The Rise of Retail Private Clubs: A New Anchor for Shopping Centers

In a shifting retail landscape marked by economic disparity – a “K-shaped economy” – affluent consumers are increasingly drawn to exclusive shopping experiences centered around private membership clubs. These clubs are emerging not as replacements for traditional retail, but as revitalizers, injecting foot traffic and a sense of exclusivity into shopping centers and retail districts.

The Appeal of Exclusivity

Unlike the bargain-hunting prevalent among lower-income consumers, high-finish shoppers are seeking curated experiences and a sense of community. Private clubs, reminiscent of country clubs, offer monthly dues and often initiation fees in exchange for access to fine dining, curated products, and exclusive events. This model is gaining traction in both traditional malls and stand-alone commercial properties.

Examples of Private Clubs in Retail Spaces

Dallas’s Highland Park Village, home to luxury brands like Hermès and Fendi, features Park House, a private club with initiation fees of $7,000 and annual dues of $292 per month, offering dining, a wine bar, and art experiences. Highland Park Village as well hosts a Fendi boutique. In Miami, The Club at The Moore boasts a $5,000 initiation fee and monthly dues exceeding $400, with overnight accommodations available. Placer.ai research indicates a growing popularity of these clubs alongside trends like the integration of gyms and co-working spaces into malls.

Expansion Beyond Coastal Cities

The private club model is no longer confined to coastal elites. The Social House recently opened in Cincinnati, adjacent to The Banks retail area, with a $4,000 initiation fee and monthly dues. In Grand Rapids, Michigan, The Commerce Club, a 55,000-square-foot space featuring a cafe, event space, coworking areas, and a speakeasy, is slated to open in November 2026. Developers are finding that mid-sized cities, with a growing entrepreneurial class, can now support these exclusive venues.

Benefits for Landlords and Retailers

According to Jia Li, associate professor of marketing at Wake Forest University, private clubs offer landlords a way to fill vacant spaces and generate consistent traffic. For high-end malls, these clubs enhance brand positioning without diluting exclusivity. Coldwell Banker Commercial’s Daniel Spiegel notes that these clubs offer attractive lease terms and consistent foot traffic, benefiting surrounding tenants.

Dwell Time and Repeat Visits

Sam Vise, CEO and co-founder at Optimum Retailing, highlights that private clubs encourage repeat visits – a key challenge for traditional retail. While an anchor store might attract customers a few times a week, a private club can draw them multiple times. This increased “dwell time” translates to greater spending within the retail center. Charlie Koniver, a principal at Odyssey Retail Advisors, emphasizes that increased time spent on a property directly correlates with increased spending.

The K-Shaped Economy and Consumer Trends

The rise of private clubs aligns with the current K-shaped economy, where upper-income households continue to spend while discretionary spending declines among lower-income groups. Greg Zakowicz, an ecommerce and retail advisor at Omnisend, suggests that these clubs cater to a consumer need for curated experiences and exclusivity, mirroring the benefits offered by other private clubs like golf and airport lounges.

Potential Challenges and Future Outlook

While promising, the private club model isn’t without risks. These clubs are prone to boom and bust cycles, as evidenced by recent challenges faced by Soho House. However, the trend represents a broader shift towards experiential retail and a recognition that successful properties must offer more than just shopping. The future of retail may well involve a blend of traditional commerce and exclusive, membership-based experiences.