‘Building community.’ Struggling Northlake Mall sees rise in local Black-owned businesses

For Northlake Mall, it’s been one high-profile struggle after another in recent years: financial problems, falling into receivership ahead of a potential sale, a spate of shootings and big-name stores leaving the north Charlotte shopping center.

But one way leaders of the mall are coping is by turning toward locally-owned businesses, many of which are owned by Black entrepreneurs. Nearly a dozen locally-owned businesses opened there since last summer, including 3Six92, Applause Nails, D. Williams Suits, Vixen Ready Art Factory, Destination Sweets and Charlotte’s Nails.

“It’s an opportunity to be exposed to people you may not have otherwise,” said LaToya Evans, who opened Charlotte’s Nails at Northlake in November. It debuted near Dillard’s and two other Black-owned businesses — No Grease! barbershop and Northlake Beauty Supply.

“It’s definitely building community,” Evans said. “We’re all in this together.”

Of Northlake Mall’s 111 stores, 19, or 17%, are now Black-owned, according to mall officials.

Through January, Northlake’s occupancy rate has held steady at 85%, including temporary leases, according to the latest court records. But that rate is still below the national mall occupancy average of 89%.

Northlake also lags behind two other area malls — Simon-owned SouthPark and Concord Mills — which are 98.8% and 99.8% occupied as of Dec. 31, according to the company’s SEC filing.

A Northlake official was not made available for an interview for this story. In a statement to the Observer, the mall said that supporting local and minority-owned businesses contributes to Northlake’s overall success. “We remain steadfast in our pursuit of national, regional and local tenants.”

But the vacancies are providing new chances for small businesses to test the mall market while bringing in and finding new customers.

Nationally, small businesses are in high demand at many malls to fill vacancies as the push to shop local continues to surge since the pandemic, according to trade association The International Council of Shopping Centers. Small businesses “probably have the best opportunity in the history of malls” to get into malls, Azor Advisory Services founder Beth Azor told the council.

For Evans, signing a short-term lease to open her new venture in a former nail salon space took the pressure off what could have amounted to a nearly half-million-dollar investment for a complete start-up elsewhere. The salon has four pedicure chairs and about 10 nail stations and a wax room.

“It was basically turnkey,” she said of her 1,332-square-foot space near Dillard’s. “It just needed to be updated and cleaned.”

Room for small businesses to expand

For some business people, the mall also has been a place to expand.

Last month, custom sneaker shop Modified Kicks opened at Northlake Mall after having a kiosk at Concord Mills for five years. Co-owner Danyell Butler said the store needed more space.

“They were willing to work with us. It’s expensive to go into a mall like Concord,” he said. “This lets us do things we couldn’t do at Concord.”

He did not detail the difference in rent, but called Concord Mills a super-regional mall, which is larger than Northlake. Concord has more anchor stores, and is a destination site with attractions like Sea Life aquarium, AMC movie theater with 24 screens and The Speedpark venue with go-karts, mini-golf and an arcade.

The 1.4-million-square-foot regional retail and entertainment center in Concord has 184 stores and restaurants, including the recent debut of Dublin-based Primark clothing store.

Northlake, Butler said, offers Modified Kicks an opportunity to grow because there are no similar businesses there like at Concord Mills.

The Northlake store also has room to add more equipment, sell custom clothing and offer classes. Modified Kicks classes offerings include sewing, embroidery and printing techniques.

“If retail is going to survive, it has to be (at) an event and destination venue,” Butler said. As more businesses open at Northlake, including Bubble House next door, he added, “I feel like this mall can make a turnaround.”

Reinvesting in Northlake

Following three shootings in three months at Northlake Mall, Apple store abruptly shut down its store on March 1, 2023. At that time, No Grease! franchise co-owner Ed Washington told the Observer he too had had enough and planned to leave by the end of the year.

However, he now says he plans to stay.

Following the shootings, the mall increased security with more cameras, a heightened police presence and a gun-sniffing dog.

“Seeing all of those investments made me feel a lot better,” Washington said. He also worked with the mall for upgrades at his shop including better lighting. And No Grease added amenities, like a full-service bar with specialty cocktails.

“Revenue went up 20% last year,” Washington said. “I think some of that is because of our brand. But also, we made it clear to our customers we were reinvesting into the shop to continue to thrive there and not run away.”

Washington and wife Tracey Greene-Washington opened No Grease! at Northlake in 2019, followed by one in Charlotte Premium Outlets in 2021. There are 11 employees at Northlake and nine at the Steele Creek shop.

