Santa Monica Place Worth Risk, Says Kitson's Ross
Fraser Ross, owner of the high-profile Kitson boutique chain, typically advises retailers to think hard before opening a new store in this tough economy. But Ross broke his own rule at the new Santa Monica Place retail center.
The Macerich Co.–owned mall debuted Aug. 6 in the well-to-do beach city of Santa Monica, Calif., and the center’s Kitson location, which also opened on Aug. 6, has one of the premier spots at the mall. The 7,500-square-foot Kitson is placed at the entrance to the mall, just across the street from the Third Street Promenade, one of the most high-profile pedestrian retail districts in Los Angeles County. Ross said he chose to open a big, new store because so many people walk around the Third Street Promenade. More than 10 million visitors and locals walk through the area annually, according to Bayside Corp., the promenade’s management company.
“It used to be location, location, location,” Ross said. “Now it’s about traffic, traffic, traffic.”
He forecasts earning more than $1,000 annually per square foot at the store, which is more than double the national average for sales per square foot. Through May 2010, the year-to-date national average was $384, according to the International Council of Shopping Centers. He expects a good chunk of store sales—perhaps more than 50 percent—to come from tourist dollars.
When visitors enter Kitson, they walk through the kids’ section of the boutique. The middle section of the first floor offers gifts and photo books on Santa Monica’s surfing scene. At the south end of the first floor is the location of women’s fashion, footwear and fragrance. The area also offers special walls for brands Aviator Nation and Lauren Moshi.
The second floor offers men’s fashions, gifts, footwear, jewelry and fragrances as well as a denim table, which features new brands J.C. Rags and Life After Denim. Ross designed the store, which features exposed ceilings and blue and white walls meant to evoke the colors of the beach.
Kitson continues to be a company on the move. It will open a 5,000-square-foot Tokyo store on Sept. 4, which will be the chain’s fifth store in the Japanese capital. Ross said he intends to build stores in China, Taiwan and Korea. He also confirmed that he has talked to other retailers and financial companies about selling his company, although no sale is imminent, he guaranteed.
“With the opening of Santa Monica, the price just went up,” Ross said.—Andrew Asch
