Whether you love to shop or despise it, the Valley is the place to shop. In this issue, we shine a spotlight on the region’s robust retail scene, starting with a San Fernando Valley Business Journal exclusive on Wal-Mart’s plans to open the first Neighborhood Market store in Los Angeles in Panorama City by the end of the year. The world’s largest retailer has selected the Valley to debut the 31,000-square-foot grocery store, which will be among the first of its kind in the state; another is planned to open in Camarillo. Wal-Mart currently has 12 stores in the greater Valley-area and has announced plans for five more, including a Supercenter in Burbank and a general merchandise store in Simi Valley. In our Special Report, starting on page 37, you’ll get a look at the major mall projects underway in the Valley region. (If that doesn’t get you excited about shopping, then who knows what will.) Our List of the Valley’s Largest Retail Centers (page 41) shows the range of retail options in our area — from mega malls like the Glendale Galleria, which draws millions of shoppers each year, to big-box power centers such as Destination 08 in Palmdale, and community centers such as the Panorama Mall. Area mall officials say leasing and occupancy of malls and shopping centers is slowly improving, and will continue to benefit from ongoing renovation and redevelopment projects. Some malls are getting creative about temporarily filling space in hopes of attracting new tenants. Westfield Fashion Square in Sherman Oaks, for example, offered The Museum of the San Fernando Valley a free storefront in hopes of drawing foot-traffic to the center until it finds a new tenant to fill a vacancy left by Panini Café (page 4). The retail property sector remains challenged by the struggling housing market and sluggish job growth. Area retail brokers say vacancy rates and rents can swing wildly from sub-market to sub-market, though generally they’re showing some signs of improvement. In greater Los Angeles County, the total retail vacancy rate fell to 4.8 percent during the fourth quarter of 2011 after averaging 5.1 percent in 2010. Average rents for retail space in the fourth quarter were down by 2.7 percent from the average rent in 2010, according to a Los Angeles Economic Development Corp. (LAEDC) economic forecast report, released earlier this year. Overall, the Valley’s retail industry is pretty tough. Retailers are accustomed to existing in a constant state of change, where consumer confidence levels and the latest fashion trends can make or break sales. They don’t go down without a fight. And Valley girls are pretty fearless, too. They haven’t stopped shopping, though they may have slowed down a bit. As long as the retailers keep fighting and the Valley girls keep shopping, the region will remain a shopping wonderland.
