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Feature Article, May 2006
The Mall At Green Hills Welcomes High End Retailers
Davis Street Land Company paves the way for luxury brands to enter Nashville.
Jennifer Orr
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The Cheesecake Factory is an anchor at the newly expanded center.
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Historically, those Nashville shoppers looking for a more high-end shopping experience have had to actually leave the city. Without the presence of a Saks Fifth Avenue, Neiman Marcus or even Nordstrom, the city’s upscale shopper has had limited offerings to choose from. But the situation is beginning to change. Davis Street Land Company has been introducing more high-end retailers to the Nashville market as it redevelops The Mall at Green Hills. And with Tiffany & Co. and Louis Vuitton both planning to open their first Nashville stores at the mall, perhaps more luxury brands will follow suit.
The Mall at Green Hills is one of Nashville’s original centers, built in the 1950s as an open-air center. Now an enclosed mall, it is anchored by Dillard’s and Hecht’s (which will be converted into Macy’s this summer as part of Federated Department Stores’ acquisition of the May Company), and has traditionally featured retailers unique to the Nashville market. With brands such as MAC, Apple Computer, Betsey Johnson, Coach, J.Jill, Harold’s, J. Crew and Sharper Image not duplicated in other centers, The Mall at Green Hills has been able to offer a more exclusive shopping experience to the Nashville consumer.
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Davis-Kidd Booksellers expanded in Nashville with a new store at The Mall at Green Hills.
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As Evanston, Illinois-based Davis Street Land Company redevelops the center, it has been leveraging this distinctive retail mix to introduce new retailers to the Nashville market. This past October, the company opened an additional 80,000 square feet of retail at the mall, with new brands including Davis-Kidd Booksellers, Z Gallerie, L’Occitane, BCBG Max Azria, Lucky Brand Dungarees, Cole Haan and Sigrid Olsen. In addition, Godiva Chocolatier opened at The Mall of Green Hills in February, and Sephora opened in March and had the fourth best opening in the history of the company. For some retailers, like Lucky Brand, Z Gallerie and the Cheesecake Factory, the Mall at Green Hills is their first introduction not only to Nashville, but also to the entire state of Tennessee. In August, Tiffany & Co., Louis Vuitton and AK Anne Klein will also open their first Tennessee stores at The Mall of Green Hills.
“What we tried to do was bring in more of a tenant base that would cater to our upscale demographics,” says Karen Land, leasing manager for Davis Street Land Company. “Especially with Tiffany and Louis Vuitton, we really tapped into the luxury market for the first time without having an upscale anchor. We were successful because our demographics supported it.”
The immediate trade area around The Mall at Green Hills features a population of 63,000, with an average household income just topping $93,000. Within 5 miles of the mall live 148,000 people, earning an average household income of $74,000.
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A complete renovation has taken place at Davis Street Land Company’s The Mall At Green Hills in Nashville, Tennessee.
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Is the home of country music sophisticated enough for the luxury retail market? Yes, according to the developers at Davis Street Land Company. Luxury shoppers live in Nashville, but have been shopping elsewhere, like Atlanta.
From POS information, Louis Vuitton, for example, knows that many of its Atlanta customers have Nashville ZIP codes, says Land. “So they knew they have a customer here, but the customer is just having to shop elsewhere to buy the products. In order to capture this customer, they decided to open a retail store with us.”
And brands such as Tiffany and Louis Vuitton, continues Land, will keep Nashville customers in Nashville, shopping locally versus traveling to Atlanta or elsewhere to spend their retail dollars. Perhaps that means more such brands will soon be setting up shop in Nashville.
“This expansion has opened the market up to many retailers who historically have not looked at the Nashville market,” says Bob Perlmutter, managing partner at Davis Street Land Company. “And the more retailers we bring to the center and the better their sales performance, the more opportunity for even more new retailers for the market.”
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The Mall at Green Hills, Nashville, Tennessee.
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In the past, The Mall at Green Hills has generated sales of more than $475 per square foot, but this year, Perlmutter expects that the center’s new tenants will increase that amount to $550 per square foot. “I think Nashville is now on many tenants’ radar screens, particularly at the better price points,” Perlmutter says.
In addition to the re-tenanting, Davis Street Land Company has also renovated the façade that faces the front parking lot of the existing center. The 1970s era exterior has been redesigned to appear as a streetscape to mirror what is going on inside the center, says Land.
The 735,000 square-foot mall also includes 18,000 square feet of exterior retail called the Shops at Green Hills, which includes Chico’s.
As it continues to redevelop the center, Davis Street Land Company will continue to target the more high-end luxury retailer. At 96 percent leased, a limited amount of space remains, but future plans do call for an additional anchor.
“The key is really bringing in retailers that currently aren’t in the Nashville market, and are unique and serve a better demographic,” says Land.
©2006 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.
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