Essentially, the megamall has undergone a gradual shift fromT-shirt shops and dollar stores to pricey boutiques withinternationally known labels such as Aromatique and Swarovski.Meanwhile, established tenants such as Ann Taylor and BananaRepublic have expanded their presence. Next month, the Gap plans toopen a two-level, 22,000-sf flagship store at the mall, which ismanaged and majority-owned by Indianapolis-based Simon PropertyGroup.

The reason for the trend is simple: the upscale stores areracking up bigger sales than the novelty shops and discounters, andin most cases, the mall's owners benefit by sharing a percentage ofsales over a base lease rate, says Maureen Cahill, a spokeswomanfor the mall. Another benefit of upscale retailers is the prestigethey bring, she says. Finally, retailers attract upscale shopperswho are more likely to spend more at the mall than the averageshopper.

The trend toward upscale stores is not restricted to themegamall--shopping centers from Baltimore to Beverly Hills aretaking the same path, retail analysts say. Consumers flush withcash are more interested in cache than price, and manufacturers arebuilding their brands by opening their own showcase stores at mallswith high tourist draws, like the Mall of America.