Situation

Savannah Mall opened in 1990 with four department stores, Montgomery Wards, Parisian, JB White and Belk. The mall’s small store space was 70 percent occupied by high-end retailers like Ann Taylor, Banana Republic and Abercrombie & Fitch.

Despite its convenient location near two major highways, competitive pressures from the 1992 remodel and addition of a 130,000 s.f department store at Oglethorpe Mall, coupled with the beginning of the Gulf War, severely depressed sales and traffic.

By 2003, three of four department stores were vacant. Dramatic action was required to reverse public perception that Savannah Mall was going to close.

Initiatives

Capitalizing on its prime geographic location, a strong blocks of empty space, Savannah Mall redirected its lifestyle stores and initiated a full leasing blitz complete billboard marketing.

Opportunistic leasing provided the momentum needed well as customers to Savannah Mall. Remodeling further reinforced Savannah’s commitment to the customers’ perception through heightened activity.

Results

Bass Pro Shops Outdoor World opened a 102,000 s.f. store in summer, 2003, its first in the market. This addition breathed new life into the center and greatly expanded the mall’s market to include a 15+ county region. Existing tenants enjoyed double digit sales increases as a result of Bass Pro Shops regional draw.

Target followed with its first store (102,735 s.f.) in Savannah in fall, 2004. Additional big box users were attracted to the center, including Steve & Barry’s (93,000 s.f.) who joined the mix in December, 2004, further differentiating Savannah Mall from its competitors and expanding customer draw.

A combined total of over 300,000 s.f. of new retail opened in 2003 and 2004, including small shop retailers such as Cold Stone Creamery, PacSun, Texas Roadhouse, Curves, Marks & Morgan and Crab Daddy’s Crabhouse.

Sales per s.f. have grown steadily to $260/s.f. since 2003. Department store sales have dramatically increased due to the new store mix. New anchor store sales have more than tripled the sales of the original department stores.