The Walt Disney Of Retail: Meet The Billionaire Building The Malls Of The Future

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The Walt Disney Of Retail: Meet The Billionaire Building The Malls Of The Future
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, introduce you to its neighbor, the iconic Farmers Market. He takes you to a butcher stall where, some 80 years ago, Caruso’s father was sweeping the floor. Next he points to a pizza stand founded by Patsy D’Amore, who baked L.A.’s first pie in 1939. “I grew up on his knee,” he says.

“You pay more, but you get more,” says Rocco Basilico, who runs retail for Ray-Ban in North America. He says the brand’s tiny Grove location has the highest sales per square foot of any of his U.S. stores. The Grove’s Dominique Ansel bakery does more business than the New York original, and the movie theater is among the ten most productive per seat in America.The Grove and his nine other lightly mortgaged shopping centers in the area have made Caruso worth $4 billion.

Caruso tried his hand at industrial real estate, but it bored him. In 1992 he turned to retail with 333 La Cienega, in L.A.’s Beverly Grove neighborhood. He leased it to now-defunct Loehmann’s for two decades and is currently redeveloping the land as a mixed-use project scheduled to open in 2020. The Grove’s common area adds up to an acre. Competitors scoffed at the wasted space, but a movie studio recently paid $600,000 to use it for a two-day stunt. A paid promotion this summer involved a giant Amazon box, a Jeep Wrangler and the latestreboot. Caruso earns an estimated eight figures in annual revenue from advertising at The Grove, according to industry sources.

This, Caruso believes, is the future of retail. Good retailers—and by extension good retail developers—cater to the community. “That is why Amazon has done so well in the book business,” he explains. “They curate the selection based on the data they have from that neighborhood.” Not every community has welcomed Caruso with open arms.

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