Macerich (MAC) Unveils SCHEELS at Chandler Fashion Center
Macerich MAC recently unveiled Arizona’s first SCHEELS store at its Chandler Fashion Center in suburban Phoenix. This 250,000-square-foot retail space, which welcomed first shoppers last Saturday, is poised to significantly boost the traffic of this retail center.
The opening of SCHEELS at the Chandler Fashion Center marks a significant milestone for Macerich. This 32nd SCHEELS store replaces a former department store and is roughly 100,000 square feet larger than the prior anchor.
The move aligns with Macerich's regional town center strategy, which aims to provide shoppers with more than just traditional retail options. This approach has been met with resounding success as tens of thousands of shoppers flocked to SCHEELS on its opening day, boosting foot traffic at the Chandler Fashion Center by more than 108% for the day.
Chandler SCHEELS offers a diverse range of experiences, including a Ferris wheel, a 16,000-gallon saltwater aquarium, a wildlife mountain, Fuzziwig’s Candy Shop, Ginna’s Café, arcade games and sports simulators. This is in addition to 75 specialty shops set inside the sporting goods retailer.
For investors eyeing Macerich, the addition of SCHEELS at the Chandler Fashion Center represents a promising opportunity. Ed Coppola, the president of Macerich, pointed out “SCHEELS is expected to generate four times what the previous tenant generated and add significant traffic to an already strong center.” This is expected to considerably enhance the shopping center's economic viability. The boost in foot traffic is poised to benefit not only SCHEELS but also other retailers within the Fashion Center, potentially translating into higher lease revenues for MAC.
Chandler Fashion Center, already a prominent retail destination, boasts a diverse lineup of more than 180 retailers, including Apple, lululemon, Dillard’s, Macy’s and more. This retail diversity, coupled with the SCHEELS addition, positions the center as a resilient and attractive investment option.
In the ever-evolving landscape of retail, adaptability and innovation are the key factors for success, and Macerich has time and again demonstrated these qualities, including the transformation of Kings Plaza in Brooklyn. The recent leasing successes and targeted renovations have not only revitalized the shopping center but also positioned Macerich as a dominant player in the New York City metro area.
The highlight of this transformation is the fully remerchandised former Sears space at Kings Plaza, Brooklyn's only enclosed mall. Macerich's strategic leasing decisions have attracted prominent brands, and the stores now open in the former Sears box include a three-level Target, Primark, Zara and Burlington. These new stores are poised to deliver a combined annual sales figure nearly eight times higher than the previous Sears store.
The success of Kings Plaza is not solely attributable to leasing changes. Targeted renovations have also played a pivotal role. MAC's commitment to enhancing the customer experience is evident in the complete transformation of the front of Kings Plaza along Flatbush Avenue in 2018. This redevelopment included the former Sears store, and it served as a catalyst for the mall's resurgence.
Dwindling footfall, store closures and retailer bankruptcies were bothering the retail real estate industry in the past, and social distancing amid the pandemic further deteriorated the fundamentals, affecting retail REITs like Macerich, Simon Property Group SPG and Federal Realty FRT, among others. However, the renewed enthusiasm of shoppers seeking exclusive in-store shopping experiences after the pandemic has revived the fundamentals of this asset category, and Macerich, Simon Property and Federal Realty remain well-poised to benefit from strategic renovations and remerchandising.
Shares of this Zacks Rank #3 (Hold) company have risen 2.9% in the past six months against its industry’s decline of 7.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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