are present. From a business perspective, rent and leasing rates are determined based on the number and size of the anchors in a mall.
But in case you haven't noticed, there aren't enough anchors to go around these days. There is consolidation, like what is taking place with Federated and May. There is a change in strategy, like what you see in Sears moving away from mall-based stores. There is a downsizing and focus on profitable stores, evident in what took place last week with Saks; J. C. Penney is also a good example here. And of course there is the loss of anchors altogether, as in Montgomery Wards and the like.
This has created a void for traditional malls as they try to figure out what to do. Many have chosen to go with somewhat alternative anchors. For example, the mall I used to work at, Randhurst (Mt. Prospect, IL), recently built a Costco as a part of the mall. Here in the city, unique architecture has allowed traditional "all in one stores" stores like Target to serve as anchors.
The growth of big boxes (Wal-Mart, Target, warehouse clubs, etc.) and category killers (Best Buy, Barnes & Noble, Home Depot, etc.) has changed the way people shop. It also is changing the world of mall design and planning. Unfortunately, malls are large and heavy on infrastructure... you can't easily change course and reconfigure.
Sometimes there are exceptions, such as Brickyard Mall, a local mall I grew up with here in the city. It was a large, two-story, indoor mall that basically outlived its usefulness. It recently reopened after being completely torn down and rebuilt as The Brickyard, an outdoor center with a mix of big box retailers and specialty stores. So far, it's been quite a success story.
Other local shopping centers are shooting to become lifestyle centers, the big buzzword in retail these days. A lifestyle center is typically an open-air shopping center that doesn't really feature anchors. Instead, the mix of stores comes more from the specialty retail/boutique side of things. Often they are modeled to look like small towns, full of sidewalks, park-like places, and common areas. They don't require as much space as a large indoor mall and they offer convenience to a typically affluent shopper, as they can just park their oversized SUV nearby and quickly shop.
The "lifestyle center" concept was pioneered by Poag & McEwen with the construction of The Shops of Saddle Creek in Germantown, TN, in 1987. My current employer is located near another lifestyle center that recently opened, 500,000 sq. ft. Deer Park Town Center in suburban Chicago.
So what do you do when you are a traditional mall, you are losing anchors, and the trend seems to be towards lifestyle centers? Well, you build a hybrid! Last July, a suburban mall called Yorktown Center (previously the home of Big Idea) announced that they were going to tear down some vacant anchor space (formerly populated by Montgomery Wards) and build a lifestyle center concept called The Shops on Butterfield. Uniquely, this development would actually connect with the existing traditional indoor mall and feature an attached hotel. It will be interesting to see how that plays out, as the new development is set to open in 2006.
Even knowing these trends, I was shocked today when I read the following story in Crain's Chicago Business regarding what may happen to Old Orchard down the road. I guess the concept makes sense when you think about it...
Giant expansion for Old Orchard
Size would rival Woodfield as new vision for regional malls takes shape
June 06, 2005
By Sandra JonesThe owner of Old Orchard shopping center has drawn up plans to bulldoze the Saks Fifth Avenue and Lord & Taylor spaces there to make way for a Main Street-style shopping promenade — an estimated $100-million expansion that would put the Skokie mall on par with the region's largest, Woodfield Shopping Center in Schaumburg.
Source: Crain's Chicago BusinessOwner Westfield Group's proposed site development plan, obtained by Crain's and dated May 20, calls for building 53 new specialty stores and restaurants totaling 650,000 square feet. The plan calls for a string of 24 stores backing up to Skokie Boulevard with trees, walkways and small courtyards modeled after the so-called lifestyle centers that have been drawing shoppers from traditional malls.
That strip would replace parking on the east side of the mall, the most traffic-congested. The surface parking would be eliminated and the parking deck outside Lord & Taylor would be torn down. In its place, a new parking deck would be constructed at the southeast end of the promenade near Golf Road. More specialty retail is proposed on the west and north sides of the mall.
The expansion, if approved as-is, would bring Old Orchard to 2.3 million square feet, an increase of about 25%. Retail experts estimate the cost of the overhaul at more than $100 million.
A spokeswoman for Australia-based Westfield calls the plan "very exploratory," explaining the proposal is a way for Westfield to get "a sense of the marketplace." And it still needs the approval of Skokie village officials and the remaining department store anchors: Nordstrom, Marshall Field's and Bloomingdale's.
Still, the ambitious proposal underlines the problem facing all mall operators these days. Malls like Old Orchard were designed to be anchored by department stores. But the department store industry is shrinking, and shoppers now have fewer reasons to go to the mall.
"The rules of the game have completely changed," says Gerhard Plaschka, managing partner at Chicago-based MindFolio, a consulting firm that studies malls. "You have to break the rules and come up with something that makes customers choose a mall. The old story that anchor stores are the mall magnets isn't true anymore."
AMONG OLDEST MALLS IN U.S.
When Old Orchard opened in 1956, it was one of the first malls in the nation. It led the suburban retail revolution, bringing downtown department stores to the newly constructed neighborhoods that ringed the city. Marshall Field's, Old Orchard's oldest tenant, spearheaded the project and played a key financial role in its construction.
Now, Marshall Field's, which has had a string of owners since the mall was built, is about to be sold for the second time in a year. Federated Department Stores Inc. of Cincinnati agreed earlier this year to buy Field's as part of its $11-billion acquisition of St. Louis-based May Department Stores Co. May purchased Field's from Target Corp. last year.
THREE ANCHORS, ONE OWNER
Once the deal closes, as expected this fall, Federated will own Field's, Bloomingdale's and Lord & Taylor at Old Orchard — three of the four remaining anchors.
