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Retail Radar

One of the more prominent stories coming out of the retail world was centered around Target. Target has recently announced their plans to build 300 stores in the next 10 years. The keynote of all this is that Target wants to build their traditional stores at their 125-145k sF footprint. Target expects there will still be more smaller stores – but that will be designated to the college campuses and urban locations where they can thrive in those respective markets.

Above: A rendering of a future Target store in West Orange, NJ (conversion of a former Caldor) – scheduled to open in 2025.

This is a huge proposition for Target. The store has a legit cult like following and avid fan base. It will invest its capital from sales and redevelop almost all of their 2,000 stores in some way shape or form. There is expanded product lines, more investment in their grocery section to compete with Walmart, and integration with CVS and Ulta having their own locations within their stores. The fact that Target sees more opportunities for their larger stores reflects their profitability and bright future.

A lot of retail stores have reduced their original store footprints to almost half their original size to cut down on inventory, overhead, and efficiency cost evaluation reasons. It’s hard to see a Macy’s that spans as large as 200-300k sF in size scaled down to 30k sF to compete with the Ross’s, Nordstrom Racks of the world.

Above: New smaller footprint 30k sF Macy’s concept in a former Bed Bath & Beyond space in Mount Laurel, NJ

Burlington is another prime example of a mid-market off rack retailer who just as recently as 8-10 years ago, increased their store portfolio at an accelerated rate, but at that time targeted their accustomed sweet spot in terms of sales floor area (45-50k sF).

IKEA is finally entering the market of building smaller stores – and their merchandise is advertised via Internet and promoted for 1x1 interaction with their customer at their showroom stores. This opportunity gives bigger city markets (i.e. Manhattan) a chance to at least experience the customer service and engagement that Ikea has to offer when selecting kitchen countertops or bedroom sets.

Obviously, the granular reasons for a smaller store is due to the retail and economic landscape of today’s world. There is a labor shortage and the replacement of cashiers to self service lines. Efficiency matters in any business – especially with stores looking to build small and reduce operational costs.

Personally, I like the confidence of Target to propose big stores again. It’s a reflection of how they feel they can penetrate the market and continue to provide high quality services and I remember first going to their “Greatland” dual entrance stores in the early 2000s and it felt like I would never experience that gravitas of a large but captivating store nowadays.

Above: Ikea small scale store in Madrid, Spain. (Courtesy of IKEA.com)

I’m a mall guy at heart but also still adapting to the Amazon / omnichannel ways of shopping but I enjoy the fulfillment of the retail hunt. I feel more rewarded to find what I am looking for, evaluate if I want it from a need/want/price perspective rather than a mouse click. Both ways certainly work – but I come from an era that respects both the world’s pre and current Internet era. Target, despite the retail climate to reduce risk, realizes their store expansion is reflective on picking the right locations to maximize their value from the shareholders to the shopper.

five below in

lumberton, nj

At last! There’s life back in this shopping center! The long-standing Lumberton Plaza in NJ on Route 38 and Eayrestown Road is getting a new tenant – Five Below!

Published: May 10, 2024

Above: Current photos taken on May 10, 2024 of Coming Soon sign and storefront of proposed Five Below

The Who:

At last! There’s life back in this shopping center! The long-standing Lumberton Plaza in NJ on Route 38 and Eayrestown Road is getting a new tenant – Five Below!

Aerial plan of Lumberton Plaza in Burlington County, NJ and the proposed Five Below (along with proposed outparcel development). Courtesy of Metro Commercial Real Estate website.

Five Below as you may know is a discount store chain in the United States and its business model is to sell products as the name suggests = $5 and below.

Above: A recent photo of an aytpical Five Below store in Moorestown, NJ.

In many instances, there are items within store that are valued more than $5 and are usually in a designated section (such as the Ten Below concept once tested in their current Philadelphia flagship location), now referred to as Five Beyond in current stores.

