Want 13% Higher Sales At Your Mall? Put In A Tesla Store (w/video)

MAY 27 2016 BY ERIC LOVEDAY 19

Tesla Stores Boost Mall Sales

Tesla Stores Boost Mall Sales

Green Street Advisors (GSA) has done some research into the 24 malls in the U.S. that list Tesla as a Tenant.

GSA has found that though malls average $940 in sales per square foot. Of the analyzed malls without Tesla as an occupant, the sales per square foot were only $835.

Those figures lead Teslarati to believe that having a Tesla store increases mall sales by 13%. Or then again, there’s the possibility that Tesla only chooses high-performing locations for its stores, which would imply Tesla doesn’t really have an impact on mall sales, but rather that the automaker is very careful in choosing where to locate.

CNBC eludes to this Tesla-picking-premium locations too:

“Both Tesla and Apple sell in-demand products with high price tags, which helps drive their store productivity. As a result, the malls in which they reside experience similar success. However, it’s worth noting that both retailers seek out locations in well-to-do centers and geographies, making it a bit of a “chicken versus the egg” scenario.”

“For instance, Tesla has locations in three of what Green Street has ranked as America’s top 10 malls — The Village at Corte Madera and Century City, both in California, and Hawaii’s Ala Moana Center.”

So, perhaps Tesla doesn’t have a direct impact on mall sales then?

Actually in reality, it probably goes both ways. Tesla likely impacts sales at malls in a positive way, but the automaker is also smart enough to choose premium locations at high-performing malls where the clientele is your more typical Tesla buyer.

Source: Green Street Advisors via Teslarati & CNBC

Categories: Tesla

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19 Comments on "Want 13% Higher Sales At Your Mall? Put In A Tesla Store (w/video)"

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Brave Lil Toaster

*cough*

So, um, if you want to increase the average of something, make the numbers bigger?

These $ per square foot metrics would go up with the presence of a Tesla store, because no other company at a mall sells anything worth $160,000. Selling a single Tesla in that mall will make *that* average go up.

St John

If you have 1000 square-foot store and you sell one tesla a month out of that thousand square-foot store you’re going to have a very very very very high sales per square foot I Average to contribute to the mall

Terawatt

Not really! With a of $100k you’re only selling for $100 per square foot per month.

Seems pretty easy to check sales before and after Tesla, rather than comparing Tesla and non-Tesla malls.

MikeM

Oh please!!!!

“News” items with an inane premise don’t really deserve to be propagated.
And hedging in the last sentence of the piece doesn’t make it any more meaningful.

Furthermore, while I’m still here; CNBC didn’t “elude” to anything. The word is “allude”!
And that would still be one of the most muddled sentences I have ever read!

Get a grip guys!

ffbj

I wish I could elude this comment. They just reported the story. It is up to others to drawn their own conclusions.

MikeM

Oh Kay!

But the very title:
“Want 13% Higher Sales At Your Mall? Put In A Tesla Store (w/video)”
looks like a pre-drawn conclusion to me, and a silly one at that!.

And to say:
“They just reported the story. It is up to others to draw their own conclusions”
just strengthens my point: Why propagate rubbish – especially when accompanied by half-baked pseudo analysis including irrelevant chicken/egg allusions but with no mention of correlation vs. causation?

O.K. I’ll quit now. Peace!

ffbj

That’s just your opinion. You’ve concluded the same thing about this news story that I’ve concluded about your comments. How ironic.

Steve

I am a Tesla fan but this number means nothing without the before numbers. I am sure the mall near me had more $ per foot than any other mall around even before Tesla came along. If the headline was “malls with Tesla store saw 10% increase over comparable malls” that would be different.

Nick

Just need the metric: vs this time last year, adjusted for regional retail sales activity.

Four Electrics

correlation != causation

ffbj

Yes, and if it quakes like a duck it is probably just a chicken imitating a duck.

ffbj

Oops. I mean quacks.

Paul
ModernMarvelFan

“The Village at Corte Madera ”

Yup. Been there.

It is directly across the Apple store. Maybe there is a correlation that Tesla only has stores where there is an Apple store which tends to increase sales?

BTW, in the Village at Corte Madera, Tesla has a sign in the main entrance that points the direction of the Tesla store. It says “Across from the Apple Store”.

The funny part is that the MS store is centrally located right in the entrance but hardly average 5 customers per hour if that (has an employee to customer ratio of 5:7). Apple store on the other hand are so busy that you have to wait.

If anything, you can bet that Tesla is “smart” at choose the right mall location for sure.

Steven

I think you’ve got that backwards.

At least here in the Philadelphia metro area, we have dozens of malls, but the only mall that has a Tesla store is King Of Prussia. It’s the only mall that would have made sense to have a Tesla store because it’s a “higher end” mall.

I wonder how sales per square foot at the average free standing Tesla Retail Stores rate.. I ordered my car online but closed the purchase in Devon, Pa .. not far from King of Prussia mall.. does the Devon Retail outlet get to claim that sale? Or does it get credited to the internet? Or does KOP mall get it even though I never set foot there?? I agree.. this post is just another piece of meaningless Tesla static.. white noise with no substance at all.. been hearing and reading a lot of pointless and confusing posts on Tesla.. someday down the road maybe somebody can provide independent unbiased facts regarding this claim… but I don’t think either Tesla or Teslarti is the one that will provide it.. and this report is incomplete and offers no proportional comparison of any meaningful information. . More PR than anything else.. I choose to ignore it as being incomplete and not competently researched to accept as credible.

Correlation does not imply causation.

What are the odds that Tesla selected its stores locations based on the location of people with who could afford a 150 000$ car.

Show that sales increased in each location after Tesla put up a store and that is really cool news.

MatteM3

A more accurate measurement would have been before and after of total foot traffic of the mall.