Gateway Mall vs Valley River Center Good

Gateway Mall vs. Valley River Center

Good Morning We drove all the way down to Eugene and then all the way to Springfield to bring the class a comparison of Valley River Malls. We noticed some similarities and differences. The malls have gone in different directions. We had to ask, “Why? ”

Gateway Mall – Store Directory Department Stores: - Kohl’s – Opening April 2006 - Ross Dress for Less Specialty Stores - Sears -All American Sports Fan - Target -Candy Tyme -Lon Haverly Portrait Artist - Image Express Service - Java Generations -24 hour fitness - Magic castle of Swords - Clearly Lasik -Motherhood Maternity - Clearwire - Oregon Sports - Comcast Cable - Image Express - Oregon’s Own Dollar Store - Jackson- Hewitt - Trendwest -Prepaid Legal - Quick Test Opinion Center Image: www. gatewaymall. com

Some Facts About Gateway Mall | Anchors: Ross Dress for Less, Sears and Target | Opened: 1990 | Renovated/Expanded: 1998 -1999 | 825, 000 sq feet | Spending $200, 000 on Closed Circuit TVs for Security

Demographics Population, 2003: ¡ ¡ Median Household income, 1999 ¡ ¡ ¡ Springfield: $33, 031 Eugene: $35, 850 US: $40, 916 Retail sales, 1997 ($1000) ¡ ¡ Springfield: 54, 773 Eugene: 142, 185 Springfield: $504, 643 Eugene: $2, 036, 420 Bachelor's degree or higher, pct of persons age 25+, 2000 ¡ ¡ ¡ Springfield: 13. 8% Eugene: 37. 3% US: 25. 1%

Ron Glover § § General manager of Gateway Mall Works with General Growth Properties Gateway is his 10 th Mall Been there less than a year

Valley River Center and Gateway Mall – the Beginning of the End Valley River Center and Gateway Mall were managed by the same company. The original plan was to build up Valley River Center and then eventually purchase it. While this was happening, the quality of stores and the look of Gateway began to go downhill Gateway Mall is now considered a ‘sleeping giant’. With new renovations and new department stores coming in, Ron Glover and the rest of the management team hope to make it…

… more family oriented New Play Place Old Play Structure The addition of a $100, 000, soft, Oregon-themed, indoor play place situated in the center of the mall, will help with that and help replace the older play structure outside the front of the mall.

…a market giant

Target Markets n Gateway Mall currently targets three main target markets. Target at one end of the mall targets discount shoppers Late-Night Movie Goers -with 2 theaters with a total of 29 screens, 12 of which at the discount $1. 50 theater Picture: www. target. com Sears targets the general shopper. Not looking for anything too highend, but not discount shopping either.

SWOT Analysis of Gateway Mall l Strengths: l l l Current vacancies are opportunities for new, bigger stores to come in Easy to get to location right off I-5 New play-area for children Kohl’s coming in next door New, motivated management Picture: www. generalgrowth. com l Weaknesses: l l l Current reputation Current vacancies Surroundings

Continued SWOT Analysis of Gateway Mall l Opportunities: l l Current vacancies are creating new opportunities for different stores. New management with new ideas Large open spaces Good architecture Picture: www. geography. uoregon. edu l Threats: l l l Valley River Center Natural Attrition: Growth to the west side of town away from both malls Oakland Life. Style Center l Not enclosed l Upscale retail area

Kohl’s In Springfield l With the addition of a Kohl’s right next door to the mall, Gateway Mall will benefit greatly.

SWOT Analysis of Valley River Center l Strengths: l l l 1, 000 square feet Largest mall in Mid. Valley area Top 10 Nationals Well-known Higher end specialty stores pertaining to the middle-upper class l Weaknesses: l l Location: hard to find, landlocked between a river and a dead-end road At full occupancy: does not leave any room for growth or new merchandise

Continued SWOT Analysis of Valley River Center l Opportunities: l l Meier & Frank is closing down therefore creating an opening for a new anchor store A new fast growing anchor store to take its place will draw in more customers to the mall potentially l Threats: l l Within the next few years Gateway Mall should become a large threat. Growth to the west side of town, away from both malls

Valley River Center Anchor Stores l Macy’s l l JCpenney’s l l East side near chili’s restaurant Meier & Frank l l NE corner near Red Robin West side next to transit station Copeland’s Sports l South end next to radioshack

Store Closure Meier and Frank The reason: • In the same mall as Macy’s and have nearly identical product offering • All Meier and Frank’s will be closing due to buy out by Macy’s

A non-targeted Consumer • Banana Republic is a relatively expensive store targeting Middle – Upper-class Individuals with the look of sophistication • Such as this loyal customer seen here

A closer look Classy bandana look The look of loyalty Comfortable Athletic shoes ideal for those catered affairs Quality cotton hooded sweatshirt The laid back sweatpants for those relaxing days filled with reading

What direction should they head? GATEWAY l Use the reputation as a competitive advantage. l Outlet Malls l Family Fun

What direction should they head? VRC l Exploit trendier reputation l Continue to add upper end anchor stores.

What we figured out… If each mall recognizes its nice that it has carved from the local population and exploits to its fullest, they can both grow and cohabitate.

VRC Transportation l Lane Transit District (LTD) l 3 Bus Routes l 66 VRC/ Coburg Rd. l 60 Cal Young l 67 Eugene Station

Bus Station

Map Routes

Compared to Gateway l Two buses l 12 Eugene Station/ Springfield Station l 79 UO via Eugene Station

Bike Friendly l l 30 miles of off-street paths 89 miles of on-street bicycle lanes 5 bicycle/pedestrian bridges spanning the Willamette River. Eugene/Springfield was listed as #1 Best Environment in "America's Healthiest Cities for Women" by SELF magazine (Nov. 2003).

Sources v www. gatewaymall. com v Personal Interview with Ron Glover v www. valleyrivercenter. com v City of Transportation v Lane Transit District