Overview

Macerich, a mall owner based in Santa Monica, is strategically focusing on less competitive markets for its future growth. Under the leadership of CEO Jack Hsieh, the company is prioritizing malls that appeal to a diverse range of demographics, rather than high-profile locations.

The company is currently undergoing a turnaround, concentrating on leasing agreements to meet its ambitious targets for the coming years.

Key details

  • Macerich is focusing on malls that may not be in primary markets.
  • The company aims to attract broad demographics, including teens, families, and fashion enthusiasts.
  • CEO Jack Hsieh emphasizes the importance of leasing in achieving future goals.
  • Macerich has set a target of 4 million square feet in lease deals for this year.
  • The company has already exceeded its leasing target for the current year.
  • New tenants include high-profile brands such as Celine, Chanel, and Loewe.
  • Other new tenants are Mendocino Farms, Rivian, Princess Polly, and Wilson.
  • The company is in the process of selling underperforming properties.
  • Macerich's strategy is described as going back to basics.
  • The focus is on properties with little competition in their immediate trade areas.
  • Leasing is considered the key to tracking progress towards the company's 2028 targets.
  • Macerich is working through a mid-turnaround phase.

Context

The retail landscape is evolving, and Macerich's strategy reflects a shift towards less conventional locations that can still cater to a wide audience, moving away from the intense competition found in more prominent areas.

What happens next

As Macerich continues its turnaround, the focus will remain on securing the right tenants and achieving its leasing goals, which will be crucial for its long-term success.

What we don't know yet

Details on specific underperforming properties being sold and the exact locations of the malls being prioritized are not confirmed.