If you’re digging through legal documents or commercial leases, you’ve probably tripped over a reference to the list of stores in schedule 1. It sounds like some sort of secret society of retailers. Or maybe a VIP list for a shopping mall that hasn't opened yet. Honestly, it's usually much more mundane than that, but the financial implications? Those are massive.
In most legal and commercial contexts, Schedule 1 serves as the primary "index" for a contract. When it comes to retail, this list usually defines which specific stores are allowed to operate under a specific agreement, or more often, which stores are "anchor tenants" that trigger certain rights for everyone else in the building.
What the List of Stores in Schedule 1 Actually Does
Let's get real for a second. Lawyering is mostly about preventing people from doing things they want to do. In a shopping center lease, a list of stores in schedule 1 often functions as a "Co-Tenancy" requirement.
Imagine you open a small boutique in a massive development. You're paying premium rent because there's a Target, a Sephora, and a lululemon nearby. You need that foot traffic to survive. So, your lawyer writes a clause saying that if those specific stores—the ones named in your Schedule 1—close down and aren't replaced, your rent drops by 50%.
It’s a safety net.
Without that list, the landlord could fill the empty Target with a DMV or a giant warehouse, and you'd be stuck paying luxury mall prices for a view of people waiting to renew their licenses. Nobody wants that.
The Anchor Tenant Power Dynamic
Anchor tenants are the big dogs. Think Macy’s, Nordstrom, or even grocery giants like Whole Foods. In many Master Lease Agreements, the list of stores in schedule 1 represents the "Required Tenants."
I’ve seen cases where a developer lost their entire financing because one store on that list decided to pull out. Banks aren't stupid. They look at Schedule 1 to see who is actually committed to the project. If the list is full of "zombie brands" (retailers that are currently closing stores nationwide), the project is basically dead on arrival.
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Retail is fickle.
One year, a brand is the king of the mall; the next, they’re filing for Chapter 11. This is why the specific names on that list matter more than the total square footage. You can't replace a high-end department store with three mattress shops and expect the same vibe.
Why the Specificity of Schedule 1 Matters
The wording in these lists is often annoyingly precise. It won't just say "a grocery store." It will say "a premium grocer as defined in the list of stores in schedule 1 or a comparable retailer with at least 150 locations nationally."
This prevents "down-shopping."
If you’re a high-end jeweler, you don't want a dollar store opening up next door. Not because dollar stores are bad—they’re great for cheap snacks—but because they don’t attract people looking to spend $10,000 on an engagement ring. The schedule protects the "character" of the shopping center. It's essentially a list of peers.
Common Misconceptions About These Lists
A lot of people think these lists are static. They aren't.
Most modern leases include "Permitted Successors." This means if a store on your list of stores in schedule 1 gets bought out by another company, the new owner usually counts toward the requirement. If Sobeys buys Safeway, the lease usually treats them as the same entity for the purposes of that schedule.
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But watch out for "Operating Covenants."
Just because a store is on the list doesn't mean they have to stay open. Some big retailers pay rent on "dark" stores just to keep competitors out of the area. This is the nightmare scenario for small business owners. The store is technically "leased," so it satisfies the schedule, but there’s no foot traffic because the doors are locked.
The Digital Shift and Schedule 1
Lately, the way we define these stores has changed. We’re seeing more "clicks-to-bricks" brands appearing on the list of stores in schedule 1. Brands like Warby Parker or Allbirds are now being used as anchor requirements because they drive a younger, more tech-savvy demographic than the old-school department stores.
If you’re looking at a list from 2015, it’s probably useless today.
The retail landscape has shifted so violently that "Schedule 1" from ten years ago looks like a graveyard. Gap, J.Crew, and Victoria's Secret used to be the "must-haves." Now? Landlords are clamoring for experiential tenants. We’re talking about "stores" that are actually pickleball courts, high-end gyms like Equinox, or co-working spaces.
How to Audit a Schedule 1 List
If you are a business owner or an investor, you need to look at that list with a skeptical eye. Don't just check if the stores are there; check their credit ratings.
- Check the "Going Dark" provisions. Does the list require the stores to be open and trading, or just "leased"?
- Verify the replacement criteria. If a store on the list leaves, what defines a "suitable replacement"? This is where most legal battles happen.
- Look for "Exclusive Use" conflicts. Sometimes the list of stores in schedule 1 includes businesses that have the right to block you from selling certain products.
I once saw a coffee shop get sued because a pharmacy on the "Schedule 1" list had an exclusive right to sell "convenience items," which the pharmacy argued included bottled water. The coffee shop almost went under because they couldn't sell water.
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Details. They’ll kill you.
The Future of Retail Lists
We are moving toward "Flexible Schedules."
Instead of naming specific brands, more developers are using "Category Requirements." They’ll list "Three Tier-1 Fashion Retailers" or "Two Michelin-starred or equivalent dining concepts." This gives the landlord more room to breathe while still giving the smaller tenants some level of assurance.
It's a weird time for physical retail.
But as long as there are physical buildings, there will be a list of stores in schedule 1 dictating who gets to play in the sandbox. If you’re signing anything, make sure you know exactly who is on that list and what happens if they vanish.
Actionable Steps for Navigating Schedule 1 Agreements
- Request a "Market-Comparable" Clause: If you're a tenant, ensure that any replacement for a store on the list must be of similar quality and "draw power."
- Check for Global vs. Local: Ensure the stores listed are specific to your location, not a generic list used by a national landlord for every property they own.
- Define "Operating": Ensure the list requires these stores to be open for business during normal mall hours, otherwise, the "list" is just a piece of paper.
- Consult a Retail Specialist Lawyer: Don't let a general practice attorney look at this. You need someone who knows the specific "nasty tricks" landlords use in retail schedules.
- Monitor the Tenants: Keep a monthly eye on the financial health of the "Schedule 1" anchors. If they start missing earnings or closing other branches, prepare your exit strategy or your rent-reduction demand.
The reality of the list of stores in schedule 1 is that it's a living document. It represents the heartbeat of a commercial property. If those stores are healthy, your business has a chance. If they're failing, that list is basically a countdown clock for the building's relevance. Treat it with the respect (and suspicion) it deserves.