It seems like I can hardly go more than two months without drumming
up a blog article coming from a mall.
Even as enclosed malls have plunged from the popularity peak in the
1970s and early 1980s (a point in time when American downtowns were lifeless almost
across the map), they still remain a formidable retail presence across most
metropolitan areas. Malls continue
to offer a consolidated laboratory for observing consumers’
idiosyncrasies. But they are in
serious trouble. Hardly a week
goes by when a mall somewhere isn’t losing a key anchor tenant. And, at the height of the Great
Recession, an average of four malls closed every week. Nonetheless, plenty others remain
that don’t show even a hint of fading.
The Greenwood Park Mall outside Indianapolis, the one closest to where I
grew up, is probably stronger than ever, with more upper-middle retailers than
it had in the 1990s. I even blogged about it a while ago. Conversely, two other
malls on Indianapolis’ east and west sides of town remain on life support.
Then there are the dozens of malls that fall somewhere
between these two extremes: not really likely to collapse any time soon, but
certainly not flourishing. These malls have ostensibly lost their market share
to other retail typologies: big boxes, lifestyle centers, power-strip clusters
(not really sure what else to call them), and even sometimes to traditional
town centers lucrative enough to attract major national brands. Such malls might still expire, however,
and the biggest threat is the terminally sleeping giant of online retail. Before it’s fair to investigate what
will happen to them, it’s best to first gauge what they look like now.
The first is the Oxford Valley Mall, in the lower portion of Bucks County, Pennsylvania, a suburban area northeast
of Philadelphia. The mall has sat
at this location since 1973, at a time when Lower Bucks County was booming with
new suburbanites (and, simultaneously, huge portions of north Philadephia city
limits were hemorrhaging white middle class families). It understandably seemed like a wise
decision for the Kravco Company at the time: locate just off a major highway
(US Route 1) in a rapidly growing area, where the land was still cheap enough
to assemble a huge parcel for all the parking necessary in a corner of the
metro with limited public transit access.
The model had worked in dozens of similar locations. Why should it fail for Oxford Valley?
And the truth is, it didn’t. It hasn’t—40 years later, the mall is up and running. Oxford Valley Mall, on an early
Saturday evening during the Christmas season, still looks like a lively
place. But closer scrutiny will
reveal serious weaknesses that would not have been reflective of such
confidently situated suburban real estate even a decade ago. The community of Langhorne remains
resolutely middle class, perhaps even upper-middle. Though the area is likely far more ethnically diverse than
it was in 1975, poverty rates remain quite low. So what’s the problem with this particular mall?
At any rate, it’s a big one, at over 1.3 million square feet
and two floors.
From a superficial scan of the interior, it doesn’t look
particularly outdated; it has obviously undergone an extensive interior
renovation at least once since its 1973 construction. While one would expect a mall food court to be busy at a
conventional dinnertime, the fact that Oxford Valley has a number of people
milling around the eateries indicates that people are at least lingering enough
at the mall to justify staying around for a meal. It’s fairly busy.
Apparently, visiting the mall remains a popular pastime on
Saturday evenings during the holidays.
But the first sign of weakness remains visible in the above photo: a
vacant restaurant space between the Master Wok and Chicken Now. And that’s not the only one.
Two more at another section of the food court. The co-existence of three vacant
restaurants is far more indicative of a trend. Is the rest of the mall riddled with vacancies? Generally speaking, no: the two-story
central spine of the mall still looks pretty solid, with shuttered storefronts
few and far between.
And Oxford Valley Mall still commands some discriminating
tenants:
Swarovski, Coach, Williams-Sonoma, and Banana Republic may
not be Gucci or Prada, but they are solidly upper-middle performers, and they
won’t just hop into any mall’s leasable space. The fact that Oxford Valley is about to welcome a Sephora
indicates that choosy brands are still absorbing mall space; the four pictured
above aren’t necessarily the last of a dying breed.
But what about the other tenants? It has its fair share of ubiquitous inline stores, like
Claire’s, Kay Jewelers, Foot Locker, Sunglass Hut, the titanic Forever 21, and
so forth. But it also has places
like this:
According to its Tumblr-supported website, Never Too Spoiled
apparently has one other branch, at the Hamilton Mall in New Jersey. I’m hardly trying to fault an fledgling
entrepreneur for making a go of things—which the proprietor of this store
clearly is doing—but it’s a bit surprising to see a local tenant in a mall that
clearly aspires to fairly high-end national and international brands. And this little storefront is hardly
alone:
I can’t find a website on Twinkle. It appears to be the only one of its kind. I commend a business like this for
trying its luck in a large mall, but such entrepreneurs typically don’t have as
deep of pockets as the national brands; the presence of Sparkle in this mall
suggests that the leasing rates aren’t so high. Here are a few more:
XO is a formal apparel store with two locations in the Philadelphia metro—nowhere
else.