At Northlake, local businesses thrive off the sense of community they’re creating, Washington said, which he hopes creates stability at the mall and can help attract larger, national retailers.

“It was a big blow when Apple left,” he said. “We want to restore confidence that Northlake Mall can bring in already established businesses.”

Supporting each other

Darrius Williams, co-owner of D. Williams Suits with wife Dana Cathey-Williams, said the mall provides an opportunity for “African-Americans to show their gifts and tastes for entrepreneurship.”

His 3,300-square-foot shop, which offers custom-tailored men’s suits and wardrobes, as well as some women’s clothing, opened in October. Business has been picking up at the store where he has five full- and part-time employees.

“Businesses here have high expectations,” Williams said. “It’s an opportunity to bless the community and teach our people to own things and sell our own goods and support our goods.”

The atmosphere among the small business owners at the mall is a friendly one, he said.

“All of the business owners are on a first-name basis and patronize each other,” Williams said, “even the management team and cleaning crew.”

Challenges remain at Northlake Mall

In 2021, the 1.1-million-square-foot shopping center fell into receivership after failing to pay its debts. Spinoso Real Estate Group of Syracuse, New York, maintains and operates the mall.

Despite the influx of locally-owned businesses, reliance on foot traffic at Northlake remains challenging as national retailers have continued to exit.

Six stores occupying over 20,000-square-feet had closed by the end of January, the receiver told the N.C. Business Court this month. One of the latest national chains to leave the mall was Guess women’s apparel store.

Last year, Spinoso sued several former tenants for breach of contract, including AE Outfitters. The AE case was dismissed last month. Other lawsuits filed last year against tenants — Michael Kors Retail, Chico’s, Soma Intimates and White House Black Market — were also resolved this year.

Still, seven stores renewed spaces totaling 7,493 square feet, plus three new deals and several leases are pending, court records show.

Jasmine Wright opened the women’s apparel boutique 3Six92 on the second level of Northlake last August, soon after moving from Ohio. She signed a temporary one-year lease. The rent back at her home mall in Ohio cost more than Northlake’s, she said.

“I just wanted to give it a chance,” Wright said.

She appreciates that there are opportunities for local and minority-owned businesses, but said national chains, like Starbucks, are also needed. Starbucks, along with other retailers like Dick’s Sporting Goods, Loft, J Crew and Sephora, have exited Northlake over the past few years.

Other stores like Footlocker and Bath & Body Works have announced plans to leave malls entirely, while Macy’s plans to close 150 department stores over the next three years. It’s unclear if any of those stores at Northlake will be affected.

And Northlake isn’t alone in its financial and safety perception challenges. In November, Brookfield Properties’ mall Carolina Place in Pineville defaulted on a $149 million loan debt.

“Certain chains definitely make a big difference,” Wright said, especially for mall traffic. “It has slowed down a lot.”

Needing more foot traffic

Two years ago, Summer Lucille moved her plus-sized apparel store Juicy Body Goddess to Northlake Mall after her business flourished thanks to a viral TikTok supporting plus-sized bodies went viral. The shop has had two other locations in Charlotte since 2011.

She said she needed more room and signed a five-year lease at Northlake Mall. Being at the mall gives small business owner more credibility, she said. “People feel you’re more established, more serious,” Lucille said.

She pays four times the rent of her last spot on North Tryon Street. “The rent is very expensive, and I thought the foot traffic would balance it out,” she said.

But foot traffic has all but evaporated since the first year. When Apple left so did her store’s sales.

“It keeps me up at night,” Lucille said. “I don’t regret moving there. I just hope the traffic turns around.”

Building relationships and opportunity

In the mall’s lower level, Katossa Glover opened Applause! Hair Design in March 2020, the same month that businesses shut down at the start of the pandemic. The salon has since expanded from four to 10 stylists, and in November, Glover opened a nail salon next door.

Despite the pandemic, the shootings and big-name stores leaving, business at Applause! has been “phenomenal,” she said.

“We literally have our own community here,” Glover said, pointing to nearby stores. “It’s a friendly environment and a nice community mall.”

She’s happy to see more businesses opening, including Vixen Ready Art Factory across the hall. The art store takes walk-ins to paint canvases or make candles, and holds group events.

“I think Northlake does a great job at building those relationships and giving minorities an opportunity,” Glover said. “We’re busy in here every day” she said of her salons.

People often ask her if she’s going to stay at the mall.

“I am because we do very well at Northlake,” Glover said.

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