Now struggling, Westminster Mall was once the second most popular shopping center in Orange County.

In 1986, it ranked No. 2 in taxable sales behind South Coast Plaza. Last year, it fell to eighth place. It has been impacted by competition and department-store consolidation. A mall spokesman said it has been working on improving the mall which has lured five new tenants, including T.G.I. Friday’s.

Among Orange County’s 14 big malls, the 1.2 million-square-foot Westminster Mall was the only one with a drop in taxable sales last year, according to data collected from cities by the Register. In 2011, its taxable sales declined 1.6 percent to $268.7 million. That followed a 2.4 percent dip in 2010. For the 14 local malls, taxable sales rose 6.5 percent in 2011 and 5.4 percent in 2010. Sales for U.S. shopping centers increased 4.2 percent in 2011 and 2.3 percent in 2010, according to the International Council of Shopping Centers.

Also, Westminster Mall had the lowest occupancy rate at the end of last year out of five Orange County shopping centers owned by Simon Property Group. Westminster Mall’s occupancy rate slid from 92.3 percent at the end of 2002 to 85.3 percent at the end of last year. By comparison, the occupancy rate among U.S. shopping centers was 90 percent last year, according to the National Council of Real Estate Investment Fiduciaries.

Westminster Mall officials previously said it was hurt by malls that expanded and remodeled. South Coast Plaza added what was formerly called Crystal Court in 1986. The following year, Santa Ana Fashion Square, what’s known today as Westfield MainPlace, completed a $160 million facelift.

Westminster Mall, at Bolsa Avenue and Goldenwest Street off the I-405, has been owned by Simon since 1998 when it bought Corporate Property Investors, which had owned Westminster Mall since 1982. Indianapolis-based Simon owns or has an interest in 336 retail real estate properties in North America and Asia, including The Shops at Mission Viejo, Laguna Hills Mall, Brea Mall and The Outlets at Orange, which has enjoyed an increase in sales as it has evolved into an outlet center. “I’m not sure that Westminster Mall has been high on Simon’s priority list,” Irvine-based retail analyst Greg Stoffel said.

Simon’s spokesman Les Morris disagrees. Morris pointed to the $10 million Simon invested in 2008 to upgrade Westminster Mall, which opened in 1974. The remodel included upholstered booths and bar-style seating in the food court, carpet for the majority of the first level to minimize noise, glass and steel facades for all entrances, a new children’s play area and new family restroom and lounge.

Eighteen months ago, Simon hired a leasing agent to focus exclusively on Westminster Mall – an unusual move by Simon as leasing agents typically handle three malls. “We realized that Westminster Mall is a key property for us in Orange County and we wanted to improve the tenant mix,” Morris said.

Simon is happy with what the leasing agent has done so far. Pink, Victoria’s Secret’s lingerie chain for college-age women, opened this month. Australian clothing retailer Cotton On opened its fourth Orange County store last month at Westminster Mall. The Limited is scheduled to open next month. T.G.I. Friday’s and CUPS Frozen Yogurt – a beach-themed self-serve fro-yo concept created by The Briad Group which is also the franchise restaurant operator of T.G.I. Friday’s – are slated to open this coming holiday shopping season. Cups is currently just in New Jersey.

When Westminster Mall opened, it was anchored by Buffums, May Co., Robinson’s and Sears – which is the only remaining department store. Buffums closed in 1991. That space sat empty for about two years until a Robinson’s-May home furnishings store opened in 1993. The 1992 Robinson’s May merger and 2005 merger between Federated Stores, owner of Macy’s, and the May Department Stores Co. resulted in more vacancies at Westminster Mall.

Macy’s spokesman Jim Sluzewski said its Westminster Macy’s is a “very good store.” In mid 2009, Macy’s began localizing merchandise. The Westminster Mall store carries a bigger percentage of clothing in smaller sizes and cosmetics skewed to skin tones for Asian shoppers compared to its other stores. The department store chain is responding to the area’s prominent and growing Asian population. In 2000, 25 percent of the population within five miles of Westminster Mall was Asian; today, it’s 32 percent, according to The Nielsen Company.

An official for JCPenney, which last year spent $3 million to upgrade its Westminster store that opened in 1993, said it doesn’t comment on individual store performance. Arriving in 2007, Target is the center’s newest anchor. While Simon says Target is a great retailer, Stoffel doesn’t think the store has been a draw because shoppers have four other Targets located within five miles of Westminster Mall. Target didn’t respond to a request on how its Westminster Mall store is doing.

Westminster Mall has lost shoppers to South Coast Plaza, Fashion Island and Los Cerritos Center. Stoffel thinks they each have a better tenant mix collectively than Westminster Mall.

Contact the writer: 714-796-7083 or htnguyen@ocregister.com