Local Houston business owner says Galleria will rebrand, lose up to 60% of sales

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Ken Haggerty was often told by Galleria officials that his Agenda store was one of the mall’s best-selling vendors.

Haggerty told FOX 26 that Galleria’s manager is dramatically changing his brand and he feels he’s being picked.

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Agenda, an upscale urban streetwear store, can only sell clothing in-store under a new lease agreement with the mall.

“The lease manager said it was out of his control,” says Haggerty. “It’s okay this time, I think I’ll have to move again. That’s fine… but what would you do if I told you I couldn’t sell my shoes anymore? I want to stay as long as possible.”

Documents obtained by FOX 26 show a new two-year lease agreement between Agenda and Galleria, declaring that the space on Agenda will be dedicated to “American and European urban street fashion, clothing only, and non-exclusively related accessories.” No shoes, sneakers, or anything related.”

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High-end sneakers account for approximately 60% of annual sales. Haggerty says there’s usually a line out the door on a given release date.

He also has not heard of any other vendor selling shoes being offered such a similar type of alternative to continue as a tenant.

“In 2018, I was invited to come to Galleria for more diversity,” says Haggerty. “I always pay my rent on time. I return the sales as I am supposed to. I have no problems.”

Haggerty says the lease manager told him this was due to a new exclusive deal between Galleria and A Sneaker City.

Haggerty also needs to move Agenda to another location in the Galleria. The current space is one-third his 6,000-square-foot space, with less foot traffic.

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In-mall relocations aren’t uncommon, but his real estate agent says many of the city’s streetwear vendors are crammed into the same area.

“In business, you always need opportunity,” says Tia Manteca, realtor at Jerry Fullerton Realty. “He paid his due attention, got his job done, and succeeded in winning that conversation.”

In April, Haggerty offered to more than double the monthly fee of $19,500 just to keep the same job. He told FOX 26 that Galleria didn’t bow to that initial offer.

According to Manteca, exclusivity deals are usually done with big brands. But in this case, it’s a burden for best-selling local stores like Agenda, the epitome of America’s success story.

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This all happened as Haggerty was preparing to expand his business to a second location on the 3300 block of Kirby Drive. Instead of focusing on November sales, he plans to move his two locations, and there’s a lot of uncertainty.

“I was there when people weren’t paying their rent, and we just kept going and kept paying,” says Haggerty. I guess.”

FOX 26 reached out to The Galleria/Simon Property Group for comment. They chose not to comment on negotiations for an exclusive deal with A Sneaker City, but released the following statement:

“The tenant has been in the center for 4 years and signed a new temporary lease agreement that we negotiated and agreed to move in 6 months ago and received a significant reduction in rent in return. operates under mutually agreed terms: “Any suggestion that we acted in a discriminatory manner is baseless and utterly baseless. flatly refuses.”