IKEA TOPS MOST LISTS FOR SLOT AT MEGA-MALL.

Byline: Brent Hopkins Staff Writer

CANOGA PARK - Retail analysts said Thursday that Swedish furniture chain Ikea could be the front-runner to occupy a three-story, 225,000-square-foot store proposed for an expanded Westfield Shoppingtown Topanga.

``That would be the perfect location for Ikea,'' said Daniel Blake, who directs CSUN's San Fernando Valley Economic Research Center. ``They're big enough to stand alone, and they'd need some additional free space to handle pick-up.''

Brent Schoenbaum, a partner in Deloitte & Touche's consumer business practice group in Los Angeles, said, ``The closest one is in Burbank, so you've got the geographic dispersion and enough customers who'd be interested. They're probably the most likely front-runner.''

With schematics approved by the city Planning Department, the mall's managers only need to seek building permits to commence construction, which would add 600,000 square feet of retail space to what already is the largest mall in the far West Valley.

But many retailers who might want the stand-alone store space are already located at Westfield's nearby Promenade mall, as well as the Fallbrook and Northridge malls. The area also has most of the national chains of free-standing big-box retailers, so finding an anchor capable of filling the massive new space appears to be no simple task.

``If you're looking for an anchor, you want someone big,'' said Charles Bearchell, a professor emeritus of marketing at California State University, Northridge. ``Normally, you'd want a department store, but they're all collapsing. You're running out of Broadways, May Companies and Bullocks to put in a place like that.''

Analysts focused on Ikea as a likely new tenant, noting the mall's desirable location.

Pat Merwin, Ikea's Southwestern U.S. real estate specialist, said the chain has no specific plans to locate at the Topanga mall but acknowledged that the West Valley market is attractive.

``Burbank's done very well with us, but as our market share grows, probably a West Valley store would be needed in the future,'' she said.

``There may be a lot of potential for us since there's a good population density and the demographics are in line with our typical customer. As Burbank grows, eventually it will only be able to handle so much business.''

Westfield's plans to revitalize the 40-year-old mall contain dramatic elements that could eventually join it with its southern counterpart, Westfield Shoppingtown Promenade. The Topanga mall is bordered by Victory Boulevard and Vanowen Street on the north and south, and Topanga Canyon Boulevard and Owensmouth Avenue on the west and east. The Promenade is one block south, in Woodland Hills.

In addition to the new anchor, Topanga mall plans include a new 225,000- square-foot building for Nordstrom, an expanded Robinsons-May and 2,100 new parking spaces.

Westfield also filed a request with the city to revise its tract map, allowing it to eventually add up to 50,000 square feet of offices somewhere on the Topanga property.

In addition to owning the two sites, it manages all the land between the two malls, in a partnership with the Warner Family Trust. Real estate experts have suggested that the plan could be a prelude to eventually linking the malls in a mixed-use project including offices, retail and, perhaps, apartments.

Other possible stores that might seek Topanga's proposed anchor site include Wal-Mart and Kohl's, both of which are expanding in the Southern California market.

But Ikea has emerged as the front-runner, analysts said. Already rumored to be seeking a Woodland Hills location, retail experts said, it would fit naturally in the new mall, both in its format and target demographic.

With the housing market still hot, and with a possible influx of new homes in the proposed Ahmanson Ranch development nearby, the West Valley provides an attractive target for Ikea. Its quality, yet affordable merchandise appeals strongly to younger families with moderate incomes, which will be in ample supply with local development. Additionally, the chain's status as a destination retailer, capable of drawing shoppers from long distances, makes it especially attractive to mall planners.

The proposed anchor's detached format, along with its easy access to a planned multilevel parking structure, fits Ikea's profile.

Additionally, the format would not compete with other stores already within the mall, both boosting appeal and limiting cannibalization from other retailers.

Ikea's Merwin stressed that the chain is focused on fixing up its four Los Angeles-area stores. Any development plans would come several years down the road, she said - about the same time frame that mall managers would likely be seeking a large new tenant.

Westfield spokeswoman Catherine Dickey declined comment on a time frame or a possible occupant for the space, saying the plans were still in preliminary stages.

Wal-Mart and Kohl's have been mentioned as possible entries for the site but neither fits with the center's profile for a strong fit.

Wal-Mart prefers free-standing stores and creates much competition with other tenants, while the much-smaller Kohl's appears to be headed to the Fallbrook Center. JCPenney would fit in with other tenants, but analysts said the company has yet to see enough of a turnaround to expand.

``Bringing JCPenney into Topanga would be a fit,'' Blake said. ``They had that outlet in Fallbrook, but I'm not sure they had very much traffic through there. It seems like they would have tried to preserve it if it had been a moneymaker. They're in a consolidation mode, working to preserve the stores that are doing well.''

Another option would be a nonstore tenant, which Bearchell said the mall had tried in the past.

``They might put in another ice skating rink, which they used to have and doesn't cost too much money compared with a store,'' he said. ``It provides a different incentive for people to go check out the mall and shop.''

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SOURCE: Daily News research