Despite an ever-changing retail landscape that is facing increased competition from the internet causing many malls to struggle, King of Prussia Mall is still the pre-eminent shopping destination for the East Coast, with over 20 million shoppers browsing its stores annually, according to a Main Line Today report.
Despite having a rather modest start, with the mall opening its doors in 1963 with only two stores, fifty two successful years have made King of Prussia Mall a huge economic force in the area. This is in part thanks to its 7.5 major renovations (one is still ongoing), as well as some of the lowest taxes in the five-county region.
“The mall plays a big role in that,” notes township supervisor Greg Waks. “Eighty percent of all the real-estate taxes at the mall goes to the Upper Merion School District, and the township receives a dollar for every $1,000 in tax revenue.”
Dollar by dollar certainly adds up as, according to the owners, the King of Prussia Mall creates close to $60 million annually for the local government in sales-tax revenue, with an additional $8 million in real-estate taxes. King of Prussia has survived, where many others have failed, due to a myriad of reasons, not least its sheer size with over 40 restaurants and over 400 retailers split between the Court and the Plaza.
One oddity is that it is actually two malls in one, with the only way to get from one to the other is by going outside. However, the new owners, the Simon Property Group, are changing that with over 20 months of construction on an enclosed wing which will connect the two malls internally. This massive project should be completed by August next year and the wing will cover 170,000 square feet creating space for an additional 50 new retailers and restaurants.
Simon Property Group invests close to $1 billion annually in renovations and expansions of its over 150 malls across the country, and experts estimate that close to $150 million has been set aside for the King of Prussia Mall connection.
“We anticipate this expansion alone to add $100 million in retail sales or more,” says David Contis, SPG’s Senior Executive Vice President and President of its malls platform. “There will also be several hundred new retail jobs brought into the mall.”
