When Chinese collectible toy phenomenon Pop Mart opened its 24th U.S. location at the Galleria Dallas mall last spring, social media vloggers documented hundreds of fanatic shoppers arriving the night before and then inching their way through retractable belt stanchions the next day to finally enter the store and purchase coveted Labubu collectibles.
Pop Mart’s reception in Dallas may be over the top compared to the more standard welcome that other international brands receive in the United States, but foreign retailers and food-and-beverage operators are nevertheless discovering enthusiastic U.S. shopper demand for their goods and services. In return, the concepts are freshening up retail real estate in the United States.
“It’s a trend that possesses staying power for the foreseeable future as the operators have ratcheted up their U.S. expansion expectations,” says Dawn Greiner, a senior vice president and principal with SRS Real Estate Partners in Dallas. “Landlords are seeking out foreign brands to add some spice and sizzle to their tenant mixes, and Americans are flocking to them,” says Greiner, who represents expanding U.S. and international retailers. “They’re driving traffic and helping to transform the U.S. retail landscape.”
Following a Blueprint
European stores Zara and Primark, along with Canadian-based Aritzia, are among foreign brands that have set the international invasion bar by building up their existing U.S. footprint over the last few years, say Greiner and Don Edrington, an SRS Real Estate executive vice president and principal in San Francisco. Asian brand interest in U.S. markets is now escalating, particularly with the success of Pop Mart, which opened its first store at South Coast Plaza in Costa Mesa, Calif. in 2022.
Overseas retailers launching U.S. expansion plans include Urban Revivo and Cider, two digitally native Asian fast fashion apparel makers, says Edrington, who is shepherding Asian brands to the United States. Urban Revivo’s first store opened in Manhattan in February, and Cider will open its first shop at the Farmers Market adjacent to the Grove in Los Angeles early next year. Edrington and Greiner are also working with Miniso, a Chinese mass merchandiser that has charted an ambitious U.S. growth strategy over the last few years.
“Don and I are thrilled to represent Miniso as they energize U.S. retail with their signature blend of creativity, culture and color. They are redefining affordable joy in each store,” Greiner says. “Miniso Land, a new flagship concept that brings the brand’s intellectual property (IP) collaborations to life in a theme park-style shopping experience, will be coming soon to the U.S.”
Asian retailers tend to zero in on top-performing U.S. malls along the coasts and large interior cities like Houston and Chicago to establish a foothold, Edrington says. They then work their way into the middle of the country and expand to other property types, such as lifestyle and power centers.
“There are a few different paths these brands are taking to the United States. Executives have done their research and may have past experience here. They may also have family or friends here who point out where they need to be,” he adds. “Our first step is to get to know the brand to understand its goals and customers, and then we’ll put together a more concentrated list of potential sites. But 90 percent of the time, the first 10 malls they have on their lists are on our list.”
Asian food and beverage brands are also moving to the United States, looking for the type of success that Taiwan-based Din Tai Fung has had after initially entering markets with high Asian populations in California, including San Francisco and Los Angeles, several years ago, Edrington says. The company has recently begun to move throughout the rest of the country, particularly in Southern California and on the East Coast, where it is opening its second New York City location in Brooklyn in 2027. China-based hot pot concept Haidilao is another restaurant group broadening its U.S. footprint.
“These brands are doing a lot more deals in places where you wouldn’t have expected it, and they’re bringing a lot of traffic to shopping centers,” he observes.
Overcoming Obstacles
Despite the eagerness of foreign retailers and landlords alike to make deals, finalizing leases isn’t a certainty. Newer international brands often lack the credit profiles that institutional owners like mall REITs desire, Edrington says. That may require the retailers to accept some combination of lower tenant improvement allowances and higher security deposits.
More recently, the ambiguity over tariffs is slowing some expansion plans, he states. Some Chinese companies, for example, are having to rethink their supply chains before they enter the United States, he adds.
Space availability can also be a stumbling block. Retailers such as Zara and Urban Revivo tend to look for boxes of between 20,000 and 40,000 square feet, although they will reduce their footprint requirements to establish a presence and look to upsize later, Greiner and Edrington both say.
“Brands coming from abroad want to make a splash and plant their flag,” Greiner adds. “But it’s a challenge to find the right space in some of these better properties.”
— By Joe Gose. This article was written in conjunction with SRS Real Estate Partners, a content partner of Shopping Center Business.