Above: A birds-eye view of the Lumberton Plaza anchor tenants with the new Five Below

The store offers a wide variety of items, toys, electronics, clothing, beauty products, and home décor.

Five Below is also a local company founded in nearby Philadelphia back in 2002 by David Schlessinger and Tom Vellios. Since then, it has grown rapidly and expanded to over 1000 stores across the country. More recently, the company announced that it will more than double the number of stores to over 3,500 locations across the country by 2030. In doing so, the company hopes to double sales and profits in that period. The Covid pandemic in 2020 had stalled some of their expansion plans but the company has been a major hit in terms of annual sales revenue (especially in the 18-24 demographic) and is still growing.

As a result of this recent news, Five Below is being aggressive in pursuit of expanding their portfolio and entering new markets. Considering Lumberton NJ is in the Philadelphia metro area and their recent success, the desire for more Five Below stores has proven to be a commodity and a successful story.

The What:

Lumberton Plaza has been around for ages and is a stones throw from my home in nearby Eastampton Township in Burlington County NJ. From what I remember, this center used to be home of Super Fresh supermarkets (a now defunct grocery store). It also housed other small business shops and community-oriented places with also a medical center that recently closed.

The plaza has recently struggled from a tenancy perspective the past few years. Over the 30 plus years of existence in Lumberton Township and nearby Mount Holly, NJ - this shopping center has seen its share of retail openings and closings and has not been fully leased in many years. Once Super Fresh left in 2011, it left a vacant shell closer to Rt. 38 that needed a prime anchor tenant to takeover.

About 12 years ago in 2012, then soft discount grocery chain, Bottom Dollar Food, took a portion of Super Fresh and ultimately Big Lots arrived to complete the remaining fit out. Bottom Dollar’s fate was due to a saturated market of other thriving grocers and was last to market in terms of tenure, hence the closure of all Bottom Dollar stores in the Delaware valley and beyond including Lumberton, NJ. The chain would ultimately be sold to Aldi in 2014 (who share the same parent company as Bottom Dollar did). Ultimately, Bottom Dollar was converted to Aldi shortly after closure. 9 of their former stores in the South Jersey area would be converted to Aldi in a transformation.

The center lives on a highly traveled road, Route 38, which experiences roughly 45,000 vehicles per day passing through and has great visibility and tons of commercial development. It’s on a corner lot and has the traditional L shaped layout – easily walkable if you’re on foot trying to get from one end of the center to the other. Other stores here include Rite Aid Pharmacy, Family Dollar, a local Gym, and more.

With the recent news of Five Below joining adjacent Big Lots and Aldi – this will surely bring a wave of new fans and shoppers to a much-needed area of revitalization. There are some other plans in the pipeline for Lumberton Plaza. Per the latest site plan, as shown on their development company website, Metro Commercial – shows 2 new pad sites (a QSR = quick service restaurant) and a car wash is possible.

Above: Zoomed in image of proposed outparcel development in the center - directly across Five Below.

The existing former medical facility outparcel will be demolished to make way for the new standalone buildings. There are still some inline shop opportunities available for lease throughout the center, but things appear to be trending upward at the Plaza.

The When:

Right now, there’s no sign on when Five Below is scheduled to open. I’ve done some local research online and noticed this was a recently announced store on the horizon. There is a construction website I frequent that has an active list on which nearby developments are about to start construction – or which has been awarded a general contractor to perform the tenant buildout.

I drove past the shopping center (which is 5 minutes from my home) and noticed the space was being prepped for Five Below. The storefront doors were open and in appeared an open floor plan. The space is a 12,000+ square foot unit and will be slightly larger than its nearby Burlington Township location (Liberty Square Center) which is 11,600sF. If construction has already started as it appears – one can assume a projected opening before year end or Q4 2024.

