In retail, an anchor store, draw tenant, anchor tenant, or key tenant is one of the larger shops in a shopping centre, usually a department store or a major retail chain that has a broad appeal to a wide customer base. The intention of an anchor tenant is to attract a significant cross section of the shopping public to the center.
When the planned shopping centre format was developed by Victor Gruen in the early to mid-1950s, signing larger department stores was necessary for the financial stability of the projects, and to draw retail traffic that would result in visits to the smaller shops in the centre as well. Anchors generally have their rents heavily discounted, and may even receive cash inducements from the centre to remain open.
The International Council of Shopping Centers makes the presence of anchors one of the main defining characteristics of the two largest categories of centres, the regional center with 400,000 to 800,000 square feet (74,000 m2) in gross leasable area, and the superregional center with more than 800,000 square feet (74,000 m2) of space.
The regional center typically has two or more anchors, while the superregional typically has three or more.
In each case, the anchors account for 50-70% of the centre's leasable space.
The examples and perspective in this section deal primarily with USA and do not represent a worldwide view of the subject. (December 2017) (Learn how and when to remove this template message)
Current and modern examples of common anchor and department stores in the United States include Sears, Target (store), Kmart, JCPenney, Belk, Dillard's, Macy's, Kohl's, Boscov's, The Bon Ton, Saks Fifth Avenue, Bloomingdale's, Lord & Taylor, Neiman Marcus, Nordstrom, Von Maur. Defunct and former department and anchor store examples from the USA include Ames (store), Montgomery Ward, Upton's, Mervyns, Ivey's, Jordan Marsh, Lazarus (department store), Rich's (department store), Foley's, Marshall Field's, Hecht's, Burdines, McRae's, Parisian (department store), Sanger-Harris, Kaufmanns, Strawbridge's.
Shopping centres with anchor stores have consistently outperformed those without one, as the anchor helps draw shoppers initially attracted to the anchor to shop at other shops in the mall.
Early on, grocery stores were a common type of anchor store, since they are visited often. However, research on consumer behavior revealed that most trips to the grocery store did not result in visits to surrounding shops. Large supermarkets remain common anchor stores within power centers however.
As of 2005, the declining popularity of old-line department stores makes it necessary for mall management companies to consider re-anchoring with other retail alternatives, or mix commercial development with residential development to guarantee a clarification needed][
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