TikTok-Inspired Retailers Are Taking Over Your Local Strip Mall

Pop star Olivia Rodrigo first posted a photo on Instagram in 2021 holding a “dirty soda” from Swig — a store that sells drinks like “Life’s a Peach,” a Dr. Pepper mixed with vanilla and peach syrup and half and half, or “revivers,” energy drinks blended with a variety of syrups and coconut creams. 

To some, the hype surrounding the sugary drink may be confusing. But the hashtag #dirtysoda has garnered over 152 million views on TikTok and Swig, seen as on the forefront of the product, has shops popping up across the country. Launched in 2010, the retailer is up to 56 locations to date — 18 of which have opened so far this year. Next year, the brand’s first franchises will open. It’s already sold 400 licenses. 

“When I was in Dallas, this last opening several people came up to me and said ‘I drove two hours to come try a dirty soda for the first time,’” Swig Founder Nicole Tanner said.

Since the emergence of e-commerce, retail landlords have feared the narrative asserting the death of brick and mortar. Now, they’re embracing the rise of unconventional retailers — many of which have gained prominence online and are more picky about where they want to have a physical presence.

Reason Not to Shop Online 

Those retailers are different from traditional tenants, not just in branding, but in that they offer shoppers an experience. They give consumers a reason to not to shop online. 

Pacific Retail Capital Partners (PRCP), which owns malls and plazas across the country, has a leasing division that scours the market for up and coming retailers. Among the best locations to search are Instagram and TikTok. 

“Social media, specifically TikTok and Instagram, are essentially the new search engines. They're the new Google. You're looking for something to eat, to play, to see, you're going to look at those channels first to get ideas,” PRCP’s Executive Vice President of Marketing Najla Kayyem said. “It's no longer a nice thing to have, it's a need to have.”

Among its tenants is pet adoption lounge Mini Cat Town, with 80,000 followers on Instagram and 26,000 followers on TikTok, and immersive art studio Dreamscapes, with 10,000 followers on Instagram and nearly 5,000 followers on TikTok. For the tenants that are less tech savvy, PRCP will assist in training or digital marketing campaigns.

Whitestone REIT, which owns shopping centers in Texas and Arizona, pairs those newfound tenants with consumer data. Location intelligence firm Esri crafts detailed profiles of shoppers like “Laptops and Lattes”  — 30-something single householders with a median income of $112,200 — or “Exurbanites” — empty nesters with a median income of $103,400. 

Whitestone Chief Operating Officer Christine Mastandrea said that bringing in retailers that appeal to the profiles that use social media is no different than trends of older generations. 

“It really goes back to people getting interested in real estate because you all of a sudden have HGTV or people getting interested in food because you have the Food Channel,” Mastandrea.

Among the tenants that Whitestone has worked with is Moss Design Gallery, a store that allows customers to create their own terrariums.

Emulating the Rich and Famous 

Polls have found that Gen Z is willing to splurge on luxury fashion items, home goods and beauty or skincare products, as well as emulate the lifestyles of the rich and famous.

“Gen Z, more than others, are constantly shopping,” said Chuck Reynolds, a managing director and partner at L.E.K. Consulting, who specializes in digital commerce. 

Especially popular are international brands. Bubble tea franchises and japanese dollar stores are spreading across the U.S. Asian food halls have also become increasingly common. 

Australian cafe Bluestone Lane has over 60 locations in the country. Its customer base tends to be younger and female, primarily those looking for alternatives to corporate-feeling big chains, said the company’s Vice President of Marketing Andrew Stone. 

Being Choosey

Its base allows it to be choosey. Stone said that landlords have moved other coffee shops out of their centers to make room for Bluestone Lane.

“The mindset is that there's always good opportunity. We just need really good deals and really good landlords that understand the brand and understand the direction,” said Stone, whose brother, Nick, founded the company. 

Karly Iacono, a senior vice president at commercial brokerage CBRE, who specializes in selling strip malls and other retail properties, cautioned that not every TikTok trend is worth hopping onto. For some, it may make more sense for landlords to offer temporary or pop-up space, with potential to extend leases for longer following a trial period. 

“I'd probably be excited about having a new concept to drive the younger traffic to the center, but I'd be a little more hesitant about financially investing in a brand new concept that had no track record,” Iacono said.