The Where:

Per the latest site plan on Metro’s property page, Five Below will be situated to the right of Big Lots. Big Lots has an annexed space in addition to being in the Super Fresh building that houses their extended furniture merchandise.

Usually, history shows that prime national tenants like Five Below can serve as a catalyst for additional retail opportunities next door. There’s a lot of vacancies left here between the endcaps but it’s good to see vibrant tenants take a chance here at Lumberton Plaza. I’ll be sure to check out the new store once it opens!

The Why:

As a consumer and millennial in today’s ever-changing retail landscape, once thing is for sure. Discount oriented tenants is truly a commodity and is affordable, convenient, and still an experience for the bargain-oriented shopper with a wide range of goods.

I consider Lumberton Plaza to reflect today’s retail options that are successful and profitable. Overall, the center with the recent addition of Five Below is a marketplace for all ages and groups with all consumer preferences in mind. Five Below is very hip and trendy typically targeted for a young shopper, and complements the vast offerings provided at Big Lots, Aldi, and Family Dollar. Together, truly all 4 major retailers can and should work just fine.

Above: Lease plan of most recent Lumberton Plaza with Five Below taking adjacent space to the left of Big Lots.

As indicated on the shopping center’s developer’s website, National Realty & Development Corp. (NRDC), Michael’s was recently added to the tenant list at this Walmart anchored center. This is significant news as this was the last open vacant space at this newly revitalized center that also includes Ross Dress for Less, Marshalls / HomeGoods combo store, Five Below, Planet Fitness, and Dollar Tree.

Michael’s is an arts and crafts store founded in 1973 with an expanded product line of high-quality art supplies, various home décor, and other creative items. It’s a great addition for anyone looking to do any creative home decorations or people into knitting, crocheting, drawing, or building wood modeling items.

Personally, I frequent Michael’s to get art supplies whenever I am creating my retail architectural inspired projects. The newer concept of Michael’s has a craft studio classroom space (called Makerspace) for art workshops and training. Kids can do a painting class, or you can take a knitting workshop with other people willing to learn. There is certainly a lot to choose from and it’s overall a great choice for Burlington.

Inside a typical Michael’s arts and crafts store: A lot to choose from!

For Michael’s, this will be only their 3rd location in Burlington County (Marlton and Moorestown, NJ) and will certainly cover a large trade area. The closest Michael’s to this location is in Moorestown, NJ (15 minutes away drive time) and the Burlington location will be the newest location.

Moorestown Michael’s has recently relocated to a new and expanded building at the former Macy’s building at the Moorestown Mall back in 2020, which moved from a very successful store at the East Gate Square retail power center a half mile away. The new Moorestown location has great frontage and visibility for commuters on the high-volume Route 38 highway. Route 38 is a shopper’s row with the prominent Cherry Hill Mall and other national retailers all within a short distance.

Above: New relocated Michael’s in Moorestown, NJ.

Considering this new Michael’s is local to my current home in Eastampton, NJ, I have followed this news closely as the Liberty Square Center in Burlington was also home to my local Walmart. Growing up in neighboring Willingboro Township, this center was our go to shopping destination as a kid. With a 2-year-old daughter that loves Five Below and their toy selection, and a wife that loves Marshalls, it’s safe to say I frequent this area A LOT!

Burlington Township has seen a lot of recent retail development since 2020, especially at Liberty Square. All in the past 4 years, the center experienced a surge in leasing and national tenants started to file in a once dormant center. In 2020 alone, the center transformed from a vacant Acme, Toys R Us, into a fit out of Planet Fitness (opened 2021), integrated HomeGoods into the existing Marshalls footprint, and added Five Below. In today’s real estate market, it’s certainly no easy feat to successfully lease good quality national tenants, let alone to infill 65,000sF next to a thriving Walmart. Acme closed in 2017 for underperformance reasons. Shortly before, Walmart redeveloped their discount store into a Supercenter concept with an expanded grocery section which was the proverbial nail in the coffin. A new 90,000sF ShopRite supermarket opened down the street in 2014 to the Acme closing in 2015 at a former Kmart property.

