CBL Properties (CBL - Free Report) recently announced that it has partnered with international fashion and lifestyle brand — RACHEL Rachel Roy — for the brand’s first in-mall stand-alone outlet at Oak Park Mall.
Specifically, the retailer will unveil a pop-up store at the premier Kansas City property. It is set to open shortly after the Kansas City Fashion Week this month. In fact, both companies are slated to participate in a series of events throughout the fashion week.
Notably, retailers are attracted by the flexible shorter-term leasing term of pop-up stores. Further, this store format has emerged as an effective way for new retailers to augment their reach in the market and gain instant customer foot-traffic in retail hubs. Also, pop-up stores ease the transition from clicks to bricks for retailers like RACHEL Rachel Roy, which enjoy significant online coverage.
While the company has decent presence in numerous departmental stores, this store at Oak Park Mall will mark the launch of its own retail footprint.
Understandably, this endeavor is beneficial for CBL Properties as well. It adds a well-known retailer to the company’s tenant roster and will likely attract Kansas City shoppers. Additionally, it highlights the company’s strategic attempts to aid online retailers fortify their physical presence. These efforts will help the company adjust its business in the wake of the retail apocalypse.
Notably, with e-retail becoming the latest favorite shopping channel, traffic flow in malls has taken a backseat. In fact, with e-commerce grabbing market share from brick-and-mortar stores, retailers are now forced to reconsider their footprint and opt for store closures, while those unable to match up with competition are filing bankruptcies. Amid these, tenants are also demanding substantial lease concessions, which, nonetheless, mall landlords find unjustified. This turbulent environment has cast a pall over retail REITs like CBL Properties, The Macerich Company (MAC - Free Report) , Taubman Centers (TCO - Free Report) and Kimco Realty Corporation (KIM - Free Report) , among others.
CBL Properties currently has a Zacks Rank #3 (Hold). The company’s shares have underperformed the industry over the past six months, declining 7.4% compared with the industry’s decline of 0.1%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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