Promenade Hoping for Turn Around in ’94 : Woodland Hills: The mall’s focus is on specialty sotres that cater to high-end shoppers. Three restaurants are planned.
There is still a 25% vacancy rate at the Promenade at Woodland Hills, but things are only getting better, claims its owner, the O’Connor Group.
The hard-luck mall caters to affluent shoppers--but the problem for some time has been that there have not been enough of them.
Bullock’s, a division of R.H. Macy & Co., became one of the mall’s anchor tenants on Nov. 10 when it moved into a building vacated by Robinson’s last year. By all accounts, Bullock’s is doing better than anyone expected at its new site.
“We had a very successful holiday season at the Promenade. Sales were 30% higher than our initial plans for the store. The mall’s demographics are consistent with what Bullock’s has catered to in the past,” said Malcom Rubin, Bullock’s vice president.
He said the store’s presence and success at the Promenade is a “challenge” to O’Connor officials “to continue opening stores” at the mall.
“Total sales in 1993 were flat when compared to 1992,” given the number of stores that closed, said Katherine C. VanDeusen, O’Connor regional director of leasing. “But when you compare store-to-store sales, our (Promenade) stores’ sales were up an average of 18%. We’re really optimistic for 1994,” she added.
One strength VanDeusen is counting on is the mall’s well-to-do customers. She claims the typical Promenade shopper earns about $90,000 per year and has plenty of disposable income.
Despite the affluence of its customers, the Promenade has played second fiddle to the Topanga Plaza mall, located one block away, and its middle-class customers over the years.
While the Promenade’s owners have searched for just the right chemistry of chic retailers who appeal to upscale shoppers, its mall, or center, as O’Connor officials prefer to call it, has often had a high vacancy rate.
The high vacancy rate, symbolized by boarded-up store sites illustrated with portraits of historical figures such as Leonardo da Vinci and Clara Barton, is also reflected in the sparse foot traffic. The pictures are accompanied by catchy slogans like “Come see our many new shops and restaurants--they are a wave of excitement.”
Still, customers remain scarce inside the mall. “We’re not seeing a lot of new traffic, but quite a lot of return traffic. It’s hard to draw the conclusion whether it’s because of the store or the mall,” said Karen Peck, spokeswoman for Eddie Bauer, which has a store at the Promenade.
The large number of vacancies has been attributed to factors such as the lingering Southern California recession and the Persian Gulf War, which affected many businesses. In 1993, the 21-year-old Promenade underwent a $40-million renovation, which kept shoppers away and forced several retailers to close.
Meanwhile, Topanga Plaza, which includes a more diverse list of retailers that cater to customers across the board, has usually been 100% occupied. Indeed, there are some Topanga Plaza patrons who do not think much of the Promenade.
“There’s nothing there. They have specialty shops that sell things that have no practical value and stores that sell clothes to rich old ladies. The only good thing about the Promenade is Ruby’s restaurant,” said Evelyn Bancroft at Topanga Plaza on a recent afternoon.
However, the Promenade’s fortunes are going to turn around in 1994, said VanDeusen. With the renovation complete, giving the mall a clean, airy and bright appearance, O’Connor is going through with plans to, well, turn the mall into the Rodeo Drive of the Valley and its suburbs.
In other words, do not expect Sears, J.C. Penney or McDonald’s to move into one of the 20 store and restaurant sites now vacant at the Promenade, which has space for 79 shops and restaurants.
Also, some tenants whose leases expire this year will be asked to leave, VanDeusen said. “We’ve mutually agreed not to renew their leases, because we’re trying to upgrade the center . . . We’re looking for the high-bred customer, and these stores just don’t fit into our plans.”
VanDeusen declined to identify the tenants who will be asked to leave. But she did say that the Promenade’s “big push” in 1994 will be restaurants. According to VanDeusen, O’Connor has reached leasing agreements with three restaurants that will open later this year, but refused to identify them.
“We’re very selective in the type of tenant mix we’re putting together . . . That’s the only way we could compete because we’re a small center,” VanDeusen said. Specifically, she said the Promenade is trying to recruit retailers that do not aspire to put a store in every mall.
O’Connor’s most important new tenant, Bullock’s, agrees with the mall’s strategy to recruit retailers that cater to more affluent shoppers.
“We have no disagreement with their plans. This is an upscale mall and (O’Connor’s) plans for the future are very good. They’re quite picky about who they allow at the center,” Rubin said. “I would like to see all of the (vacant sites) filled,” he said, adding that Bullock’s wants the Promenade’s owners to stick to their plan to attract retailers that appeal to the well-heeled shopper “so we can maintain the integrity of our store.”
Bullock’s unexpected level of success reflects the successes of other retailers at the Promenade. Ann Taylor was relocated and enlarged, and Victoria’s Secret was enlarged from 1,000 square feet to 6,100 square feet. They are two of the most successful stores at the mall.
