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In today’s K-shaped economy, lower-income consumers headed out to shop may be hitting Dollar General or a post-bankruptcy Big Lots, but affluent Americans are increasingly headed for the shopping center private club. Membership clubs are increasingly being seen as retail revitalizers, whether that’s in a traditional mall, open-air shopping center, or as a stand-alone commercial real estate tenant.
Like their country club cousins, private clubs require monthly dues and often an initiation fee. For instance, Dallas’s Highland Park Village, which boasts shops like Hermès, Fendi and Brunello Cucinelli, is also home to Park House, a private club offering fine dining, a wine bar, and art experiences. Resident memberships can be had for a $7,000 initiation fee and annual dues of $292 monthly (a spouse can join for $4,000). The Moore House in Miami’s open air Design District has a $5,000 initiation fee and monthly dues over $400. In addition to dining and product curation, it offers overnight accommodations if needed.
Data is scarce because they are so new, but R.J. Hottovy, head of analytical research at Placer.ai, says that the popularity of these clubs is increasing and tracking with other trends in retail, such as malls that have been increasingly populating themselves with gyms, co-working spaces, and retail clubs with dues replacing discounts as the draw. Both street level retail and malls are discovering that memberships boost business and drive traffic to retail centers like Highland Park Village.
