Macy's at Quail Springs Mall is going out of buisiness.

[Soonerman]

http://okcfox.com/news/nation-world/...2016-230538466

[SomeGuy]

Bad news, Hopefully they try to fill it up as soon as possible or other tenants and anchors might soon follow. Would Bon-Ton ever work in Quail Springs?

[Soonerman]

Maybe a Belk could go in there??

[bchris02]

When it was announced that Macy's was closing 40 stores I figured QSM would be one of them. It's probably the worst Macy's I have ever shopped at. I'm not sure if its even been upgraded since it was Foley's. The Dillard's isn't much better and if I were them I would consider a remodel quick.

I would be happy if Belk went in there. Belk was my favorite department store when I lived in Charlotte and it would be nice to have them here.

If the mall is able to refill it with a quality tenant, this could be a good thing for the mall.

[brianinok]

This is Macy's own fault for not investing in that store. It's horribly outdated. Worse than Dillard's. Plus when they bought out Foley's they took out higher brands like Polo. So the store had no identity. The store at Penn is so much better.

[Soonerman]

When it was announced that Macy's was closing 40 stores I figured QSM would be one of them. It's probably the worst Macy's I have ever shopped at. I'm not sure if its even been upgraded since it was Foley's. The Dillard's isn't much better and if I were them I would consider a remodel quick.

I would be happy if Belk went in there. Belk was my favorite department store when I lived in Charlotte and it would be nice to have them here.

If the mall is able to refill it with a quality tenant, this could be a good thing for the mall.

Yea, I was thinking the same thing especially with Von Maur being there now, I figured if Macy's didn't renovate that place they would be gone within 2 years. You go in there you feel like you're in a time warp back to 1985.

[bchris02]

Yea, I was thinking the same thing especially with Von Maur being there now, I figured if Macy's didn't renovate that place they would be gone within 2 years. You go in there you feel like you're in a time warp back to 1985.

Yeah, it's the Macy's equivalent of the 18th and Classen Homeland.

Dillard's needs to get on the ball and remodel or they will be next. Hopefully QSM is able to find a quality tenant to replace Macy's.

[Plutonic Panda]

Here are the ones that are closing.

