Shopping Centers Today -> May 1998
Print this storyPRINT THIS STORY:
Print this story Print this story CHANGE TEXT SIZE:



Centers use spas to pamper shoppers

By Jim McCartney

The spa, with its facials, herbal wraps and massages, was once considered a luxury reserved for the wealthy, the province of exclusive clubs and resorts.

Now, spas are popping up in, of all places, strip centers and regional malls. In the Twin Cities, one can find spas in strip malls, trendy shopping districts and Mall of America in Bloomington, Minn.

The same phenomenon is happening across the country, according to Art Spellmeyer, vice president of development for Indianapolis-based Simon DeBartolo Group, the company that co-owns and manages Mall of America.

"Spas are huge -- we're putting them in a lot of our malls," said Mr. Spellmeyer.

Behind the trend are some major demographic, lifestyle and marketing movements. Spas appeal to the overworked baby boomer, who is looking to find ways to relax and feel good, and for an antidote to the stress and strain of the fast-paced '90s lifestyle. What's more, the strong economy has made spa services affordable to the middle class, said John Berg, a retail analyst in Coopers & Lybrand's Minneapolis office.

"Between now and the year 2017, the baby boomer is our key customer group, because they have the money, and they want to treat themselves well," said Jeremy Melting, vice president of operations for Minneapolis-based Horst Salons.

In an effort to enhance their properties' drawing power, shopping center owners are adding entertainment and services to their mix of stores. Spas, which draw an upscale clientele to the mall, meet this need nicely.

"It's a destination, but people stay and shop," Mr. Spellmeyer said.

But if shopping centers need the spa, the spa also needs the shopping center. Spacustomers also want convenient locations.

To be sure, there is still a demand for the remote retreat, where guests are pampered from morning to night. But customers are increasingly looking for a "pick-me-up," a quick, convenient access to that facial or massage that will give them a needed, if brief, respite from their hectic lives.

"It's a great way to recharge," Mr. Melting said. "If you're working on a big business deal or you're having problems at home, a massage or a facial can be a fantastic release."'

Over the last three years, Horst Salons has developed six spas in the Twin Cities in a variety of retail locations, ranging from Gaviidae Common, an upscale specialty center in downtown Minneapolis, to trendy places such as Uptown in Minneapolis and Grand Avenue in St. Paul, to strip centers near major regional malls. Horst typically leases between 3,500 square feet and 5,000 square feet of space for its day spas.

As the spas developed, Horst Salons found that location was important, despite the fact that the spas were mainly a destination type of service. One new location is in Victoria Crossing East, in one of the hottest retail neighborhoods in St. Paul.

"It was the best spot on Grand," Mr. Melting said. "If you do it right, you can own that market. But if you put the store down the street, you would do well but you would have less impact."

Besides the high visibility of its Victoria Crossing store, it also draws significant walk-in traffic. If the spa has openings, the staff will accommodate the walk-ins; if not, they will offer to make an appointment for a later time. Horst Salons can benefit from walk-in traffic because it has a broad line of hair and beauty products, vitamins, weight management products, and specialized food products.

Athens, Greece-based Bodyline Mediterranean Spa's new spa at the Mall of America in Bloomington, on the other hand, emphasizes services and does a very small business in these ancillary products. Mr. Mertikas estimates that about 95% of his spa's revenues come from services, with the remaining 5% from products.

Although most of his 25 spas in Greece are in freestanding buildings, Mr. Mertikas wanted a high visibility location to introduce his type of spa to the United States. In November 1997, he opened a 7,500-square-foot facility at the Mall of America.

"There was not a place in the country where we could gain the kind of exposure we will gain here at Mall of America," Mr. Mertikas said. The mall is also the ideal place to test its services and products, he said.

Bodyline offers an assortment of services and treatments, including seaweed wraps, paraffin and black mud body wraps, total body relaxation capsules, bust firming treatments, nonsurgical eye and face lifts, hair removal, dietitians, chiropractors, and even psychologists -- more than 200 services in all. Many of them are new to the spa market in the United states, Mr. Mertikas argues. The spa also includes a steam room, exercise equipment and a juice bar.

One service not offered: the cutting and styling of hair.

Mr. Mertikas said his Bodyline's wellness philosophy makes visiting his spa less of a "special occasion experience" and more of a way of life, as he claims it is in Europe.

Mr. Mertikas hopes to create loyal customers and repeat business in the Twin Cities. The Mall of America Bodyline also is targeting the megamall's huge tourist market, tapping travel agencies and local hotels to reach tour groups or conventions that are booked in the Twin Cities. The travel agents recommend that such groups schedule appointments in advance of their visits, if possible.

Mr. Mertikas plans to add two or three more locations in the Twin Cities by June 1999. Eventually, he hopes to expand his spa chain throughout the country, with 10 new locations nationwide by the year 2002.

Mr. Mertikas has yet to decide if he will build his next Bodyline Mediterranean Spa in a regional shopping mall, a strip center or as a stand-alone location.

Shopping Centers Today
Current Issue March 2010Current Issue March 2010