State reflects shifting mall landscape
SoNo Collection opening edges into already competitive field
At the start of the year, the Stamford Town Center and southwestern Connecticut’s other malls were already grappling with major shifts in their industry. Now, a landmark opening in Norwalk has altered the area’s retail landscape forever.
The launch last week of the SoNo Collection mall in Norwalk has ramped up the challenge of retaining and attracting tenants to the Stamford Town Center, only 8 miles to the west and recently listed for sale, and the malls in Danbury, Milford and Trumbull.
As they contend with the ongoing march of ecommerce, the malls are also trying to maintain robust retail offerings, expand their programming and upgrade their facilities to make their properties dining and entertainment destinations.
“I think Stamford Town Center and SoNo Collection are too close together for most national retailers to consider having stores in both locations,” said Jessica Curtis, a Stamfordbased senior vice president for commercial real estate firm CBRE. “A newer property has a leg up because it has, in theory, more thoughtful design and a more current group of tenants. But a lot will depend on the longterm performance of SoNo Collection. If sales coming out of SoNo Collection aren’t strong, then I don’t think you’ll see as much fallout in Stamford as you might think.”
Bloomfield Hills, Mich.based Taubman Centers, the owner of the 515,000squarefoot Stamford Town Center in the downtown mall, last week said, “As the retail evolution continues, we are exploring all possible alternatives for the asset, including a sale.”
Stamford Town Center’s price would depend on “an interested party (that) would conduct its own analysis to determine what it believes is the value of the asset and would (then) typically submit a bid based upon that analysis,” the company said in a statement this week.
It is uncertain whether SoNo Collection’s opening contributed to Taubman Centers’ decision to list Stamford Town Center, a move that could pave the way for its redevelopment. Publicly, the company has not expressed concerns about the new mall.
“The commitment of retailers to open in another center in Fairfield County continues to validate the potential in the market,” Taubman Centers added in its statement. “As with any new project, there will be great interest in the SoNo Collection, and we believe that anything that brings customers to brickandmortar retail and engages them with brands is positive for all retail destinations.”
High store turnover might have also influenced Taubman Centers’ plans. This year, its Stamford mall has grappled with more than a dozen closings. Ecommerce’s ongoing march and an ensuing wave of corporate bankruptcies have driven the shutdowns of many stores.
Departures this year include Chico’s, J. Crew, Armani Exchange, Ann
Taylor, Gymboree, Charlotte Russe, Payless ShoeSource, The Walking Co., Pottery Barn and Williams Sonoma.
In Stamford Town Center’s most recent exit, a Pandora Jewelry store closed Oct. 6, after a 10year run there. At the same time, Pandora has opened a shop at the new SoNo Collection.
Similarly, women’s clothing retailer Chico’s has opened a store at SoNo Collection, after closing its Stamford Town Center location in the summer.
“Some store closures will be more impactful than others,” Curtis said. “Store closures that are the result of bankruptcies, reorganizations, poor concepts and real estate mistakes bear less weight than, for example, if the Apple store at Stamford Town Center were to close. When a brand that is highly regarded in the retail industry doesn’t perform, that’s when a red flag is raised for everyone else.”
Today, a number of vacant storefronts dot the Stamford mall, across several levels. But all of its anchor spaces are filled — by Barnes & Noble and by the Macy’s and Saks Off 5th department stores.
And like the Stamford Town Center, the state’s other malls are vulnerable to the ripple effects of corporate troubles.
Forever 21, which filed for bankruptcy last month, put its stores at the Stamford Town Center, Danbury Fair mall and Westfield Meriden mall on its list of 178 potential closings.
SoNo Collection, a gleaming complex covering approximately 700,000 square feet next to the Interstate 95Route 7 junction, features about 100 stores that are open or set to debut soon. Nordstrom and Bloomingdale’s, which is scheduled to launch Nov. 14, lead its lineup.
A number of retailers — including Abercrombie & Fitch, Clarks, Cohen’s Fashion Optical, H&M, Journeys, Kay Jewelers, Talbots, Verizon and Victoria’s Secret & Pink — have expanded to SoNo Collection while keeping stores at Stamford Town Center.
At the same time, Stamford Town Center and the other older malls are still bringing in new stores.
During the past month, Perfume World and The Sports Fan stores debuted in Stamford, following a series of openings earlier in the year.
Danbury Fair this year has added H&M, New York & Co. and Soft Surroundings, while a number of existing tenants have expanded or renovated their spaces within the 1.3millionsquarefoot mall.
Citing those developments, Danbury Fair’s owner, S&P 500listed Macerich, said it was not worried about the opening of SoNo Collection. The latter stands about 20 miles south of the Danbury mall.
“Anytime a mall is built from the ground up, it is a true testament to the strength of the market,” Macerich said in a statement. “We welcome choice and know that Danbury Fair’s location and offerings are not in direct competition with the new center. Danbury Fair’s momentum is very positive and we do not foresee anything changing with the addition of the new mall.”
Messages left for the Westfield Trumbull and Connecticut Post Milford malls were not returned.
Increasingly, malls are recruiting nonretail tenants to bolster their properties’ “experiential” appeal.
Stamford Town Center’s arrivals this year include a Genesis car showroom and a Crystal’s Fun Spot children’s play center.
At the Milford mall, the restaurantandgaming chain Dave & Buster’s opened an establishment last fall. It faces an LA Fitness gym.
“As the largest mall in Connecticut, we have a lot of space to fill,” Ken Sterba, Connecticut Post’s general manager, said shortly before the opening. “We see from our customers and shoppers that they want experiences.”
The older malls are also pressing ahead with major capital improvements.
Danbury Fair, which opened in 1986, recently debuted its new play area and is building a new family restroom. Other interior renovations there in the past few years have included seating areas, mallwide WiFi access and charging stations.
In recent years, Stamford Town Center has complete the installation of a fiberoptic system to expand the property’s technological capabilities and improve its energy usage, installed LED lights in its parking garage, and mechanically upgraded its cooling systems. The property opened in 1982.
Those malls are also expanding their programming, with more events such as concerts and workshops, to attract shoppers.
“All these properties are going above and beyond and, in some cases, even hiring eventdevelopment people to create ongoing activities,” Curtis said. “They’re really working hard to create a sense of community and reasons for people to come to their properties, other than just spending money and buying things. Good programming is something our market expects and wants.”