JCPenney Re-brands… Again

Only a year after modifying their Massimo Vignelli-designed logo–in use since 1971–JCPenney are scrapping their old logo altogether for a brand new look. It looks a little like a patriotic lego set to me, though I have to say that it looks cute on the bags and on the storefront. This is, no doubt, part of JCPenney’s major turnaround strategy which is going to feature innovative new pricing and a reduced emphasis on sales and promotions to distance themselves from rival Kohl’s.

What do you think? Does it look cheap or is it an effective re-brand?

UPDATE: I need to do this story proper justice. There are very big changes afoot at JCPenney. Their current CEO came from Apple and was responsible for much of Apple’s current wildly successful retail strategy. They plan on redesigning and renovating all of their stores with a “Main Street” concept with many smaller stores-within-a-store, and standardizing pricing at full dollar amounts and eliminating most sales and promotions. Instead, there’ll be an everyday-low-price model (slashing prices on most goods around 40%) with items becoming marked down as they age. Forbes has gone out on a limb in calling JCPenney the “most exciting retailer of 2012.” Compared to the slow, laggard Sears refreshes under Eddie Lampert, it is true that this dramatic change will at least be an interesting one to watch. It remains to be seen whether it works or not.

Jordan Creek Town Center; West Des Moines, Iowa

Located in West Des Moines, Iowa, Jordan Creek Town Center is the newest super-regional mall in Iowa and, as of early 2012, one of the most recently constructed enclosed malls in the United States. Opened in 2004, its construction was the culmination of over ten years of planning, resulting in not only a mall but an entire retail resort encompassing destinational shopping, dining, entertainment, recreation, and lodging, becoming one of the biggest shopping destinations in the midwest.

It all began in  the mid-1990s.  The land that became the malls was fertile farm land, and there was little to no development west of I-35.  In 1995, West Des Moines businessman Art Wittern proposed a mixed-use development called the “Village at Oakbrook”, located at 74th Avenue (now Jordan Creek Parkway) and E.P. True Parkway.  Around the same time, General Growth Properties, a Chicago-based mall developer, was busy at work building a super-regional mall 100 miles east of Des Moines in Iowa City.  That center, Coral Ridge Mall, quickly became eastern Iowa’s best shopping destination, and General Growth saw an opportunity for an even bigger undertaking in the state’s largest city, Des Moines.

In 1999, General Growth took the Wittern site, and continued work on the original plans to build retail there.  Stemming from the success of its Coral Ridge project, General Growth sought to make a bigger and better Coral Ridge, or as Walt Disney would say, to ‘plus’ the Coral Ridge concept.  The Jordan Creek proposal, unveiled in May 2000 and named after a pioneer settler to West Des Moines, sought to combine a large, traditional, super-regional enclosed mall with at least two other concepts.

The first concept, the Shopping District, consists of the mall and anchors the north end of the development.  The second concept, the Lake District, sits in the middle of the complex and features a 3.5 -acre lake with walking trails, a boardwalk with waterfront dining, an ampitheater, and hotels.  The third concept, the Village District, is a smattering of big-box stores arranged in a semicircle at the south end of the development.  At least one retail analyst compared the Jordan Creek development with Kansas City’s Country Club Plaza, only with a traditional enclosed mall added.

Take a look at a satellite photo of the completed Jordan Town Center area here.

While I believe the first two concepts are great and well thought out, and the lake is unique, the third concept should have been more of what it claims to be – a real Village District, with pedestrian walkways and in-line shops, similar to a scaled-down version of perhaps Easton Town Center in Columbus or any of the other well-executed outdoor malls.  Instead, it’s really just a smattering of buildings arranged around a sea of parking, much like a strip mall.  There’s no charm here, and nothing is at all unique or interesting about this part of the development, and it bums me out a little, especially considering there were ruminations of the development being a similar or slightly-scaled down version of Country Club Plaza in nearby Kansas City.

The extant retail options in the Des Moines market in the late 90s, about the time Jordan Creek was posited, consisted of three super-regional malls: Merle Hay Mall in northwest-suburban Des Moines, Southridge Mall in southeast Des Moines, and Valley West Mall in West Des Moines.  All of these malls served a niche in Des Moines’s retail landscape, but Merle Hay and especially Valley West served to lose the most from Jordan Creek’s new competition.  Interestingly, that was only the case for a time, and Southridge became the loser, despite being the most distant.

