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Future of malls? South Coast Plaza’s retiring GM: ‘Be nimble, flexible’

After 44 years of watching one of the nation’s preeminent shopping centers morph through various economic cycles, David Grant has retired as South Coast Plaza’s general manager.

His late father-in-law, Henry Segerstrom, convinced Grant to leave the construction industry in 1977, joining the family business, namely, an emerging retailing hub in Costa Mesa.

Grant used his building know-how to help expand and modernize the shopping center. In 1995, he was promoted to the position he retired from, being part of the mall’s management team that made a fortuitous turn to luxury retailing and appealing to foreign tourists.

Grant’s pace may not slow much as he leaves the daily grind of overseeing one of the nations’ busiest malls with some 250 high-end boutiques and restaurants. He’ll become a consulting partner at South Coast Plaza, and with his wife, he’ll help operate the family’s Bart’s Books in Ojai and a collection of lemon and avocado orchards in Ventura County.

Before he left, we wanted to tap into Grant’s retailing track record. So we got him to answer some questions about the retailing changes he’s witnessed in nearly a half-century.

Q. What’s the biggest change in mall retailing you’ve seen over your career that you’d never expected to happen?

A. Our tenant mix – from mostly small, independently owned retailers to large corporate-owned retailers. Luxury, in particular, has gone from multigenerational family ownerships to large conglomerates.

The change in technology was tremendous. What was considered science fiction in the ‘60s has become everyday business practice.

I’ve observed the phenomenal growth of cultural diversity in Southern California and the development of international retail tourism at South Coast Plaza. We are known to attract visitors from more than 50 countries around the world

Q. What are any long-term lessons learned for mall retailing from the pandemic?

A. When encountering the unexpected, you have to be nimble, flexible, unleash creative talents, think with an innovative mindset, and weigh all the possibilities. Every idea is thoroughly evaluated. Turning to your established business relationships and quickly identifying new contacts and resources all contribute to the solution matrix.

The Pavilion and our curbside pickup system are examples of these lessons. I was out in one of our parking garages when the idea of an outdoor space struck me.

I called city officials and presented the problem and our proposed solution to build suites that allowed open air to circulate and had walls that didn’t rise all the way to the ceiling.

The city approved the construction of The Pavilion at South Coast Plaza — 19 elegant, furnished suites in our north parking structure for all retailers to use as showrooms to safely meet with their customers.

We also set up a curbside pickup system throughout South Coast Plaza so that our boutiques, restaurants and department stores could still operate and fulfill online and takeout orders and our guests could have a convenient way to collect their purchases without leaving their cars.

Q. What malls do you look at — other than South Coast Plaza — and say “Wow! That’s a great one!”

A. There are opportunities for discovery everywhere, including attractions like Disneyland Resort and luxury hotels around the world.

Shopping center executives from around the world come to us to tour South Coast Plaza wanting to know how we do business. We have been and are always continuing to innovate with a focus on customer experience.

Q. What’s your favorite part of the mall property … a hidden gem many people miss?

A. The rooftop patio at Knife Pleat. It’s a hidden gem in our Penthouse. It’s a great area for people to socialize or do business. Celebrities and people who want to have a little more privacy dine there.

Q. What do you think of online shopping?

A. Online and brick-and-mortar shopping are not mutually exclusive.

Online shopping is an important part of the omni-channel business. We are part of the online fulfillment process – people can buy online and pick up at our stores or curbside.

During the pandemic, online shopping with curbside pickup became an important way to continue to serve customers. It was convenient. Customers drove up to a designated parking zone, called the store to let them know they had arrived, and the purchase was brought to them and placed in the back or the trunk of their car. The process was contactless.

Our department stores and some boutiques are continuing to provide that service. We’ve adapted to the consumer’s view and behavior and provided them with options to get what they want, whether it’s shopping at the store, picking up at the store, or curbside.

Jonathan Lansner is business columnist for the Southern California News Group. He can be reached at jlansner@scng.com


Source: Orange County Register

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