Unibail-Rodamco-Westfield, the Paris-based real estate company and the owner of Westfield Old Orchard mall in Skokie, Illinois, announced Arhaus, a home furnishing store, and fashion giant Zara as new occupancies for the former Lord & Taylor space, marking an important part of its redevelopment plan, the Chicago Sun-Times reports. These stores will open in 2024, while Puttshack, a high-tech mini-golf supplier, will also set up shop in the same space.
To undergo remodeling and to receive a new face symbolizes the mall's evolution into a lifestyle hub and local gathering spot. As shopping habits change, Old Orchard, the mall's local name, has found it challenging to maintain its clone in the affluent North Shore community. The mall bid farewell to anchor companies Lord & Taylor in 2018 and Bloomingdale's in 2022, but still houses a smaller Bloomingdale's outlet named Bloomie's as revealed by the Chicago Sun-Times.
Unibail plans to replace some of the surplus retail space with a public park, an event venue, and residential buildings according to Patch. These additions will kick off in 2024 and become functional in phases by 2026, with healthcare services using approximately 200,000 square feet. Skokie mayor George Van Dusen, however, has pointed out that no housing proposals have been submitted and they will need to follow the local zoning process. While anticipated as rental, this aspect is not yet confirmed, says the Chicago Sun-Times.
The mall’s senior general manager, Serge Khalimsky confirmed the commitment to adding more retailers and experiences as reported by Patch. Future enhancements include new apartments, restaurants, wellness facilities, and outdoor amenities, all due to start construction in 2023 and open in phases starting in 2026.
Skokie officials welcomed the mall's redevelopment plans, driven by an additional 1% sales tax on Old Orchard transactions approved in 2022. The tax revenue will compensate the mall's owner for some redevelopment costs as shared by the Chicago Sun-Times. Mayor Van Dusen commended Unibail on its significant progress in upgrading the outdoor mall.
Despite the pandemic's damaging effects on sales, Unibail, which manages retail assets in 12 countries, has shifted its plans from completely selling U.S assets and decided to hold on to top-performing assets in the U.S. The 1.7-million-square-foot mall stays as Skokie's largest source of sales tax revenue according to the Chicago Sun-Times.
As the mall prepares to accommodate new occupants, the ongoing redevelopment helps reimagine the shopping center to meet the changing needs of its customers and stay relevant in the fast-changing retail landscape.
