Tough Retail Year Still Comes Up With Big Deals

The economy was struggling in 2011, but retailers in every fashion segment found a way to open new stores in California.

Many retailers were able to snap up spaces because commercial real estate’s balance of power has dwindled, shifting in favor of retailers, said Fraser Ross, founder of Los Angeles–based Kitson, a specialty-store chain that opened California shops in Santa Barbara and Newport Beach in 2011.

“Things have changed. Retailers don’t have to open stores. They can open an online store,” Ross said. ”Landlords sat on empty locations for so long, they’re thinking, ‘If we don’t lease them, we’ll sit on this for several more years.’”

But competition is still high for the most popular retail streets, said Jay Luchs, executive vice president for real estate firm CBRE. He brokered deals in 2011 for top boutiques such as Lanvin at the Malibu Village retail center in Malibu, Calif., and the Michael Kors shop on Los Angeles’ Robertson Boulevard.

Rents are increasing, but they are nowhere near pre-recession levels, Luchs said. On Robertson, commercial rents currently range from $12 to $17 per square foot, compared with the $18 to $27 per square foot rents predominant shortly before September 2008.

However, Luchs expects the economy to keep retailers on their toes. “Retailers are not taking success for granted,” he said.” Every quarter, every hour, they have to be concerned about their growth, how they spend and who they sell to.”

Here’s a snapshot of retailers that braved the economy and opened stores in California even though the state has the nation’s second-highest unemployment rate, at 11.3 percent. Nevada’s unemployment rate hit 13 percent in November.

Majors and discounters

Target opened five new California stores in 2011. The discounter opened in Emeryville in March, San Luis Obispo and Oxnard in July, and San Clemente and Dublin in October.

Nordstrom Rack opened California stores in Fremont in March, Redondo Beach and West Covina in September, and National City in October.

Kohl’s opened stores in El Centro and Encinitas in September.

Luxury

Badgley Mischka opened on Rodeo Drive in March.

Vivienne Westwood opened in West Hollywood in March.

Agent Provocateur also opened on Rodeo Drive in February.

Bruno Cuccinelli opened at South Coast Plaza in Costa Mesa in April.

Lanvin in July opened its second Los Angeles County location in 2011 in Malibu Village in July.

Yves Saint Laurent opened in Los Angeles’ Beverly Center in August.

Jimmy Choo
opened in the Beverly Center in September.

Dior Homme opened in San Francisco in December.

Chain stores


In a novel arrangement, XXI Forever by Forever 21 took over 43,000 square feet of the Sears store in South Coast Plaza. Sears continues to do business in the rest of the store.

Forever 21 opened a two-level store in the Beverly Center on the former site of the Beverly 13 Cinema. In San Diego’s Fashion Valley, Forever 21 also moved to a bigger location with 62,000 square feet. The retail giant opened a location at the Galleria at Tyler mall in Riverside.

Swedish fast-fashion chain H&M Hennes & Mauritz opened a store at Plaza El Segundo in September. It opened another location at Westfield West Covina in June.

Kellwood Co.’s new Lamb & Flag chain debuted in December at Orange County’s Brea Mall.

High-profile L.A. shopping street Robertson Boulevard attracted more tenants. The first Los Angeles shop for Rebecca Taylor opened there. The street also attracted new Los Angeles stores for Monika Chiang, Michael Kors and Lululemon Athletica.

Gap Inc.’s Athleta division opened its first Orange County location at Fashion Island in Newport Beach.

Surf giant Quiksilver experimented with new stores in 2011. It opened a boutique for its Waterman line at Fashion Island. In November, it debuted 585 Boardriders in Venice, which sells all Quiksilver brands.

Fashion Island wrapped up its 2-year-old renovation campaign with the opening of the following stores in 2011: Vineyard Vines, a preppy East Coast shop that opened its first West Coast boutique; New York premium-denim brand Earnest Sewn; and Los Angeles’ Johnny Was.

In San Diego’s Fashion Valley, a Ted Baker store debuted in November. Los Angeles–headquartered vertical retailer In Add Minus opened a Fashion Valley location in fall 2011. It is the second In Add Minus location.

Nike Inc. opened a Salvation boutique at Malibu Village, where it sells Hurley, Converse, and Nike footwear and apparel. Nike also runs a Salvation store in the Irvine Spectrum retail center in Irvine.

Levi Strauss & Co. and American Rag founder Mark Werts partnered to open Industrie Denim in San Francisco in August, as well as in Scottsdale, Ariz.

Dutch denim brand G-Star opened its American flagship on Rodeo Drive in December

Los Angeles’ M.Fredric debuted its women’s fashions–only store in Calabasas in December. In October it opened a 3,200-square-foot store at The Patios at Westfield Valencia Town Center.

Streets of Beverly Hills opened in its namesake city. It is one of a handful of branded HMX Group shops showcasing HMX’s suit brands, such as Hickey Freeman.

Northern California–headquartered chain Apricot Lane opened four new California stores, in Lake Tahoe, Anaheim, Vacaville and Danville.

Independents

Influential Orange County merchant Billy Stade opened Stade.Co in South Coast Plaza in October.

Fashion designer Ayumi Shibata debuted her As Is boutique in June on Melrose Avenue in Los Angeles.

Fashion brand Alternative Apparel opened its first permanent shop, a flagship on Abbot Kinney Boulevard.

New York men’s label Unis opened a Los Angeles store in November.

Lingerie shop Undrest opened on Melrose in November.

Men’s bespoke shop Klein Epstein Parker debuted on Robertson Boulevard in August. Gown atelier Goldsmith & Klein also opened on Robertson.

Multi-line shop Brigade LA and Apolis: Common Gallery helped pioneer downtown Los Angeles retail. Both opened in November.

L’Ecole, with its classy French takes on cocktail dresses, opened on Melrose.

Contemporary boutiques Eden Boutique and Dolcetti took a gamble on downtown San Diego retail. Both opened in March.

High-end New York vintage shop What Comes Around Goes Around debuted a La Brea Avenue shop in Los Angeles. High-end vintage rock T-shirt and new fashion shop Kelly Cole Extraordinarium debuted.

Designer Kelly Wearstler opened a homewares and clothing boutique on Melrose.