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The Simon Property Group, sensing strong demand for its space and higher-income customers still spending big, is elevating its luxury appeal through much of its portfolio.
The nation’s largest owner and developer of shopping centers — from off-price outlets to tony upscale enclosed and open-air malls — currently has a particular focus on the Atlanta market.
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“Phipps Plaza has been changing substantially,” Vicki Hanor, Simon’s senior executive vice president of luxury leasing, told WWD in an exclusive interview. “Pre-COVID[-19], we added Gucci, Saint Laurent, Valentino, Tom Ford and Dolce & Gabbana, and earlier this year, enlarged Bottega Veneta and Balenciaga stores. We have an additional 14 luxury brands coming to Phipps,” Hanor said.
Among them are fall 2022 openings for Amiri, Givenchy and Alexander McQueen, and on Monday, Simon revealed that Hermès is moving into Phipps Plaza with a 7,000-square-foot store that’s scheduled to open at the end of the second quarter of 2024. Dior is also under construction and plans to open in spring 2023. The center is anchored by Saks Fifth Avenue and Nordstrom.
At the neighboring Lenox Square mall, also owned by Simon, Ferrari and Tag Heuer recently opened; Louis Vuitton is currently undergoing an expansion, and David Yurman recently expanded. Lenox Square is anchored by Bloomingdale’s, Macy’s and Neiman Marcus.
“Hermès is synonymous with artisanal craftmanship and rich heritage,” said Hanor. “The addition of Hermès at Phipps Plaza is another exciting step in the luxury evolution our consumers expect in Atlanta.”
Hermès will be adjacent to the redevelopment under construction at Phipps Plaza that includes a Nobu hotel and Nobu restaurant, an office building, a food hall, a Life Time Fitness center, and a community park space. The French luxury brand is being designed with a unique feature: An exterior patio where food and beverage will be offered.
“The first floor of Phipps is 95 percent luxury, including the new brands. There has been so much demand for space that we have run out of traditional space, and now we are starting to lease in the lobby of the office building” under development.
“This is going to be one of the best luxury properties in the U.S. Phipps today is incredibly productive. It will be way more productive after we open these boutiques.”
While the first level of Phipps is almost entirely luxury, the second houses less expensive retail tenants, though Hanor said it’s still “highly productive.”