Simon Property Group turning Mills malls into hybrids

by Maria Halkias
DallasNews.com

Grapevine – Most people consider Grapevine Mills an outlet mall, but it and 16 other Mills-branded malls from Florida to California are morphing into hybrids by mixing traditional mall stores with outlet shopping.

The Mills properties are the size of big regional enclosed malls that aren't being built in the U.S. anymore. Because Mills malls are three times the size of the outlet centers the industry is constructing today, there's room for more than just outlets, the owner believes.

Simon Property Group Inc., the largest U.S. shopping center company, acquired Mills Corp. in April 2007 and since then has persuaded more and more specialty stores to move in.

That's happening as outlet shopping moves into more urban markets and attracts new stores. Designer brands such as Gucci, Kate Spade and Ferragamo have expanded into the outlet business.

And more retailers, including Cole Haan and J. Crew, are upgrading their outlet stores with better fixtures and décor. Others, such as Talbot's and Chico's, are developing supplemental labels to add to clearance merchandise.

Some companies are creating hybrid stores. At Grapevine Mills, upscale sunglasses maker Oakley Inc. operates Oakley Vaults, an outlet store that features discontinued and excess seasonal merchandise as well as new products priced at full retail.

Last year, Victoria's Secret opened a full-price store at Grapevine Mills, one of eight in Mills outlet malls.

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