With the trend toward lifestyle centers with boutique shops and no real anchor tenant, it would be easy to think more traditional department stores and big-box retailers are on the way out.
Nothing could be further from the truth, at least in the Las Vegas Valley.
A 45,000-square-foot Best Buy recently opened at the Arroyo Market Square on Rainbow Boulevard at Interstate 215, and Kohl's plans to open an 88,000-square-foot store in North Las Vegas in early October.
The new Kohl's store will be the company's fifth in the valley since it entered the Las Vegas market just four years ago, and the company is aggressively scouting additional locations, according to District Manager Rebecca Montijo.
"The enthusiasm and the anticipation of the store opening has been great," Montijo said.
"We really want people to feel like it's their Kohl's store, so hopefully we'll be a great addition to the community."
The emphasis on becoming a part of the community, through charity programs such as Kohl's Cares for Kids, is what Montijo says allows retailers such as Kohl's to maintain a strong presence in the market, despite the changes in shopping trends.
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| A view inside the yet-to-open Kohl's in North Las Vegas. |
| Photo by Richard Brian |
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"We are more than just a place to shop — we get involved in the community and we are a part of the community," she said.
Montijo said the company recognizes that the so-called lifestyle centers, which focus on clustering retail and entertainment venues with residential and commercial properties to create a city-within-a-city, are an attractive option. The idea that people can fill all of their needs without ever having to leave these planned communities is very compatible with the active lifestyles of today's shoppers.
"I think that's what the consumer demands, and we've tried to at least be adjacent to those places when we can," Montijo said. "We're all about convenience, that's why we've got the parking out in front of the store, and we're not located in malls. It's all about people being able to come into the store, get what they need and get on with their lives."
Justin Barber, a spokesman for Best Buy, says his company also recognizes the changing shopping habits of consumers and continues to adjust its marketing strategy to accommodate them.
"We have shown a willingness to adapt things such as store size to fit each unique market," Barber said. "We have stores as large as 45,000 square feet and as small as 20,000 square feet."
Improvements in Internet shopping services and the willingness of consumers to shop online, even for items that have traditionally been in-store purchases, have also created challenges to some department stores and big-box retailers.
"We really want people to come in and experience the store," Montijo said. "For the holiday season, however, we will have more (products) online than we ever have, so that's definitely a growth business for us."
A lot of customers, Montijo says, are cross shoppers, who use the Internet to narrow their search then come into the store to see the product before they buy it.
"People still want a shopping experience," Montijo said. "They want to get out and touch and feel and interact and browse and I don't think that will ever go away."
So far the emphasis of UK-based grocery giant Tesco's entry into the Las Vegas marketplace has been on the impact it will have on the local grocery landscape. Market analysts say its focus on convenience, with stores that are much smaller than traditional supermarkets could revolutionize the way people shop for groceries.
Now it appears the influx of the company's Fresh & Easy Neighborhood Markets might also influence the local real estate market. With as many as 30 stores planned for the region in the next few years, the chain is breathing new life into some of the area's strip malls, making them more attractive to prospective buyers.
Kevin Fryman of Hanley Investments said the addition of a Fresh & Easy Neighborhood Market to the Warm Springs Plaza on the southeast corner of Warm Springs Road and Eastern Avenue was definitely a factor in Toibb Enterprise's decision to put that property on the market.
"The owners feel the addition of the market as an anchor tenant added significant value to the property, " Fryman said.
Hanley Investments is handling the sale of the 6.33 acre-site for Toibb Enterprises and Fryman said the company has had about 10 offers for the property.
The entry into Las Vegas, with several area stores expected to open by year's end, is part of Tesco's $2 billion expansion into the U.S. marketplace over the next five years.
The sale price for Warm Springs Plaza is expected to exceed $20 million and Fryman said Tesco's rapid expansion into existing sites could have a similar impact on other properties throughout the valley.
Mark Hansel covers retail and real estate for In Business Las Vegas and its sister publication, the Las Vegas Sun. He can be reached at (702) 259-4069 or at hansel@lasvegassun.com.