In North American, Australian and New Zealandretail,an "anchor tenant",sometimes called an"anchor store","draw tenant",or"key tenant",is a considerably largertenantin ashopping mall,often adepartment storeorretail chain.[1]They are typically located at the ends of malls, sometimes in the middle. With their broad appeal, they are intended to attract a significant cross-section of the shopping public to the center. They are often offered steep discounts on rent in exchange for signing long-term leases in order to provide steady cash flows for the mall owners.
Some examples of anchor stores in the United States are:Macy's,Sears,JCPenney,Nordstrom,Neiman Marcus,Saks Fifth Avenue,Dillard's,Kohl's,Walmart,andTarget.And inCanada;Hudson's Bay,Sears(formerly),Target(formerly),Zellers(formerly, now in allHudson’s Baylocations),Nordstrom/Nordstrom Rack(formerly),TJX Companies(HomeSense,Winners,Marshalls),Walmart, Saks Fifth Avenue,Sporting Life.
Origins
editWhen the planned shopping centre format was developed byVictor Gruenin the early to mid-1950s, signing larger department stores was necessary for the financial stability of the projects, and to draw retail traffic that would result in visits to the smaller shops in the centre as well. Anchors generally have their rents heavily discounted, and may even receive cash inducements from the centre to remain open.
Early on,grocery storeswere a common type of anchor store, since they are visited often. However, research onconsumer behaviorrevealed that most trips to the grocery store did not result in visits to surrounding shops[citation needed].Largesupermarketsremain common anchor stores withinpower centershowever.
Since the end of the 20th century, The declining popularity of old-line department stores has made it necessary for mall management companies to consider re-anchoring with other retail alternatives, or mix commercial development with residential development to guarantee a captive clientele.
The challenges faced by the traditional large department stores have led to a resurgence in the use of supermarkets,[2]evengyms,[3]as anchors.
Classification
editTheInternational Council of Shopping Centersmakes the presence of anchors one of the main defining characteristics of the two largest categories of centres, theregional centerwith 400,000 to 800,000 square feet (74,000 m2) ingross leasable area,and thesuperregional centerwith more than 800,000 square feet (74,000 m2) of space.
Theregional centertypically has two or more anchors, while the superregional typically has three or more.
In each case, the anchors account for 50–70% of the centre's leasable space.[4]
Culture
editShopping centres with anchor stores have consistently outperformed those without one, as the anchor helps draw shoppers initially attracted to the anchor to shop at other shops in the mall.[5]Thus, a mall which loses its last anchor is often considered to be adead mall.
See also
editReferences
edit- ^"Anchor Tenant".Commercial Real Estate Dictionary.CREpedia. 2021.
- ^Kroll, Karen M. (February 1999)."Industry turns to supermarket anchors to fill big boxes".Shopping Centers Today.Archived fromthe originalon 23 September 2009.Retrieved9 May2017.
- ^Rachel Bachman (2017-11-27)."Malls Never Wanted Gyms. Now They Court Them".Wall Street Journal.
- ^"ICSC Shopping Center Definitions: Basic Configurations and Types for the United States"Archived2007-06-21 at theWayback Machine,International Council of Shopping Centers.Accessed July 10, 2008.
- ^Stoffel, Jennifer."WHAT'S NEW IN SHOPPING MALLS; Putting a Bloomingdale's in Towns Big and Small",The New York Times,August 7, 1988. Accessed July 10, 2008. "Even as department stores have lost ground to smaller specialty shops, shopping centers with national retailers as anchors continue to outperform those that have only local tenants.... The anchor store has substantial influence - mall plans have been held up until an anchor is firmly in place, and a successful anchor can inspire new development or continued expansion."