In fact, the owners of both Merle Hay and Valley West Malls sued General Growth over the Jordan Creek project, arguing that it was illegal to use TIF financing in making improvements around the mall.  The Iowa Supreme Court struck down the lawsuit in 2002, allowing General Growth to move forward with completing the mall.

Jordan Creek officially opened on August 4, 2004, and attracted over 17 million shoppers its first year.  The enclosed mall portion of the development is two levels and anchored by Younkers and Dillards, with the addition of Scheels All Sports as a major junior anchor.  The mall’s design is modern, and unlike similar dumbbell designed malls, the mall features a slight arc or curvature throughout its length, giving it the illusion of being larger than it is.  The in-line stores here are decidedly destinational, with Iowa’s only Apple Store, and even more unusual – a wine bar inside Younkers.

Jordan Creek became so popular that it accounted for 37% of taxable sales at all of the Des Moines area malls, and became a boon for development in Dallas County, the county located immediately west of Polk County, where Des Moines is.  Until Jordan Creek opened, development in Dallas County was limited and the county was agricultural, not suburban.  Since Jordan Creek opened, the county has been inundated with not only the commercial retail development spawned by the mall and its environs, but also residential growth as well.  In fact, Dallas County grew 62 percent between 2000 and 2010.

As far as the impact on the other Des Moines-area malls, it has been varied.  Both Merle Hay and Valley West malls have wisely embarked on renovations and repositioning tactics to keep their centers fresh, and while they are no Jordan Creek, they seem to be holding their own. Valley West, the market leader before Jordan Creek’s arrival, sits just over 4 miles from Jordan Creek, but an extensive renovation and the retention of complementary anchors to Jordan Creek (Sears, JCPenney, and upscale Von Maur) have kept it fresh.

Merle Hay is in a tier slightly below Valley West, but retains a smart niche of anchors as well (Sears, Kohls, Younkers, Target), in addition to partial renovations and the addition of new stores to stay fresh.

Unfortunately, Southridge Mall, which is clear across the metropolitan area from Jordan Creek, has suffered the most since Jordan Creek debuted.  However, Jordan Creek’s opening is probably only partially to blame for Southridge’s demise, as for many years it was the least accessible mall to the rest of Des Moines and its immediate vicinity is not growing as quickly. Interestingly, Southridge was owned by General Growth at the time of Jordan Creek’s opening, but General Growth smartly divested the property as it tumbled downhill.

We’ve visited Jordan Creek several times through the years, including the month it opened, and most recently in August 2011 when I shopped at the Express Men store, and had a weird experience.  After browsing polo shirts and confirming the sale price with an employee (it was a really good deal), I browsed the rest of the store and ultimately came back to purchase one of the shirts I saw.  It was the only one in my size.  However, it wasn’t there.  Puzzled, as there were no other customers in the store other than me that whole time, I went up to the register. Sure enough, there it was on the desk behind the registers. The employee who helped me had apparently took the shirt aside for himself.  As there were no others in my size, I was annoyed, and became incredulous when the employee quickly covered up the shirt with a bunch of other stuff he was folding and got nervous.  I ignored his deception and asked for the shirt and bought it.  At least he wasn’t going to continue hiding it.  But still, who does that?

Please feel free to leave your experiences and discuss Jordan Creek Town Center in the comments section.

Photos from August 2011:

 

 

 

Richmond Mall; Richmond, Kentucky

Located 25 miles south of Lexington in south central Kentucky, Richmond is a small city with 31,000 residents. Home to Eastern Kentucky University, Richmond has grown a lot recently. In the past two decades, Richmond has added over 10,000 residents, increasing its population by over 30 percent.

This massive growth spurt has been a boon to the city, and should have also been a boost for Richmond’s only enclosed mall, Richmond Mall. Except it hasn’t worked out that way. Located southeast of downtown Richmond along the Eastern Bypass, Richmond’s only mall can be summed up in one word: sad.

Richmond Mall opened in September 1988, a relative latecomer to the regional scene, as nearby Lexington’s three regional malls opened in the 1960s and 1970s.  Set up like a simple dumbbell, Richmond Mall is pretty minimalist and functional in design.

Richmond Mall enjoyed success for two decades, despite the eventual dominance of nearby Lexington’s Fayette Mall, the largest and one of the best malls in the state of Kentucky. Local competition eventually did Richmond Mall in, with the opening of nearby Richmond Centre in 2008.

