The Grove is a retail and entertainment complex in Los Angeles and is owned and operated by Caruso Affiliated. What was originally conceived as a large, sprawling mall was shelved in favor of a scaled down project on 25 acres consisting of some 53,400 m2 marketplace. Yet the results include the following:
- The Grove along with its sister property in Glendale, California ranks among the world’s top 15 shopping centers in sales per square foot, according to the International Council of Shopping Centers. The Grove has five times the national mall average in sales per square foot.
- Caruso Affiliated tenants experience 15% compounded annual growth.
- According to the Lapin Consulting group, guests spend twice as much on Caruso Affiliated properties versus traditional shopping centers.
The architecture of the Grove takes its cue from classic historical districts found in Los Angeles. It’s anchored by both Nordstrom and Crate & Barrel, and has flagship stores for several retailers including Apple. Several restaurants and dining areas compliment the mall as well as a 14-screen movie theater complex. Also unique to the Grove is:
Trolley. Free rides are offered on this trolly built from an historic undercarriage from a 1950s Boston street car. Electrically, it travels a ¾ mile track between The Grove and The Farmers Market.
Dancing Fountain. Every hour the dancing fountain uses 50,000 gallons of recycled water through 32 pulsing water jets to a range of songs. Both the trolley and fountain keep the pedestrian experience kinetic.
Spirit of Los Angeles. Commissioned by renowned sculptor De L ‘Esprie it features a male and female angel soaring upwards through limitless opportunities.
Holiday Events. The Grove makes sure that major holiday events are bigger and better here than at any other retail experience. Celebrations like Chinese New Year are celebrated here, while forgotten elsewhere. It’s the Grove’s intention to “own” Christmas, which includes a staggering 105 foot tree, celebrities, fireworks and even a TV show.
What sets the Grove especially apart from its competitors is the hip media hype thatis always found. Press is always making the rounds at the Grove. Magazines are always showcasing photos of celebs out for a day of shopping. Shows like Extra tape and broadcast live from the property. Signing events and fashion shows happen all the time. It simply has become the “in” place to be in the City of Angels.
Founder and Chief Executive Officer, Rick Caruso himself notes: “Great retailers, great service. That’ makes the difference with retailing.” He refers to customers or consumers as Guests, and he creates a retail experience designed to meet the needs of those guests. The result that some 18 million people a year visit The Grove—more than Disneyland and the Great Wall of China. Over 90 percent of visitors make a purchase, and they spend more than double per visit compared to the industry average. It’s what has led the New York Times to refer to Caruso as “The Walt Disney of retail.”
While indoor malls have died, Caruso believes that “physical retail will thrive for years to come—if retailers step back into the heart of social life and provide an experience for people to come together. That’s why the most successful retailers are focused on creating “heart share”, not just market share.
No matter your business, here are some really great learning points from The Grove that you can apply to your organization.
Community-Centered Design
Rather than coming up with a design behind closed doors, draw on the very wisdom of the people who live and work and use your products. Caruso created this process for retail development. At the center of this involvement is asking, “what is the highest and best use for this property?” The result is that guests consider the property to be as much theirs as it is ours.
Ask yourself: How can you better engage the community in developing your products and services?
Build on the Social Needs of Guests
Vanity Fair calls The Grove the Main Street of Dreams. Main Streets and physical retail are as timeless as the Souks of Marrakesh and the Champ Elysees in Paris. Why? Because shopping is social and humans are social beings. That’s important because some 40 percent of adults in America report being lonely—nearly double the number from 30 years ago.
Ask yourself: How does our experience permit our customers to socially connect?
Keep It Kinetic.
Rick Caruso, Head of the Grove, said, “People like feeling the energy of a street…they like having connection to community. The Grove feels like a happening place because of the kinetics involved. From splashing fountains to a moving trolley, to lights that twinkle and glow, there has to be a sense of movement. Music compliments this. And most of all, the pedestrians tie it all together. All of this is antithesis to being stale and dormant.
Ask yourself: How do you keep your experience kinetic and alive, as opposed to being dormant and stale?
Mobilize For Efficiency
Parking is made simpler with a simple swipe of one’s smart phone using a FlashPark app. Customers are rewarded with two hours of complimentary parking when they utilize the system.
Ask yourself: How can you use mobile applications to make it easier for customers to do business with you?
Family Night Out
The Grove offers a package experience that allows the family to enjoy dinner at one of several sit-down restaurants, movie tickets and valet parking for one low combined rate.
Ask yourself: How can you create a packaged experience for your customers?
Get Running
The Grove offers a half-marathon & marathon training program with Nike Run Club. Here first time-marathoners, beginner, intermediate and experienced runners workout with fellow athletes gaining training tips and meeting new friends. Also, Stroller Strides provides a fitness program that moms can enjoy with their babies.
Ask yourself: How can you create events that bring people into your operation for activities apart from what are normally associated with your business?
If you’re out in the LA area, The Grove is a must visit–not just for its shopping, dining and retail–but for its lessons on how to craft an amazing customer experience.
