California's Quiet Retail Boom
Whether taking advantage of low lease rates or counting on a rebound in consumer confidence, retailers returned to California in 2010.
The economy was tough for much of 2010, but retailers ranging from department stores to independent boutiques took a gamble on real estate all through the year, and it looks like their gambit is paying off.
On Dec. 14, the National Retail Federation raised its sales forecast for the Christmas holiday season one percentage point to 3.3 percent from 2.3 percent, as almost every segment of retail has enjoyed a good kickoff to the holiday.
Before economists and analysts officially revised the forecast, entrepreneurs were moving into empty storefronts vacated during the Great Recession. Many were taking advantage of recession rates. Real estate prices in many areas came down, said Jay Luchs, executive vice president of CB Richard Ellis.
Others set their sights on consumers who were ready to take a break from being frugal.
“We felt that now is the time to offer a fresh and new experience to the Los Angeles market,” said Amy Meadow Hochfelder, vice president of sales and marketing for Devon, a 10,000-square-foot fashion and lifestyle emporium that debuted this month in Beverly Hills.
And still others took the mantra, “If not now, when?” to heart.
“Do you want to be in business or not?” asked Yoyo Yeung, chief executive of Faith Connexion USA, which opened its first American store in Los Angeles in October.
And Yeung was not alone in diving into the California retail estate market this year. In addition to upscale boutiques, department stores took the plunge, as well, this year, including:
bull; Macy’s Inc.’s Bloomingdale’s, which debuted its SoHo concept store in the newly remodeled Santa Monica Place mall in Santa Monica. The department store giant also opened Macy’s department stores in former Gottschalks locations in Tracy and Palmdale.
bull; Seattle-based specialty retailer Nordstrom opened full-line department stores in Newport Beach and at Santa Monica Place.
bull; Nordstrom also opened Nordstrom Rack stores in Burbank, Orange, Fremont and Redondo Beach.
bull; Menomonee, Wisc.–based Kohl’s debuted stores in the California towns of Riverside, Clovis, Porterville, Sonora and Hanford. Luxe life
The luxury sector also found a home in California in 2010. Among the openings:
bull; Prada opened stores in South Coast Plaza in Costa Mesa and the Beverly Center in Los Angeles.
bull; Dior opened a store in South Coast Plaza.
bull; Louis Vuitton opened at Santa Monica Place.
bull; Fendi, Tiffany and Omega also opened at the Beverly Center, and D&G remodeled and relocated its store in the upscale mall.
bull; Missoni opened on Rodeo Drive in Beverly Hills. (The tony shopping address will have even more luxury brands with the 2011 opening of Tom Ford, Agent Provocateur and Lanvin boutiques.)
bull; Badgley Mischka is scheduled to open a boutique in Beverly Hills before Christmas.
Chain gang
California continued to draw chain stores to the region, including:
bull; Los Angeles–based Forever 21, which opened several giant, emporium-sized stores in California in 2010, including a 36,307-square-foot store in Newport Beach and a flagship prototype in Cerritos. The company also debuted smaller stores in Northridge and Mission Viejo. (The fast-fashion retailer will continue its retail expansion next year when it opens a much-anticipated store in South Coast Plaza in March.)
bull; Wet Seal opened a 5,700-square-foot store in Brea that includes a special shop-in-shop for its Blink line of jeans.
bull; Gap Inc. debuted a shop for its 1969 brand on Los Angeles’ Robertson Boulevard.
bull; Gap will also open the first store for its Athleta brand in San Francisco in early January.
bull; Levi’s opened a Malibu store.
bull; Armani Exchange opened on Robertson Boulevard.
bull; Citadel Outlets in Los Angeles debuted a new 157,000-square-foot wing, which includes H&M, Nike Factory Store, Gap Factory Outlet, Aeropostale, Under Armour, Esprit, Adidas, Anchor Blue and Columbia Sportswear.
bull; BCBGeneration, a division of BCBG Max Azria, opened stores in Glendale, Century City, Culver City, Mission Viejo and San Jose.Still special
Los Angeles, Orange County and San Francisco have long been known for their specialty boutiques. Among the 2010 openings:
bull; James Perse opened stores in Hollywood and San Francisco.
bull; The Babakul brand opened its first store in Fred Segal Santa Monica. Happiness at Fred Segal and Fred Segal Originals also debuted.
bull; Self Edge, a Japanese premium denim shop, and Case Study/Unholy Matrimony, an avant-garde fashion boutique, opened on La Brea Avenue in Los Angeles.
bull; Kitson opened stores in Malibu and Santa Monica Place.
bull; Costella & Donola designer co-op, Y3 and Faith Connexion debuted in the Melrose Place neighborhood of Los Angeles.
bull; Gossamer boutique opened in a space vacated by Pinkberry frozen yogurt in the Abbot Kinney area of Los Angeles’ Venice neighborhood.
bull; Robert Graham also opened a flagship on Abbot Kinney.
bull; Prominent Laguna Beach surf shop Thalia partnered with iconic skate brand Vans Inc. to debut the Vans by Thalia shop in November.
bull; SixHundred debuted in downtown Los Angeles.
bull; Apartment 3 reopened in the Helms Bakery complex in Culver City.
bull; Vanity Room opened in Culver City. E.P.I.C. opened in Los Angeles’ Echo Park neighborhood.
bull; Free City opened in Hollywood.
bull; Odd Molly debuted on Robertson Boulevard in Los Angeles.
bull; In Residence opened in Los Angeles’ Sawtelle district.
bull; Ron Herman Men took over the former Free City space in Malibu.
bull; Livity Outernational opened its first flagship in Santa Monica.
bull; Civilianaire scheduled to open on Los Angeles’ West Third Street. Civilianaire is a new project by Lucky Brand founder Gene Montesano.
bull; Devon opened a 10,000-square-foot store in Beverly Hills with fashion ranging from jeans to couture.