Irvine Spectrum, Irvine, CA (140,000 square feet; opened in 2002; 112 associates);
Country Club Plaza, Sacramento, CA (165,000 square feet; opened in 1961; 111 associates);
Westfield Century City, Los Angeles, CA (136,000 square feet; opened in 1976; 108 associates). Note that this store will be closed in January 2016 and replaced with a new, larger store to open in this same shopping center in spring 2017;
Enfield Square main store, Enfield, CT (166,000 square feet; opened in 1971; 84 associates);
Enfield Square furniture/home/men’s store, Enfield, CT (76,000 square feet; opened in 1971; 20 associates);
North DeKalb Mall, Decatur, GA (190,000 square feet; opened in 1965; 89 associates);
Kailua, HI (59,000 square feet; opened in 1946; 57 associates);
Palouse Mall, Moscow, ID (41,000 square feet; opened in 1979; 47 associates);
Northwoods Mall, Peoria, IL (165,000 square feet; opened in 1985; 62 associates);
Cortana Mall, Baton Rouge, LA (243,000 square feet; opened in 1976; 108 associates);
Valley Mall, Hagerstown, MD (120,000 square feet; opened in 1999; 59 associates);
Berkshire Mall, Lanesborough, MA (111,000 square feet; opened in 1994; 58 associates);
Eastfield Mall, Springfield, MA (127,000 square feet; opened in 1994; 71 associates);
The Shoppes at Stadium, Columbia, MO (140,000 square feet; opened in 2003; 81 associates);
Middlesex Mall, South Plainfield, NJ (81,000 square feet; opened in 1976; 69 associates);
McKinley Mall main store, Buffalo, NY (88,000 square feet; opened in 1989; 65 associates);
McKinley Mall home store, Buffalo, NY (31,000 Square feet; opened in 1989; 10 associates);
Arnot Mall, Horsehead, NY (120,000 square feet; opened in 1995; 79 associates);
Hudson Valley Mall, Kingston, NY (121,000 square feet; opened in 1995; 72 associates);
Eastern Hills Mall, Williamsville, NY (127,000 square feet; opened in 1971; 80 associates);
Cary Towne Center, Cary, NC (107,000 square feet; opened in 1991; 63 associates);
Chapel Hill Mall, Akron, OH (169,000 square feet; opened in 1967; 91 associates);
Midway Mall, Elyria, OH (105,000 square feet; opened in 1990; 64 associates);
Quail Springs Mall, Oklahoma City, OK (146,000 square feet; opened in 1986; 87 associates);
Pony Village Mall, North Bend, OR (41,000 square feet; opened in 1980; 54 associates);
Roseburg Valley Mall, Roseburg, OR (40,000 square feet; opened in 1980; 59 associates);
Suburban Square, Ardmore, PA (102,000 square feet; opened in 1930; 74 associates);
Century III Mall, West Mifflin, PA (173,000 square feet; opened in 1979; 101 associates);
Ridgmar Mall, Ft. Worth, TX (181,000 square feet; opened in 1998; 92 associates);
Chesapeake Square, Chesapeake, VA (95,000 square feet; opened in 1999; 69 associates);
Virginia Center Commons, Glen Allen, VA (110,000 square feet; opened in 1993; 81 associates);
Peninsula Town Center, Hampton, VA (173,000 square feet; opened in 1977; 109 associates);
Military Circle Mall, Norfolk, VA (153,000 square feet; opened in 1976; 95 associates);
Regency Square main store, Richmond, VA (100,000 square feet; opened in 1990; 100 associates);
Regency Square furniture/home/men’s store, Richmond, VA (124,000 square feet; opened in 1990; 35 associates);
Downtown Spokane, Spokane, WA (374,000 square feet; opened in 1947; 94 associates).

http://phx.corporate-ir.net/phoenix....cle&ID=2126953

[Patrick]

Bad news for QSM. Anytime you lose one of your major anchors it's not a good sign. I think QSM is in trouble and has been for some time.

I can't say I'm really surprised about this. Quail was one of Macy's underperforming stores. I also wouldn't be surprised at all if Dillard's is next to move out. If Dillards follows suit and leaves, the mall will be in a serious state of decline that owners (GGP) may not be able to overcome. I think if Dillard's leaves, the mall is toast. Dillard's isn't quite as bad off nationally though as Macy's is, so I bet they continue operations at Quail, albeit investing little into an underperforming store.

The reason stores don't invest in remodels at QSM is because there's no return for the investment. Back when I was part of the Wileman-Belle Isle HOA and became friends with the mall manager at Penn Square, the data showed that sales per square foot were more than 6 times greater at Penn than Quail. Quail Springs was one of the weakest performing malls in the south region when looking at sales per square foot, which is the main statistic that retailers look at when making these types of decisions. In comparison, Penn has one of the highest sales per square foot of any mall in the south region, and they're definitely first in the state, ahead of even their sister mall, Woodland Hills. That and the limited space are the reasons that Penn has a long waiting list of prospective tenants. The main reason H&M chose Quail is because they had the empty space (Penn just didn't have that large of a space available and wasn't going to be able to accommodate them in the foreseeable future). Von Maur chose Quail because they had the space available, it was a new market for them, and Quail (General Growth Properties - GGP) offered them large financial incentives to move there. From what I've heard through the retail grapevine, sales at Von Maur haven't been great and the only reason they've stayed is because of the large investment that was made in the property, the incentives, and the long term lease. Of note, at higher performing malls, competition can work the system the opposite direction, where retailers put up money to bid for spaces. For example, at Penn, Forever 21 replaced Pottery Barn Kids because they put in a higher guarantee for the space. Same for Foot Locker which took over the J's Hallmark space, forcing Hallmark out of the mall. Also, for the most part, when a retailer is going to have to choose 1 location for the entire city, they're going to pick the location with highest sales. Thus, the reason Macy's is closing their QSM location and keeping the Penn location open. And most retailers are going to invest more in their store locations with higher sales, where there's a higher return on the investment, thus the reasons for the upgrades at the Penn locations and not the Quail locations. Also, the mall owner can dictate remodels as well. I know that Simon used to require remodels every few years. But Simon can be a little more picky with Penn since they have a waiting list and thus competition.

