Dive Brief:
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"Most valuable property" shopping malls in the U.S. have at least three of following six key tenants, according to analysts at Credit Suisse: Nordstrom, Lululemon Athletica, Apple, Cheesecake Factory, Louis Vuitton, and Tiffany & Co.
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Nordstrom in particular is “best positioned to compete for emerging brands,” according to the report, which was reported on by MarketWatch. Macy’s-owned Bloomingdale’s has a similar track record, but isn’t found at as many malls, the report said.
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Still, while strong anchors are important to emerging brands (like Baublebar and Bonobos), they are probably aided most by e-commerce, thanks to the effectiveness of digital commerce and marketing, according to Credit Suisse research.
Dive Insight:
Destination malls like the Grove in Los Angeles have fared better than many others. But even more low-key, B and C malls are surviving, especially if they enjoy the right locations and find ways to be creative. These malls are adding new anchors and mixing up diversity to include companies like gyms and medical services in addition to retailers and restaurants.
But when it comes to old-fashioned anchors, Nordstrom is a stand-out, according to this report.
It’s worth noting though that while Nordstrom was singled out an an effective player at some of America’s best performing malls, Credit Suisse analysts are neutral on its stock at the moment, a reflection of the challenges in the department store space.
If Nordstrom can weather some of the current headwinds it is facing, including the strong dollar, rising e-commerce costs, and muted traffic, that could continue even as its department store rivals continue to falter.
“I think that Nordstrom has a very good sense of self,” Retail futurist Doug Stephens, author of "The Retail Revival," told Retail Dive. “They understand who they are and what makes them strong, but at the same time they don’t rest on those laurels. And they are a company that is in touch with technology. They aren’t afraid to try new things and experiment.”