Suit Mart also lacks a website—at least one that is
referring to the store with this name at Oxford Valley. And the cluster of stores in the photos
below (on both floors) is a real mystery:
None of them—East Meets West, Shinee, or George’s Cards and Collectibles--even get mentioned in the directory for the mall. Only the last of the three has a website (which I linked),
but it, too, is a regional business with no more than a few locations.
Obviously Oxford Valley Mall has a lot of these mom-and-pop
stores. It is with no small amount
of irony that I recognize that many of these locally-owned boutiques are the
exact sort of tenants that our historic small-town main streets would kill for—as
a sign that they are thriving—yet when they proliferate in a suburban,
auto-oriented mall, they almost always indicate that the management company is
lowering its leasing costs just to attract new tenants. With too many mom-and-pops, a mall
nearly always gets branded as declining.
Yet this mall in Bucks County can claim both the highly coveted national
brands as well as regional small businesses.
Do the demographics of the area indicate anything about the
direction the mall might be headed?
Not really. Oxford Valley
Mall sits just south of U.S. Route 1, at this point a limited access highway
linking northeast Philadelphia to Trenton. South of Route 1 sits the sprawling expanse of Levittown,
among the first post-war middle class suburban developments in America and
worth of a blog post of its own (or two, or three). Levittown, now approaching 60 years old, is no longer a
bastion of enforced racial homogeneity.
Though still mostly white, the titles of these modest, aging homes are
rapidly shifting to Lower Bucks County’s immigrant newcomers, resulting in a
far more ethnically diverse population patronizing the mall—but still one with
low poverty rates. On the northern
side of Route 1 stretch many of Bucks County’s smaller boroughs and nascent
exurbs, nearly all of which are mostly white and generally affluent—wealthy
enough to keep Bucks County consistently among the top 100 highest-income
counties in the country.
So what’s inducing this discernible weakness in the retail landscape
at Oxford Valley? I haven’t
entirely been fair in my presentation of the evidence, because I’ve left out
the biggest factor: one of the four department stores is vacant.
This wing of the building apparently with the large "Court Shops" sign used to host Boscov’s, among the last of the surviving family-run department stores, with
approximately 40 locations throughout the Mid-Atlantic states. Boscov’s fell into dire financial
straits in 2008, forcing it to file Chapter 11 Bankruptcy Protection and close
a number of underperforming stores.
It has re-emerged successfully from bankruptcy, even to the point of
re-opening some of its previously shuttered locations…but not at Oxford Valley
Mall. Thus, this wing of the mall
has been without an anchor tenant for over four years.
And it shows.
It has the highest concentration of low-end or mom-and-pop tenants, none
of which would lease space at this mall if it were thriving.
The Jova School of Dance may very well be expensive, but
it’s not the type of tenant mall management vigorously pursues, unless its
desperate. Why? For-profit instructional schools keep
unconventional hours and don’t really attract passive visitors, as evidenced by
the fact that it’s already closed in the early evening on a Saturday. Dollar Hut is a budget retailer, but
not even a nationally known one (like Dollar Tree or Dollar General). As far as I can tell, this is the only
branch. Elsewhere in this
struggling wing of the mall, one encounters a local photography gallery:
An indoor golf course:
USA Blues, a regional budget apparel company:
And—coming soon—an H&R Block tax preparer, which is
mostly likely a seasonal tenant that will close shortly after April 15.
The only two national chains in this wing are Five Below and
Radio Shack, two common budget retailers.
These are the type of tenants one expects to see in seriously struggling
or dying malls. Not one that has a
Williams Sonoma one thousand feet away.
Given that this former Boscov’s has been vacant for so long,
it is probable that leasing rates are lower than elsewhere in the mall. After all, without a big-ticket
destination like a department store, this wing is essentially a long dead
end. But why has it been so hard
for the property managers to find a replacement? Sure, the economy has been bad, but we’re talking about
Simon Property Group,
the Indianapolis-based mall manager extraordinaire—the largest Real Estate
Investment Trust in the country. The
folks running Oxford Valley are hardly amateurs, yet this wing of the mall has
languished. The “dead wing”, in
turn, has clearly impeded the foot traffic in the rest of the mall, resulting
in a commercial property that, in aggregate, struggles to attract a preponderance
of big-name national tenants.
