Jodi’s Journal: The Empire Mall’s retail ripple effect

Some narratives just seem to stick — and for a long time, it felt like “malls are dying” was one of them.

It was ironic to me because anytime we’d run a story on any sort of transition at The Empire Mall, it would draw some of our strongest readership. And then the comments inevitably would follow.

The truth is malls are evolving. Malls in demographically challenged areas or without solid anchors have closed or been repurposed. Malls with strong tenants in solid markets are doing quite well.

The Empire always has been what the industry refers to as a Class A mall, a term generally used to characterize a property that is high performing with strong sales per square foot and leasing demand.

I was asked to speak at this past week’s 50th anniversary celebration for The Empire Mall about the impact the property has had on the business community — and it’s a big one in multiple ways.

First, there’s the mall’s tax base. The sales and property tax paid by The Empire Mall and its tenants add up to a big number — helping support everything from public safety to roads and parks.

Second, there’s the employee base. I have no idea how many total individuals work there, especially given the significant part-time employment, but again it’s a big number. These people also represent Sioux Falls in ways I’m not sure many of us fully recognize. They can be visitors’ first or even only impression of our city — the people who come to the mall while they’re in town for a youth sports event, concert or because they need a place to stop off the interstate.

Third, there’s the concept that success tends to drive more success. The performance of many national retailers at The Empire Mall has caught the industry’s attention multiple times over the years and continues to do so. While it’s hard to source on the record, I have talked with many national retail representatives or those who work with them who have shared that their Sioux Falls locations in and around The Empire Mall are some of the top-performing in the company. Stores generally don’t close here unless the entire chain is closing or there’s some major operational issue.

Because of that, retail’s magnetic effect has worked in a big way for Sioux Falls. The geography around The Empire Mall has served as a draw for dozens of other national retailers, and the performance of concepts in that area has been strong enough that owners are willing to open on the east side or elsewhere because they’ve been sold on the strength of the overall Sioux Falls market.

And finally, I think there’s a psychological factor for the community because of The Empire Mall. It almost amuses me sometimes how validating many people find it when a new national retailer chooses to come to town — but it is worth celebrating because those national names do matter. They can help convince an individual or a family that a move to Sioux Falls won’t mean giving up some of their favorite places to shop or dine, or they serve as an additional reason for visitors to sometimes drive hours just to patronize the mall and by extension the city.

Fifty years is a long time for any business to sustain.

It’s especially noteworthy for a retail one, given the changing nature of the consumer and the broader economics at play in the retail industry. We’re fortunate that the timing and the appetite of developers was such that Sioux Falls never really tried to build a second enclosed mall like this because it allows the first one to continue to thrive.

The good news is there’s more good news ahead at The Empire Mall.

Not to sound like I’m putting a PR spin on it — but when I see closures at the mall, I don’t see problems. I truly do see opportunities because there continues to be so much demand for locations here and creative concepts that can come in and bring higher and better uses.

The campus around the mall is intriguing to me, from the former Wendy’s to the former Sears to the few remaining other available properties.

The key to success, I think, is to continue to do what Sioux Falls does citywide: Keep the property clean. Invest in ensuring that people feel safe there. Strive to support locally owned businesses to the extent possible. Consider more opportunities for public art of all kinds.

Most of the ingredients for success already exist at The Empire Mall. The right strategic approach combined with our continued willingness to support it as consumers will create a strong second half of a century there.

The Empire Mall at 50: ‘We are definitely a destination’

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