The outlet mall under construction near Vancouver International Airport (YVR) is poised to be less of a luxury facility than some expected.
Co-developer McArthurGlen’s European outlet malls showcase brands such as Burberry, Prada and Michael Kors. None of those brands are expected to operate at the Richmond mall slated to open this summer.
A tenant floorplan obtained by Business in Vancouver and a multitude of job postings by future tenants make clear that the mall, located next to Templeton station, just two Canada Line stops from YVR, will have some luxury tenants but will really be more of a mid-market shopping destination.
Higher-end brands now advertising for staff include Hugo Boss, Armani, Coach, Cole Haan and Brooks Brothers. Other confirmed brands, such as Under Armour, the Gap, Tommy Hilfiger, Calvin Klein, J. Crew and Polo, are considered more mid-market.
Non-clothing brands, such as confectionary giant Lindt, jeweler Zales and luggage-manufacturer Samsonite, are hiring staff for their future stores.
So is the conglomerate World Kitchen LLC, which operates a dozen brands that sell houseware, though it is unclear how that company will brand its Richmond store.
The mid-market brand Levi’s is also likely to take space in the mall, given that the chain is advertising to hire a store manager in the City of Richmond, where it has no current stores.
Levi’s is also mentioned in a floor plan from February as having been sent a lease to sign.
“The McArthurGlen mall was positioned as a luxury mall,” said Craig Patterson, who is a retail consultant and owner of Retail Insider Media Ltd. “The tenant mix is not an exclusively luxurious mix. It’s actually overwhelmingly mid-market. I’m not so much disappointed as surprised. If you look at the tenants in McArthurGlen’s other properties, you’ll see some pricy brands that are not currently on the list of names that you’ve confirmed.”
McArthurGlen is co-developing the mall with the Vancouver Airport Authority and has long planned to open the facility’s 240,000-square-foot first phase this spring.
The company’s Richmond marketing manager Ally Day told Business in Vancouver May 7 that the opening has now been pushed into summer and that a specific date will be announced later this month.
“I don’t think it is going to be mid-market as we are very happy with the way leasing has progressed,” she said. “We have a great mix so far of luxury, premium and lifestyle brands that we think the local and visiting consumer is going to be thrilled with.”
She would not confirm any tenants because of what she called “confidentiality clauses.”
McArthurGlen’s plan is to open a second phase of the mall, with an additional 140,000 square feet, by 2017. The company's plan is to target travellers coming to and from the airport, given that transportation on Canada Line is free between stops on Sea Island.
London, England-based McArthurGlen traditionally opens its malls with about 80% of the space leased because some of the brands that it seeks as tenants prefer to see the mall built before committing to leases, Day said.
Financing from deep-pocketed partner Simon Property Group (SPG) could help McArthurGlen increase the pace of its mall development. In 2013, SPG (NYSE:SPG), which is the world’s largest retail developer, invested €435 million in the private McArthurGlen.
SPG then noted last year that its investment was targetted toward specific McArthurGlen properties and that SPG owns a 45% stake in McArthurGlen’s Richmond mall.
McArthurGlen and the Vancouver Airport Authority share the remaining 55% of the mall.
