Alex Barreira’s Post

"By Kate King Aug. 6, 2024 9:00 pm ET The owners of the shopping center at Legacy West considered adding a department store to attract visitors and luxury retailers to their mixed-use project in #Plano, #Texas. Instead, Prism Places, Inc. and its partners opted for a lavish food hall. The food hall opened in 2017 with more than two dozen #restaurants and #bars, live music and a brewery. Within a couple of years, it was drawing 30,000 visitors a week and a Louis Vuitton shop moved in across from the main entrance. Tiffany & Co., Gucci and other luxury brands followed, with some pulling out of the nearby mall’s Neiman Marcus Group to open at Legacy West. “We said, ‘Instead of going after a department store, let’s do something that’s more fun and more interesting and that will drive a lot of traffic,’” said Mark Masinter, a partner on the project who handles leasing and tenant curation. #Department stores are bleeding customers, and landlords no longer view them as magnets for shoppers. Discounters are underpricing them. Specialty stores are outmaneuvering them. And luxury brands are sometimes bypassing department stores to open their own shops.  The surviving operators are making big moves in hopes of turning things around. Saks Fifth Avenue’s parent company is buying rival Neiman Marcus. Nordstrom executives are exploring taking the company private. Macy's new chief executive is closing stores while trying to improve the shopping experience at its leaner fleet.  But department stores’ long-term decline will be difficult to reverse. Their sales peaked just before the turn of the century and have been on a downward trajectory ever since, according to U.S. census data...." The Wall Street Journal

Hot take, all luxury department stores (Saks, Neiman’s, and Nordstrom’s (not that they are in the same tier of luxury as the other 2)won’t exist in another 15 years as anything more then malls within a mall (aka big boxes with 50 leased boutiques inside and MAYBE a small amount of owned mens and woman’s contemporary. The reason being they don’t know how to buy goods anymore, brands are going to want to protect themselves from there constant markdowns caused from there poor buying choices, and brands are going to want to manage there own inventory. End of day, private equity owns everything now and are going to find this a safer play than managing stores as they previously were with no understanding of how to do so. We are already seeing this happen with Saks in NY as now more of that store is leased than owned!!

Embracing Change: Why Closing Stores Can Be a Good Thing   In the fast-paced world of retail, knowing when and what to close is just as crucial as opening new stores. At Rue Madame Fashion Group (RMFG), we believe that every store is a delicate alchemy—a balance of location, brand, mall, and clientele. This year, we are making strategic decisions to close 4 stores, but it's not a setback; it's an opportunity to refine and optimize our presence.   Often, leaders shy away from discussing store closures, viewing them solely as negative outcomes. However, at RMFG, we see them as a natural and positive part of our growth strategy. A well-timed store closure can enhance overall performance, streamline operations, and allow us to focus resources on more promising ventures.   This year is particularly dynamic for us: - **Opening 13 new stores**: Expanding our footprint and bringing our curated fashion closer to you. - **Refitting or moving 8 stores**: Enhancing your shopping experience with fresh, modern spaces. => **in total Managing 25 projects**: Including these openings, closures, and renovations, ensuring we stay agile and responsive to market demands.   We're committed to creating vibrant, welcoming spaces that resonate with our customers. Whether it’s a new store in an exciting location or a refitted store in a familiar one, each decision is made with our clients in mind, aiming to deliver the best shopping experience possible.   #RetailStrategy #BusinessGrowth #StoreDevelopment #RueMadame #Clémence #RetailInnovation #CustomerExperience   Alan Zagury Rue Madame Fashion Group

A new generation of customers expect more from the places they shop and those experiences are not happening in the department store. When considering this for Legacy West alongside our partners at Open Realty Advisors, we knew we had to do something that's more fun and more interesting, resulting in a 20 stall Legacy Food Hall across from luxury tenants like Louis Vuitton, Tiffany & Co., and Gucci. Hear more about this shift in retail from Stenn Parton and Mark Masinter in the latest The Wall Street Journal article by Kate King. https://lnkd.in/gmnZ__Zg #retail #realestate #luxury #leasing

More than 50% of malls still have legacy anchors that no longer draw the same level of traffic as they once did. These anchors were highly effective during the Industrial Revolution era, but they can no longer meet the needs of modern consumers who demand experiences, convenience, and flexibility. To remain relevant, mall spaces must engage communities and offer what consumers want. For example, converting malls into lifestyle centers with restaurants, daycares, dog care facilities, parks, gyms, and other engaging features would make them more appealing to visitors. Many mall retailers lack differentiation and primarily use their spaces as distribution points, effectively competing with Amazon. However, shopping needs to be fun, unique, personalized, and enjoyable. Most people are no longer excited to visit stores like Macy's or J.C. Penney.

