The Huntsville Times -  August 12, 2007

 

Bridge Street's gain to be felt elsewhere

Retailers' exodus to new development may open space in other centers

By Gina Hannah

hen the retail side of Bridge Street Town Centre in Cummings Research park opens in November, many of the stores will be new to the market. Many will not.

Of the stores announced by Bridge Street's developers, more than a half-dozen already have locations in west Huntsville within three miles of the new development at Research Park Boulevard and Old Madison Pike.

Barnes & Noble Booksellers, which has a store at 5850 University Drive, announced last summer that it would open a new store at Bridge Street, moving from the space it occupies now. The bookstore said the new space will allow room for a music section, which the current space cannot accommodate.

Old Navy, which also has a store on University Drive, is slated to move, according to store employees, but corporate officials did not return calls. Neither did other stores that Bridge Street's developer, O&S Holdings LLC of Santa Monica, Calif., have said will open in Bridge Street.

Several of the announced retailers have stores in Madison Square Mall.

It's unlikely that the current stores from these retailers will remain open once the new ones cut their ribbons, said Joel Kotkin, author of "The City: A Global History" and an internationally acclaimed speaker on global, economic, political and social trends. Kotkin often speaks about suburban sprawl and decay.

"Unless you've had a huge increase in your population, something's got to give," Kotkin said. "I don't think you've got that kind of density."

Kotkin said it's become common for older, smaller malls to be replaced by larger new properties, leaving behind empty store spaces.

"They devour each other over time," he said. "Part of what happens is that a retail form that may have been on the cutting edge 20 years ago, 25 years ago gets replaced by something new. The retailer wants to be in the spiffier, newer mall.

"The national retailer doesn't really have a commitment to a place, they just want the sales. There's no emotional attachment."

On the other side of these deals are owners of the new malls who want a sure thing for their properties, said Malachy Kavanagh, spokesman for the International Council of Shopping Centers.

"The issue is, for the shopping center industry, it's very difficult for owners and developers to find tenants. Most times, they gravitate to national and regional chains," Malachy said. "Banks hesitate to lend to independent retailers because of the failure rate."

In addition, national retailers require more space these days than say, 20 years ago, Malachy said. "Twenty years ago, a Barnes & Noble might have 3,000 square feet of space; now they want 20,000 square feet and a coffee bar. If you're an older mall and you can't accommodate that, in some cases the retailer may look to relocate."

Older malls, which typically range from 500,000 square feet to 700,000 square feet, are particularly vulnerable to an exodus of stores, Malachy said.

"Twenty years ago that wasn't considered small, but now 1 million square feet is the norm, sometimes with living areas adjacent," he said. "There's more to (the malls)," he said. "They must be more attractive. You can't build a concrete box and expect to lure customers."

To backfill empty store space, mall owners are looking to reinvent their properties, Kotkin said. One owner he knows took over a declining mall in Texas and filled it with retailers that focus on the Hispanic market. The Galleria in Sherman Oaks, Calif., has a focus on restaurants, movies and other entertainment.

"A lot of it is gong to depend on how strong the local economy is," he said.

Some malls have undergone major expansions to increase available space for retailers, Malachy said. Others, such as the old Market Square mall near downtown Huntsville, are simply demolished to make way for new development.

"They have to differentiate their retailers from the competition," he said. "What form that takes depends on the retailers he can get.

"It's more competitive these days; everybody wants the Disney experience," Malachy said. "Stores have videos going; you can try out sporting goods. They've created a very interactive experience between you and the goods."

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