Dive Brief:
- Wegmans recently unveiled plans to open a new location in a 134,000 square foot former department store that is part of Boston's Natick Mall, according to The Shelby Report. The store is expected to open in spring of 2018.
- The Natick Wegmans will be a two-story supermarket with direct access to the mall. Plans call for in-store café dining with more than 100 seats, as well as two restaurant concepts that will occupy the second floor.
- Rochester, New York-based Wegmans currently operates 93 stores, but only four in Massachusetts. The retailer consistently ranks among America’s favorite grocery retailers and is routinely named one of the best companies to work for by Fortune Magazine.
Dive Insight:
Wegmans' move into the Natick Mall is part of a larger grocery trend, as a growing number of supermarkets take over anchor spots from struggling department stores. Shopping malls carry the promise of marquee placement and good customer traffic, which could benefit grocery stores. They’re also typically located near residential housing, have lots of parking, and are accessible by public transit.
Supermarkets are a regular destination for consumers, so they have a lot to offer mall operators in terms of traffic. But with many malls struggling nowadays, it’s not clear how much grocers themselves stand to benefit. Wegmans is a smart retailer, though, and undoubtedly did its homework to evaluate the site. Recently discussing its forthcoming Natick Mall location, Wegmans spokeswoman Valerie Fox told Business Insider, "While we don't specifically seek out shopping malls, we consider them if they meet the things we're looking for... Natick Mall met all our criteria for a store site."
A key factor that makes Wegmans a viable mall anchor is its foodservice offerings. Since mall shoppers often seek food breaks while out shopping, they’ll now have several new dining options available at Wegmans. Initially attracting diners, mall shoppers will then be exposed to all Wegmans has to offer: varied product selection, quality, cleanliness and its stellar customer service.
As more malls reinvent themselves in order to survive, operators increasingly need to think outside the box to fill vacant anchor space. No concept is off the table — for example, one imagines malls evolving into lifestyle centers with a wider range of options for visitors beyond shopping, restaurants and movie theaters. Some possible anchor tenants could include health care facilities, fitness centers, entertainment complexes, office space, apartments and even hotels. Creating a space where living, working, dining and retail — including grocery — come together in a mall space could be transformative.
Discounters like Walmart, Target and warehouse clubs are other "non-traditional" mall retailers that have the potential to revive the shopping mall. As more malls transform into mixed-use developments — featuring office, housing, entertainment and shopping space — having a grocery store as an anchor could be a welcome addition. Time will tell if this trend becomes the new normal, but supermarkets as mall anchors are still likely to remain the exception rather than the rule.