Checking out: Robinsons’ exit leaves some questions
SM PLACE — While bargain hunters said they were sad to see it go, many people seemed excited by the departure of Robinsons- May here earlier this week, as it opens the door to redeveloping a mall that has seen its sales slip and customers flock to the more popular Third Street Promenade.
The retail giant closed its doors Monday as part of a business-realignment plan by Federated Department Stores, which operates both Macy’s and Robinsons-May following its merger last year with May Company, the parent of Robinsons-May. Under the reported $11 billion deal, Federated agreed to close Robinsons-May stores at locations where there also was a Macy’s.
So far in Southern California, 14 stores have been shut down, including the one at Santa Monica Place mall. About 150 employees from the Santa Monica store have been offered jobs at other stores, including the Macy’s at the mall.
Many stores that have been shut down have been replaced by other retailers, such as Federated-owned Bloomingdales, while other mall operators have chosen to include smaller retail chains to maximize space.
Macerich Co., which owns Santa Monica Place, is looking to purchase the store from Federated and possibly add another major retailer, or remodel that section of the mall so it’s more in line with recent trends in retail construction — open-air shopping centers, or “lifestyle centers,” complete with retail, restaurants, movie theaters and recreation.
“I think this is a great opportunity,” said Marco La Mandri, a consultant who has helped recreate downtown areas across the country and is currently working with property owners here to create vision for the future of downtown Santa Monica. “When you have a major anchor like Robinsons-May, they take up a lot of space. Now you have the opportunity to see how you can better use that space … which may include opening up the mall and integrating it with the Third Street Promenade so, to shoppers, the transition from the Promenade to the mall would be seamless.”
Randy Brant, a senior vice president of Macerich, said the company, which operates more than 70 malls across the country, is evaluating its options and is hoping to finalize a deal with Federated soon to purchase the Robinsons-May location and its 137,000 square feet of retail space.
“We feel confident we will reach a deal, and once it is finalized, we should announce our plan,” he said. “But I have nothing to announce at this point.”
Brant said several major retailers have contacted Macerich and are interested in moving in.
Macerich angered many residents in 2004 when it announced plans to demolish the mall and replace it with three skyscrapers, standing as tall as 21 stories, that would have included apartments, condos, office space and retail space. The proposal also included extending the Third Street Promenade to Colorado Avenue.
The City Council rejected the idea after intense public comment showed overwhelming opposition to the development.
“Any time you talk about increasing density, especially on the Westside (of Los Angeles County), there will be a huge push back,” said Jack Keyser, chief economist for the Los Angeles County Economic Development Corp. “People just don’t want it. The idea of more people means more traffic congestion, and traffic is just a huge problem for the Westside. If you decide to expand the mall and put in some unique stores and sort of open it up to the Promenade, then maybe the community would buy into it.”
In brainstorming sessions held last year with more than 300 residents, many said they would like to see the Promenade extend past the mall through the Civic Center to Main Street, with an emphasis on preserving open space. Residents in those sessions said they would support the creation of more housing and office space, but the height of any new buildings would have to be capped at 12 stories.
Many said they would like to see the mall transformed into an open-air shopping center like the Grove.
“Enclosed malls are outdated,” Keyser said. “People want that sort of walking experience, that outdoor ambiance. Older malls also have a real problem with the homogenization of retail. No matter where you go, it’s the same old stores. With these lifestyle centers there is sort of the same thing going on, but it’s the ambiance that draws people.”
While there is excitement in the air over the future of the mall, there are those who warn that the mall could be in for some rough times until decisions are made regarding redevelopment and a new retailer to anchor the mall is chosen.
Without Robinsons-May, some said they have no reason to visit the mall.
“Robinsons-May was so much cheap-er than Macy’s, but they always had quality stuff,” said Lela Witherspoon, a shopper. “Now, I’ll just have to find somewhere else to shop where I can get discounts. Some probably won’t even miss it now that it’s gone, but to those of us who love to hunt for bargains, this is going to be a big loss.”
Rob York, a consultant for the Bayside District Corp., an organization that manages downtown with City Hall, said the mall could lose several tenants over the coming months if business takes a turn for the worse.
“This certainly opens up some interesting opportunities, but in the short term this is a big problem,” York said of Robinsons-May’s departure. “The mall already has trouble attracting shoppers and sort of building that excitement that brings people in, and this is only going to create a greater challenge.”
Several merchants with stores near Robinsons-May in Santa Monica Place said they are taking a “wait-and-see” attitude before they start to worry about how the loss of the retailer would affect their businesses. Some said they have seen more customers purchasing merchandise from them because Robinsons- May is gone. But they said that could drop off as word gets out that “there is nothing on this side of the mall.”
“It’s been only two days now since it closed, so I’m not going to panic,” said Samina Azzat of Purse Collections. “It would be good though if we had some more higher-end retail so that more residents come. Right now, it’s mostly tourists who support us.”
Originally published in the Santa Monica Daily Press print edition on March 23, 2006. Read the original PDF.