Jamestown (owner/developer of Ponce City Market/ATL as well as 11 other retail-based developments) is now using technology to show retail tenants that physical locations are a big factor in driving their online business. To me, that suggests things are really bad at the mall.
- The data Jamestown uses tracks where the mall’s core shoppers come from, which stores they visit (and how often) and whether they later make a purchase through that retailer’s online store.
- This comes in handy if a tenant complains to Jamestown about sales slowing down. Jamestown can provide data showing the value of the tenant’s physical location.
- Reportedly, Warby-Parker, which started as strictly e-commerce, reports that when they open a store in an area, their actual e-commerce in the same area shoots up 15-20%. The physical store becomes the ambassador of the brand.
Other top mall tenant trends: Food and Fitness (Source: Phillips Edison)
- More studios signing mall leases: CycleBar, Soul Cycle, Core Power Yoga, Orange Theory Fitness, Pure Barre and Club Pilates.
Health Conscious Fast Casual Restaurants
- Salad concepts like Grabbagreen and organic/fresh ingredients options like Core Life Eatery, sweetgreen, BibibBob, Taziki’s and Newks becoming key mall tenants.
- By 2020, there will be 200 Food Halls in the U.S. (double the number today) fueled by millennials and foodie culture.
- Eataly, the leading food hall developer, has 35 locations with plans for additional food halls.