Saks Inc. announced in May that it intends to shutter its Saks Fifth Avenue store at Old Orchard in July as part of a move to scale back and reorganize the luxury chain. Federated is expected to shutter the Lord & Taylor store and eventually turn either Field's or Bloomingdale's into Macy's, according to retail sources. The two department stores combined accounted for about 220,000 square feet of retail space and about $30 million in annual sales, retail sources say. Officials with May and Federated decline to comment.
"All the major malls are facing department store consolidation," says John Melaniphy III, vice-president of Melaniphy & Associates, a retail real estate consulting firm in Chicago. "There aren't department stores waiting in the wings (to expand), so malls are looking to specialty stores and restaurants."
A sign of how times have changed in just a decade: Old Orchard's last major renovation in 1995 — under a previous owner, a group led by real estate mogul Sam Zell — hinged on the arrival of two new department stores, Bloomingdale's and Nordstrom, to the mall. The $100-million makeover targeted the stroller set with gardens, fountains and outdoor play areas for children.
Today, malls are scrambling to meet fickle shoppers' demands for convenience and entertainment. If either is lacking, they aren't likely to show up, analysts say.
Old Orchard has already begun sprucing up the mall with a new Apple Computer store, which is often crowded. It's also opened harder-to-find specialty stores in the past year including Lacoste, Clarks Shoes and Sigrid Olsen. Soon to debut: NikeWomen.
Still, competition to attract desirable retailers is expected to get tougher as Northbrook Court, another North Shore mall, goes through a similar, but smaller, effort to attract one-of-a-kind stores.
'POSITIVE' ADVANCE REVIEWS
Potential tenants have so far viewed Westfield's preliminary proposal as "positive," says the Westfield spokeswoman. She declines to comment on specifics of the plan. Retail sources familiar with the makeover say it's likely to be complete in 2007.
"This is a great opportunity," says Mr. Plaschka, the mall consultant. "They just need to understand that you have to break the rules. That's the challenge. There is no standard mall mix anymore."
Source: Crain's Chicago Business
Posted by Tannerman at 10:38 PM
June 03, 2005
More on the "Shoppingtown" branding change
Tampa Bay-area (FL) blogger Costa Tsiokos adds more ongoing commentary about Westfield's stupidiy regarding the "Shoppingtown" name via PopulationStatistic.com. Tsiokos references this St. Petersburg Times article from May 8, 2002:
Forget the mall; now it's 'shoppingtown'
By MARK ALBRIGHT and CHRISTINA K. COSDON
May 8, 2002Three of the Tampa Bay area's largest malls have new Australian owners. Now they're getting new names.
Westfield Group, which this week completed its purchase of Brandon TownCenter, Citrus Park Town Center and Countryside Mall, is adding "shoppingtown" to those names.
"We've called our properties in Australia 'shoppingtowns' since the 1960s," said Stephen Fluhr, general manager of newly renamed Westfield Shoppingtown Brandon. "In Australia, a mall is a shoppingtown."
Work crews this week began sticking the new names on doors and customer service booths at the malls, whose new names include Westfield Shoppingtown Citrus Park and Westfield Shoppingtown Countryside. Eventually pylon signs at mall entrances will be changed to match the rest of the company's portfolio of 61 U.S. malls and shopping centers.
Not everybody's a fan of the new names. "My wife just called and said people are up in arms," said Clearwater Mayor Brian Aungst, "The mall is not moving out of Countryside, is it? To me, Countryside Mall is a perfect name. This is a dumb idea."...
The name changes mark the latest attempt by mall owners to use their real estate holdings to promote their corporate brand. The effort spread once the companies became publicly traded stocks.
Simon Property Group of Indianapolis has plastered its name all over the parking lots and doors of its Tyrone Square, Gulf View Square and Crystal River malls. Prime Retail Inc. of Baltimore added the name at its Prime Outlets Ellenton property. Mills Corp. of Arlington, Va., which owns Sawgrass Mills in Broward County, puts its corporate monicker in all of its outlet mall names.
Contrast this with the "about face" that Westfield is doing, noted in this June 1, 2005 St. Petersburg Times article:
If you didn't call them 'shoppingtowns,' don't
By MARK ALBRIGHT, Times Staff Writer
June 1, 2005Westfield Group has stopped calling its U.S. malls "shoppingtowns."
The Australian developer, which drew a lot of attention with the unusual monicker when the company made landfall in the states three years ago, began phasing it out May 1.
With no fanfare, the owner of three malls in the Tampa Bay area stopped ordering business cards, signs, brochures and other materials that make any reference to "shoppingtown."
"We won't be taking down signs to change the name, you just won't see us putting it on replacements as time goes by," said Catherine Dickey, spokeswoman for the chain. "The name served its purpose."
While rival malls in the market have made "mall" or "plaza" part of their formal name, Westfield did not. So the three local malls now will be called Westfield Citrus Park, Westfield Brandon and Westfield Countryside. "People know they are malls," Dickey said.
Westfield imported the "shoppingtown" label for its U.S. properties from what they are called in Australia. One reason was to send a signal to shoppers that things had changed at their nearby mall. Many shoppers never picked up the hint or ignored it. But Westfield officials are unconcerned that "shoppingtown" never became a household word.
"Shoppingtown is part of our heritage, but Westfield is the brand," Dickey said.
Westfield could have saved themselves a lot of money if they just would have looked at the U.S. market and note that, well, malls are called malls! I swear that company is run by idiots.
Posted by Tannerman at 12:16 PM