Hey Friends,
For here
I’ll admit it, sometimes I get in my feels. Sometimes there are things that I get so passionate about that I must share them with you guys. This weekend I saw an interesting commercial for Starbucks during the Saturday Night Live 50th anniversary special. In case you missed it, here it is below.
Starbucks is all-in on this rebranding effort. The former king of the third-place is going back to it’s roots. Personally I’m very excited, I cherish the days of mis-spelled names written in Sharpie, and seeing people working with ceramic cup in hand. I think the timing around this campaign is critical as return to office policies start to entice folks to get out of the office. I’m an experience person and I truly believe there were moments that left little to be desired, which is what drove their clientele to mobile adoption at a rate unlike anywhere else. But even technology, at times, cannot substitute for poor-personal interaction. So, thank you Brian Niccol, I commend your efforts, because frankly, anything is better than this:
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Are malls cool again?
Walmart bought a mall, Simon Property group is investing again. Are we back to the early 2000’s?
After years of focusing on high-performing A malls, Simon Property Group is now turning its attention to B malls, seeking to upgrade these lower-tier shopping centers by filling vacant spaces, improving aesthetics, and attracting new tenants. CEO David Simon noted that the company aims to selectively invest in properties where value can be added.
The broader mall industry is experiencing a stark divide. A-rated malls continue to see rent and occupancy growth, while lower-tier malls—particularly those rated B- or lower—are struggling with declining sales, increased vacancies, and repurposing efforts. Some industry professionals suggest that B+ malls could be elevated to A-tier through targeted investments, strategic tenant changes, and experiential additions like entertainment venues or service-based businesses. However, high capital expenditures and changing consumer shopping habits pose significant risks to these revitalization efforts.
Simon Property Group’s strategy represents a pragmatic, albeit risky, approach to maximizing its existing assets. With limited opportunities for expansion in the A mall category, the company is likely aiming to extract value from B malls before they deteriorate further. However, given the well-documented struggles of lower-tier malls—including declining foot traffic and increasing vacancies—this move could be seen as a defensive play rather than a proactive growth strategy.
The success of this approach hinges on several factors:
Strategic Redevelopment: Simply refreshing a mall’s look may not be enough. Successful transformations will require a shift in tenant mix, likely incorporating off-price retailers, entertainment options, or mixed-use developments.
Consumer Trends: Malls face competition from e-commerce and evolving shopping behaviors. Without a compelling reason to visit, B malls may continue to decline.
Investment Risks: While select B+ malls may be salvaged, B- and C-class malls face steep challenges. The high cost of redevelopment—along with the uncertainty of long-term consumer demand—makes broad-scale turnaround efforts difficult.
Ultimately, Simon’s decision to reinvest in B malls may be a necessary step given its existing portfolio, but its success is far from guaranteed. Selective, well-executed upgrades could yield positive returns, but the broader trend suggests that many struggling malls are likely headed for repurposing rather than revival.
Walmart’s recent $32 million acquisition of Monroeville Mall—a well-known, still-operating shopping center—signals a serious commitment to the mall space. Unlike struggling “dead malls,” Monroeville remains active, suggesting Walmart’s purchase is part of a larger strategic plan rather than just a real estate grab.
This move coincides with Simon Property Group’s investment in B-tier malls, which, while not top-performing, still attract local traffic. The key question is why Walmart would invest in malls when e-commerce has been steadily eroding brick-and-mortar retail. Two major factors provide a possible answer: showrooming and Generation Z.
Showrooming, once a challenge for physical retailers, is now an asset. By integrating online and offline sales, stores can leverage physical locations to let customers interact with products before purchasing, ensuring they retain the sale rather than losing it to competitors.
Generation Z, despite being digital natives, is showing a renewed interest in physical shopping. They value sustainability, locally sourced products, and in-store luxury experiences—elements that malls can cater to better than e-commerce alone.
For Walmart, this is likely a strategic move to compete with Amazon, using malls as hubs for experiential retail, supply chain efficiency, or fulfillment. For Simon Property Group, revitalizing malls is crucial for survival. If both companies succeed, this could mark a shift in how malls are used in the evolving retail landscape.
How do you reinvent yourself with something that’s old?
The resale apparel market in the U.S. is booming, growing faster than the broader retail industry. Over 25,000 resale stores now exist, ranging from national chains to small businesses and nonprofits. While online platforms like The RealReal and Depop thrive, brick-and-mortar resale stores remain essential, offering customers the ability to see and try on unique secondhand pieces.
Retail giants are increasingly investing in resale. Gap just recently announced their GapVintage collaboration with Sean Wotherspoon, Madewell offers secondhand denim trade-ins, Banana Republic opened a vintage section in its SoHo store, and H&M launched its first U.S. resale shop in New York. Outdoor retailer REI has expanded its "Re/Supply" stores, while Goodwill has introduced boutique-style shops and wedding pop-ups.
Resale is also reshaping commercial real estate, with new secondhand stores opening in cities like Los Angeles and Santa Cruz, often using shared spaces to offset high rents. Industry experts cite resale's appeal for sustainability, affordability, and the thrill of discovery, making it a compelling reason for customers to shop in person.
Luxury fashion’s increasing reliance on archival designs is further fueling the resale boom. As brands reissue past silhouettes with minimal updates, discerning consumers are turning to resale platforms to find the original versions—often at better quality and lower cost, with the added allure of authenticity. Every time a creative director is replaced or a vintage-inspired collection debuts, demand on resale sites surges, making the secondary market a powerful competitor to traditional luxury retail.
This trend presents a paradox for high-end brands: by continuously revisiting the past without meaningful reinvention, they risk driving customers toward resale rather than new collections. Platforms like The RealReal, Grailed, and Poshmark have capitalized on this shift, offering authenticated, curated selections that rival the shopping experience of traditional retail.
Some stats according to Capital One……
93% of Americans shop online for secondhand items.
In 2023, the U.S. secondhand market generated an estimated $53 billion in revenue.
There are over 25,000 resale, consignment, and not-for-profit resale shops in the U.S.
Thrift store shoppers save an average of $1,760 per year by purchasing secondhand.
Approximately one-third of clothing and apparel items purchased in the U.S. over the past year were secondhand.
The resale technology sector has seen significant investments and valuations in recent years, driven by consumer shifts toward secondhand markets and advancements in technology.
StockX: Founded in 2015, StockX is an online marketplace specializing in sneakers, streetwear, and accessories. The platform employs a stock market-like variable pricing framework and authenticates products before shipping to buyers. In June 2019, StockX raised $110 million in a venture round, achieving a valuation of $1 billion. By April 2021, the company secured an additional $255 million, increasing its valuation to over $3.8 billion.
The RealReal: As a luxury resale platform, The RealReal has experienced consecutive quarters of sales growth, attributed to consumers seeking secondhand luxury items. The company's success is partly due to investments in artificial intelligence and machine learning technologies, enhancing efficiency in authentication, cataloging, and pricing. These technological advancements have improved operational efficiency and reduced costs, contributing to the platform's robust performance.
The resale market is projected to reach $350 billion by 2028, indicating a promising future for companies in this sector.