Rough Days on Retail Row
If you’re a multichannel merchant with a retail presence, chances are good you have a store in at least a few of General Growth Properties’ 200+ shopping malls scattered across 44 states.
GGP was dropped from the S&P 500 Index earlier this week, after shares tumbled down into the 42-cent range. The Chicago-based company warned earlier this week it may be forced to file for bankruptcy protection.
In many parts of the country, GGP woes could have a big impact on the retail and real estate landscape.
Where I live in the northeast, General Growth owns several large malls, such as Providence Place in Rhode Island and Boston’s Faneuil Hall Marketplace. Merchants at the latter are asking the city of Boston to take over management if GCP defaults, reports The Boston Globe.
To the west of Boston, GGP owns the Natick Collection, which completed a massive renovation last year, transforming the old Natick Mall into an upscale shopping destination. The revamp included the 215-unit Nouvelle at Natick, a condo development with apartments in the reported $400,000 to $1.6-million range. The Boston Herald reports that only 29 units have received occupancy permits so far.
Still, you have to love a positive attitude. On GGP’s corporate site, the top story in the news section for yesterday was a primer on what consumers want on Black Friday. (Several GGP malls will have Rockin’ Shoppin’ Eve events kicking off at 12:01 a.m. the day after Thanksgiving. I’ll be in a tryptophan induced coma, but you go enjoy.)
How about it, marketers? Do your brands have stores in GGP malls? How will that affect your retail strategies—including any plans for (dare I say it in this economic climate) expansion?
And would you like to live at the mall? Personally, I think the proximity to Cinnabons would be dangerous.
