The Galleria Dallas is getting a new big tenant, one that’s probably better known for its role in the entertainment industry than retail.
Netflix chose the North Dallas Mall as the home of its first-ever Netflix House. According to a news release, the “experiential entertainment venue” will offer immersive experiences based on Netflix’s signature programming, themed dining and live entertainment with food, drinks and merchandise.
“Imagine waltzing with your partner to an orchestral cover of a Taylor Swift song. Bridgerton Then we turn the corner and take part in the Glass Bridge Challenge. Squid GameThe company’s blog states:
The 107,436-square-foot Galleria Edition will be one of Netflix’s first Houses in the U.S., with another location also planned for King of Prussia, Pennsylvania, both of which are expected to open in 2025.
“Netflix chose these locations because they’re part of two of America’s most popular shopping centers, with hundreds of retailers, high foot traffic and close proximity to major cities,” the post reads.
Terry Montesi, CEO of Trademark Properties, which has operated the Galleria Dallas since 2018, said the company is keeping mum about the future of the venue.
“To be honest, it’s kind of a trust thing that happens because you can’t actually visit,” Montesi said. He said his understanding is that there won’t be many Netflix House locations opening across the country in the next few years. Netflix will evaluate the performance of the first two locations to determine the feasibility of new ones, a Netflix spokesperson said in an email. Dallas Morning News.
Netflix House will add a new element to experiential offerings at the Galleria. The mall had five or six experiential concepts, but Netflix House “stands above and beyond all of the others,” Montesi said.
“There’s no doubt post-COVID people will value experiences,” he said. “If you read about millennials and Gen Z, you see how much they spend on experiences versus clothes and things like that. So I think the experience economy is here to stay.”
As online shopping cuts into the competition for traditional clothing sales, malls are emphasizing experiential offerings. In North Texas, the Shops at Willow Bend is home to the Crayola Experience. Grapevine Mills is home to family favorites Legoland Discovery Center, Sea Life Aquarium and Peppa Pig World of Play, as well as Meow Wolf, an experiential arts venue for a wider audience.
The trend isn’t new — the Galleria Dallas has had an ice skating rink since 1982 — but it’s accelerated as department stores like Belk, Macy’s and JCPenney close stores and vacate anchor spaces.
He added that while the Galleria Dallas has dining options, the Netflix House will add something “completely different” to the Galleria and take the mall to “a whole other level.”
“We’re not tiptoeing around, we’re diving in. We’re diving in boldly,” Montesi said.
Netflix’s most recent annual report noted that the streaming service is “expanding its offerings of consumer products and live experiences.” While the company has experimented with pop-up stores in the past, the Netflix House concept, first reported last year, would be a more permanent commitment to live experiences and entertainment. Netflix House would also help with the company’s marketing, which has been criticized as “inadequate” in the past.
The company has cracked down on password sharing and added lower-cost, ad-supported subscription options in recent years, helping to boost Netflix’s previously sluggish performance.But the company’s decision in April to stop reporting subscriber numbers starting next year caught investors off guard.Streaming platforms including Netflix, Max and Disney+ have historically competed with each other for subscribers.
Still, the brand is “strong,” Montesi said.
“Netflix is [what] “Kleenex has become synonymous with tissues and Netflix has become synonymous with streaming and content providers,” he said, “so we’re really excited to be partnering with this brand.”
Montesi noted that locally, the Galleria has been “gradually renovated” over the past few years. In an email, he wrote that the mall has seen 6 million visitors in the past 12 months and sales have increased 59% since April 2021.
In the past year alone, the mall has undergone a number of upgrades, including the opening of a new entrance with stalls and terraced seating, the opening of the Southwest’s first H&M Home and the expansion of its Louis Vuitton store to double the size of its site.
Dallas City Council Member Janie Schultz said the Netflix House fits into her vision for the city to make the Dallas International District the economic hub of the region, a 450-acre area anchored by the Valley View Galleria shopping mall that has been earmarked for redevelopment, according to the Dallas Economic Development website.
“The Galleria has already done a great job of establishing its brand internationally, so the area will attract a diverse range of residents from around the world,” Schultz said.
Schultz was not involved in the discussions between Netflix and the Galleria, but she said she has discussed the idea for the International District with “both parties,” adding that the deal did not include any economic development incentives.
Netflix House will occupy the first and second floors of the former Belk department store at the Galleria, which left the mall in 2020.
Fixes June 19, 2024: Councilwoman Janie Schultz’s last name is now spelled “Schultz.” A previous version of this story incorrectly spelled Councilwoman Schultz’s last name as “Shultz” twice after the first mention.
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