How Simon Malls Are Giving E-commerce Start-ups a New Retail Space

The Edit from Simon Malls (http://www.simon.com/the-edit)

Malls were once thriving hubs of local and national businesses, and now, some still are. While it might be difficult to imagine with so many retailers shuttering their doors, commercial landlords are determined to revive and makeover the traditional retail model. Some of these businesses are household names (Westfield, Simon) while others may not be as well known (DR, Duke Realty, General Growth Properties), but each has a special interest in keeping malls top of mind with consumers as the retail sector evolves.

Simon Property Group has created a hybrid of “start-up incubator” and “locally-curated-experience” known as The Edit in their Roosevelt Field Mall. This is a shared space for eCommerce start-ups to showcase new products in partnership with Simon Mall by leasing existing, vacant retail space on a short-term basis which solves a two-fold problem:

(1) small start-ups can have full retail space and showrooms (marketing, displays, loss prevention, etc.) for their product for as little as $500 per month

(2) malls can utilize vacant space that would most likely continue to sit empty since no one is happily signing on to a 10-year lease in a “dying industry.”

The program has potential to increase mall traffic and would be especially lucrative if Simon can expand this program to multiple locations, including their Premium malls. Retail or showroom space is usually a cost that start-up companies could have put towards enhancing product knowledge in broad-reaching channels (e.g. email marketing and social media campaigns); so, Simon should ensure that they give these companies space in malls that draw the correct target consumer.

The Edit is just one way that retail is changing how, why, and where we shop. The true value here is to the customers who will be able to experience new fashion, tech, and food companies within their local mall. The Edit currently includes custom bag designs from goldno.8, high-quality cosmetics from Winky Lux, mason jar deserts from Jars by Dani, and technologically advanced suitcases from Raden. The Edit is open in the Roosevelt Field mall outside of New York City.