Rumors of an expansion of the Christiana (Del.) Apple retail store, the economic recession and the mall’s plans for expansion provide a case study in how bad times for America might actually be good times for the Apple stores. General Growth Properties Inc., who manages the mall, today announced they received an extension on $58 million of debt, but the company is skirting with bankruptcy, analysts say. The company owes over $3 billion during the next two years. GGP already has announced cancellation of a new space at Christiana that would have tried to hook into Internet-based selling. But it insists that a previously-announced 200,000 square-foot expansion is on-track, which could provide a new, larger space for Apple at attractive rates. Or Apple could simply move into vacant spaces will start appearing in the mall.
Macy’s says they may close 10 stores next year to help float over the downturn, and Circuit City says they’ll close 155 stores as part of a vicious slashing to prevent going out of business entirely. Scores of other large businesses are closing selected locations to cut expenses, and perhaps hundreds of small businesses aren’t even thinking about the future–they’re closing for good and vacating their spaces.
GGP’s chief financial officer left the company in October–the company did not explain the circumstances, but began a series of maneuvers to meet debt repayment deadlines. A plan to convert 180,000 square-feet of former Lord & Taylor space into a so-called “Epicenter” boutique shopping area have been cancelled, GGP executives say. The area was to have highlighted products normally available on the Internet or in catalogs.
The $125 million mall expansion plan in still a “go,” GGP says, and is scheduled for a November 2009 opening. They say the project began last year, and is intended to support the malls long-term sales goals. Barnes & Noble is penciled in for over 33,000 square-feet in the new expansion, along with LUSH, XXI Forever and a new food court. Nordstrom will open in 2011 in the former Strawbridge’s location.
As for Apple, a larger space may be as near as its next-door neighbor. The Christiana mall plan labels both stores to the left of the existing, 30-foot-wide Apple store as “Vacant.” Expanding into the two spaces would add 4,750 square-feet to the existing 3,410 square-feet, an increase of 230 percent, and give Apple an impressive 70-foot storefront. Shoppers at the store say it is always crowded and needs more room.
