March 23, 2006
Forth & Towne expands to 5 new locations
Old Orchard features one of the five prototype stores in Gap's Forth & Towne concept. Amy and I checked out this store last year. According to a March 22 press release from Gap Inc., these stores have been successful enough to warrant the launch of 5 new locations in Atlanta, Houston, Los Angeles, San Francisco/San Jose and Seattle. The new locations are slated to open Fall 2006.
Posted by Tannerman at 12:06 PM
March 09, 2006
Old Orchard Expansion Plans Downsized
Remember that big expansion plan leaked by Westfield last June regarding Old Orchard's future? At the core of that idea was tearing down both the Saks Fifth Avenue and Lord & Taylor anchor buildings and replacing them with space for smaller shops. It was going to be the catalyst for rebranding Old Orchard as a "lifestyle center."
Apparently, those grand plans have been downsized greatly, much to the dismay of myself. According to the Chicago Tribune, Skokie (the village where Old Orchard is based) just approved a much smaller plan:
Skokie OKs mall changesSource: Chicago Tribune
March 9, 2006
Tribune staff, wire reportsThe Skokie Village Board has approved changes to the Old Orchard shopping center that are far less ambitious than the plans floated last year by the mall's Australian owner, Westfield Group. As part of a redevelopment of the former Saks Fifth Avenue store, the existing 104,000-square-foot structure would be replaced with a 64,000-square-foot building for smaller specialty stores and restaurants, according to a village report released this week. The plans would affect Steve & Barry's University Sportswear, which took over the Saks store last year. A representative of the inexpensive apparel retailer, which sells jeans, jackets and licensed college goods, declined to comment. Construction is expected to begin this summer. In June Westfield considered adding as much as 300,000 square feet of space to the well-known center. A representative could not be reached for comment.
Posted by Tannerman at 10:33 AM
November 29, 2005
So long Saks, hello Steve and Barry's
Back in May, we reported here at the Old Orchard Observer about Saks Fifth Avenue gearing up to close at Old Orchard. The store finally did close at the end of July.
Before Saks did say good-bye, there were various levels of Store Closing sales. Amy and I dropped by many of these to check in on the progress of clearing out the large Saks space. The Old Orchard location had 3 levels (main, upper, and basement). Here are some photos we took during those final days.
Inside the store, many of the fixtures were for sale, though it seemed like quite a few were earmarked for other Saks locations.
Eventually, all mention of Saks would be removed from the mall. This electronic sign mounted on the Professional Building was quickly changed after the Saks closing to remove the name of the store (and they probably fixed the burned out lightbulbs as well).
Signage was removed from the main Saks building as well, resulting in a very empty, barren spot. Much like everything at that end of Old Orchard.
You may remember that back in June, word was leaked that Westfield was considering adding a lifestyle center element to Old Orchard. According to the plans made public, this would involve the demolition of both the Lord & Taylor and Saks Fifth Avenue anchor buildings. I haven't heard anything new since that news came out, but we did wonder if Westfield would leave the Saks building vacant or try to find a new tenant. That question was answered in October when the Chicago Tribune reported on a tenant to fill the space:
$10-or-Less Clothing RetailerSource: Chicago TribuneSteve and Barry's University Sportswear was founded in 1985, and while it seems like a good short-term fit for Old Orchard, my money is that they have a short-term lease with Westfield so that the lifestyle center plans would not be harmed.
A new style for Old Orchard
October 7, 2005
By Becky YerakGone are the days when shopping malls relied solely on department stores as anchor tenants.
At Westfield Old Orchard in Skokie, a $10-or-less clothing retailer is moving into a vacated Saks store, an example of how even upscale malls in well-heeled areas are rethinking the notion of who should occupy the biggest spaces.
Steve & Barry's University Sportswear, which sells inexpensive men's, women's and children's clothes including jeans, jackets and licensed college goods, will occupy all three floors of the 105,000-square-foot space vacated by Saks in July. It is expected to open next month.
The privately held Port Washington, N.Y., firm typically operates stores ranging from 20,000 to 150,000 square feet in less prestigious malls.
"This is our first Class A mall," Steve & Barry's spokesman Rick Gomes said.
"They came to us because we're a company who can put something in quickly," he said of the retailer's relationship with mall owner Westfield Group.
At Old Orchard, Steve & Barry's joins such traditional mall stalwarts as Marshall Field's, Lord & Taylor, Bloomingdale's and Nordstrom. Spaces for those retailers range from just under 200,000 square feet to 400,000 square feet.
As retailers such as Wal-Mart Stores Inc. and Target Corp. open hundreds of free-standing stores a year, malls are trying new ways to remain relevant to consumers, particularly younger ones, and are looking beyond tried-and-true conventional department stores as key tenants.
"We thought Steve & Barry's would be a great addition and bring a different clientele," said Thomas Sikoral, Westfield Old Orchard general manager.
