THE MORE THINGS CHANGE THE MORE THEY REMAIN THE SAME

Implications: -Five reasons and probably many more have brought about the "Blurring of the Definition of the Mall". In my mind the main reason has been the changing retail environment.

-As department stores have left the marketplace because of their failure to provide for the needs of their customers, developers have had to adjust the tenant mix of their projects to insure that customers need are being met.

-When the developer recognizes the customers needs to be provided by his development and merchandises the tenant mix to provide for those needs , he will be successful.

-While physical changes have BLURRED the definition of the mall, satisfying customers needs with the correct tenant mix will always remain the most important characteristic of a property.

Analysis: The recent article by Joe Gose about "Hybrid Centers Blur Definition of a Mall" addresses a huge change in the retail real estate industry. Developments such as "power centers" filled with category killers, lifestyle regional centers, hybrid centers [made up of traditional retailers and discounters] are all part of the change. There is no one reason for the change. Some stated reasons are : 1. the reduced number of department stores which are available as anchors, 2. land costs, the availability of acreage in popular areas to build regional properties, 3. the opportunity to gain zoning approvals in desirabile communities, 4. developmental costs, 5. the changing retail environment. These five reasons and probably many more have brought about the "Blurring of the Definition of the Mall".In my mind the main reason has been the changing retail environment. Retailing as an industry, simply put, "is providing for customers needs". As the needs of the customers change the retailer must change to insure success. To satisfy their needs the customer will shop wherever they feel that their needs will be satisfied. The same customer will shop at Target, the local department store, Kohls and DSW, for example.The ability to recognize your customers need, provide for them, then change when the needs change are key to a retailers success. As department stores have left the marketplace because of their failure to provide for the needs of their customers, developers have had to adjust the tenant mix of their projects to insure that customers need are being met. Companies like Kohls, JCPenney and Target, which provide fashion and style for a price have changed the marketplace. Consumers have expressed the need for fashion and style at a price making these three retailers successful at providing for customers needs. Success generates credibility in the marketplace as well as capital dollars for expansion. Retailers look to developers to provide the growth opportunities. Growth without recognition of customers needs usually produces less than satisfactory results. Attention to customers needs in the marketplace arms the developer and the retailer with the information needed to adust the tenant mix of the project. As an ever changing industry retailing brings a huge challenge as well as a huge opportunity. A vacant department store becomes a potential book store or a theater location. It also could become a potential Target, or Kohls location. Neither of which probably existed when the project was originally built. They also were not considered in the past because of their value pricing. They are now recognized as successful providers of customers needs and positively contribute to the content of the center. As space providers to the retailing industry, developers also need to be aware of retailers needs. Like the retailer, the developer needs to know where the retailer want to locate as well as their goals for success. Simply put, "the more business the retailer does, the more rent they can pay, so it behooves the developer to help the retailer do more business". While the physical changes mentioned by Joe Gose in his article reflect major changes, the one thing that will never change is the need for the tenant mix to reflect the needs of the customers. When the developer recognizes the customers needs to be provided by his development and merchandises the tenant mix to provide for those needs , he will be successful. Other issues come into play, such as location, accessability and service but tenant mix is the measure for success.The importance of tenant mix being designed to address customers needs has always been the same and will continue to be the same in the future. While physical changes have BLURRED the definition of the mall, satisfying customers needs with the correct tenant mix will always remain the most important characteristic of a property.