CMC Looks to Revive Gift and Home Business
Officials at Jamison Properties, the new owner of the Los Angeles–based California Market Center mart, said they intend to continue developing the gift and home accessory section of the CMC, despite the departure of gift industry force DMGWorldMedia.
The London-based company, which operates the California Gift Show at the Los Angeles Convention Center and 300 others around the globe, held a minority stake in the CMC, so it was a reluctant partner when principal owner Hertz Investments decided to sell the CMC earlier this year. Escrow closed in late April.
As a result, Jamison will have a challenge. The gift and home sector based in the C wing of the CMC has been slightly uprooted as some tenants have migrated back to the rival L.A. Mart. In addition, a couple of tenants are moving to the new Las Vegas World Market Center (WMC), which will open this July with 2.5 million square feet of market space showing furniture and home accessories. Home accessory provider 18 Karats last week announced it is moving to the L.A. Mart this July.
Remaining gift tenants have been concerned about the ownership change but many are warming up to the prospect of improvements around the CMC.
“Because it took so long [to close escrow], there were lots of rumors circulating,” said Mickey Lang, president of California Marketing Associates, one of the anchor tenants in the CMC’s gift sector. “We’ve since met with [General Manager] John Kim and we are confident things are going to be great. They’re not about smoke and mirrors.”
CMC Gift & Home Manager Charlie A. Snyder said the new scenario should work out better for gift tenants because they “will benefit from the clear and unified long-term committment of a single owner.”
“Over the past three years, there have been three separate management groups involved in the marketing and leasing of the gift and home division here at the CMC. Jamison is committed to bringing consistency and growth to gift and home by expanding product resources, improving retailer communications, and through the development of relevant industry trade events and partnerships,” said Snyder.
CMC officials will restructure and consolidate and categorize floors 7–13 of the C wing. Meravic, a floral resource, will move to the ninth floor from eight to provide more support. Other tenants may be moved as well.
Ben Lee of Jamison will be handling men’s, textiles, office space, retail and Mart South, as well as assisting CMC General Manager John Kim, replacing James Nahin, who is now director of leasing for the L.A. Mart. Aside from 18 Karats, others, including NCE and Holiday Souvenirs, have moved to the L.A. Mart. Many of the CMC’s gift tenants moved from the L.A. Mart.
In addition, two other tenants, Baroque Designs and IMAX, have left the CMC to take up residence in the new World Market Center.
The WMC, which organizers say will bethe largest debut for a trade show in Las Vegas, may grab more market share down the line. Plans are to build the show up to a 12-million-square-foot marketplace over the next 10 years, said show officials.
“There are a lot of conversations about Las Vegas, but it hasn’t negatively impacted our business,” said Joan Ulrich, vice president of gift leasing and marketing. “People in Los Angeles have access to a great trading market here and that won’t change regardless of what happens in Las Vegas.”
The L.A. Mart has seen its occupancy rates climb in recent months. Maureen Welton, president of 18 Karats, said her motivation was a more convenient location for her customers. Ulrich said new investment in boutique-style temporary show spaces and marketing have helped.
While the L.A. Mart and the CMC have been protective of their interests, they plan to continue shuttles between the venues. Both also are bringing in some big names for their education schedule for the upcoming shows in July.
—Robert McAllister
