I was reading through the latest issue of Retail Traffic yesterday and spotted an interesting article about site selection strategies, and how many of the most successful chains are opening fewer locations and accepting slower but more stable growth patterns. What really leapt out at me, however, was this nugget:
“…Alternately, [Eileen F.] Mitchell (Executive Vice President of RCS Real Estate Advisors, a real estate consulting firm) says Chico’s FAS, Inc. and Coldwater Creek, two apparel chains that serve middle-age women, have been suffering lately because both built their expansion models on locating in lifestyle centers, which don’t get the same level of foot traffic as do regional malls or street locations, especially in a down economy.”
Now, we don’t cheerlead failure around here, but this validates something we’ve said for some time. Many of these inexpensively-produced, rapidly rolled-out lifestyle centers were little more than strip malls with a few gazebos and more pretentious names. They’re not working as replacements for classic indoor shopping malls OR the downtowns they emulate, and part of the reason why is because they generate less foot traffic. Why is this? Because the developers of most–not all, mind you–of these centers stopped paying attention to developing a true sense of place and a destinational feel for these centers, focusing too heavily on convenient parking and lower operating costs. It ignores the commercial value of a streetscape (even an indoor “streetscape” at a mall) and how much consumers regard shopping as a social experience. Victor Gruen, who always fancied himself an urban planner above merely a mall architect, would feel vindicated.