H&M Store closing [NorthPark Mall) (Houston, Dallas: live, delivery)

[ParaguaneroSwag]

Originally Posted by oil capital

It might just be a transitioning period or something, but their map shows a lot of empty spaces for a shopping center that supposedly has a waiting list (especially when their map shows the "coming soon" shops).

The retail world has changed a lot in the last few years...

I don't know the specifics for NorthPark, but usually malls and shopping areas that have exclusive shopping do have waiting lists but not for the entire mall. Being that NorthPark is huge, not all of the mall is an attractive space but specific areas do have waiting lists for tenants.

[oil capital]

Originally Posted by sparkman75229

Why would a overt Houston troll want to argue with someone who is an expert in this area?

LOL FWIW Oil Capital is a reference to Tulsa. (and declaring oneself an expert on an internet forum does not make one so)

[oil capital]

Originally Posted by R1070

NorthPark typically only lists new stores that are currently building out their space on the map. The empty spots are for new stores that haven't started buildout or for stores that are relocating to different spaces within the mall. They don't want to list the stores twice. The only area that looks interesting to me is the row of stores emptying along the upper corridor next to Dr Martens. They might be up to something there as it appears to be some type of consolidation of space in the works.

That's interesting, and makes some sense. But FWIW, they currently show Burberry in both its current spot and its "coming soon" spot.

[oil capital]

Originally Posted by ParaguaneroSwag

I don't know the specifics for NorthPark, but usually malls and shopping areas that have exclusive shopping do have waiting lists but not for the entire mall. Being that NorthPark is huge, not all of the mall is an attractive space but specific areas do have waiting lists for tenants.

That makes a lot of sense and is no doubt correct. And from the number of vacant spaces shown on their map, it's apparent that while Northpark may have a waiting list, it must also be on a bunch of waiting lists (and that is probably the case for all of the upper-end malls these days.

[LocalPlanner]

Originally Posted by TurtleCreek80

I agree that the retail landscape overall is rough but NorthPark & Highland Park Village are doing extraordinarily well even in this environment.

I know this is your area of expertise, but from my professional viewpoint the retail landscape isn't really "rough." It is definitely changing a lot, so navigating it has become more challenging to be sure. Most significantly, department stores and the general economic model of malls have come into question, and a number of legacy retail businesses have issues (often because of their financial structure). Places like Northpark - the "fortress malls" that attract upscale shoppers and have long been successful - will be fine, but they have to adapt too. But in general, retail space is very much in demand, outside of malls.

I would imagine H&M has been challenged by Shein.

[BLDSoon]

Originally Posted by LocalPlanner

I would imagine H&M has been challenged by Shein.

Shein, Zara, Amazon, you name it.

They, like every other large clothing retailer has been downgrading their physical footprint in US (though not by a whole lot) and upping their game online.

[TurtleCreek80]

Originally Posted by LocalPlanner

I know this is your area of expertise, but from my professional viewpoint the retail landscape isn't really "rough." It is definitely changing a lot, so navigating it has become more challenging to be sure. Most significantly, department stores and the general economic model of malls have come into question, and a number of legacy retail businesses have issues (often because of their financial structure). Places like Northpark - the "fortress malls" that attract upscale shoppers and have long been successful - will be fine, but they have to adapt too. But in general, retail space is very much in demand, outside of malls.

I would imagine H&M has been challenged by Shein.

I didn’t expand enough on that thought - “traditional, mall-based retail is rough.”

Anything below an A class mall is a pretty bad place to be right now. It’s not uncommon to see 30%+ of the storefronts vacant.

[LocalPlanner]

Originally Posted by TurtleCreek80

I didn’t expand enough on that thought - “traditional, mall-based retail is rough.”

Anything below an A class mall is a pretty bad place to be right now. It’s not uncommon to see 30%+ of the storefronts vacant.

Yes, the whole model of malls is supposed to be that the rent is almost entirely paid by the in-line tenants, who live off the traffic and marketing that historically were provided by the department stores and mall events / programming. Furthermore, the rents are supposed to be elevated above what they would pay in other retail settings because of the built-in traffic; this paid for the also-elevated mall operating expenses (climate control etc.).

This model worked for middle class malls from the 1960s - 1990s. However, things began to change when big-box category-killer discounters started proliferating in the mid to late 1990s, as did Walmart and Target. The category killers wiped out whole sets of in-line retailers (toys, bookstores, etc.) and Walmart / Target seriously damaged middle class department stores like Sears and JC Penney. (Over-leveraged and poorly run retail companies were the most vulnerable.) Basically, the middle class found they could get adequate selection at cheaper prices at big boxes, plus they didn't have to navigate mall parking or deal with loitering teenagers.

Honestly, the writing was on the wall for middle-class malls by the mid-2000s from these factors alone. Then Amazon / online came into the picture and provided another punch to the gut. Tenants catering to the middle class, if they could compete against the boxes, found they had no reason to pay elevated rents in malls, which were declining in the traffic from middle-class consumers.

The other factor was the emergence of dining as a traffic driver. Outdoor lifestyle centers / town centers featured dining fully integrated with the other retail, unlike malls. Plus middle class malls no longer had the operating revenue to fund programming and other enhancements, whereas lifestyle centers (which don't have to pay for climate control costs) could fund those things. They also usually included some office and even hotels to provide more even traffic day/night. And, you have a chance (sometimes a slim one) to park close to the entrance of your primary destinations.

So, many / most middle class malls are in a death spiral, albeit sometimes a slow-motion one. The only malls I see having a long term future are the ones that are heavily oriented to more upscale shoppers and can incorporate more non-fast-food dining effectively.

It's crazy to think that earlier in my career, malls were considered an "economic foundation" or "anchor" (in the positive sense) for an area. That's mostly not true anymore except for truly upscale places like Northpark and The Galleria Houston, or at least properties that cater to both middle class and affluent consumers.

[sparkman75229]

Originally Posted by oil capital

LOL FWIW Oil Capital is a reference to Tulsa. (and declaring oneself an expert on an internet forum does not make one so)

I know, I have relatives in Tulsa. I read a number of your posts and they are all positive Houston and negative Dallas. If you don't want people to dismiss you as a troll, then maybe you should work on your delivery.

TC has demonstrated her expertise many times over.

[R1070]

Originally Posted by oil capital

That makes a lot of sense and is no doubt correct. And from the number of vacant spaces shown on their map, it's apparent that while Northpark may have a waiting list, it must also be on a bunch of waiting lists (and that is probably the case for all of the upper-end malls these days.

1) The Burberry store actually closed and now they just have a pop-up in a different location.
2) The new store is pretty far along and should open this Summer I think.