Photos courtesy of Miromar

Although it's impossible to say for certain, an oft-repeated legend has Southwest Florida with more square feet of retail space per capita than anywhere else in America. And more is coming.

The Miromar Outlet Mall, well under construction, is causing some concern among retailers. The mall is a $60-million retail development located along I-75 at Corkscrew Road. Its exit is also the main entrance to the new Florida Gulf Coast University and the ice arena of the Florida Everblades, a new hockey team coming to Southwest Florida.

The Miromar Success Story

According to its Website, www.miromar.com, Montreal-based Miromar, a division of Future Electronics, was the first to introduce the popular American concept of outlet malls to Canada in 1989. It has opened two in Quebec and one in Champlain, NY.

The first phase of Southwest Florida's $60-million Miromar Mall will open with about 200,000 square feet of retail space and aspirations for 600,000 more. Initial parking will hold 900 cars, possibly expanding to 2,600.

Miromar's other Southwest Florida projects include Miromar Lakes, a 1,350-acre, 2,700-unit residential development and Miromar Square, a "powercenter" featuring an office park, a hotel and furniture outlets.

A Clothes Horse of A Different Color

"The outlet shopper shops a little differently when they come for an outlet shopping experience," explains Joyce Ford, general manager and marketing director for Coral Isle Factory Shops, located between Naples and Marco Island. Outlets are recreational destinations, she says, places visited with specific items in mind. Shopping at them is a major activity for tourists. "That's why they are centered around major tourist destinations," she adds.

Both local and tourist shoppers are spending more at outlet malls than ever before: The International Council of Shopping Centers (ICSC) reports that outlet mall sales increased at a rate of 11.3 percent, outpacing the industry as a whole at a still-healthy 5.8 percent gain.

Southwest Florida's outlet malls are doing well, too. Coral Isle is 100 percent leased for fall. The region's other outlet mall, Sanibel Factory Stores, is 98 percent leased out. "We have a sound location with a good mix of local and national tenants and a whole gamut of price ranges," says Jo Ann Rybak, Sanibel Factory Stores manager of marketing and management. "We appeal to a lot of people."

To compare, the area's more traditional regional malls -- Edison and Coastland -- are leased at 92 and 94 percent respectively, good numbers in an industry that averages an 85 percent.

Enter Miromar. How will the existing outlet malls fare with a new player, in a hot location, cutting its own slice out of the pie? A lot depends upon how each center reacts.

Changes Abound

Virginia Moulton is the property manager at Bell Tower Shops, an upscale mall in South Fort Myers. She also previously opened and managed Sanibel Factory Stores and managed a large outlet mall in Sarasota. The Southwest Florida malls' challenge, she says, will be to jeep existing customers. "Miromar will affect Sanibel Factory Stores and Coral Isle," she says. "Three outlet centers in what ... a 30-mile area?"

But Moulton also considers the distance. "I don't think too many people get off I-75 to go to Sanibel Factory Stores or Coral Isle," she says. "I think you will find more of a tourist/driver base [at Miromar], where you get people who fly in to Coral Isle and Sanibel."

Elise Missall is marketing director of Edison Mall, one of the two regional malls in the market. Although she says she is not afraid of the long-term impact on her business, she is cautious about the outlet malls. "Miromar may have an initial impact, with everybody going to see what's new," she says, "but it will probably hurt Sanibel Factory Stores."

Coastland Mall's Assistant General Manager and Director of Marketing Evamarie Smith is optimistic. "As any added retail [space], it may have a slight impact when it first opens," she says. "Whatever is new and changing is accepted in this area and will help with tourism."

Ford, however, is not happy at all. "Certainly, coming from a competitive viewpoint," she says, "I don't believe the market should have another [outlet mall]. Sanibel Factory Stores and Coral Isle are servicing all those needs right now."

Surprisingly, Ford says she would be more comfortable if Miromar offers the same brand names that are at Coral Isle. She feels that customers most often visit an outlet mall with a desire for a particular brand. Therefore, if Miromar has the same brand as Coral Isle, the draw of that brand is diluted. "The more duplication of [our] stores they have means they are less competitive," she says, "because the customers won't be able to differentiate."

And since her customers come from Marco Island, Collier County and the East Coast, Ford's Coral Isle would be their first stop. "If those brands are duplicated at Miromar," she hopes, "they won't have a reason to drive the extra distance."

Sanibel Factory Stores' Rybak is more sanguine. "Miromar is just another competitor in the area," she says. "We're feeling that with our location and our market here, we don't think we'll feel that much impact."

The Best Laid Plans

Ford says she isn't sitting on her laurels. "We have a loyalty built up as far as name brands," she says. "We are looking at Miromar's opening in October with a strategic program of our own. You'll be able to see a shift in our ad plan."

Sanibel's Rybak is sticking by her guns. "At this point, I have nothing planned," she says. "We have our marketing plan in place from last year, and we will continue to follow it. We've talked a lot about it, but people will shop every place."

Miller won't disclose Miromar's tenant list, but its other malls contain the usual suspects: Levi's, Bass, Liz Claiborne and Springmaid/Wamsutta and the like.

How much retail can Southwest Florida support? The wisdom of current developers seems to say more and more again. Certainly, the addition of Miromar will not rupture a market that currently enjoys an occupancy rate greater than the national average. However, it might serve to bring Southwest Florida's numbers more in line with the rest of the country.

Outlets at a Glance

* Outlet malls grew by and average of 7.3 percent square feet in 1997

* Outlet shoppers visit outlet malls an average of five times a year.

* Outlet customers spend an average of $185 per visit.

* Outlet customers average 16 stores per visit, making purchases at an average of four.

* Baby Boomers constitute 56 percent of outlet customers

-- Information from Value Retail News, International Council of Shopping Centers and Outlet Retail Merchants Association

Rick Compton is a freelance business writer and a radio show host.