A curious shift is underway in American retail. As traditional department stores struggle and the K-shaped economy continues to define consumer spending, a new type of anchor tenant is emerging in shopping centers and malls: the private club. These exclusive establishments, catering to affluent Americans, are increasingly seen as retail revitalizers, offering a blend of social space, dining and curated experiences.
The trend reflects a broader divergence in consumer behavior. While lower-income shoppers are increasingly frequenting discount retailers like Dollar General and Big Lots, those with greater disposable income are gravitating towards these membership-based clubs. This isn’t simply about shopping; it’s about access, exclusivity, and a sense of community.
Initiation fees and monthly dues are the price of entry. In Dallas, Park House at Highland Park Village – home to luxury brands like Hermès, Fendi, and Brunello Cucinelli – requires a $7,000 initiation fee and $292 in monthly dues, with an additional $4,000 for a spouse’s membership. Miami’s The Club at The Moore in the Design District carries a $5,000 initiation fee and monthly dues exceeding $400, and even offers overnight accommodations. These fees aren’t deterrents, but rather signals of status, and exclusivity.
The appeal extends beyond dining and social interaction. These clubs are designed to foster a sense of “safe space” and consistent engagement, a dynamic that has become increasingly valuable in the post-pandemic era. R.J. Hottovy, head of analytical research at Placer.ai, notes that these clubs can draw double the traffic of a typical tenant, acting as new anchors for retail centers. Placer.ai’s research also indicates a shift in dining preferences, with more consumers choosing country clubs and private clubs over traditional restaurants.
The expansion isn’t limited to coastal cities. The trend is spreading to mid-sized markets like Cincinnati and Grand Rapids, Michigan. The Social House recently opened in Cincinnati with a $4,000 initiation fee and monthly dues, while a vacant building in Grand Rapids is being transformed into The Commerce Club, slated to open in November 2026. Jeff Lambert, co-founder of The Commerce Club, believes these cities are reaching a “critical mass” of entrepreneurs and affluent residents capable of supporting such establishments.
For developers and landlords, the benefits are multifaceted. Jia Li, associate professor of marketing at Wake Forest University, explains that private clubs can absorb large footprints in struggling retail spaces, generating steady traffic and recurring revenue. They also allow landlords to maintain a high-end brand image without diluting it with less exclusive tenants. In some ways, this represents a return to the original vision of shopping malls as “community and civic centers,” rather than solely retail destinations.
Daniel Spiegel, senior vice president and managing director at Coldwell Banker Commercial, points out that while the concept isn’t new, it’s gaining traction now. He also notes that concepts like fitness clubs, co-working spaces, and social spaces are increasingly filling retail spaces, offering landlords attractive lease terms and consistent foot traffic.
The success of these clubs hinges on their ability to create “dwell time” – the amount of time a customer spends on a property. Charlie Koniver, a principal at Odyssey Retail Advisors, emphasizes that increased dwell time directly translates to increased spending. However, he cautions that these clubs aren’t a universal solution and are best suited for upscale retail environments.
The rise of private clubs also reflects a broader shift in consumer priorities, with younger generations prioritizing social connection and experiences over purely transactional shopping. Sam Vise, CEO and co-founder at Optimum Retailing, notes that these clubs create a reason for repeat visits, benefiting surrounding businesses. They also provide opportunities for digitally native brands to test physical retail through pop-up shops and curated experiences.
However, the private club model isn’t without its risks. Like any business, they are susceptible to boom and bust cycles, as evidenced by the recent take-private deal for Soho House, which saw its valuation remain relatively flat compared to its 2021 IPO price.
The phenomenon is also potentially linked to the current economic climate, with upper-income households continuing to spend while others curtail discretionary purchases. David Loranger, assistant professor of fashion marketing and merchandising at Sacred Heart University, suggests a possible “Mar-a-Lago halo effect,” where individuals aspire to belong to exclusive clubs associated with high-profile figures. The recent opening of the Executive Branch, a private club co-founded by Donald Trump Jr. Near Washington D.C., exemplifies this trend.
the emergence of private clubs as retail anchors represents a significant adaptation to the changing landscape of consumer spending and the evolving role of shopping centers. While not a panacea for all retail woes, they offer a compelling model for attracting affluent customers, fostering community, and revitalizing underutilized spaces.
