One bright spot in a sometimes dismal outlook for shopping centers is the jewelry tenant. Foot traffic is a given because customers need personal assistance from a salesperson. In-store visits are necessary for any personalization additions such as engravings or sizing adjustments, as well as layaway paperwork considerations. Square footage for the jewelry tenant tends to be smaller, and preferred spaces include retail street-front units and lifestyle centers. Regional malls with a lot of foot traffic are sought after as a means of both increasing brand awareness and capturing the passerby customer. Single, high-earning millennial and Gen Z women are especially targeted. Jewelry store brands have lately begun directly appealing to the female customer by offering merchandise beyond engagement rings, such as cocktail rings, necklaces and bracelets. Look for Pandora, Lovisa, Gorjana, Kendra Scott and Brilliant Earth to all be expanding into new regions of the country.
The Denmark-based Pandora, which has a strong wholesale presence in the U.S., as well as a store-in-store setup at 45 U.S. Macy’s locations, expects to ramp up its own namesake stores by opening between 35 and 40 new units per year over the next two years. The brand will be especially focused on increasing its presence within the metros of California and Oregon, in addition to states with a growing luxury segment including Kansas, Oklahoma, New Mexico, Colorado and Arizona.
Expect Pandora to jump on shorter term lease deals in Class A malls, lifestyle centers or retail street-front units in upscale metro communities, and to also be open to spaces in high-traffic, indoor regional malls in more outlying suburban neighborhoods. Pandora prefers inline or end caps in the 700- to 3,000-s.f. range. Co-tenants should include retailers that appeal to cost-conscious yet aspirational shoppers in the 25- to 35-year-old age bracket, such as Banana Republic, DSW and Athleta. In an effort to democratize its merchandise and cater to all budgets, Pandora will begin selling pearls this year and continue to sell lab-grown diamonds, which it introduced last year. Originally known for its charm bracelets, Pandora also sells rings, necklaces and earrings.
Lovisa anticipates opening between 20 and 30 new units per year over the next three to five years, at least, in highly populated regions where the brand is still underpenetrated. After opening new units in California, Florida, Washington and even Hawaii in 2023, look for Lovisa to be eyeing sites in other Western states for growth, such as Arizona, Colorado, Utah and Oregon. The brand will also look for sites in untapped Midwest and Southern markets within Georgia, Kentucky, Tennessee, Louisiana, Missouri and Minnesota.
Lovisa prefers inline spaces, between 700 and 1,300 s.f., in super regional Class A or B shopping centers — frequently indoor malls. Sites should be in centers that attract a large number of fashion-conscious yet budget-minded Gen Z and younger millennial female shoppers. Co-tenants can include brands popular with this demographic, such as H&M or Bath & Body Works. Lovisa, a fast-fashion jewelry brand that stocks up to 150 new items every week, sells rings, earrings, necklaces and accessories at affordable prices.
Southern California-based Gorjana will continue opening between 15 and 25 new stores per year over the next two to three years. Expansion will take place in states where the brand still has space to grow, such as the metros of Florida, Northern California, Illinois, Minnesota, Arizona, New York and Georgia. Watch for Gorjana to also target high-income metros in Southern, Midwest and Western states where the brand doesn’t have a store, such as Virginia, North Carolina, Indiana, Missouri, Colorado, Washington and Nevada.
Preferred sites for Gorjana are high street retail locations and lifestyle center spaces in upscale markets within urban and suburban communities, including resort destinations and tourist areas. Space can be inline or end cap units between 500 and 2,000 s.f. Co-tenants should include a mix of higher end brands that appeal to a wide female age range, from teens to Gen X-ers, such as Urban Outfitters, Anthropologie, Lululemon and Sephora. Gorjana sells finely crafted “casual luxury” rings, necklaces and earrings that are inspired by the bohemian Southern California lifestyle.
Kendra Scott expects to open between eight and 15 new stores per year over the next two years. With its home base in Texas, look for Kendra Scott to continue expanding into more Northeastern states, especially in New York and New Jersey, and perhaps even a push into Connecticut. By year’s end, Kendra Scott will open its first store in the state of Delaware at the Newark Christiana mall in Newark. This Northeastern focus will most likely be followed by expansion into untapped Northwestern states such as Oregon, Washington and Idaho. For the immediate future, Kendra Scott will continue to fortify its presence in Florida and Virginia.
Ideally, Kendra Scott seeks retail street fronts, Class A shopping centers and lifestyle center spaces in urban metro or affluent suburban communities, preferably close to a university. The brand announced that many of its new stores will be in the 2,000- to 3,000-s.f. ballpark, larger than its previous stores that averaged 1,600 s.f., in order for the unit to easily accommodate a Color Bar, an on-site area where customers can design and engrave jewelry. If space allows, Kendra Scott also hopes to include an in-house café called Sips & Sweets, which is already in two of its Texas stores. Preferred co-tenants include mid- to higher end brands that appeal to female shoppers in the 18- to 45-year-old range such as Bluemercury, Aritzia and Madewell. Kendra Scott is famous for its elevated jewelry that utilizes unique designs and gemstones.
Brilliant Earth should continue its trajectory of opening about 10 new units per year over the next one to two years. Expect untapped new markets such as Orange County, Calif., Las Vegas, San Antonio, Long Island, N.Y., the suburbs of Atlanta and the highly populated regions of New Jersey to be on its radar for upcoming expansion.
Recently, Brilliant Earth has been opening inline and end cap units in the 1,000- to 3,000-s.f. range in premier Class A indoor regional centers and ground-level retail street-front sites. These are a deviation from the retailer’s previous stores in less public places, such as on the second floor of a mixed-use center. Brilliant Earth is working to increase brand awareness and boost walk-in customer numbers with more easily accessible locations, which is different than the previous strategy of only opening stores for customers with pre-scheduled appointments. Brilliant Earth therefore seeks spaces in both urban metros and upscale suburban communities with luxury mixed-use developments nearby and have a large number of 25- to 40-year-old females. Ideal co-tenants include trendy apparel brands popular with this audience, such as Alo Yoga, EVEREVE and 7 For All Mankind. Brilliant Earth, famous for its customized jewelry, sells ethically sourced diamonds and gems, both mined and lab grown, for engagement rings, bracelets and necklaces.