I do think that a store like Belk would be a good fit for Quail. It's a little lower end than Macy's, which seems to fit more of the target demographic that mall management is trying to attract. Their target is more middle class families, and always has been. The only problem with that is that middle class families are leaving mall retailers in favor of discount big box retailers. The strip shopping centers on Memorial are really squeezing Quail out of the market. In comparison Penn tries to market more to the young professional and professional mother/home maker, people living in the inner city upscale neighborhoods like Crown Heights/Heritage Hills, and of course Nichols Hills, which keeps Penn afloat. IMO, Quail really missed the boat by not going more upscale, to try to attract the Edmond crowd, and even the crowd within the general vicinity of the mall....there are lots of higher end rooftops within a mile radius of Quail, including Gaillardia, which Quail is really missing out on by not targeting. Instead, upscale shopping villages in Edmond like Spring Creek have taken the lead with that demographic. One thing to also consider is location. Being farther north, Quail draws mostly from north OKC and Edmond. Being more centrally located, Penn draws from all over the city. So Penn has a lot larger demographic.

I think Quail is in trouble. Belk might come to their rescue, but given Quail's poor sales numbers in general, it won't be an easy sale. Still, GGP is a large retail management corp that has a lot of connections, power in the retailer industry, and capital. And they can offer incentives to land a Belk in the space. But they'll have to offset the poor sales performance of retailers in that mall.

[Pete]

It's too bad there is a Super Target nearby because increasingly they are going into malls and doing very well.

Malls and departments stores everywhere are struggling... Isn't Quail pretty well leased up otherwise though?

[Patrick]

It's too bad there is a Super Target nearby because increasingly they are going into malls and doing very well.

Malls and departments stores everywhere are struggling... Isn't Quail pretty well leased up otherwise though?

Yeah, prior to this they were leased at 92%. They do have a lot of off mall stores like the "Cash and Gold" store though. Non national retailers.

[Pete]

Right, but they also brought in two big retailers that were highly coveted and completely new to the state: H&M and Von Maur.

In fact, they had to move a bunch of tenants around and not renew several leases to make room for H&M.

[Plutonic Panda]

Bad news for QSM. Anytime you lose one of your major anchors it's not a good sign. I think QSM is in trouble and has been for some time.

I think Quail is in trouble. Belk might come to their rescue, but given Quail's poor sales numbers in general, it won't be an easy sale. Still, GGP is a large retail management corp that has a lot of connections, power in the retailer industry, and capital. And they can offer incentives to land a Belk in the space. But they'll have to offset the poor sales performance of retailers in that mall.

I really don't think Quail Springs is in trouble in the sense of the mall is going to become the next Crossroads. There is a lot money and with Chisholm Creek, I think they are going to become better due the new competition. OKC can easily support two malls. I bet we see a Belk or a Nordstrom take this place.

[Patrick]

I really don't think Quail Springs is in trouble in the sense of the mall is going to become the next Crossroads. There is a lot money and with Chisholm Creek, I think they are going to become better due the new competition. OKC can easily support two malls. I bet we see a Belk or a Nordstrom take this place.

I doubt Nordstrom. I just don't think the mall is upscale enough for that. And especially given the sales data for the mall. Just being realistic. When one upscale department store fails it's hard to see another take its place. Plus, nationally Nordstrom isn't doing much better than Macy's. They're closing stores, not opening new ones. But I'm hoping for Belk. I really feel that Belk would be a good fit for that mall. And they're a growing chain that's doing pretty well financially. So maybe a good possibility.

