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Repositioning Pays Off for PREIT in Holiday Traffic
Although not the only shopping center REIT to experience an uptick in holiday traffic over 2017 levels, PREIT may be unique in linking the gains to a specific real estate strategy. The Philadelphia-based owner/developer reported a significant year-over-year increase in traffic throughout the four-day Thanksgiving weekend at properties with recent anchor redevelopment or remerchandising initiatives.
At the Viewmont Mall in Scranton, PA, for instance, traffic grew 11% Y-O-Y. Here, PREIT recaptured and replaced the former Sears store with DICK’s Sporting Goods, Field & Stream, and HomeGoods, all of which opened in September 2017.
PREIT’s Woodland Mall in Grand Rapids, MI is currently undergoing a large-scale remerchandising initiative, and saw a 13% jump in holiday traffic compared to the year-ago period. There are other additions or refreshed formats in the property’s tenant roster coming up in 2019.
With the recent opening of HomeSense and Five Below in the former Macy’s space, Moorestown Mall (pictured) in the Philadelphia suburb of Moorestown, NJ, kicked off the holidays with a nearly 9% Y-O-Y increase. Sierra Trading Post will join the two off-price retailers in 2019, alongside new dining additions Hash House a Go Go and Joe Italiano’s Maplewood.
At MPG in Hyattsville, MD, PREIT has invested $30 million in remerchandising, and the efforts are bearing fruit. On the heels of recent additions, including ULTA Beauty, DSW and Five Below, the mall saw a 6% uptick throughout the Thanksgiving holiday weekend.
“We’re already off to an incredibly successful start to holiday shopping, as evidenced by the results from the kickoff weekend, and we’re confident that this data is a strong indicator for the rest of the season,” said PREIT CEO Joseph Coradino. “To experience this notable upswing in traffic at the properties where we’ve made significant investments is a testament to the strength of our strategy and the potential for long-term impact on sales and value.”
For comments, questions or concerns, please contact Paul Bubny
- ◦Economy
- ◦Lease
