Coming to a mall near you . . . your grocery store?

As malls try to fill the empty real estate left behind from failing big box retailers such as Borders, Circuit City, Sears, etc...more and more mall landlords are looking to grocery stores to fill the void.

Grocery stores bring traffic and regular visits while not cannibalize sales from exiting retailers.  Target was one of the first stores selling grocery products to step into this opportunity, but more recently Trader Joe's, Whole Foods, and other more traditional grocery stores have also taken advantage of an existing consumer base and the ability to negotiate favorable rent terms as malls seek tenets willing to lease larger stores.

Obviously, these grocery stores have to realize they are unlikely to pull in too many convenience shoppers who would be resistant to dealing with mall traffic and tough parking.  Therefore, its important for these grocery stores to consider a dual location strategy - e.g., both on and off mall property to successfully grab as much market share as possible.  But nevertheless, seems like a win-win.