New Face Is One Factor in a Mall’s Success : MainPlace, Anaheim Plaza’s 1988 Sales Figures Show Sharp Contrast

In some ways, the numbers are a tale of two malls.

Two years ago, MainPlace/Santa Ana and Anaheim Plaza had nearly identical annual sales of just above $80 million. But a year later, business at MainPlace was booming while Anaheim Plaza was among the very worst performers of Orange County’s 13 mega-malls.

The difference? In 1988, MainPlace completed its first full year after a complete, multimillion-dollar renovation. Anaheim Plaza, on the other hand, lost Robinson’s--one of three anchors--in January, 1988, and has since suffered from a stream of exiting tenants.

The contrast is one of the findings of the State Board of Equalization, which this week released 1988 annual sales for Orange County’s malls.

On a countywide basis, sales grew 6.2% last year, according to the state’s data, barely half of the 1987 taxable sales growth of 12%. The comparatively modest gain reflects the county’s overall strong economy two years ago, as contrasted with county residents generally spending less in 1988, according to Alfred Gobar, a real estate and economics consultant with Alfred Gobar & Associates of Brea.

In 1988, “total retail sales in Orange County didn’t go up as much as the previous year,” Gobar explained. At the same time, the population increase slowed and in addition, “people are spending their money buying houses. . . . The total pie didn’t get any bigger, so why should we expect mall sales to go up?”

The most dramatic sales gain, in terms of percentage, was at MainPlace/Santa Ana, which showed a whopping 120.7% growth to $181 million, according to state figures.

That gigantic spurt is a bit misleading, Judy Bijlani, mall spokeswoman, said Wednesday. Bijlani explained that the completely remodeled MainPlace was open only for the final quarter of 1987--for much of the year, the mall’s doors were closed.

18% Increase

If the quarters are annualized, 1988 fourth-quarter sales increased about 18% over the prior year, she said.

Once open, however, the spruced-up MainPlace had no trouble attracting shoppers like Christine Pham, an 18-year-old student. The renovated mall is “simple and not big--there’s everything you need to get by and the prices are really reasonable,” Pham said. “South Coast Plaza is too complicated for me. And there are a lot of events (at MainPlace) like fashion shows and fund-raisers.”

To help ensure that it maintains its sales increase, MainPlace has continued its promotional events. The mall also is planning a major expansion, including the likely addition of a May Co. store and about 20 smaller retail shops on two levels.

The picture is far different at Anaheim Plaza, which was seriously affected by the January closure of its Robinson’s store. At the time, J.W. Robinson Co. executives said the Anaheim store posted the lowest volume and productivity of the chain’s 25 stores.

The 178,000-square-foot store has been vacant ever since--and the effect has been felt throughout the mall, the center’s officials and retailers said.

Left With 2 Anchors

Robinson’s departure left Anaheim Plaza with the Broadway and Mervyn’s as its only anchors, and “a lot of people don’t consider Mervyn’s a department store,” said Brenda Kitzmiller, assistant manager of Judy’s at the mall. “They get business, but not enough to pull people in.”

Anaheim Plaza now has a vacancy factor of 33%, marketing director Terri Relf said.

The empty storefronts continue to created problems for merchants still at the mall, several complained this week. And the mall’s bleak sales picture isn’t likely to change anytime soon.

Unlike virtually every other mall in the county, Anaheim Plaza is not making plans to bring in more shoppers. The owner of Anaheim Plaza, the California State Teachers Retirement System pension fund, announced its decision in June to sell Anaheim Plaza.

Since then, “everything has kind of been put on hold,” Relf said.

The state’s data suggests that new flooring, new facades and new merchants can make a big difference to a mall’s bottom line.

But for some malls in the county, beauty comes at a price: Several Orange County malls that have been undergoing face-lifts apparently posted declining sales as a result. Brea Mall and Newport Center/Fashion Island--both of which have been littered by scaffolds and drop cloths for months--reported lackluster, flat sales last year.

Westminster Mall Drop

And Westminster Mall, which began a major renovation by refurbishing its food court in 1988, saw sales drop 2.2%

At the same time, there were some indications that sales declines cannot be traced entirely to the malls.

One clear-cut winner in 1988 sales was South Coast Plaza in Costa Mesa.

By the end of last year, the 22-year-old mega-mall had upgraded 92,000 square feet, adding new stores as well as renovating older ones. The mall’s 4.9% sales jump to $624 million far outdistanced its next closest competitor, Brea Mall with $188 million in annual sales.

Huntington Center Mall completed a $1-million redesign of its food court in 1988 as part of a $25-million larger renovation plan. Giving shoppers a place to nosh at the mall evidently helped--the center was one of the country’s leaders in terms of percentage increase of sales last year, with a 10.3% jump, according to the state’s data.

1988 TAXABLE SALES

(In millions of dollars)

% Change Rank Mall 1988 Rank from 1987 in 1987 South Coast Plaza $624 1 +4.9 1 Brea Mall 188 2 nc 2 Westminster Mall 182 3 -2.2 3 MainPlace/Santa Ana 181 4 +120.7 12 Fashion Island/Newport Center 173 5 nc 4 Huntington Center 150 6 +10.3 5 Laguna Hills Mall 136 7 +2.3 6 Mission Viejo Mall 134 8 +8.9 8 Buena Park Mall 133 9 +1.5 7 Mall of Orange 120 10 -0.8 9 The City Shopping Center 78 11 -2.5 11 Anaheim Plaza 61 12 -25.3 10 La Habra Fashion Square 27 13 -3.6 13

Source: State Board of Equalization and Los Angeles Times Marketing Research Dept.