[Plutonic Panda]

I doubt Nordstrom. I just don't think the mall is upscale enough for that. And especially given the sales data for the mall. Just being realistic. When one upscale department store fails it's hard to see another take its place. Plus, nationally Nordstrom isn't doing much better than Macy's. They're closing stores, not opening new ones. But I'm hoping for Belk. I really feel that Belk would be a good fit for that mall. And they're a growing chain that's doing pretty well financially. So maybe a good possibility.

They've opened a few new ones across the nation, but I think they've all been in lifestyle centers. I think Quail Springs just needs a huge update. At least a 30+ million dollar remodel. I think they should also build a parking garage somewhere and develop a portion of the parking because I almost never see it full. In fact, I don't even recall seeing it full on Black Friday. Hopefully with these new apartments going in directly to the north, it'll help a little.

[bchris02]

I have said for a long time that in 2016, enclosed malls need to go upscale or go home. The old model of targeting middle class families doesn't work anymore as they have moved on to big box discounters. Lower-tier malls are struggling nationwide. QSM has the demographics surrounding it to be a lot more high end than it is. Not sure what can be done at this point to change their model. To attract the stores the mall needs, a higher sales per square foot will be needed. My hope was that Von Maur and H&M would help the mall get there but from that Patrick is saying, it is still struggling.

[bchris02]

I think Quail Springs just needs a huge update. At least a 30+ million dollar remodel. I think they should also build a parking garage somewhere and develop a portion of the parking because I almost never see it full. In fact, I don't even recall seeing it full on Black Friday. Hopefully with these new apartments going in directly to the north, it'll help a little.

Completely agree with this.

The problem for QSM has nothing to do with demographics. New apartments, housing, or whatever gets built around it won't help it. The mall needs to shift from the failing model of targeting middle-income families to going upscale. The mall needs to compete with Penn Square and try to one up it rather than positioning itself as OKC's lower-tier mall.

[Patrick]

Completely agree with this.

The problem for QSM has nothing to do with demographics. New apartments, housing, or whatever gets built around it won't help it. The mall needs to shift from the failing model of targeting middle-income families to going upscale. The mall needs to compete with Penn Square and try to one up it rather than positioning itself as OKC's lower-tier mall.

I agree completely! The demographics around the mall are definitely there to support upscale retail. I mean, you have Gaillardia to the west, Quail Creek to the south, Edmond to the north, and lots of new upscale neighborhoods in between. But for some reason that's not translating into sales for the mall. The data there just shows it can't support it. And thus the reason why you have big time retailers saying they're not coming here because we can't support it. If Quail can't support a Macy's, what proof is there to show that Nordstrom will do well there? By the way, one of my friends is a manager in the men's department at Von Maur and he says that the place is dead. It's sad to hear comments like that.

[Patrick]

They've opened a few new ones across the nation, but I think they've all been in lifestyle centers. I think Quail Springs just needs a huge update. At least a 30+ million dollar remodel. I think they should also build a parking garage somewhere and develop a portion of the parking because I almost never see it full. In fact, I don't even recall seeing it full on Black Friday. Hopefully with these new apartments going in directly to the north, it'll help a little.

QSM had a major facelift in the early 2000's when they put in the new tile, skylights, glass railings, and food court/movie theater. Problem was they went with a theme that is more geared towards middle class families. Meanwhile, Penn has renovated twice and put in marble floors, marble everything, glass railings, new lighting, and went with an upscale modern contemporary look. Completely different demographic you're targeting there.

[jbkrems]

Belk would be the best fit for Quail Springs Mall; they do well at the Dallas Galleria and I believe there is a Belk in Owasso, as well, in the big lifestyle center up there. Meanwhile, other tenants are going to be following... it was written up today that Disney was going to be leaving the mall. Also, I was at Quail Springs Mall tonight, and another tenant said it would leave and not renew their lease. I won't say who that tenant is, but they've been there at least 5 years.

