The early stages of the slowdown now gripping the county’s shopping centers brought flat sales for the 25 largest malls here for the 12 months through June, according to this week’s Business Jour-nal’s list.
The county’s largest shopping centers saw taxable sales of $6.8 billion through June, up one tenth of a percent from the same period a year earlier.
Gains at a pair of high-end shopping centers and an estimated increase at Irvine Spectrum Center couldn’t overcome steep declines or flat sales at others.
Most indicators suggest things have gotten worse for shopping centers since June.
“There are just no consumers out there,” said Robert Cohen, executive vice president and head of the Los Angeles office of Robert K. Futterman & Associates, a retail leasing agent and consultant out of New York.
South Coast Plaza easily held its spot as the largest shopping center here with a 9.5% gain to $1.3 billion in sales through June.
The shopping center, which projects $1.5 billion in 2008 sales, added several stores including Rolex, Canali, AG Adriano Gold-schmied, Oscar de la Renta and Swiss jewelry chain Piaget.
South Coast Plaza’s mix of stores and restaurants helped draw regional and international shoppers, according to Werner Escher, executive director of tourism marketing for the shopping center.
“Our reputation precedes us,” he said.
On the day after Thanksgiving, South Coast Plaza seemed busier than other local shopping centers. But it too faces a challenge as the slowdown appears to be hitting high-end retailers, said Cohen of Robert K. Futterman & Associates.
“Up until June, luxury was doing well,” he said.
The county’s other high-end mall, No. 2 Fashion Island of Newport Beach, is estimated by the Business Journal to be up 5% to $625 million in sales.
Fashion Island added stores and eateries in the past year, including Dita Eyewear, Peek Aren’t You Curious and Pinkberry. Others expanded, including Teuscher Chocolates & Cafe and Shabby Chic furniture store.
In 2009, Dean & DeLuca, a gourmet grocer, is slated to open. In 2010, Nordstrom is set to take over the former Macy’s space.
Rounding out the top five are No. 3 The Market Place in Tustin and Irvine, estimated flat at $565 million; No. 4 Brea Mall at $495 million, flat from a year earlier; and No. 5 Irvine Spectrum Center, estimated up 15% to $350 million.
The majority of shopping centers on the list reported flat sales or are estimated to be even with a year earlier. Seven centers reported lower sales.
Some shopping centers were hit by retailer closures.
Linens ‘n Things Inc., which is holding going-out-of-business sales at its remaining stores, closed at No. 15 Metro Pointe at South Coast. The Costa Mesa mall, with tenants such as Barnes & Noble and Best Buy, saw a 6% decline in sales to $176 million.
Linens ‘n Things also is closing at No. 11 Brea Union Plaza, which saw flat sales to $225 million.
Store Closures
A host of struggling retailers are set to close stores next year. They include Cach & #233; Inc., The J. Jill Group Inc., Gap Inc., Foot Locker Inc., Zales Corp., Pacific Sunwear of California Inc., AnnTaylor Stores Corp., Starbucks Corp., Home Depot Inc., Pep Boys-Manny, Moe & Jack, KB Toys Inc., Dillard’s Inc., Lowe’s Home Improvement, Macy’s Inc. and J.C. Penney Corp.
As more chains close stores, local shopping centers may have trouble filling up space, according to Cohen.
Katy Noel, senior director of real estate for New Hyde Park, N.Y.-based Kimco Realty Corp., owner of No. 19 Anaheim Plaza and No. 20 Fullerton Town Center, said she’s getting more requests for lease terminations and rent cuts than requests to move in to the malls.
“I’ve never seen it as bad,” she said.
Fullerton Town Center boosted sales 8% to $108 million. Having a Costco store may have helped the center’s sales as discount retailers such as Costco Wholesale Corp. and Wal-Mart Stores Inc. are faring better.
Others at the center include Office Depot, Toys “R” Us and AMC movie theaters.
The Business Journal estimates that Ana-heim Plaza saw flat sales of $115 million.
