Westfield Old Orchard to carve up empty Lord & Taylor site into three smaller stores

The upscale shopping mall Westfield Old Orchard in north suburban Skokie is about to get a set of new stores, part of a $100 million transformation that is the most far-reaching in its 67-year history. The owners are reconstructing the now-empty Lord & Taylor building into a home for smaller retailers such as home furnishings brand Arhaus, mini golf outlet Puttshack and upscale clothing store Zara.

“This will absolutely help the rest of the retailers by bringing more foot traffic and sales to the whole site,” said Westfield Old Orchard senior general manager Serge Khalimsky.

It’s also part of a move away from traditional big-box retailers like Lord & Taylor, which struggle to survive in many suburban shopping malls. Owner Unibail-Rodamco-Westfield’s plan, first unveiled in 2022, envisions the new Old Orchard as a 24/7 community, shrinking the amount of traditional retail in favor of new homes, a town square, outdoor amenities and new restaurants.

“It will become a mini city within a city,” Khalimsky said.

Many suburban malls will undergo similar transformations. The Niles Village Board last month approved a nonbinding agreement with the Sterling Organization for a $440 million overhaul of Golf Mill Shopping Center. The developer plans to gut the interior, renovate and add retail space, and build a new 300-unit luxury apartment building.

“Most of this is driven by the bankruptcy of the major, conventional department stores,” said John Melaniphy, president of Melaniphy & Associates Inc. and director of economic development for the Village of Niles. “These stores were the original anchors of these centers, so the properties have to be reinvented and reimagined.”

Consumer shopping habits changed significantly since traditional malls were built starting in the 1950s, he added. Many people now shop on the internet, leaving some stores empty. But specialty or luxury retailers still attract customers, and adding new homes, parks and restaurants should also help malls become less isolated.

“Developers want to create a 24-hour vitality and energy, so their malls have more evening activity,” Melaniphy said.

Other parts of Old Orchard are also getting new looks. Aritzia, a women’s fashion boutique, will move from its current store into a 10,000-square-foot space once occupied by the Gap, tripling its size.

Bloomingdale’s closed its 200,000-square-foot Old Orchard store in 2022 but opened a new spot in the mall called Bloomie’s that is roughly one-fourth the size. Unibail-Rodamco-Westfield will soon begin developing hundreds of residences on the old Bloomingdale’s site.

“The transformational redevelopment now underway at Westfield Old Orchard will enhance experiences for Skokie residents and visitors, supporting the center as an economic engine for our community,” Skokie Mayor George Van Dusen said in a statement. “The Village looks forward to continuing its collaboration with Westfield Old Orchard to help Skokie thrive and remain the North Shore’s premier shopping, dining and entertainment destination for decades to come.”

Zara already occupies a small space on the north end of the mall and will double in size when it moves into the transformed Lord & Taylor building, which will get a completely new facade.

“When the community sees it, it will be hard to recognize what it used to be,” Khalimsky said.