Third Street Promenade Continues to Draw Retailers
Leasing activity has heated up at the Third Street Promenade in Santa Monica, Calif. Like other local shopping destinations, the three-block thoroughfare has seen its share of retail closures in the last year due to the troubled economy, but its enviable demographics and location three blocks from the ocean still make it a prized venue for retailers.
Reebok, American Eagle Outfitters, Victoria’s Secret, Barney’s Beanery and Coffee Bean & Tea Leaf have inked deals and are planning openings on the three-block stretch by spring of next year. San Francisco–based Levi Strauss & Co. also has expressed interest in opening a store on the Promenade but is still in the exploration stage, according to a spokesperson.
Part of the interest stems from changes in stores at the nearby Santa Monica Place mall, where the city has proposed a complete makeover for the enclosed 570,000-square-foot center.
“Retailers want to maintain a high-profile presence here in Santa Monica, and with interest in remodeling the mall, those types of stores are now coming to the Promenade,” said Mark Richter, real estate and economic development manager for the city of Santa Monica.
Some retailers, such as Gap and Express, have doors at the mall and on the shopping street, a strategy that can cannibalize sales, but observers say the venues serve different customers.
“You may have tourists at the Promenade and families at the mall, so they’re reaching the most possible consumers,” said Kathleen Rawson, executive director of the Bayside District, which oversees the Promenade.
Another retailer opening its second Santa Monica store is Victoria’s Secret. Along with its mall unit, the lingerie purveyor plans to open a 7,500-square-foot store on the Promenade by spring.
American Eagle Outfitters is taking over the former Discovery Channel store space to launch a 10,000- square-foot flagship unit, according to Ali Paul, the retailer’s West Coast public relations manager. It marks the 20th California location for the expanding teen-oriented retailer, which has opened stores at the South Coast Plaza in Costa Mesa, Calif., and at the Westside Pavilion in West Los Angeles during the past year.
“We’re very excited to be on the Promenade—it’s a popular destination that receives a huge amount of foot traffic,” Paul said.
Barney’s Beanery, which has a location in West Hollywood and three Q’s Billiards locations in Southern California, will occupy the former Teasers space with a 5,850-square-foot restaurant by next year. Coffee Bean & Tea Leaf opens its 1,200-square-foot cafeacute; next month.
Reebok, which took over its Rockport-brand store, opened Nov. 23. The spare 1,300-square-foot location showcases Reebok’s men’s and women’s footwear and its Onfield line of licensed NFL and NBA jerseys, according to John Spilman, Reebok’s senior sales manager of fashion. On display are performance shoes for running, basketball, cross-training and fitness, as well as “fashion classic” styles featuring retro looks.
“We were looking for a marquee place to showcase and test our products, and the Promenade is the best place to do it,” said Spilman. “We also have a huge entertainment program and give shoes to entertainers, and a retail location will help us connect with celebrities.”
Spilman said more locations are in the works. Along with its 220 outlet stores, Reebok has a retail shop in New York, at the Basketball Hall of Fame in Springfield, Mass., and eventually plans to open its high-end concept store, Rbk, in Philadelphia.
