 |
 |
 |
 |
 |
 |
 |
Shopping Centers Today -> October 2003
 PRINT THIS STORY: |
  CHANGE TEXT SIZE: |
|
CHAINS THRIVE WHERE ONCE THEY FEARED TO TREAD
 |
| Joe Sitt |
Growing up in Bensonhurst, a working-class neighborhood in Brooklyn, N.Y., Joe Sitt understood firsthand the opportunity that retailers were overlooking in urban markets.
“I can’t tell you how underserved we all were — blacks, whites, Hispanics, Jews — and still are,” said Sitt, chairman and CEO of Thor Equities, a New York City-based urban developer. “A lack of quality in product, design and service shows a lack of respect, but the consumer is forced to accept a lower-quality environment because of a lack of alternatives.”
Fresh out of college, Sitt began acquiring vacant lots and blighted buildings in New York City, intending to develop one-story retail centers. But retailers were unwilling to open in his inner-city projects.
“I saw a void in the marketplace, but the national chains said, ‘No way, the ’hood is too rough,’” Sitt recalls.
So in 1991 he started his own chain, Ashley Stewart, targeting black women through fashionable plus-size apparel and an appealing décor of black granite tiles, leopard-patterned carpeting and mahogany and gold-colored trim.
“I looked to do for urban consumers what the Limiteds and Gaps did for white America,” Sitt said. “We took a more sophisticated approach, with an upscale store and good customer service. And we didn’t treat customers like criminals — we eliminated bag checks.” The business grew to 300 stores and $300 million in sales during his tenure, he says.
Among other retail ventures, Thor acquired the remnants of Petrie’s Marianne Stores, repositioning it for the Hispanic market, and the Children’s Place chain, expanding it into urban areas. “I wanted to show the retail community it could be done,” Sitt said.
Slowly, retailers began catching on. When chains like the Gap started asking Sitt’s advice on the urban market, he realized that they might be ready to move in.
“They’re starting to wake up, realizing the potential of that customer,” he said. “My original dream of owning urban malls is now coming true because the nationals are getting ready to open in this market.”
Thor has since sold most of its retail interests to dedicate itself to urban development. In the past two years the company acquired 5.5 million square feet of retail space. Its holdings include the Gallery at Fulton Street, Brooklyn; Military Circle Mall, Norfolk, Va.; and a property on Chicago’s State Street that will house a 30,000-square-foot flagship for Forever 21, the chain targeting teens and young women.
In March 2003, Thor acquired South DeKalb Mall in Decatur, Ga., home to one of the country’s most affluent black communities. The company plans to make approximately $15 million in improvements to the 700,000-square-foot property, which opened in 1970.
“It’s a great property, but run-down,” Sitt said. “Still, it does north of $340, $350 per square foot. Imagine what it will do when we fix it up.”
— N.C.
 | Current Issue February 2012 |