 Just a few thoughts to add to the discussion below: In 2016, Corso Como opened a NYC store at the Seaport. The location was difficult, however, the area was in development and I guess the company was focusing on the future. The space included the store and the gallery wing, designed to host events and exhibitions. The assortment of the store itself read "designers". To me, it was the best-curated buy I have seen. Whoever bought it - had great taste and understanding of the urban client. The idea was simple and modern: to create an environment/place that caters to the test of the fashion community - a place to hang out and shop (this is the ongoing dream of every luxury CEO). It didn't work out. The store was closed after a few years. Remember SAKS+Barney's project? Similar. To make these types of initiatives successful you need serious planning, the right people, consistency, financing, and a few other things:)) However, the concept is growing in popularity and we do see a trend: Marsèll, a Made in Italy, high-quality Italian footwear and accessory brand, has just opened its first flagship store in Milan, at Via della Spiga 42, in the city’s "Quadrilatero della Moda" fashion district. The store is the result of eight months of close collaboration between Marsell and the Berlin-based Lotto Studio. Together, they have designed a space where the whole of Marsèll’s offer and identity can express themselves at their best within an open, modern, comfortable, and somehow “solemn” space. The project’s brief had the aim of creating a unique space where the modular environments seen in the rigorous architecture of Marcel Breuer, a major exponent of the Bauhaus design movement, could blend with the meditative atmospheres of Carlo Scarpa, one of the most important 20th-century designers and architects. This space hosts long terraces that delimit a central area, imagined as an exhibition space. It is accessed via a large staircase characterized by a walnut bookcase conceived as a permanent work of art, which extends to the full height of the space and forms a connecting element between the floors. The idea - shopping, visiting the "art" and creating the community. This is the future of retail. The future can be bright for those who can do it right. #retail# #fashion #wwd #bof

I was encouraged to see the demand for #retailspace in #London has risen 25% year on year with 356 active store requirements in the first quarter as reported by #colliers. The food and beverage sector accounted for 146, fashion retailers 57 and leisure and experiential operators 55, compared with 87 for F&B, 50 for fashion and 36 for leisure in the first quarter of 2023. From the 57 fashion requirements, Marylebone, Soho and West End took the lead with 12 each, followed by Knightsbridge (nine), Covent Garden (seven) and Islington (five). A total of 10 of those are new entrants to the UK market from the US, Scandinavia, Italy and France. The tracker also showed that demand for pop-up space across the capital is beginning to decrease, dropping by 10% in April year on year, which it said reflect "a return in confidence from retailers to take permanent space". I will be reviewing with interest this growth in retail space from existing brands and new entrants. #london #retailspace #fashion #trends

Closing the 136,000-sq.-ft. Saks Fifth Avenue department store in downtown San Francisco to the public except for by-advance-appointment-only admission could be a last measure before closing the entire store permanently. What happened to San Francisco, the shining city on a hill after Tony Bennett left his heart there? Decades ago it was considered America’s cleanest city and most popular tourist destination. The Saks announcement follows closures and announced closures in San Francisco by such iconic retail brands as Macy's, Nordstrom, Rack, L’OCCITANE Group, adidas, ALDO Group, J.Crew, EXPRESS, Hollister Co., the LEGO Group, Lucky Brand, Madewell, Old Navy, Whole Foods Market Cinemark, SEPHORA, The North Face, Walgreens, Target, etc. The reason for closures range from high taxes to decline in business but a resounding underlying cause is crime, crime, crime: break-ins, shoplifting, flash mob robberies, drug addicted loiterers, etc. The Union Square district is overwhelmed with crime and homelessness. It’s disheartening that physical stores have to resort to permanent closures or partially opening by-appointment-only as Saks announced. San Francisco has been hit so hard with store closures that a new ordinance was proposed earlier this year to require companies to give six months notice of any planned store closure.

SOUTHDALE CENTER | And Then There Were 21! ▪ The latest announcement for SWAROVSKI, Janie & Jack Children & Infant Apparel, Marc Jacobs, Kendra Scott, TUMI, Abercrombie & Fitch Co. & Fitch, Abercrombie Kids, Rowan, and State and Liberty Clothing Co., now takes the total list of newly announced (in 2024) Tenants for Southdale Center to 21… and we’re still counting. More to come! ▪ As a quick refresh, previously announced new Tenants include BREITLING, Burberry, kate spade new york, TORY BURCH, and Watches of Switzerland Group PLC /ROLEX among others. And all of this on the heels of Kowalski Companies’s Q2 opening at Southdale and continuing to successfully serve our local community. Exceeding everyone’s expectations. ▪ So, what’s next? ▪ In addition to more announcements, we expect to share new partnerships with members within the local business community that will benefit from the opportunity to engage with our shopper audience. Local auto dealerships that feature luxury brands, providers in the health & wellness space, financial services and entertainment venues, comprise a number of the relationships that we’ve worked with over the years, and anticipate will once again find a home at Southdale Center leveraging our OOH media and experiential space platforms. ▪ #SouthdaleCenter #DiscoverSIMON #Edina #Minneapolis #OOHMedia #ExperientialMarketing #NewRetail #LiveWorkPlayStayShop

When it comes to luxury retail, being a thriving business means so much more than just selling expensive products to a wealthy clientele. As Vogue Business wisely notes, it’s all about “connecting with communities through shared interests and offering unique experiences.” The creation of private shopping clubs, which allow clients to access everything from personal shopping and styling appointments to trunk shows and other special events, is revolutionizing the high-end retail industry. Instead of just browsing a store, customers are forming close relationships with experts in the field, all while experiencing something unique and carefully curated. Here, we explore how three of the luxury retail world’s most powerful brands, Saks Fifth Avenue, Harrod’s, and Brunello Cucinelli, are using private shopping clubs to actively engage with their customers in a way that builds lasting relationships. https://lnkd.in/eVNqCF4n