I suspect that, in large extent, Simon Property Group is
struggling with a fundamental design problem. Over the last decade, mall management has turned
“daylighting” of dying wings into a common practice. That is, the owners or managers significantly modify a
long-vacant department store, which has struggled largely because, after so
many mergers and acquisitions, department store companies are simply fewer in
number. Usually the daylighting
process involves transforming the shuttered store into a small,
outdoor-oriented “lifestyle center” section, complete with elaborate landscape
and fountains. Simon successfully
daylighted the old L.S. Ayres building at Greenwood Park Mall; as mentioned
earlier, it continues its successful track record, with occupancy persistently
above 95% and virtually nothing but big-name national brands. But Oxford Valley is a two-story mall
in its entirety. Converting that already
large department store (in which the size probably makes it less attractive in
this sour economy) into an inevitably one-story lifestyle center would be
analogous to a square peg in a round hole. It would be hard to support a compatible design that links
some one-story outdoor shops to a two-story mall, and presumably it isn’t worth
the investment risk in an already uncertain climate for commercial real estate.
As a result, even though the
interior is nice enough, Oxford Valley seems comparatively old-fashioned in the
fact that it lacks any real visually stimulating storefronts when viewed from
the outside parking lot. It’s
hardly a trailblazer among malls.
So this wing of Oxford Valley flounders, and the rest of the
mall remains in flux, simultaneously catering to two ends of the economic
spectrum. Aside from its
architectural hurdles, one could infer other socioeconomic explanations for this
strange predicament. Perhaps the
problem is that Bucks County, Pennsylvania—particularly the northwestern
half—is dotted with a number of fully successful historic main streets, which
have successfully lured the most affluent demographic away from the malls. Communities like Newtown, Doylestown,
and New Hope are shopping destinations in themselves, offering a mix of local
boutiques and widely known national brands, all in what most would perceive to
be a much more “authentic” and aesthetically stimulating setting. Why should Talbott’s locate in a mall
when it can occupy a 200-year-old Federal building in a vibrant, rich suburban
town? Enclosed malls don’t just
have to compete with the phalanx of big boxes along the busy highways,
now they have those other aforementioned retail typologies, like factory
outlets and town centers (both historic and faux historic) as fierce
competition. It also can’t help
that the Neshaminy Mall (also enclosed) competes with Oxford Valley from just
six miles away in Bensalem, PA.
One other, more cynical conclusion I could draw from the
polarized retail at Oxford Valley is that it is reflective of an ever-widening
gap between the rich and poor.
Here, in an otherwise low-poverty area, a Banana Republic, Sephora, Dollar
Hut, and H&R Block sit under the same roof. The middle-class stronghold of Levittown, sprawling across
several square miles to the south, is not dying but certainly appears faded, as
the nouveau bourgeois aspires to larger lots and fancier two-story homes in the
exurbs. The new generation of
Levittown belongs increasingly to blue-collar families or recent immigrants who
lack the purchasing power to sprawl into the tony verdure of Upper Bucks
County. I’m not bold enough to
draw glib conclusions about escalating social stratification from simply
walking around a conventional shopping mall (and I’d like to think I’m not that
gormless either), but I’m just brave enough to put that postulate on the
table. Maybe the middle class
really is shrinking in what was once a supremely middle-class stretch of metro
Philadelphia. Or maybe the
demographics feeding into this mall are just so diverse and so atypical that
national retailers don’t know what to think of it…so all too often they just
don’t risk it. Oxford Valley isn’t
likely to get boarded up any time soon, but its future sure seems
murky—regardless of what the optimistic folks at Sephora think.
10 comments:
great post. especially since i live in nearby South Jersey. Maybe Oxford Valley is losing luster because it is competing more with, just up the turnpike, King of Prussia, the mother of all malls.
You should also check out Echelon Mall (reinvented Voorhess Town Center) and the updated Cherry Hill Mall, first east of the Mississippi.
Thanks for the feedback, Lou. It does seem like Oxford Valley has a lot of competition, with the already mentioned Neshaminy Mall just a few miles away, and then Quaker Bridge (a future blog post) across the river a short distance away in Windsor Township, NJ. Sure, there's high density of suburbia in the area, but people seem more willing than ever to drive great distances to the preferred retail node, despite high gas prices. You're probably right that many people seeking a high concentration of major brands which just hop over to King of Prussia Mall.
I'll do my best to check out some of those other recommended malls in the future. Stay tuned.
Also from PA here, and just found this article. I'd like to add that Oxford Valley is fairly typical of malls in the area--we lost about half of our Boscov's in their bankruptcy, and most of those Boscov's were, in turn, a rapid expansion into old Strawbridge's when its parent company was folded into Macy's.
King of Prussia sucks traffic from most of these areas, but it's hardly the only one to. Cherry Hill functions much the same way in South Jersey, where bridge tolls and congestion around Center City add an extra hurdle to getting to King of Prussia, and a lot of our wealth of Main Streets are ramping up their retail options.
