The Mall Evolves

August 08, 2010
Taubman comes back from recession with eye on changing marketplace...

By Daniel Duggan
CRAIN'S DETROIT BUSINESS

With some glimmers of hope indicating a positive end of the year for retailers, Robert Taubman is comfortable looking back on the past year for the Bloomfield Hills-based mall owner Taubman Centers Inc.

While the company took some financial abuse in the recession, he said, it hasn't been as bad as others in the industry.

“We're one of a handful of companies to come through this without cutting our dividend, without selling assets or selling equity,” he said. “To come through the last couple quarters the way we have is something we're all very proud of.”

As the white-knuckle ride of economic chaos eases, COO William Taubman said the company can get back to the problems it dealt with before the recession, such as competing with big-box stores, Internet retailers and consumers who aren't as interested in bricks-and-mortar shopping as they once were.

“There has been a long history of things that were supposed to drive the malls out of business,” he said. “But the market evolves, and the mall evolves in response to it.”

Looking forward, the company will continue building malls that offer social experiences and interaction with clothing and other items in ways that can't be matched online.

This year Taubman Centers (NYSE: TCO) celebrates its 60th anniversary and is looking back on its history and evolution. As part of the milestone, Robert, William and their father, company founder of A. Alfred Taubman, rang the New York Stock Exchange closing bell July 19.

From his first mall — North Flint Plaza built in Flint in 1953 — Alfred said the central idea behind what he wanted to do was to run a development operation based on quality.

“The whole thing is how you can build something that gives a customer the incentive to want to buy,” he said. “Our role is to plan it out in a way that helps people buy.”

Read more at CrainsDetroit.com and watch and excellent video featuring my sons.