Zocalo Mall concept targets Hispanic Americans with decidedly Latin flavor

DSN Retailing Today, April 11, 2005 by Debbie Howell

PHOENIX, ARIZ. -- Zocalo Mall, a unique new shopping center concept targeting Hispanic Americans that will be modeled after town square market and entertainment centers found in some Mexican cities, will open this June in the Phoenix suburb of Peoria.

The center featuring 75 to 90 shops and services will be the first of four Zocalo malls to open in the Phoenix area ranging in size from 80,000 square feet to 120,000 square feet. Mall owner Jose Ordonez' goal is to open 20 malls over the next two years, expanding to other His panic-concentrated urban markets in Arizona, California, Texas and New Mexico.

"It's going to be very family-oriented and there's always going to be entertainment on a daily basis," said James Morang, a representative of Zocalo Mall.

In describing the concept, Morang said the mall in some ways will resemble a swap meet or flea market, but in an upscale environment that emphasizes Mexican culture, artistry and services. The inaugural mall is 60% leased, with vendor booth sizes ranging from 100 square feet to larger shops such as a bridal store of 1,200 square feet. Retail shops will range from small independents to nationally recognized chains that sell apparel.

Services to be found in the mall will include a food court, meat market and deli, tortilla factory, hair salon, tax preparation, child care center and copy and shipping center, among others. Club Zapata, a nightclub and sports bar, will be adjacent to the mall. Next door to but not associated with the mall site is a Wal-Mart store, Morang added.

Bilingual signage will be used at the center, with most shops staffed by owners that speak both Spanish and English. Morang expects the mall will also appeal to non-Hispanic shoppers such as tourists attracted to the unique multicultural experience of the complex.

A remodeled Albertson's grocery store will house the inaugural Zocalo Mall in Peoria. Other vacant supermarkets in the Phoenix area are being developed for mall sites, Moran said, while the first grounds-up center is planned to open in Tucson next year.

The mall will be decorated in festive Mexican colors as well as sport tile floors with aisles named after streets, similar to a Mexican village. Entertainment will be ever-changing and may include mariachi bands, live radio broadcasts and special appearances by Hispanic celebrities.

With the Hispanic-American population now the largest and fastest-growing ethnic group in the United States, retail concepts targeting this consumer segment are becoming quite popular. Innovation has come in the form of Hispanic supermarkets and ethnic-targeted merchandising by neighborhood among retailers that range from Sears to Wal-Mart. Now, Hispanic retail centers easily could become the latest hot trend in ethnic marketing, with at least three unrelated Hispanic-targeted retail concepts expanding in the Southern California market next year that include Paseo Sepulveda, La Curacao and La Alameda.