In May, Steve & Barry's was named in an International Council of Shopping Centers survey as one of retailing's five hottest merchants--along with Apple Computer Inc., Coach Inc., Williams Sonoma Inc. and White House Black Market, a subsidiary of Chico's FAS. Inc.
In a May interview, Steve & Barry's co-founder and co-Chief Executive Barry Prevor, said he is interested in any mall anchor spots that might open up as a result of industry consolidation, which recently has touched such retailers as Sears, Macy's and Marshall Field's.
Mall developers, he noted, have become more open-minded about what constitutes an anchor tenant in light of mergers that are making department stores more homogeneous.
"If a mall has four department store anchor spots, and one goes vacant, then years ago mall management would have thought, `Get another department store.' Now, they say, `We have three department stores selling the same brands at the same prices. What would be the point of bringing in an identical department store?'" Prevor told the Tribune.
"So they look for alternative uses. This has been one of the great drivers behind our growth," he said.
Steve & Barry's has 87 stores in 27 states and plans to open another 40 stores by year-end.
In June 2004, it opened one in Westfield Chicago Ridge mall in Chicago Ridge, followed in October 2004 by a location in North Riverside Park Mall in North Riverside.
The retailer has plans to open more stores across the area, including outlets at Westfield Fox Valley in Aurora, Randhurst Mall in Mt. Prospect, Westfield Louis Joliet in Joliet, University Mall in Carbondale and in Springhill Mall in West Dundee.
Amy and I checked out the new store shortly after they opened. While the merchandise was somewhat appealing (mainly for price), the store itself looked like the new tenants had done nothing to remodel the space. Thus indicating that this is probably not a long-term solution for Old Orchard. But we'll see.
The addition of Steve & Barry's will help The Promenade section of Old Orchard not seem so dead, but I'm not quite sure that it fits the image that the mall is trying to portray. Then again, Westfield has already done a pretty good job making the mall more crappy, so anything goes these days.
Posted by Tannerman at 12:26 AM | Comments (0)
October 13, 2005
Now Open: Forth & Towne
We explored the new Forth & Towne store at Old Orchard last night. This is one of five prototypes across the U.S. (4 of which are in Chicago). The store opened on August 31. As speculated, the store is two floors.
It's definitely a different feeling when compared to Gap's other stores. This one feels more like a department store. Very lush decor, almost retro in nature... harkens back to the comfy shopping experiences of old. A large staircase welcomes you to the second floor. Vast changing rooms take up a large circular space on both the first and second floors.
This store is obviously marketed at the same demographic as Talbots... older or professional women. Paul Pressler and friends have launched a couple of brands to support this approach.
Those include:
Allegory
Features suiting with a distinctly feminine touch and classic pieces with modern elegance.
Gap Edition
Inspired by the nostalgia of Gap - fresh, casual, American style with a more mature fit.
Prize
Celebrates fun, wearable trends with flattering silhouettes, flirty fabrics, and stylish cuts.
Vocabulary
Offers comfort and graceful femininity with rich knits and pants accentuated with prints and jewelry.
Overall, nifty looking place. Clothes were rather pricey, but that was to be expected. Impressive store design. I liked the approach they tried to take there. That said, it seemed like there really wasn't a whole lot of stuff "in" the square footage they had. Probably an intentional move, but felt more empty in the end. Then again, it's just not my demographic, I guess.
Posted by Tannerman at 10:53 AM
September 29, 2005
Time for Fall!
Fall is now upon us, which means it's going to be getting colder soon. Make sure you take the time to enjoy the outdoor experience of Old Orchard before you are rushing from store to store just to keep warm!
Posted by Tannerman at 04:47 PM
August 24, 2005
Forth & Towne opening August 31
Source: Chicago Sun-TimesChicago women can soon size up Gap's Forth & Towne
August 24, 2005
BY SANDRA GUY, Business ReporterChicago shoppers will be among the first to experience Gap's new Forth & Towne stores, aimed at women ages 35 and older.
Four of the retailer's five Forth & Towne stores nationwide will open Aug. 31 at Chicago area shopping malls. The fifth, at the Palisades Center in West Nyack, N.Y., opens today. The stores range in size from 8,000 to 10,000 square feet.
Gap also operates Old Navy and Banana Republic stores, as well as its namesake Gap stores.
Forth & Towne -- the name is meant to evoke a meeting place -- aims to lure baby boomer women from department stores and specialty stores such as Ann Taylor, Talbots and Chico's.
Gap has a ways to go, since it has a 3 percent market share among women older than 35. The target audience makes retailers salivate because it's the second-largest spending group behind teenagers, accounting for $66 billion in yearly spending on clothing.
A focal point of the Forth & Towne stores is the dressing room. A dozen spacious dressing rooms outfitted with adjustable lighting, three-way mirrors and experienced sales people nearby serve as the centerpiece of the stores. Each dressing room is decorated differently, and there's room for a husband, daughter or friend to sit inside.
