posted on January 07, 2011 00:26
Could League City soon be home to a major outlet mall, along the lines of Katy Mills?
Rumors are rampant that developer Randal Hall, a principal of Sonrisa Properties Ltd., is courting an upscale outlet mall operator to consider building on 30 acres north of Cross Colony Drive and west of FM 646.
Those who regularly follow Biz Buzz know the city last year granted Hall's request to rezone two parcels totaling 30 acres for commercial mixed-use.
At the time, Hall planned a 20-acre retail center and restaurant and office space, according to city documents.
Hall has not responded to a recent request for an interview about his plans for that property.
Last year, Hall told city officials the Texas Department of Transportation wanted to buy 13 acres of the property as right of way for the Grand Parkway, a major freeway with segments running from near Kemah, west to Interstate 45 and from I-45 west into Brazoria County.
While the economy hasn't been kind to retailers in general, outlet malls have thrived as consumers sought cheaper versions of their favorite stores, according to industry observers.
Outlet malls in late 2008 even began outperforming regional malls, according tothis report in Retail Traffic.
The county is home to a small outlet mall, Gulfway Plaza at La Marque. The 20-year-old center struggled for years as an outlet mall but lately has found a profitable purpose providing space for traditional outlet stores — SAS Shoe Outlet and VF Outlet — along with offices for governmental agencies, salons and even its anchor tenant, bingo hall Boot Kikkers.
In fact, the shopping center, 14047 Delany Road, is at 99 percent occupancy after recently adding two tenants.
A major outlet mall would be quite the coup for League City and could boost tourism to the area.
Foreign shoppers account for as much as 30 percent of outlet mall visitors "and continue to make annual shopping trips on luxury items that rarely see discounts on their home turf," according to this Retail Digital article.
"By taking advantage of the weak and fluctuating American dollar, foreign shoppers can purchase the same items at a highly discounted price."
Other interesting tidbits about outlet malls, according Retail Digital:
• "It's no coincidence that some popular outlet centers are located in areas away from major towns. It "encourages shoppers to buy on the spot, since the travel time is often longer than driving to a local shopping mall."
• "Rent is cheaper at many of the outlet malls, making it more cost-efficient choice for selling merchandise. Even restaurant chains that have a location in an outlet mall are seeing continuous profits because there is a constant flow of customers visiting the center."
• "Opponents of outlet buying will often report that these shopping centers will actually rip-off shoppers by offering less-than-perfect items at higher suggested retail prices."
What do you think of outlet malls? Would you like to see a major outlet mall in League City? Do you travel to other cities to shop in outlet malls?
12/28/10, Laura Elder, Galveston County Daily News