Softening rents are creating opportunities for some retailers, and others are sticking to their expansion plans, undaunted by the downturn. Nordstrom Inc.'s sales are down more than 5% this year, but the company is moving ahead with plans for eight new stores this year and three more in 2009.
"We look at our new store openings as a long-term commitment and long-term opportunity," Nordstrom spokesman Michael Boyd said. "Our plans are not based on the current environment."
Large shopping center owners such as Westfield and Macerich Co. are also plowing ahead with upgrades and expansions. Westfield has about $750 million worth of improvements underway at its Los Angeles-area shopping centers, Lowy said, to attract top stores and more visitors.
"Retailers are looking to clean out marginal stores but will invest in the best locations," he said.
Santa Monica-based Macerich is also working on more than $500 million worth of large-scale upgrades at local malls including Santa Monica Place, where the company is wooing new high-end tenants for its oceanfront center.
"Retailers are taking a little bit longer to decide" about where to open, said Tony Grossi, chief operating officer of Macerich. "They need immediate results. They can't afford to grow into a market or make a misstep."
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roger.vincent@latimes.com