Customers inside the dressing rooms can have a salesperson bring them clothes, and they may give their purchases to a salesperson to ring up while they get dressed.
"No one has made the dressing room a pleasurable experience or treated these shoppers with respect," said Forth & Towne President Gary Muto. "Our concept was very much inspired by the romanticism of 1940s and 1950s-era department stores, when shopping was an event."
Another effort to win fans is the use of a size 10 as a starting point to model how Forth & Towne's clothes fit. The traditional model is a size 8, but 70 percent of baby boomer women wear a size larger than 12, according to Forth & Towne executives.
Forth & Towne stores will sell clothes in women's and missy's sizes 2 through 20, compared with Gap's other chains that carry sizes 0 to 16.
Forth & Towne's target customers "are savvy women who know what they want," said Austyn Zung, the company's senior vice president of product design and development, at a press conference Tuesday at the New York store.
"These women are stylish, grownup and elegant. Their challenge is that they are not finding what they need in the marketplace today," said Zung, who joined Forth & Towne last year from Oscar de la Renta.
Another selling point is price. Most items sell for less than $100. Dress pants range in price from $88 to $108; blazers, $128 to $148; and outerwear, $88 to $168.
Customers who sign up for a loyalty program and who spend $500 receive free alterations and 5 percent off future purchases.
Four styles and brands of outfits, ranging from jeans to business clothes to dress-up, will be featured in boutiques to make the selections easier to shop. Shoppers are encouraged to assemble entire outfits in each style.
The stores also will highlight jewelry, shoes and handbags, and will let shoppers mix and match the accessories when they try on clothes.
The stores' layouts resulted from interviews, shop-alongs and closet inspections with likely shoppers within the past 18 months.
Gap chose Chicago as the first mass market for Forth & Towne because it's a profitable market for Gap's brands, and it has plenty of baby boomer women, ethnic and racial diversity and popular urban and suburban shopping centers, Muto said.
Forth & Towne stores will be located at Westfield Old Orchard shopping center in Skokie, Woodfield Mall in Schaumburg, Fox Valley Center in Aurora and at Algonquin Commons, an outdoor mall that includes Circuit City and OfficeMax as well as specialty apparel stores.
Gap plans to open five more Forth & Towne stores in 2006, and 30 in 2007. The locations have yet to be disclosed.
Tim Calkins, a professor of marketing at Northwestern University's Kellogg School of Management, said local demographics are certain to be "spot-on" with the ones Gap wants because the company is investing a great deal in the roll-out.
"It's not like they went into Denver or Kansas City, which would be much less expensive," Calkins said.
Gap is launching the Forth & Towne name to appeal to a new set of shoppers, and to preserve its three other brands, Calkins said.
"Gap's big challenge is to make the new brand very distinct from its other stores," Calkins said.
"Otherwise, Gap could end up with a portfolio that's too redundant and too complicated," he said.
Gap needs a winner. Sales at its stores open at least a year fell 3 percent in the second quarter, which ended July 30, and it lowered its yearly profit forecast last week.
The San Francisco-based retailer, which had $16.3 billion in revenue in 2004, might even be plumping itself up for a suitor, according to a report by analyst Robert F. Buchanan at A.G. Edwards.
He wrote: "There's a chance that an outside buyer might actually emerge for the Gap," especially when private equity firms are looking to invest their hefty cash reserves in underperforming companies with growth prospects.
Posted by Tannerman at 08:54 AM
July 21, 2005
Work continues on Forth & Towne
They're still hard at work on the new Forth & Towne location down by The Promenade. The other day we noticed that the windows found in the clock tower weren't covered, showing HVAC equipment. We don't know if this is part of the Forth & Towne space or not. It's still not certain if the new Gap-owned chain will use both floors of the previous Z Gallerie space. There is visible work happening on the 2nd level. 1st level construction is hidden by construction walls.
Posted by Tannerman at 02:26 PM
Renovation: United Colors of Benetton
The United Colors of Benetton store found on Pear Lane has closed for rennovation. In the meantime, a temporary location has been setup on Vacancy Alley (officially known as The Promenade). Looks like the rennovated store will reopen in the fall (where it will join its parent company stablemate, Sisley).
Posted by Tannerman at 01:46 PM
July 01, 2005
Celebration at The Cheesecake Factory
Over on Flickr, user elliterate has uploaded a set of photos that appear to be a pre-graduation lunch of some sort, taken June 17. The setting for the photos? The Cheesecake Factory, located on the 2nd floor at the north end of Old Orchard, in The Promenade. The official description reads, "Pre-emptive celebration at The Cheesecake Factory with Brandon and his family." Check out this nice shot of the Westfield sign through the glass.
Posted by Tannerman at 03:31 PM
June 29, 2005
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
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
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
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 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
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