Target at the Mall . . .

Another Target – at the Mall?

Have they lost their minds?

I’ve been a little surprised at the visceral reaction as news spreads that Macerich, the company that owns the mall, has leased the old Robinson’s-May store to Target, which already has a store less than a mile away.

I understand the disappointment. How will a second Target improve the fortunes of the mall? Especially when I hear more and more complaints that the mall is less and less attractive as a shopping destination.

I also understand the frustration that residents have as they pass the long-vacant north end of the mall. Why no Nordstrom’s? Why no COSTCO? Why no Fry’s?

But as one who follows retail trends very closely, I wasn’t surprised at Macerich’s decision – or Target’s for that matter.

Retail competition across the nation is brutal – and our area is no different. In the absence of rapid housing growth, chain stores are slugging it out to hang on to their share of the market – even if it takes opening a second store down the street from an existing one. Target, which currently has 1500 stores in the United States, is pushing to add 500 more during the next five years.

Today’s consumers have endless choices within an easy drive – or with a couple of clicks, they can have merchandise arrive at their doors. Since shoppers are in the driver’s seat (literally and figuratively), we are increasingly demanding value (low prices) AND experience (fun, service and variety.)

Target has done relatively well in this demanding environment because they have done as good a job as anyone in combining the two. With their single-minded focus on value, Walmart has grown into the world’s largest corporation, but neither their investors nor shoppers are satisfied with their performance in other areas. All the mainstream department stores have tanked except Macy's because they offer a mediocre experience and little value. At the high end, stores like Nordstroms excel at offering a pleasant experience, but the difference in merchandise quality doesn’t justify the sky-high prices to the vast majority of shoppers.

Of course, brilliant city leaders have access to all sorts of magic tools to influence the marketplace right? Zoning laws, tax subsidies, fast-track permitting and good old fashioned salesmanship! Why settle for a Target? Why didn’t we go out and snag a (you fill in the blank with the store of your choice.)

It’s a fair question for any city in California, nearly thirty years after Proposition 13. City governments no longer succeed just by making sure the streets are patrolled, paved and swept. Now we are measured on how successful we are at hustling in the cut-throat world of shopping centers and auto malls.

And by that score, Ventura has done rather well. In fact, in per capita retail sales we outperform eight of the other nine cities in our county. The only city that does better is Thousand Oaks, with a household median income 50% higher than us.

Realistically, however, everyone else is out hustling to knock us down a peg. So we can hardly rest on our laurels. And I’d be the first to admit that another Target is not going to give us an edge.

We are focusing on three priorities. First, we have reached agreement with Macerich to work together on a redo of the north end of the mall. Just adding a couple of stores isn’t enough. We need to reposition the mall as a thriving shopping district for the next twenty years. Let’s face it, malls aren’t a fresh concept into the every-changing retail world. The latest trend is lifestyle centers. A recent Star column by neighbor Katherine Warner is on target – today’s shoppers are increasingly drawn to a mix of uses that offers more variety and convenience. That’s the General Plan vision for the area. By integrating new retailers into a north end master plan, we can strengthen the mall in the short run – and for the long haul.

Second, we are working with adjoining landowners on extending Olivas Park Drive to open up the land behind the auto mall for additional dealers – and regional retailers that aren’t in our market, like IKEA and Bass Pro. No deals have been signed, but there is enough interest that we are fast-tracking the long-planned extension of that key freeway connection now that construction on the Santa Clara river bridge is winding down.

Third, with the recent adoption of the Downtown Specific Plan, we will be working with Caltrans and others on bridging over the 101 Freeway at California Street. By linking our Downtown directly to the beach, we open up the opportunity to redevelop the aging parking structure and put a unique destination in a fabulous location next to the pier.

Of course, other opportunities and challenges will open up and we will need to respond to them. But these three priorities are our best bets to not only stay competitive in the retail arena – but also ensure that Ventura residents have a range of shopping alternatives close to home.