H&M to Open Outlet Store in Citadel's New Wing
Swedish retailer Hennes & Mauritz will be getting into the outlet-store game.
On Feb. 2, H&M signed a lease with Citadel Outlets retail center to build its first American outlet store, according to Jess Irwin, marketing director for Citadel Outlets, which is located less than eight miles from downtown Los Angeles. Merchandise at the Citadel stores is typically sold for 30 percent to 70 percent less than full retail prices. H&M did not respond to a request for comment by press time.
H&M’s 21,000-square-foot emporium will be housed in a two-story building located in the northwest corner of Citadel Outlets near Hoefner Road.
The H&M Outlet will be the anchor of a new phase of expansion of Citadel Outlets. The new expansion will add 157,000 square feet to the existing 276,210-square-foot outlet mall. Other new tenants will be outlet stores for Gap, Under Armour, Esprit, Adidas and Columbia Sportswear.
Construction on Citadel’s new phase will begin Feb. 14. It is scheduled to wrap up in September. The H&M and other new stores are scheduled to open during the Christmas 2010 shopping season.
Citadel Outlets is owned by Newport Beach, Calif.–based Craig Realty Group, which also owns the Cabazon Outlets, located near Palm Springs, Calif., and the Lake Elsinore Outlets in Lake Elsinore, Calif.
Citadel Outlets is the only Craig Realty Group outlet center expanding this year, according to Irwin. However, the company sees growing opportunity in the outlet-center business.
“It was the time to jump on it,” Irwin said of the retail center’s expansion. “Construction costs are lower, and there is a new customer for outlet stores. We’re noticing a lot of people shopping here who have not shopped with us in the past.” Citadel Outlets reported a 6 percent increase in retail traffic in 2009 compared with its retail traffic in 2008.
Building Citadel Outlets’ new wing will create 1,000 new construction jobs. When the new outlet stores open, they will employ 297 people.—Andrew Asch