Above: Proposed renderings of the new retail side of Liberty Square Center (with Planet Fitness, Ross, Five Below, Marshalls/HomeGoods and proposed Michael’s.

Liberty Square has been a long-standing retail hub in the community – I remember in the early 1990s it was home to Bradlees (closed in mid 90s) and a smaller discount Walmart store. Walmart had limited grocery options back then and was more a place for everyday goods.

Located on Route 541 – a main highway corridor that connects two major highways I-295 and the New Jersey Turnpike – this center has served as a prominent retail presence in Burlington County. There were a lot of small adjacent shops present that are now defunct such as Rag Shop (smaller version of Michael’s that sold arts/craft goods) , and Dots (women’s apparel). As I type this, the nostalgia of shopping with my parents as a kid here is actively present!

As many will know, it’s not easy being a co-tenant or neighbor to Walmart. I recall reading in a previous article years ago that there was a criterion of stores that truly work within the vicinity of Walmart. Stores like Dollar Tree, Five Below, Ross – or discount, off rack retailers provide a good contrast to what Walmart offers which is virtually everything! It’s hard to compete against the behemoth of a store that has everything under one roof from jewelry to socks to mustard.

Above: Liberty Square Center site plan with proposed Michael’s included

Walmart’s cotenants can work in harmony with this big box store if there is variety or a specific category that Walmart may have in a limited way. Michael’s, for example, can work alongside Walmart since the store is targeted for primarily arts and crafts which may be more inclusive to a shopper looking for specific items. Sure, you can purchase a large piece of fabric at Walmart, but Michael’s may have various iterations of such fabric in all types of color, shapes, texture, etc.

My findings for Michael’s were completely happenstance. I frequently check the owner’s (NRDC) property page and check the Liberty Square listing to see what the last vacant space will be leased. A few weeks ago, I noticed Michael’s was identified as the final piece for the 18,000sF vacant space.

The space has been built out for about 4 years and is a vanilla box ready for lease. Michael’s stores typically range to about 18 – 25,000sF in size and this would presumably be a smaller oriented store. Michael’s in Burlington, NJ will fit in nicely with a healthy retail lineup and will attract their customer base as well as curious consumers who may not be familiar to what they have to offer.

Retail as we know it was always bound to change. Every generation has a different desire and set of needs they want to fulfill and achieve when they shop. Growing up for me in the 90s, our community hub and social gathering was the mall. The mall was everything to us, so much so that developers designed it for more than just shopping going into the early 2000s. My local mall was within direct proximity to a movie theater and restaurants that were steps away. You can literally spend your entire weekend there. There was a store for every age and social group, and a lot of variety to choose from.

I loved going to regional malls in other parts of the country. There were so many cultural elements and trends that were different. I enjoyed how the old Mills Corporation malls would appeal to it’s local demographic throughout the world. Dolphin Mall in Miami would have margaritas, authentic Spanish food and other Hispanic elements within their merchandising. Jersey Gardens would appeal to the local NYC tourist and traveler and have all of the regional staples that are known to be associated with the Big Apple.

Malls have since lost a bit of luster in the past 20 years. As a millennial, I can attest to that because we are truly in an instant results world. A typical Amazon purchase takes a few minutes to browse and a second to purchase an item. I’ve seen malls try to reinvent themselves to become less retail oriented and more universal in terms of the live, work, play model. Garden State Plaza in Paramus, NJ went through overhauls in my lifetime with an AMC / family-oriented wing to complement its luxury and mid-market consumers. Now it is replacing a third of its surface parking to create an outdoor main street with apartments, offices, ground floor retail in an urban setting.

