LOS ANGELES—Retailers are bringing more and more flagship stores to Los Angeles, thanks to the city's diversity of both population and industry. In general, retailers are starting to use a flagship-store strategy to target customers, according to a recent national report from JLL. Flagship stores are also good for the city, since they usually produce above-average sales and offer better quality products to consumers. To find out why L.A. is a good location for retailers to set flagship stores, what the city can do to attract more, and the types of retailers that have been coming to the market, we sat down with retail expert Scott Burns, EVP and retail brokerage lead at JLL, for an exclusive interview.
GlobeSt.com: Why is L.A. a good location for retail flagship stores?
Scott Burns: Los Angeles is the second most populated city in the U.S. and has a tremendously diverse consumer base, which makes it a fantastic location for a retailer's flagship store. The diversity of LA extends into the types of businesses and industries that flourish here—from entertainment and technology to financial and research/educational institutions. This translates into a highly skilled workforce. LA also attracts over 45 million tourists per year who come to visit and experience its retail offerings.
GlobeSt.com: Have you seen a recent increase in retailers planting flags in L.A.? What is attracting them?
Burns: L.A. has always been a prime destination for retailers and in many cases it allows them to show off their product and experience to a broad and diverse, and oftentimes, international consumer. In addition to the demographics and market dynamics mentioned earlier, retailers are also attracted to LA due to the quality of our retail projects and developers. Projects like The Grove, have multiple flagships including Topshop, Barnes and Noble, American Girl and Apple and Westfield Century City are soon to house new flagships like Eataly and Nordstrom.
GlobeSt.com: Why is it important for the market to have a large population of flagship stores in a market? In other words, why is this good for L.A.?
Burns: Retailers travel in packs and co-tenancy is crucial. Flagship stores are a retailer's best product offering and in order to compete, their competitors and co-tenants need to invest in their own brand experience to keep up. This investment really boosts the communities where these stores are located, and typically translate in above average sales.
GlobeSt.com: Can the city do more to attract flagship locations to the market?
Burns: Public outreach to retailers can be beneficial if a city is trying to attract a flagship store to the market. While the driving force behind a retailer's decision is the quality and profile of the consumer, cities can provide incentives to developers and retailers. Limiting or waiving development fees and offering expedited entitlements are examples of ways that cities can demonstrate that they are business friendly.
Are there any challenges for retailers looking to open a flagship in this market? One of the biggest challenges for a retailer looking to open a flagship in Los Angeles is the scarcity of flagship quality space, in the key retail environments where marque retail is clustered. In many cases the prime space in dominant centers and retail corridors is leased or owned by retailers already. Channel is a good example of a retailer that decided to purchase the property that they owned in Beverly Hills in order to ensure their long-term control of the flagship location.
GlobeSt.com: What types of retailers have been coming to the market?
Burns: There is an Eataly opening in the market and new flagships seems to pop up often from the community of existing retailers like Apple, Nordstrom and tenants like REI, who recently opened in the San Fernando Valley at The Village at Westfield Topanga. You can view a few of our top Flagship destinations in Los Angeles in this interactive map. http://j.mp/FlagshipJLL
LOS ANGELES—Retailers are bringing more and more flagship stores to Los Angeles, thanks to the city's diversity of both population and industry. In general, retailers are starting to use a flagship-store strategy to target customers, according to a recent national report from JLL. Flagship stores are also good for the city, since they usually produce above-average sales and offer better quality products to consumers. To find out why L.A. is a good location for retailers to set flagship stores, what the city can do to attract more, and the types of retailers that have been coming to the market, we sat down with retail expert Scott Burns, EVP and retail brokerage lead at JLL, for an exclusive interview.
GlobeSt.com: Why is L.A. a good location for retail flagship stores?
Scott Burns: Los Angeles is the second most populated city in the U.S. and has a tremendously diverse consumer base, which makes it a fantastic location for a retailer's flagship store. The diversity of LA extends into the types of businesses and industries that flourish here—from entertainment and technology to financial and research/educational institutions. This translates into a highly skilled workforce. LA also attracts over 45 million tourists per year who come to visit and experience its retail offerings.
GlobeSt.com: Have you seen a recent increase in retailers planting flags in L.A.? What is attracting them?
Burns: L.A. has always been a prime destination for retailers and in many cases it allows them to show off their product and experience to a broad and diverse, and oftentimes, international consumer. In addition to the demographics and market dynamics mentioned earlier, retailers are also attracted to LA due to the quality of our retail projects and developers. Projects like The Grove, have multiple flagships including Topshop, Barnes and Noble, American Girl and
GlobeSt.com: Why is it important for the market to have a large population of flagship stores in a market? In other words, why is this good for L.A.?
Burns: Retailers travel in packs and co-tenancy is crucial. Flagship stores are a retailer's best product offering and in order to compete, their competitors and co-tenants need to invest in their own brand experience to keep up. This investment really boosts the communities where these stores are located, and typically translate in above average sales.
GlobeSt.com: Can the city do more to attract flagship locations to the market?
Burns: Public outreach to retailers can be beneficial if a city is trying to attract a flagship store to the market. While the driving force behind a retailer's decision is the quality and profile of the consumer, cities can provide incentives to developers and retailers. Limiting or waiving development fees and offering expedited entitlements are examples of ways that cities can demonstrate that they are business friendly.
Are there any challenges for retailers looking to open a flagship in this market? One of the biggest challenges for a retailer looking to open a flagship in Los Angeles is the scarcity of flagship quality space, in the key retail environments where marque retail is clustered. In many cases the prime space in dominant centers and retail corridors is leased or owned by retailers already. Channel is a good example of a retailer that decided to purchase the property that they owned in Beverly Hills in order to ensure their long-term control of the flagship location.
GlobeSt.com: What types of retailers have been coming to the market?
Burns: There is an Eataly opening in the market and new flagships seems to pop up often from the community of existing retailers like
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