In a nation of dying malls, Kenwood Towne Centre is thriving.
Activity levels at the suburban Cincinnati mall have surpassed pre-pandemic levels, according to its owner, Brookfield Properties, and a slew of new stores now call it home.
Meanwhile, several of its competitors are dead or dying as shoppers vanish and more stores are closing than opening.
Once bustling regional malls, including the now-defunct Tri-County Mall in Springdale; Northgate Mall near Colerain Township; and the former Forest Fair Mall, which straddles Fairfield and Forest Park, were scrambling to retain shoppers and stores even before the pandemic began.
So what separates Kenwood from the rest of the malls?
Luxury stores are the ‘lifeblood’ of Kenwood
The answer: luxury shoppers, according to Nick Egelanian, founder and president of the Maryland-based SiteWorks retail research and advisory firm.
A growing concentration of luxury retailers, including Gucci, Louis Vuitton and Nordstrom, cater to well-heeled shoppers who push sales per square foot − the best measure of a mall’s success − well above sales at malls that serve mainly everyday shoppers, Egelanian said.
“High-end customers like high-end shops, and they want them all together,” he said. “That’s what Kenwood has that other malls in the area don’t. Their (Kenwood’s) lifeblood is to bring in more high-end retailers.”
Officials with the New York City-based Brookfield declined to provide sales and other propriety data. But a recent report from Coresight Research supports Egelanian’s analysis of the local mall scene.
Malls in affluent areas with luxury retailers are on the post-pandemic rebound, with foot traffic surpassing pre-pandemic levels and healthy occupancy levels, according to the report.
Meanwhile, the recovery has been weaker at malls with fewer high-end retailers and affluent customers, which continue to suffer from competition from big-box retailers, such as Walmart and T.J. Maxx, as well as the impact of e-commerce and open-air shopping centers drawing customers away.
The ‘mix’ is important, too
Located at 7875 Montgomery Road, Kenwood Towne Centre anchors Kenwood, a census-designated neighborhood within Sycamore Township and one of Greater Cincinnati’s more affluent areas. Kenwood had a median household income of $95,590 in 2021, compared to $45,235 for the city of Cincinnati, according to the latest figures from the U.S. Census Bureau. It’s also an easy reach from wealthier suburbs such as Montgomery, Madeira and Indian Hill, as well as Cincinnati’s East Side neighborhoods.
The mall has a wing dedicated to luxury brands and luxury consumers, but it also serves traditional department store shoppers with Macy’s and Dillard’s, as well as fashion-finicky teens with trendy storefronts like Lululemon and Francesca’s.
“There’s a large variety of affordable to luxury stores all in one place,” said Instagram user Kelly Johnson, 21, of Cincinnati’s Oakley neighborhood, who responded to The Enquirer’s online poll about why shoppers choose the mall.
Most of the 64 Instagram users who responded to the poll agreed with Johnson, saying the mall’s mix of stores is why they choose to shop there.
“We call it the mall that has something for everyone,” David Jacoby, Kenwood Towne Centre’s senior general manager, told The Enquirer.
For families, Kenwood also has a collection of home furnishings stores, including Arhaus, RH (formerly Restoration Hardware) and Pottery Barn.
From a strictly retail point of view, “we were looking for a mix that would attract everyone … and this mix seems to do that for us,” Jacoby said.
The Cheesecake Factory factor
According to a 2023 report from Moody’s Analytics, the presence of certain tenants can actually reflect a mall’s financial health.
The economic analysis group found that 93% of loans backed by malls with the Cheesecake Factory, for example, are up-to-date on their payments, compared to 72% without the restaurant.
Laura Phillips, director of leasing for Brookfield Properties couldn’t say whether the “Cheesecake factor” is influencing Kenwood, but did say the mall succeeds, in part, because of its mix of tenants.
“Kenwood is kind of the crown jewel of Cincinnati because it really has something for everyone,” she said.
Experimental flagship stores boost traffic at Kenwood
Kenwood is also the only place in Greater Cincinnati to shop at certain stores. The mall houses the area’s only Apple store, Psycho Bunny and Purple Mattress showroom, among others.
Bringing in tenants that are first-to-market is one of Brookfield’s top strategies, Phillips said. The mall has added 35 new tenants in the past three years, the majority of which were first-to-market.
Kenwood mostly draws shoppers from a 30-mile radius but also pulls customers from throughout the region for this reason, Jacoby said.
Retailers also choose Kenwood to introduce new prototype stores. Abercrombie & Fitch and Fabletics both recently opened new concept stores at the mall, and a new Ann Taylor prototype will open this month.
Shopping experience matters
It’s not just the clothes, jewelry, home goods or even Cincinnati’s only Apple store that keep shoppers coming back to Kenwood, according to Jacoby, who said the mall seeks to offer “unique experiences” that draw customers from miles around.
One of those experiences is the Capital One Cafe, a coffee shop/co-working space owned by Capital One bank with only one other Ohio location.
Kenwood Town Centre also houses AT&T, COhatch co-working space, Fifth Third Bank, Build-A-Bear Workshop and an orthodontist’s office.
“We have the experience that fits anybody’s lifestyle,” Jacoby said. “You can spend all day here.”
Phillips said the push to bring in tenants other than typical retailers has grown at malls in the past five years.
“We want our centers to be a one-stop-shop, and that’s something that we’ve been successful with at Kenwood,” she said.
Kenwood is a destination, not just a mall
The goods and services you can buy at the mall are just one part of the equation. The most successful malls also offer multilayered experiences, said Stephanie Cegielski, vice president of research at the ICSC, formerly the International Council of Shopping Centers.
“It’s important to understand that shopping malls are for more than just shopping; they are community centers where consumers have the opportunity to socialize outside of work and home,” Cegielski said.
Kenwood turned its food court into a place sports fans might congregate by adding a video wall. The mall offers year-round and seasonal events, such as pictures with Santa, and has more than 15 dining options.
Brookfield has even incorporated living spaces at some of its other shopping centers, Phillips said.
She declined to say whether the company has considered housing at Kenwood but said Brookfield is “always looking for new opportunities to add, whether it’s housing or hotels.”
What’s in store for Kenwood’s future?
The future of Kenwood appears to be more growth. Phillips said her main challenge at the mall is not having enough space to accommodate interested tenants.
Brookfield has plans for more offerings at Kenwood, Phillips said, including new dining options.
“We’re continuing to try and make it even better in the future,” she said.
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