Regional Mall Owners Experiment With Supermarkets

Elaine Misonzhnik / Retail Traffic

The next step in the evolution of regional malls is actually a blast from the past as supermarkets—a staple in the early days of the sector—are making their return…

…“It’s an excellent strategy,” says Jeff Green, president of Jeff Green Partners, a Phoenix-based retail real estate consulting firm. “It’s a way to lease space to somebody who generates a lot of traffic on an ongoing basis. And because the mall pulls people from a greater distance [than a shopping center], it’s now seen as a pretty good place for food stores to locate.”…

…However, Green cautions mall owners against chasing just any type of supermarket tenant in an effort to capitalize on the new trend. A mall is a somewhat inconvenient environment to shop for groceries because of parking and access issues, he notes. In order to give people a reason to buy their groceries there, the mall supermarket has to have a point of differentiation. Aldi, for instance, is known for its low prices. Seafood City caters to Asian consumers with products they may not be able to find elsewhere. And Nino Salvaggio, the store near Taubman’s Mall at Partridge Creek, is an upscale, gourmet grocer.

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