Shopping Centers Today

NOV 2018

Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)

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N O V E M B E R 2 0 1 8 / S C T 19 Purifico. "There is that brand- awareness factor because some of the people had heard about it but had never really seen it in action." These examples are evidence of the desire among many online retailers to try out a temporary physical presence without having to commit to a traditional long-term lease, Purifico points out. "We are seeing a lot more retailers wanting to try it for just two or three months, converse to doing a five-year lease," he said. Yet another trend involves retailers that already have a traditional shopping center store in one market and opt to use temporary spaces to test out new markets. Last year Yankee Candle hired JBC to help open 15 spots across four states where the former did not yet have a presence. "The traditional retailers are jumping into this now, because they need to keep pace with e-commerce; they need to experiment with these new products or new cities," said Purifico. E-commerce retailers, for their part, need physical spaces to help them match the visibility their brick-and- mortar rivals already enjoy. Specialty retailers now account for about 10 to 15 percent of total rental revenue at malls and in shopping centers, says Purifico. "For the first time, every major mall and shopping center and lifestyle center right now has separate specialty-leasing departments — separate from [those of ] the permanent people," he said. Purifico points to a definite shift in mall owners' attitudes toward temp spaces. "The first time, 25 years ago, when I knocked on the door of King of Prussia Mall to lease a Halloween store for three months, they looked at me like I was from another planet," he recalled. "They only did 10-year deals. Now it has become lifeblood for these malls." In fact, the popularity of these programs among landlords is such that finding new tenants can at times be a challenge, Purifico says. Consequently, some owners have been less careful with the tenant mix than they should be. Purifico cites instances in which landlords were inviting multiple cell-phone retailers into a single mall. "The malls were making their budgets," he said, "but it was hurting their retailers." Thankfully, owners are coming around. "They understand that they can't keep doing this and [that they] need to incubate new tenants," Purifico said. "This pop-up industry is the vehicle that is going to help them to achieve that." Q ABCmouse Early Learning Academy promotes itself through 25 kiosks; Yankee Candle opened 15 spots to try out new markets

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