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malls are considered C or below and face the greatest risk of closing during the next several years, the firm said in a January report.Įxpress is one of a few chains saddled with a particularly high number of C and D mall leases "that are really becoming irrelevant by the minute," said Jessica Bornn, a senior analyst at retail research firm Merchant Forecast. An A++ mall represents the top-tier - affluent, educated shoppers Tiffany's and Apple stores - and D means "dead." While an A++ mall can rake in $945 in sales per square foot, that falls to $245 at a C and $140 at a D, according to data from Green Street Advisors. Within the retail industry, malls are categorized as A, B, C, or D. "This, to me, seems like a creative way to work your way out of underperforming real estate locations." "There's no question that there are struggling malls, and the question a lot of retailers have to face is what they can do about them," Nomura Securities Analyst Simeon Siegel said in an interview with BuzzFeed News. It's an experiment other retailers are undoubtedly watching. Yesterday, J.Crew cut 175 jobs, mainly at its headquarters, as part of a larger plan to trim costs amid a prolonged sales slump.įor Express, the shift toward outlet stores is in part a response to industry-wide price cutting, but it's also a clever way to drum up business in less desirable malls, where it's otherwise been closing shop. Lower prices on clothes have swept through malls, with J.Crew chief Mickey Drexler last week bemoaning the "rampant discounting" throughout the industry. The transformed stores, operating alongside more typical mall fare like Macy's, Auntie Anne's, and Sephora, have seen business surge, and Express is in talks with other mall landlords for additional conversions.Ĭonsumers, it appears, aren't surprised to see an outlet store away from an outlet mall, nor are they repelled by Express' cheaper "made-for-outlet" merchandise. Our dedicated Special Services team is on hand 24x7 to create a customised solution for you.Here's how much Americans love outlet shopping: "Factory stores" are now making their way from the side of interstate highways into good old-fashioned shopping malls.Ĭlothing chain Express has converted three regular mall stores into "Express Factory Outlets" in the past year, with a fourth on the way.
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