How Will Rosemont Mall Affect Niles?

Developers of Fashion Outlets of Chicago, a very upscale outlet mall under construction in Rosemont, rocked the Chicago area this week with news of the high-end tenants they have signed.

They include anchors of outlet stores of Neiman Marcus, Bloomingdale's and Saks Fifth Avenue. Individual tenants include Prada, Coach, Perry Ellis, Giorgio Armani, Hugo Boss, Tory Burch, Halston and Cole Haan. 

Earlier: Huge Upscale Mall Coming To Rosemont

The considerable size and amenities of the mall--530,000 of enclosed space on two levels, with fine dining restaurants and art installations--also surprised many. 

With Niles' Golf Mill Shopping Center probably the closest mall to the Fashion Outlets of Chicago, some might worry FOC would lure shoppers away. Sales tax revenues from Golf Mill contribute substantially to the village of Niles' budget, meaning a loss of them could result in higher tax bills to, or reduced services for, residents.

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The two candidates running for Niles mayor in the April 9 election don't see the new mall as a real threat. Chris Hanusiak says that FOC's marketers would have located the mall in Niles if consumers here were seeking that type of high-end merchandise; Andrew Przybylo says FOC may have a small negative impact on Niles' sales tax revenues.

Here are their statements: 

Andrew Przybylo:

"I can only say that I wish the proposed mall was to be built in Niles. The lesson to be acknowledged is that not all good things come to those who wait--meaning, Niles needs to be very aggressive in promoting its retail space. If I'm fortunate enough to serve as mayor, then we will have a reinvigorated shopping environment through a public/private partnership. I'm not sure how a fashion mall in Rosemont will compete with Niles shopping centers. It is reasonable conjecture that the new Rosemont mall will have some small negative affect upon Niles sales tax." 

Krzystof "Chris" Hanusiak:

"Mall planners and developers spent much marketing research time and money to finalize plans for the construction of high-end malls. They take few uncalculated risks. They identify who the market population will consist of (and always income levels) and plan accordingly.

"The corporation behind the new Rosemont Mall is The Macerich Company, a highly successful mall developer whose stock is actually traded on the New York Stock Exchange. Macerich is known for developments which are accomplished through partnerships with other experienced corporations. Their malls invariably contain stores which would not exist in other regular shopping malls. For example, Gucci will not be in a mall located in a low-income neighborhood just as a Dollar Store will not be in the Rosemont Mall.

"How will the Rosemont mall affect Niles? Probably very little. Niles area shoppers area not spending their hard earned dollars to acquire high-end products. If that were so, high-end stores would have smelled the cash and made a beeline for Niles. Our area shoppers are concerned about diapers, garden hoses, automobile items, and items which support a regular suburban life style...NOT imported French designer jeans or $500 shoes.

"Golf Mill was planned and executed in the 1950s and according to historical accounts was due to a push by a village trustee named John Stanley. At that time there was a lot of vacant land in our Niles area and home building was booming. Young, growing families with higher incomes were the target. The mall worked, but it also had a devastating effect on Niles’ other mall, the almost forgotten Lawrencewood at Oakton and Waukegan. Tastes change, incomes change, populations change, consumer tastes change. So do business plans."

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