Richmond Centre is a much larger, open-air center consisting of over 800,000 square feet of restaurants and shopping. Anchored by Belk, JCPenney, and Meijer, Richmond Centre features other popular stores and restaurants such as Panera, Childrens Place, Culver’s, Chik-fil-a, Michaels, TJ Maxx, Petsmart, and Logan’s Roadhouse restaurant. A Home Depot opened in the center but has since closed. Most of Richmond Centre is set up like a typical Power Center, but the central buildings retain a semblance of an open-air mall corridor.  A tiny semblance.

Sadly, and predictably, Richmond Centre caused a mass exodus at Richmond Mall. The two shopping centers are only two miles apart, both located along Eastern Bypass south of downtown. In addition to being more than twice as large and brand new, Richmond Centre is located directly along I-75, whereas Richmond Mall is a couple miles away.

Also, when Richmond Centre opened, it poached JCPenney, Goody’s Family Clothing, and Hastings entertainment directly from Richmond Mall. According to a Kentucky.com article published in November 2010, Richmond Mall was 98% leased when Richmond Centre opened in 2008. Just two years later, the mall was less than 50 percent occupied.

In November 2010, Richmond Mall defaulted on its loan and was auctioned. According to the same Kentucky.com article, the foreclosure came as a result of a lien placed on the property, which was owned by Richmond Mall Associates and does business as Bush Realty. The lien, which was sought by U.S. Bank, is valued at $16.4 million. The former owners of the mall wanted to sell the mall because they do not specialize in redevelopment.

Today, Richmond Mall has very few stores open. Most of the operating stores are on the mall’s west side. The food court remains completely empty. Aside from Sears, the eastern half of the mall is almost completely dead.

It’s shocking what a difference a couple years can make. I visited Richmond Mall for the first time in November 2011.  I came in the eastern end of the mall, which is the more vacant half of the mall.  When I left, I noticed a young man on a bike riding through the mall who exited the same door I did.  I’m kind of sad I didn’t see the mall before it died in 2008. Feel free to leave your comments.

November 2011:

Oakland Mall; Troy, Michigan

Our latest post takes us to Detroit, a city marked by a history of innovation, a currency of blight, and a future painted with question marks.  As one of the country’s most auto-centric large cities, the Detroit area relied heavily upon a model of development favoring shopping malls and suburban sprawl from the very beginning.  This isn’t surprising, considering the city invented the modern automobile production process; it seems very fitting the development patterns would favor cars and lower-density development.  Even the city itself, as derelict as it is today, is unlike other eastern cities in that it is not at all dense away from its downtown core, owing to the automobile mantra of its development: numerous small single family homes for blue collar auto workers, and a good network of inter-urban freeways connecting them to their jobs via automobile.  This all happened even before the suburban explosion changed the way Detroit was forever.

The Detroit metropolitan area became dramatically over-retailed as socioeconomic processes such as White Flight dovetailed with the region’s auto manufacturing success following World War II, establishing booming suburban areas, mostly in Macomb and Oakland counties to the north of the city, and in west suburban Wayne County, the county containing Detroit.

As time went on, Detroit went fallow as investments neglected the city while the suburbs blossomed and flourished.  Whites moved up and out of the city to better suburbs, as impoverished blacks had to remain in the city while its infrastructure crumbled.  These processes began to act on metro Detroit so early and with such fervor that few large-scale retail developments were ever even constructed in the city itself.  There is certainly nothing resembling a traditional mall in Detroit, and the few retail developments that do exist are mostly along Telegraph Road in the far northwest part of the city, or along the southern half of 8 Mile Road, which marks the northern border of the city.  Nearly all of the large-scale retail development has occurred in the suburbs.

It’s fascinating to me how segregated the Detroit metropolitan area is, with an economic racial disparity to boot.  The two counties representing north suburban Detroit, Oakland and Macomb, are ten percent and three percent black, respectively, while the city of Detroit is 83 percent black.  The per capita income in the city of Detroit is $14,000 while the per capita incomes in Oakland and Macomb Counties average $28,000.  Hugely similar disparities exist in similar ways for crime, access to education, access to jobs, etc.  I realize this is a retail blog, but a socioeconomic history is always visible in the built landscape over time, and it informs the way retail sites behave too.

