There has been a recent trend of shopping centers taking steps to specifically promote minority-owned retail brands. This trend is further amplified by the U.S. Treasury Department determining in December 2021 that it would earmark $8.7B specifically for minority-owned businesses looking to expand their retail footprint. With the ultimate goal of improving diversity in its shopping centers and opening up new opportunities for these business owners, the various actions that malls are taking are proving to be a win-win for all. These measures are also a way for national shopping mall owners to improve their ESG (Environmental, Social and Governance) score. Innovative concepts aimed at assisting minority-owned retail businesses have already popped up in the Westfield Garden State Plaza mall, the Pearland Town Center, the New Black Wall Street Market, the Moorestown Mall, the Mall of America and the malls in Brookfield Properties’ national portfolio.
In April, Westfield Garden State Plaza mall in Paramus, N.J., owned by Unibail-Rodamco-Westfield (URW), launched its initiative to help minority and female-owned brands have tenancy in its shopping center. The mall achieved this by working in conjunction with the New Jersey Small Business Development Center at Ramapo College, which is located about 15 miles away from the shopping center and provides support such as business plan counseling and marketing advice. The ultimate goal, through this initiative, is to increase market exposure for underrepresented retail tenants by offering favorable terms such as shorter leases and reduced costs. Two minority-owned bakery brands have already taken advantage of this initiative and now have kiosks in the mall: Chic Sugars, a cake tenant, and Tonnie’s Minis, a cupcake customization brand. Additional minority-owned tenants are currently being reviewed and will soon have either kiosks or traditional mall space in the near future. URW has expressed interest in expanding this initiative concept into more of its malls in the U.S.
The Pearland Town Center in Houston, owned by CBL Properties, has leased 3,000 s.f. of space to BLCK Market, which consists of 25 African American-owned businesses. The store opened in November and is situated next to Children’s Place and Dick’s Sporting Goods. This is part of CBL’s effort to enhance inclusion, equity and diversity in its malls, after its creation of the “CLB Community” committee last year to specifically target these goals. The BLCK Market features brands such as The Teacher Lady, which publishes children’s minority-themed books.
BLCK Market had previously been a pop-up shop concept since 2017, operating up to four times a month out of local museums such as the Buffalo Soldiers National Museum and the Houston Museum of African American Culture. The founder of BLCK Market, whose intent is to expose black-owned brands to a wider audience, has expressed interest in opening up to four more brick-and-mortar stores in the Houston area by mid- to late 2023. In the meantime, another temporary BLCK Market pop-up shop will be held once a month until November at Midway’s East River project in Houston, a mixed-use office/retail/multifamily development expected to complete its first phase by 2023.
In November, Stonecrest, Ga., a city 15 miles east of Atlanta with a 93% African American demographic, debuted the New Black Wall Street Market mall in a 14,717-s.f. building that was formerly a Target. The mall is the brainchild of the Allen Entrepreneurial Institute, a Stonecrest-based nonprofit aimed at assisting minority and women-owned businesses via training and sales support measures. The mall features space for up to 120 shops and restaurants that cater specifically to the African American customer, and the revamped site offers lower rent to its vendors than comparable spaces in the surrounding area would cost. Vendors run the gamut, such as Veggie Bubbles, which sells vegetarian organic soaps, Style Muse, which sells women’s clothing, Candl, which sells candles and home fragrances, Pink Lion Jazz Club, a live performance venue, and Mattie’s Tea Room, which serves high tea and treats. Future plans for the New Black Wall Street Market include continuing to transform the space with more mixed-use elements by adding affordable housing, a hotel and an amphitheater.
The Moorestown Mall in Moorestown, N.J., owned by PREIT, has a storefront called “Curate Noir” that has been in operation since June of 2021 and features approximate 65 different products from African-American owned businesses throughout the country. The former Vitamin World space, which is across from a Journeys store, has such brands as Nylah’s Beauty Line, which are bath and beauty products, and Camryn’s Slime Shoppe, quality “slime” products developed by a middle-school aged African American girl. The Curate Noir concept began as an online concept in 2001 before opening the storefront in order to showcase these minority-owned products to a wider trade area. The mall itself is undergoing a revamping, incorporating changes such as adding the Cooper University Health Care facility, as well as a 375-unit apartment development that will include 75 affordable housing apartments. Both are expected to be completed by mid- to late 2023.
The Mall of America in Bloomington, Minn., is now in its fourth round of featuring new local African American/minority-owned retail brands in the 5,000-s.f. Community Commons section of its mall. The concept was first introduced in October 2020 to help urban store owners that were impacted by the civil unrest in Minneapolis. These retail brands are provided three months of free rent with the option of either six additional months at a reduced rent or the choice to transition to a separate retail space in the mall.
The latest crop of businesses in the Community Commons include Honor Roll Athletics, a youth-led business clothing line, Susana Mendez Jewelry, which is suitable for all genders, Mars Jameson, handcrafted purses, cosmetics and accessories, Corazon Clothing, a Latin culture attire brand, Arwa Fashion, a Muslim fashion clothing line and Safari Pride Coffee, a North Minneapolis coffee brand that specializes in African flavors. Some brands that have gone on to open storefronts elsewhere within the mall after first participating in the Community Commons concept include 4 The Love, a clothing/gift store, La Michoacana Purepecha, a Mexican ice cream parlor and Fabulous Diva Boutique, a shapewear clothing line.
In an effort to diversify its shopping centers, Brookfield Properties will be expanding its “Partner to Empower” program — first introduced in five states in 2021 — to the majority of its malls by the end of this year. The program, which ultimately offers a minimum two-year lease for local African American/minority-owned businesses in its malls, provides funding for store construction costs, as well as a free four-week retail workshop to these tenants. The workshop covers topics such as marketing, staffing, banking and business planning. Up to $25M will be invested toward this endeavor through 2025.
