Due to COVID-19, many retailers have had to develop creative ideas to sell their excess merchandise while anticipating new customer spending preferences. A new retail brand, Shield Pals, sprung up solely because of the need for face shields, masks and hand sanitizer, and the store is successfully taking up vacant mall space. American Eagle Outfitters created a new concept that will carry fewer products to reduce the risk of a potential future oversupply, selling traditionally classic styles rather than “fast fashion” fads to ensure its longevity throughout various seasons. Dick’s Sporting Goods and Crate & Barrel both created new storefront brands to sell their excess merchandise at reduced rates.
Shield Pals signed a short-term lease for the 4,200-s.f. former Apple store space in the Mall of Columbia in Columbia, Md., located near a Banana Republic, to sell its assortment of face masks, face guards, protective gowns and other PPE items. Shield Pals will be expanding to at least five other Brookfield Properties’ malls in the Mid-Atlantic region, as well as potentially opening a store in the Mall of America in Minnesota and units along the West Coast. The brand ideally hopes to have at least 50 more units before the end of 2020. Its stores can cater to any type of retail space, including an 800-s.f. unit, because of its modular in-store elements. Leases can be short or long term. Ideal retail spaces include indoor or outdoor malls, preferably near schools, universities and hospitals. Shield Pals is in discussions to possibly franchise the store concept. The timing of the stores coincides with a new national rise in coronavirus cases, as well as the debate that some schools may commence in class learning in the fall. The products cater to all age groups and professions and include such niche items as special masks that can accommodate hearing aid/cochlear implant devices. Face shields can be purchased with decorative elements such as resembling an animal or a princess, and customers can also buy stick-on decals for their face shields.
Unsubscribed is the new store format that American Eagle Outfitters opened in June in East Hampton, N.Y., in an 800-s.f. former Cynthia Rowley street-front space. The brand hinted that it would like to open additional similar locations, most likely in upscale street-front spaces outside of urban centers, potentially in resort-type settings. Likely new markets could include Palm Beach, Fla., Greenwich, Conn., and Newport Beach, Calif. The merchandise includes high-quality durable clothing, bathing suits and accessories, with many of the items being sustainably produced, such as recycled nylon swimwear. The store will be a testing ground to help determine future growth. American Eagle also looks to grow its Todd Snyder menswear brand, with a pop-up shop opening this month also in East Hampton. Its Aerie brand, as well as its American Eagle Outfitters stores, should each expect 25 new units per year over the next three years.
In June, Dick’s Sporting Goods unveiled a new storefront brand, called Overtime, which sells items discounted up to 75%. The stores have taken over former Dick’s Sporting Goods spaces in three mall locations: The Centre at Hagerstown in Hagerstown, Md., Liberty Plaza in Philadelphia and Connecticut Commons in Plainville, Conn.
Also in June, Dick’s opened five Dick’s Sporting Goods Warehouse Sale stores in Brookfield, Wis., Bethel Park, Pa., St. Peters, Mo., North Olmsted, Ohio and Avon, Ind. All of these units have six-month leases, which sell Dick’s merchandise at even greater discounted prices up to 90% off. These warehouses took over spaces formerly occupied by big-box stores such as a Gorman’s, Marshalls, A.C. Moore, Toys “R” Us and Babies “R” Us. The locations allow Dick’s to reach untapped communities and test out the markets for potential permanent stores. As for traditional Dick’s Sporting Goods stores, the retailer expects to open five to ten new stores per year over the next three years.
Crate & Barrel opened a “Crate & Barrel Warehouse Sale” store (not to be confused with its outlets stores) in June at the former two-story 80,589-s.f. Lord & Taylor at the Monmouth Mall in Eatontown, N.J. The lease will end in January 2021, and the brand may consider opening a permanent store at that location. The Warehouse Sale sells seasonal furniture at discounted prices. If successful, Crate & Barrel may continue to open more additional Warehouse Sale stores in additonal markets.
Crate & Barrel frequently tries out new storefront brand concept ideas, such as its two-story 10,000-s.f. Crate & Barrel Design Studio that debuted in January in Pasadena, Calif., and focuses on exclusive furnishings, as well as in-store 3D digital design tool assistance for home renovation needs. The brand debuted its in-store “The Table at Crate” restaurant last year at its Oakbrook, Ill., store and pre-COVID had hoped to roll out at least 15 more of these restaurants throughout the country.