In keeping with its auto-centric theme, and similar to how many suburbs nationwide were constructed, most of Detroit’s suburbs were built with automobile commuting in mind.  However, as growth in the region slowed due to economic factors and competition in the auto industry, so too did the demand for retail in the region. In the past ten years or so, metro Detroit has lost at least four major regional or super-regional shopping malls, in addition to at least as many enclosed neighborhood centers.  As a whole, metro Detroit is shrinking, having lost 3.5% of its population since 2000, one of only five of the fifty largest U.S. metropolitan areas to shrink during that time period (Pittsburgh, Cleveland, Buffalo, and New Orleans were the others).  However, most of these losses occurred in the city of Detroit; all other counties in the Detroit region have reported gains in population.

Whether you happen to mourn the loss of these shopping malls or celebrate their demise in the eyes of progress, I think most people can agree that these places provided a solid foundation for memories and community-building for at least a couple generations of Detroiters.  After all, they were/are the de-facto downtowns that most of these suburbs lack.  For this post, we’re going to stray from the failures in the market for once and instead focus on a success: Oakland Mall.

Oakland Mall opened in 1968, flanking the northwest corner of 14 Mile Rd. and John R. Rd., adjacent to Interstate 75, which was completed just prior to the mall’s construction.  The mall was built on the southern edge of the city of Troy, a large northern suburb of Detroit located in Oakland County, the mall’s ostensible namesake.  Troy is located 15 miles north of downtown Detroit, and has a population of 80,000 as of 2010.  Troy is home to numerous corporations and white collar jobs that have been purged out of the city over the past fifty years or so.

Oakland Mall originally opened as a smaller dumbbell shaped mall, anchored by Detroit-based stalwart Hudson’s on the western end, and Sears on the eastern end.  A Detroit-based S.S. Kresge store was in there somewhere too.  Sears actually pre-dates the mall, having opened in 1965 as a standalone store.  Developers must have seen the centralized location and recent opening of I-75 as a no-brainer.  In addition, Wrigley Supermarket flanked the north side of the mall in between the two anchors.

One year later, in 1969, a small upscale mall called Somerset Mall opened about 5 miles away, also located in Troy.  Anchored by an existing Saks Fifth Avenue store which opened in 1967, the small mall was also anchored by Bonwit Teller.  This mall and Oakland Mall have both thrived in Troy ever since, despite massive expansion efforts on the part of both centers.

During the 1970s, little changed at Oakland Mall as other centers were built in and around metro Detroit.  Wrigley Supermarket closed and was converted to a JCPenney in the late 1970s, and the mall remained a simple dumbbell.  Meanwhile, the massive Lakeside Mall opened in 1976 just 12 miles northeast of Oakland Mall in neighboring Sterling Heights.

In 1980, amid pressure from competition and ample growing demands, Oakland Mall embarked on a massive expansion.  The extant JCPenney/former supermarket was demolished for a new northern wing.  Unlike the original one-level mall, the expansion was two stories and featured a new JCPenney as well as a movie theater.  This made for a rather unique setup, as the two-level expansion wing seems to miraculously sprout from the original one-level mall.

During the 1990s, competition from other centers could have put a strain on Oakland Mall, but didn’t.  In 1996, Somerset Mall embarked on a massive expansion project, adding a new three level building across the street from the original mall, more than quadrupling the center’s size.  It was renamed Somerset Collection, and became the most upscale mall in the state.  This repositioning didn’t hurt Oakland Mall as much as it could have, considering the two malls are only five miles apart, because Oakland Mall is positioned to be more mid-range.  Instead, the malls have continued to complement one another.

In 1998, major competition also came with the opening of Great Lakes Crossing, a mostly off-price/outlet mall that opened in Auburn Hills.  Fortunately for Oakland Mall, Great Lakes Crossing was both far enough away and not as much of a hit as expected.

Oakland Mall’s more recent history is mostly one of anchor changes and minor updates, as the mall has continued to enjoy success amid fierce competition.  In 1987, Kresge closed, and in the late 1990s a food court was added where a former Burger King and Godfather’s Pizza stood.

In 2000, the movie theater closed, and was later converted to Steve and Barry’s, which itself closed in 2009 only to be replaced recently by Michigan’s first Famous Labels, a similar off-price discounter.