Interestingly enough, though, there is a conspicuous absence of Main Streets around the Oxford Valley Mall area, which (whether or not Simon likes it) means that the mall itself partially fills that void. But that explains Oxford Valley--but not Granite Run, in active competition with downtown Media, or Montgomery Mall, which has similar conditions and has half a dozen Main Streets an easy drive away.
Thanks for your comments, Steve. I wasn't familiar with the Montgomery Mall, and I never got the chance to visit the Neshaminy Mall, but my guess is that they, too, have to feed on the remaining scraps that don't get sucked into the King of Prussia vortex.
Essentially, even as more malls are dying, even the ones that are surviving are only rarely flourishing. We have lowered the bar for what constitutes success, and my guess is Oxford Valley (or its counterpart Quaker Bridge in NJ) are "good enough" by today's standards, though they'd hardly pass muster if we judged them through a 1985 lens. Then again, malls were everywhere in 1985, and people didn't demonstrate the same level of willingness to travel huge distance for the really GOOD ones--a trend which today explains why Cherry Hill and King of Prussia may seem like the only two major mall winners in one of America's largest metropolitan areas.
Growing up in Bucks County I remember Oxford Valley as being a mix of Levittown and Trenton shoppers. I worked at the Florshiem shoe store in OVM in 1988 and we sold a lot of expensive shoes there to a very diverse group of people. They closed that store at the end of their lease but I believe it had more to do with Florsheims financial struggles than with the mall itself. One point I wanted to bring up which I didn't see here in the blog or the following comments is this, Simon operates this mall and Simon has a lot of other malls. Simon is BIG. Because of its size Simon has some very valuable real estate in some very successful centers and many retail companies are often willing to package together leases into multiple centers to get the best leases in the sought after locations. This is why stores such as Coach are a staple in almost every Simon mall regrdless of whether its cusomers are there and no doubt why some of the better stores are now at OVM. Being said, in my opinion, Oxford Valley Mall has always had (and still has) middle to upper middle income customers but they are not the cultured and polished group that stores like Williams Sonoma seek and I don't think stores like this will work there. Example being we sold many $100-$200 women's shoes with ease but it was mostly to Trenton's drag queens and label conscious hipsters. Levittowners bought boots and casual footwear. These groups of customers would probably better support brands such as Urban Outfitter, H&M, Armani Exchange, True Religion, Coach (which is already there), Michael Kors, and Love Culture and not Banana Republic, Swarovski, and Williams Sonoma. These stores are too conservative for that demographic. OVM could further benefit from being a middle to upper end entertainment center mixed with trendy restaurants such as PF Changs/Legal Seafoods. I think this is what would work there. Mom and Pop shops and run of the mill strip mall stores will not drive traffic from Cherry Hill to the east, KOP, Montgomery, and Willow Grove from the North, and Neshaminy fromthe south (with a very different demo coming mostly from NE Phila)
The other big change from the 80s is the big box retailers. Office Depot, Best Buy, Kohls and Borders were built very close to Oxford Valley Mall in the 90s. I think another factor affecting the mall is increased competition. These stores seem to have drawn quite a bit of traffic away from the mall, but are now also struggling.
I suspect the mall did very well in the 70s, 80s and early 90s. I was a shopper there in the late 80s/early 90s.
But it seemed dead the last time I was there over the summer.
Thanks for the comments Greg and Anonymous. Yes, I'd agree that the best days of OVM seem to be behind it, but some of it is less due to demographic changes in the area and more with an overall retreat from malls as an attractive/desirable real estate typology. People are willing to travel long long distances from the top tier malls (like King of Prussia and Cherry Hill), leaving Oxford Valley and Quaker Bridge in their wake. My suspicion is the routine visits to the mall are far less frequent than in the past, except for the lowest common denominator mall rats (i.e., teenyboppers, which explains the large number of stores that cater to them--both national chains and mom-and-pops).
A 2 second google search of 'new town, pa' would have shown you that it's Newtown. One word.
Anonymous--
Considering that I've been to Newtown, taken pictures, and typed a blog article at a coffeehouse, rest assured that the two-word spelling was a typo and nothing more. I have corrected it. Thank you for your graciousness in pointing that mistake out.
I just read your article from two years ago about the Oxford Valley Mall, and found it to be very insightful. I've recently become fascinated with the subject of "dead malls," and given Simon's continuing inability to replace the empty Boscov's anchor (plus the loss this past year of FYE due to that company's continued contraction, and Five Below, which relocated to the shopping center across the road), I was starting to wonder whether OVM had a future or not.
One of the comments mentioned the competiton provided by nearby Neshaminy Mall; Neshaminy lacks some of the more upscale stores Oxford Valley has, yet seems to be in better shape — it's smaller, only one floor (apart from the anchors) — has fewer vacant storefronts, and can boast a 24-screen AMC movie theater as one of its anchors (OVM has a 16-screen theater in an outparcel).
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