Mercer Mall’s Re-Reinvention

Mercer Mall hopes its latest makeover will be its most successful yet

By: Gwen McNamara
   For most shopping centers, the loss of one major tenant can spell trouble, so when Mercer Mall in Lawrence lost more than four in just three years — namely a multi-screen movie theater, Kmart, Kids R Us, Drug Emporium and The Wiz — some expected the outdated center to simply fade away.
   But today, under the direction of Maryland-based Federal Realty Investment Trust, Mercer Mall again is thriving, both with the help of new tenants and with planned renovations.
   "Mercer Mall is a great location with great visibility," said Emily Groome, development manager at Federal Realty. "It’s got a great future."
   Opened in 1976, the nearly 500,000-square-foot shopping center has undergone periodic renovations to keep it competitive — the last creating the center’s current Southwestern style.
   Federal Realty, which purchased the center from Harvey Siegel and Bristol Development Corp. in October 2003, plans to do away with the Southwestern façade and bring the look of the mall in line with that of its two newest tenants — ShopRite and Raymour & Flanigan Funiture.
   "In the next three months, we’re going to begin changing the main center’s canopy to tie into the new designs created by ShopRite and Raymour & Flanigan, which have split the space formerly occupied by Kmart," Ms. Groome said. "The look will be a lot cleaner."
   Ultimately, all of the mall — including shoe outlet DSW’s stand-alone store and the buildings housing shops like Starbucks, Triangle Printing and Hooters — will be renovated.
   "We’re pouring $10 (million) to 15 million into the mall, including both building renovations and site improvements, like landscaping, lighting and pavement," Ms. Groome said.
   Since the movie theater’s close in 2000, the departure of Kmart and The Wiz in 2002 and the closure of Kids R Us and Drug Emporium in 2003, Federal Realty has been able to bring in a slew of new tenants.
   Some already in place include ShopRite, Raymour & Flanigan and DSW, which moved into the movie theater’s old space. Office Depot has taken over what was the Kids R Us, and Treasure Island — an outdoor furniture store — expanded into the former Drug Emporium location next door. Pet supply superstore Petco is expected to move into Treasure Island’s old space over the summer.
   Federal Realty also purchased the New York Deli restaurant along Route 1 and has plans to bring Champs — a sports bar and restaurant — to the site.
   The old Wiz building, next to the Olive Garden restaurant, is up for major changes as well. Federal Realty plans to create small restaurant and retail spaces on the first floor, with more retail and office on the second floor.
   Cheeseburger Cheeseburger, a ’50s-style restaurant, is expected to open on the first floor later this year.
   "We’ve had a lot of interest in our center," Ms. Groome said. "In this area, small shop space — 5,000 square feet or less — is a hard commodity to find. Our leasing agents have been fielding plenty of questions."
   She’s confident the mall will continue to be successful.
   "When we look at a property, we’re looking for good urban density," said Ms. Groome. "Route 1 has amazing traffic, and the area fits our demographic. We also like having a shopping center anchored by a grocery store — it brings in daily traffic.
   "Based on these conditions, Mercer Mall represented a great opportunity for redevelopment," she added. "In the next year, you’ll see a lot of changes happening at the mall."
   Federal Realty expects to have "99 percent" of the renovation work done before the upcoming holiday shopping season.
   "What you see now and what you’ll see at the mall next year will be vastly different," Ms. Groome said.
   Current tenants at Mercer Mall say they are happy with the changes already made — and they’re hopeful about future plans.
   "Shop Rite has helped some to attract customers to our store," said Jen Floyd, a manager JoAnn Fabrics. "And overall, the mall is a lot busier. On the weekends, it’s like someone’s giving away money — the parking lot is just packed."
   She can’t wait for the mall to be renovated.
   "Once the façade is redone, the center will look even better," she said. "The Southwest style really needs to be redone. It looks out-of-place around here."
   Randy Cooper, store manager of Bed Bath & Beyond, agreed.
   "We’ve definitely seen an increase in business," she said. "The only remaining issue is parking, but I’ve heard they’re going to redo it to be like what’s at the ShopRite end. So it’ll be a lot better."
   She hopes that as renovations begin, construction won’t turn customers away.
   "The construction before (with ShopRite) was such a hindrance — you couldn’t even get out on Province Line Road," Ms. Cooper said. "But everything’s a lot better now, and we hope it stays that way."