From Clicks to Bricks: PREIT Welcomes Four Digitally-Native Retailers to Portfolio

PHILADELPHIA, Nov. 20, 2019 /PRNewswire/ -- PREIT (NYSE: PEI) welcomes new retailers to elite properties as digitally-native brands continue to find value in a brick and mortar presence. Once considered online-only retailers, Stance, Morphe, Peloton, and Makarios will bring their products to traditional retail space within the malls, with Makarios having opened in October at Woodland Mall, and Morphe and Stance having opened this month at Cherry Hill Mall; Peloton will follow closely behind in spring 2020.

"As the retail ecosystem continues to evolve, the mall platform offers a tremendous opportunity for digitally native brands to expand their business and interface directly with consumers," said Joseph F. Coradino, CEO of PREIT. "Today's consumer values in-store shopping experiences, where they can touch and feel products. We continue to see retailers that began online complement their digital presence with brick-and-mortar locations.  According to ICSC's The Halo Effect report, opening physical stores increases digital traffic and awareness for emerging brands. "

Stance 
Stance has turned socks into one of the world's most exciting accessories in less than five years. With over 36 million sock sales to date, Stance has infiltrated the industry, quickly coining itself as the sock brand for 'sneaker heads.' On November 14, Stance celebrated the grand opening of its storefront at Cherry Hill Mall – marking the brand's first Philadelphia-area location.

After finding success online, Stance took its business to brick and mortar locations in an effort to interact more closely with its consumers and to allow consumers to feel more connected to the brand and lifestyle.  Stance's products are loved and experienced by dedicated consumers worldwide.

Morphe 
Morphe, a makeup brand that was founded online and on social media in 2008, opened its second Philadelphia region store at Cherry Hill Mall on November 16. Morphe celebrated a strong opening day and continues to exceed sales expectations at their first South Jersey location. The rule-breaking retailer, who has grown an Instagram following of over five million in just three years, offers professional-grade makeup at affordable prices. Morphe inspires creativity with high-performing makeup brushes, richly pigmented shades and flawless formulas, all of which consumers will now be able to try for themselves in stores before making a purchasing decision.

"This year, we have expanded our brick-and-mortar footprint and will be open in 50 locations by the end of the year. We know that makeup and beauty are personal, so we wanted to make the experience personal as well – allowing our consumers to experience and play with our products firsthand. We've also found that our consumer is more adventurous in-store, trying new colors, styles and trends, allowing their creativity to flow," shared Kahla Broussard, VP of Retail Sales & Operations at Morphe.

Peloton 
The American exercise and equipment company, Peloton, will be expanding its footprint in Cherry Hill Mall to a traditional storefront after experiencing success with an interactive kiosk location in the common area over the past year. Founded in 2012, Peloton's luxury stationary bicycle rose to fame, allowing users to stream cycling and other fitness classes in the comfort of their homes, while providing a group fitness mentality and energy through virtual rides and healthy competition complemented by a leaderboard.

This spring, consumers will be able to visit Peloton's storefront and test the world-class exercise equipment along with additional merchandise and accessories for sale.

Makarios Decor 
Makarios, a home décor company, celebrated its grand opening on October 12 at Woodland Mall in Grand Rapids, Michigan. The brand, which was founded by a husband and wife team, specializes in creating an authentic product line of handmade home decor pillows, signs, mantels, shelves, furniture, home accents, wedding packages, corporate merchandise, landscape, and complete custom pieces.   The store was added as part of the mall's reinvention in conjunction with the recent opening of its expansion wing.

To learn more about PREIT's portfolio of opportunities in top markets, visit: https://www.preit.com/properties/

About PREIT
PREIT (NYSE:PEI) is a publicly traded real estate investment trust that owns and manages quality properties in compelling markets. PREIT's robust portfolio of carefully curated retail and lifestyle offerings mixed with destination dining and entertainment experiences are located primarily in the densely-populated eastern U.S. with concentrations in the Mid-Atlantic's top MSAs. Since 2012, the company has driven a transformation guided by an emphasis on portfolio quality, balance sheet strength and disciplined capital expenditures. Additional information is available at www.preit.com or on Twitter or LinkedIn.

Forward-Looking Statements
This press release contains certain forward-looking statements that can be identified by the use of words such as "anticipate," "believe," "estimate," "expect," "project," "intend," "may" or similar expressions. Forward-looking statements relate to expectations, beliefs, projections, future plans, strategies, anticipated events, trends and other matters that are not historical facts. These forward-looking statements reflect our current views about future events, achievements or results and are subject to risks, uncertainties and changes in circumstances that might cause future events, achievements or results to differ materially from those expressed or implied by the forward-looking statements. In particular, our business might be materially and adversely affected by changes in the retail and real estate industries, including consolidation and store closings, particularly among anchor tenants; current economic conditions and the corresponding effects on tenant business performance, prospects, solvency and leasing decisions; our inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise; our ability to maintain and increase property occupancy, sales and rental rates; increases in operating costs that cannot be passed on to tenants; the effects of online shopping and other uses of technology on our retail tenants; risks related to our development and redevelopment activities, including delays, cost overruns and our inability to reach projected occupancy or rental rates; acts of violence at malls, including our properties, or at other similar spaces, and the potential effect on traffic and sales; our ability to sell properties that we seek to dispose of or our ability to obtain prices we seek; our substantial debt and the liquidation preference of our preferred shares and our high leverage ratio; our ability to refinance our existing indebtedness when it matures, on favorable terms or at all; our ability to raise capital, including through sales of properties or interests in properties and through the issuance of equity or equity-related securities if market conditions are favorable; and potential dilution from any capital raising transactions or other equity issuances. Additional factors that might cause future events, achievements or results to differ materially from those expressed or implied by our forward-looking statements include those discussed herein and in our Annual Report on Form 10-K for the year ended December 31, 2018 in the section entitled "Item 1A. Risk Factors" and our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019 in the section entitled "Item 1A. Risk Factors." We do not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.

CONTACT:
Heather Crowell
EVP, Strategy & Communications
(215) 454-1241
[email protected]

SOURCE PREIT

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