Meet the Walt Disney of retail real estate
California retail real estate developer Rick Caruso offers a lesson in why "retail has gotten sideways."
"If you provide something that is unique and relevant, in a setting that people find captivating, you will do well. Retail has gotten sideways because it became the commodity. It is not about being high tech; it is about understanding what your customer wants,” Caruso says in a new profile by Forbes.
Caruso talks about the lessons he has learned in operating The Grove in Los Angeles, one of the highest-grossing shopping and entertainment centers in the country. The Grove’s 58 stores and restaurants welcomed 20 million visitors last year, more than the Great Wall of China or Disneyland, according to Forbes. Its $2,200 sales per square foot puts it behind only Miami’s Bal Harbour Shops in the United States. American malls average about an 11% vacancy rate (excluding anchors), but Caruso says The Grove has a three-year waiting list. Most of the industry gives away space to glamorous anchor tenants; Caruso gives nothing away and also takes a percentage of sales, according to Forbes.
Read the profile on Caruso by clicking here.