In 2001, Hudson’s became Marshall Field’s, as Target Corporation rebranded all of its main line department stores after its most famous Chicago nameplate.  That became moot, however, in 2006, when Macy’s acquired Marshall Field’s and rebranded them as Macy’s.

Also interesting to note is that in 2004 Lord and Taylor was interested in adding an anchor store at Oakland Mall, but lost interest pretty quickly in the process.  This would have been an interesting addition to the mall, as L&T is significantly higher end than most of the stores here, and also curious because they already had a store at Lakeside Mall.  And, at the time, there was also one at Fairlane Town Center, which closed in 2006.

I first visited Oakland Mall in 1992, on a family trip to Michigan.  I remember seeing the old massive pylon, before it was toned down to muted modern standards later on, and I remember being fascinated that the third wing of the mall sprouted from one to two levels somewhat spontaneously from the original mall corridor.  While the mall has received a few cosmetic updates, it’s been pretty much the same for over thirty years.  It’s still successful, and provides a mid-market complement to the massively upscale Somerset Collection located just 5 miles away.  It’s also held its own against other developments in Oakland County, and will continue to be a major player on the scene as long as it remains current.

I took the pictures featured here in June 2011.

 

 

Schuylkill Mall; Frackville, Pennsylvania

I grew up watching ’80s teen movies and sitcoms–things like Fast Times at Ridgmont High or Saved By The Bell–and they all created the impression that California was this sunny mecca of palm-tree filled mall atriums and penny fountains, that the west coast was where the mall truly came from, the rest of the country was just trying to horn in on their sun-spackled glory. Almost four years ago, I moved to California. I then realized that we not only have fewer malls than most other developed parts of the country, but that (with the notable exception of the immediate Los Angeles area) they’re a lot more secondary to American life than they are in most other places.

Weirdly, the place that got far more of these concrete palaces is the less-glamorous rust belt.Pennsylvania, in particular, has a mall, or two, or three, in nearly every community of significant size. This mall, the Schuylkill Mall in Frackville, is one of three enclosed malls along a rural stretch of PA route 61 in east-central Pennsylvania.

The Schuylkill Mall opened in 1980, developed by Crown American properties, with Kmart, Hess, Sears, and Pomeroy’s as anchor stores. With around 800,000 square feet spread across a “T” shaped pattern, the mall was extremely large, especially given its rural trade area, and initially opened with a bevy of mid-range national tenants including Gap, Deb Shops, Spencer Gifts, Record Town, Jeans West, Foxmoor, Fashion Bug, B.Moss, Waldenbooks, Claire’s Boutique, Afterthoughts, Listening Booth, Slack Shack, KB Toys, and Footlocker. In 1987, a fifth anchor–Phar-Mor–opened on the mall’s north side to complete the roster, and that same year Pomeroy’s was sold off to The Bon-Ton, and the store changed nameplates to what it is today. For much of the 1980s and 1990s, this fairly dark and brown center was the dominant retail draw in the region, far dwarfing the two smaller malls south of it along route 61.

The Schuylkill Mall was never a fancy place. This part of Pennsylvania is rustic and blue collar, known for coal mining and industry. In fact, this area’s biggest claim to fame is nearby Centralia, a ghost town sitting atop an underground coal mine fire that has been burning since 1962. Despite this, the mall has always been at least somewhat successful and never exactly dead throughout its existence, serving as a mid-range catch-all for people living miles in every direction.

Hess’ closed their store at some point–possibly 1994 when the entire chain went belly-up–and their store was replaced by the Black Diamond Antique Mall, which occupies the space until today. Much of the wing leading to it has died out, and what few stores exist are somewhat temporary/lower tier operations (including a model railroad club!) In 2003, Crown American merged with PREIT, who is the current owner and operator of the mall. I visited the Schuylkill Mall twice, in 2004 and 2007, and took this set of photos on the latter date. Although the mall’s condition was around the same during those two visits three years apart–i.e., not great, but still with a fair amount of activity and national tenants–several accounts have noted that the mall’s fortunes have declined precipitously in the last several years, with many national tenants such as Kay Jewelers, Claire’s, Chik-Fil-A and Waldenbooks (duh) closing their stores in the mall.

What’s perhaps most interesting about this odd, beat up mall is its condition. It appears like it has gotten little love or attention since its 1980 opening, with its dated, primary-color logo and triangular planters hanging on like a hawk’s talons to a rat. Or something. Do you know what’s going on with this mildewy palace on the hill?