
A year after southwestern Pennsylvania finally got its very own Nordstrom store -- tucked, in true Pittsburgh fashion, high on a hill out of sight for confused drivers -- mall workers credit the Seattle chain for drawing shoppers from far off environs: New York, West Virginia, Ohio, Shadyside.
Yet, it's been a terrible year for retail, and luxury stores in particular. The new department store and the upscale shops that followed may have helped inoculate Ross Park Mall against the worst of the recession, but proving their long-term viability in this market is going to take longer.
"I can't imagine a worse time to embark on a first year of business in any market," said Herky Pollock, executive vice president with real estate brokerage CB Richard Ellis/Pittsburgh.
He wouldn't be surprised to see some of the upscale specialty shops crowded around the Nordstrom in-mall entrances gone within a few years -- but the economy has made store closings everywhere a relatively common event of late. Even now, Ross Park shoppers walking by the Bailey Banks & Biddle jewelry store on the lower level are being offered deals as that chain closes up shop.
Some see the timing of the Nordstrom arrival as unfortunate. "I really do think that it worked out to our advantage," said Mall Manager Lisa Earl, who said the upscale department store has served as a draw for both consumers and retailers.
Chains that have cut back on new store openings were willing to take a chance on Ross Park so they could be near Nordstrom. The past two years have brought more than 20 new stores to the mall, including a number that are exclusive in this region, and Ms. Earl promises a few more announcements soon, one of which may bring another restaurant.
Consumers cut back even before last fall's national economic calamities, but the mall had so much traffic during last year's holiday season that it had to send out staff to direct cars. Shoppers who might have typically gone elsewhere wanted to see the new stores. "I think that if you were going shopping, you were going here," Ms. Earl said.
How well the new, improved shopping mall performed after Christmas bells stopped ringing is a matter of perspective. Mall owner Simon Property Group, of Indianapolis, doesn't break out sales results for its individual centers. In this market, that includes South Hills Village and Century III Mall in addition to Ross Park.
Windie King, who manages the Swarovski Crystal store on the mall's lower level, said her store had some bad months in the past year. On the other hand, she said the Ross Park store was one of just 25 in the company that showed gains for the year.
Ms. King reports she's seen customers coming in from outside the North Hills or even the region: "I think people will come here just to see Nordstrom." That supports Simon research that showed an increase in consumers coming from outside the immediate North Hills community.
Meanwhile, Fiaz Ahmed, owner of Sinbad's Kabob Grill in the food court, said that after the holidays, the mall emptied out on weekdays to the point that he's not selling enough food to pay the rent. "After the holidays, there was no business here," he said.
Although he said the mall gave him some rent relief because of inspection issues that delayed his opening until December, he argues smaller operators are being asked to pay too much while national chains get breaks.
Rising rent was an issue cited by a number of stores that closed in the year or so before the Nordstrom opening, as mall management moved to clear space around the new department store. Management then said the main reason it could make so many changes was that a number of 10-year leases were ending. Real estate brokers said it's not uncommon to see rent go up when a coveted anchor moves in.
Ms. Earl declined to discuss individual lease issues but said the mall had worked to bring in customers year-round, including stepping up the number of events held there as a promotional tool to increase foot traffic.
Some mall employees said the hall around Nordstrom seems to be attracting fewer customers than the one down by Macy's, where there are midpriced clothing chains such as Gap and American Eagle Outfitters. Others note that retailers selling more expensive lines don't need to produce the same volume to meet their sales goals.
"God, I love those shoes," blurted out one young woman as she walked by the Michael Kors window with a friend. The two carried Express bags.
Joey Resciniti came from Cranberry and entered the mall through Nordstrom -- but she doesn't shop there. But her friend, Mary Weishner, of Prosperity, has Washington County friends who organize trips to Ross Park Mall.
Patti and Alexa Marino, a mother and daughter from Youngstown, Ohio, were happy to have a mall within an hour's drive that had so many stores not available near their home. "It's gorgeous now," said Patti Marino. "I really think it's beautiful."
Mr. Pollock, at CB Richard Ellis, said Ross Park had put together a very good fashion mix that still serves mainstream customers, with anchors such as Macy's, J.C. Penney and Sears, as well as discount stores such as H&M, Forever 21 and Old Navy.
It will take time, and perhaps an improved economy, to sort out what's the right mix. "Not every retail store will do well in a mall," he said. "That does not mean the mall is not good."
Mr. Pollock said he'd heard some concerns that this Nordstrom isn't a top-tier store for the company, the type of talk that's been heard about the Saks Fifth Avenue location, Downtown.
A Nordstrom spokesman was surprised to hear that. "We only want to build world-class stores," said Colin Johnson. "Our Ross Park store has the full breadth of what Nordstrom has to offer."
Like many upscale chains, Nordstrom sales have been down this year, but some industry observers think a rising stock market could start bringing luxury customers back out again.
Meanwhile, new stores continue to open at the mall. Disney, which is in the middle of retooling its retail operation, is back, and Los Angeles-based clothing chain Metropark opened its first Pennsylvania store in August. Steel City Collectibles, which has a store in Greensburg, picked Ross Park for its second location.
"From what I've seen, I feel our store is doing good," said employee Ryan Hunsberger. He reported customers were still leery about spending but -- this is Pittsburgh, after all -- Steelers and Penguins jerseys are selling well.
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