Downtown Competitors Up the Ante

By Blair Clarkson
Staff Writer

May 11 -- As the fickle retail market continues to improve and the battle for valuable consumer dollars heats up, "pedestrian shopping venues" across Los Angeles are looking to up the ante.

The Grove, Westside Pavilion, Hollywood and Highland and Century City – which vie for visitors with the Promenade – are hoping to lure more shoppers with revamped theaters and entertainment options.

Such new developments are forcing Bayside officials to take notice.

"It underscores the fact that our theaters are in need of replacement in order to maintain our long-term vibrancy," said Kathleen Rawson, executive director of the Bayside District. "Theaters take a long time to develop. We must concentrate on this issue now."

At the Westfield Shopping Town in Century City, vast plans are in the works to make over the site, including opening a state-of-the-art 15-screen AMC theater with stadium seating in Fall 2005, extending Gelson's supermarket, expanding the food court and adding new dining options and home fashion stores.

The nearby Westside Pavilion on Pico Boulevard and Overland Avenue has also announced plans with Landmark Theaters to develop a new 14-screen theater project at the outdoor mall area on the west side of Westwood Boulevard.

The new complex – which is scheduled to begin construction in August – will showcase foreign and independent films that attract a desirable target audience.

"We skew a little bit older" than Third Street, said Erica Boatman-Dixon, senior marketing manager for the Westside Pavilion. "We definitely appeal to the 40-year-old stroller mom. We're trying to work it as a woman's mall and a family property."

A more direct competitor to the Promenade's retail market is still The Grove, the carefully manicured, 575,000-square-foot private outdoor shopping development that opened on Fairfax almost three years ago.

Sporting many of the same shops as the Promenade – J. Crew, Abercrombie, Barnes and Noble, Victoria's Secret – but lacking the eclectic mix of restaurants, the Grove has been working recently to establish itself as a "destination," with televised tree-lighting ceremonies and other seasonal events.

"The Grove has sparked a lot of interest," said Rawson. "They've spent a considerable amount of money on marketing, and have done very high-profile things."

Yet for many, the controlled environment of The Grove offers a much different feel than the urban downtown. "That's what makes Santa Monica different," said Andy Fixmer, retail reporter for the LA Business Journal. "It's organic, not Disneyland."

Hollywood and Highland – which may have had too much urban grit – rebounded from a slow start in late 2001 to become an entertainment hub, with new production studios for several high-profile TV shows, the Kodak Theater and elaborate events at the Grand Ballroom. By using these resources to draw visitors to the retail space, the venue saw an 11 percent jump in sales in 2003.

However, most agree that the Promenade's retail market is in no jeopardy. "I don't think the Promenade has lost any of its importance as a retail center," Fixmer said.

Rawson agrees. "The retail market in Downtown is still extremely strong. At this point, our concerns are not focused on retail, they're more focused on the theater development" and maintaining the Promenade's diverse mix of restaurants.