Target Expanding into Glendale and Westminster

Although a year has passed since May Department Stores was acquired by its main competitor, Federated Department Stores, the effects of that retail mega-merger are only now being felt in Southern California. Over the last several months, the absorption of May's regional Robinsons-May chain by Macy's, a division of Federated, has left empty anchor spaces at malls across the sprawling region.

The fate of most of these empty anchor spaces, which total millions of square feet, remains unknown. Earlier this year, two of Southern California's largest mall owners, Macerich and Westfield, jumped at the opportunity to buy the spaces back in order to turn them into more profitable uses. However, neither company has formally announced plans for their real estate.

Amidst the uncertainty, anxious shoppers at Glendale Galleria (owned by General Growth) and Westminster Mall (owned by Simon) got some good news this week. The empty anchor spaces at both malls will soon be occupied by the darling of the discount store sector, Target. Target acquired the two stores, along with two others in New Mexico and Pennsylvania, directly from Federated for an undisclosed sum.

Glendale Galleria, located in the eastern San Fernando Valley, has long been one of the region's most successful malls, with a diverse mix of retailers. As a replacement for Robinsons-May, Target will prove an excellent addition to existing anchors JCPenney, Macy's, Mervyn's, and Nordstrom. In addition, Target should help the mall remain relevant once Rick Caruso's eagerly awaited Americana at Brand opens across the street.

Westminster Mall, located in northwestern Orange County, is a stable mall that provides a "middle market" alternative to the opulent South Coast Plaza. Target will replace a shuttered Macy's, which relocated to the larger Robinsons-May space at the mall despite the fact that its building was constructed in 2002. A fitting complement to existing anchors JCPenney, Macy's, and Sears, Target will ensure Westminster's continued success.

It's important to note that Target is already an anchor at many Southern California malls. It replaced Montgomery Ward at L.A.'s Eagle Rock Plaza and San Diego's Mission Valley Center (both owned by Westfield) and at the Macerich-owned Lakewood Center. A new Target recently opened at the Irvine Spectrum Center and another is under construction at the Westfield-owned Topanga Plaza. Despite the fact that Target is a discount store, its "chic" reputation as a fashion-forward retailer has made it a natural compliment to co-anchors like Nordstrom and Neiman Marcus.

As Target's star continues to rise in the Southern California retail scene, expect the "upscale discounter" to pop up at more area malls in the next few years.