Moorestown Mall near me has seen its glory days in the 90s, despite being 3 miles and on the same street as the regional darling Cherry Hill Mall. Cherry Hill, NJ is our edge city within the Philadelphia metro area that has a history of sourcing all the top retailers and restaurants. The common denominator of both Moorestown and Cherry Hill is the need to transform into a broader business investment. Moorestown lost 3 of it’s 4 anchor tenants (Macy’s, Lord & Taylor, and Sears) and transformed it into a bevy of services such as a Ambulatory center (Sears), a future amusement center (Lord & Taylor), and prominent TJX tenant row to infill Macy’s box.

Simply put, what worked in the 19th and 20th centuries from a retail perspective was bound to change. From the broadband internet wave in the early 2000s which was the foundation for e-commerce, and catalyst for the omnichannel shopping environment. My dad was born in the 30s and he was accustomed to the look, feel, and touch of a product or browsing his favorite tool before his decision to buy. Still applies to this day. But it also compromises the convenience and efficiency of buying a new scarf or hat through an omnichannel process.

As millennials got older, so did the existence of our children. I can speak for me and say whenever I shop, the goal is always multi-faceted. My desire is to go somewhere my wife can look at what apparel she wants, my toddler can browse and play with the toy displays, and I can grab something essential for the house for my next honeydew project. A place like Target certainly checks off all the boxes for us as a family.

For as long as I can remember, retail development has always been a focal point in my life. Literally. I can think back to the age of 5, and always having a unique interest in stores. The layout, the design, the value, , the prominence. I knew at a young age that I wanted to do something involving retail in some capacity. I used to play with Legos and Matchbox cars and carefully lay them out in the orientation of a shopping center with respective parking aisles. I’d go to the store with my Mom and come back home excited to tell Dad that we went to some big box store of yesteryear (while also innocently telling on her in the process on her shopping escapades!) My late father would drive me to check out the new retail projects within our county that I was closely monitoring. I adopted a working knowledge of tenant criteria and desired cotenants and square footages of big box to mid chain retailers. From there, I had my eyes set on designing storefronts for retail buildings in an architectural fashion with my own designs from my head. As I got older and garnered more practical experience, I took a journey through various paths in commercial real estate and always had a pulse on any latest industry related findings or trends of businesses and consumers. I used to learn retail research was very parallel to respective demographics and their own priorities on how they live, work, shop, and play. The desire to start my own website was never at the forefront, but more of a culmination of how much I care about this type of stuff. It has an always will be exciting to know which is the new emerging retail tenant, or which store is constantly growing and profitable despite the everchanging retail landscape. Retail research and new insights not only tell me what is being built, it tells me a story indirectly of what is working in this environment. A reflection of truth that is so real we need a building to accommodate the demand. That is an example of why I wanted to start Retail Radar.

Stay Tuned! - More to Come

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LinkedIn (Page coming soon)

Website: retail-radar.com

New articles will be available twice a week!

Justin Johnson (retail radar guru)

Phone: 973-619-8476

Email: jus.johnson90@gmail.com

LinkedIn:

www.linkedin.com/in/justin-johnson-052b00b4

Other Works - Click Link HERE for more of my past work

& personal projects

past works (please click any image below)

Westfield Westampton, NJ Mock Project:

https://www.canva.com/design/DAGFKp0JFf0/Y-NlRdQfbP-0Izrnw4apoQ/view

Target Store Concept:

https://www.canva.com/design/DAGFKigC_1E/Wu7BdzCX37QydqoFIIgu1Q/view

Mock Walmart Project - Willingboro, NJ:

https://www.canva.com/design/DAGFKkl6yuc/PXgvXCk2F3x1Y6_jVz9n7g/view

Walmart Marketing Brochure - Bloomfield, NJ:

https://www.canva.com/design/DAGFKgdB0UI/Vcd-zeVJ-jfDiD_obZmLxg/view

Design Portfolio

https://www.canva.com/design/DAGFOFCn6O0/ntaqmCG4KN_2JFtm5667lg/view