[Patrick]

Belk would be the best fit for Quail Springs Mall; they do well at the Dallas Galleria and I believe there is a Belk in Owasso, as well, in the big lifestyle center up there. Meanwhile, other tenants are going to be following... it was written up today that Disney was going to be leaving the mall. Also, I was at Quail Springs Mall tonight, and another tenant said it would leave and not renew their lease. I won't say who that tenant is, but they've been there at least 5 years.

Disney actually left the mall last year to make way for the new H&M.

[Plutonic Panda]

I agree completely! The demographics around the mall are definitely there to support upscale retail. I mean, you have Gaillardia to the west, Quail Creek to the south, Edmond to the north, and lots of new upscale neighborhoods in between. But for some reason that's not translating into sales for the mall. The data there just shows it can't support it. And thus the reason why you have big time retailers saying they're not coming here because we can't support it. If Quail can't support a Macy's, what proof is there to show that Nordstrom will do well there? By the way, one of my friends is a manager in the men's department at Von Maur and he says that the place is dead. It's sad to hear comments like that.

I'm not a fan of Von Maur. It really seems to be more for older folks. Though I do hope it does good.

[Zorba]

Belk would be the best fit for Quail Springs Mall; they do well at the Dallas Galleria and I believe there is a Belk in Owasso, as well, in the big lifestyle center up there. Meanwhile, other tenants are going to be following... it was written up today that Disney was going to be leaving the mall. Also, I was at Quail Springs Mall tonight, and another tenant said it would leave and not renew their lease. I won't say who that tenant is, but they've been there at least 5 years.

There are two Belks around Tulsa, one in Owasso and one at Tulsa Hills.

Personally, I think Macys has about the worst branding of any chain of stores. Since they rebranded Folley's and others into Macys, but put in zero investment. You never knew if you are going to be walking into a grand, beautiful highend store, or the ugliest, torn up POS department store you've ever seen. When I was in Cincinnati, there was a Macys that I would say was the worst department store I've ever been to, 10 miles away was a Macys that is the nicest Macys I've ever been in, except for NYC. The QSM store was in horrible shape, of course no one was spending money there.

I think QSM is better now than when I moved here 2.5 years ago, but anecdotally I agree that Von Maur is not very busy, even though it is a great store. Even the parking lot around it is usually pretty empty and is where I always park.

[bchris02]

Personally, I think Macys has about the worst branding of any chain of stores. Since they rebranded Folley's and others into Macys, but put in zero investment. You never knew if you are going to be walking into a grand, beautiful highend store, or the ugliest, torn up POS department store you've ever seen. When I was in Cincinnati, there was a Macys that I would say was the worst department store I've ever been to, 10 miles away was a Macys that is the nicest Macys I've ever been in, except for NYC. The QSM store was in horrible shape, of course no one was spending money there.

I agree with this. Macy's once had the reputation of being a high end store, almost as prestigious as Nordstrom. After they purchased Foley's and other regional department stores, they let so many of them rot that it somewhat ruined their reputation. I don't believe the QSM location had a single remodel since it opened in 1986. Did it originally open as a Foley's or was a John A. Brown before that?

Some will say that QSM "couldn't support" a Macy's so how could it support Nordstrom, but Macy's at QSM failed because it sucked and they didn't invest in the location. Why would anybody shop there when the one at Penn is so much better that its hard to believe its even the same store?

I want to reiterate that GGP needs to do something to push QSM in a more upscale direction. That is the only way the mall is going to survive long term because the only enclosed malls that are doing well in 2016 are those that have gone upscale. The demographics are there to support it, so if GGP doesn't take advantage of that its a sign of their own failure. If they don't change course, the mall will be headed the way of Crossroads within the next 10-15 years. If Chisholm Creek becomes what it could potentially be, attracting upscale retailers, it could further accelerate the decline of QSM. Now is the time for them to get serious or it will be too late.

[Brett]

"Did it originally open as a Foley's or was a John A. Brown before that?"

I do remember prior to Foley's it was Sanger-Harris which didn't last long.