Northeast Ohio Retail Market Synopsis
2.11.08
The holiday season has come and gone and retailers have finished totaling sales for the year. Other than Wal-Mart, Costco, and Aeropostale there were few retail winners this year. This time of year retail executives decide which stores to pamper, which stores to relocate and which stores to close. Unfortunately, this year Northeast Ohio will experience a signifcnat number of store closings. Macy's has announced multiple store closings which should not come as a shock considering the locations identified. I'm surprised the locations at Rolling Acres, North Randall, and Canton Centre had not closed years ago. These centers have been deteriorating for several years even though Canton Centre had been somewhat redeveloped. In the event Macy's announces additional store closings, like Parmatown, Midway Mall, or Richmond Town Square I would be very concerned. These malls are the tier 2 malls in Northeast Ohio. Demographic changes, competitive projects closer to the interstate, and a general decrease in mall shopping has placed these assets in a tough environment when sales are good, what happens when sales are bad? Parmatown has been proactive and has added a Wal-Mart which should help generate more traffic, more often. Wal-Mart is out on an island on the west end of Parmatown and it will be difficult for the smaller retailers to feed off the traffic Wal-Mart is generating. Midway Mall continues to struggle because of competition from Avon, Lorain and Amherst. The fact that the Route 57 interchange onto Midway Mall Blvd or Griswold has not been reconfigured attributed to the demise of this trade area. Dillards has closed and sold the property to Centro. Wal-Mart has plans to relocate to a supercenter however plans appear to be on hold. Richmond Town Square is having problems with teenage loitering.
The hardest hit from this economic downturn are restaurants. Casual theme restaurants serving the middle-income population are getting killed. The middle-class does not have the money or choose not to spend their money eating out on Friday and Saturday nights. More likely they are renting movies, ordering pizza, and staying home. Several national restaurant concepts have announced store closings including; Lonestar, Buca Di Beppo, Darden, Don Pablos and Joe's Crab Shack. In addition to the casual theme restaurants fast food or quick serve operators have announced closings. Donatos, Steak N Shake, and Wendy's are a few who have already closed Northeast Ohio stores.
The holiday season has come and gone and retailers have finished totaling sales for the year. Other than Wal-Mart, Costco, and Aeropostale there were few retail winners this year. This time of year retail executives decide which stores to pamper, which stores to relocate and which stores to close. Unfortunately, this year Northeast Ohio will experience a signifcnat number of store closings. Macy's has announced multiple store closings which should not come as a shock considering the locations identified. I'm surprised the locations at Rolling Acres, North Randall, and Canton Centre had not closed years ago. These centers have been deteriorating for several years even though Canton Centre had been somewhat redeveloped. In the event Macy's announces additional store closings, like Parmatown, Midway Mall, or Richmond Town Square I would be very concerned. These malls are the tier 2 malls in Northeast Ohio. Demographic changes, competitive projects closer to the interstate, and a general decrease in mall shopping has placed these assets in a tough environment when sales are good, what happens when sales are bad? Parmatown has been proactive and has added a Wal-Mart which should help generate more traffic, more often. Wal-Mart is out on an island on the west end of Parmatown and it will be difficult for the smaller retailers to feed off the traffic Wal-Mart is generating. Midway Mall continues to struggle because of competition from Avon, Lorain and Amherst. The fact that the Route 57 interchange onto Midway Mall Blvd or Griswold has not been reconfigured attributed to the demise of this trade area. Dillards has closed and sold the property to Centro. Wal-Mart has plans to relocate to a supercenter however plans appear to be on hold. Richmond Town Square is having problems with teenage loitering.
The hardest hit from this economic downturn are restaurants. Casual theme restaurants serving the middle-income population are getting killed. The middle-class does not have the money or choose not to spend their money eating out on Friday and Saturday nights. More likely they are renting movies, ordering pizza, and staying home. Several national restaurant concepts have announced store closings including; Lonestar, Buca Di Beppo, Darden, Don Pablos and Joe's Crab Shack. In addition to the casual theme restaurants fast food or quick serve operators have announced closings. Donatos, Steak N Shake, and Wendy's are a few who have already closed Northeast Ohio stores.
posted by Hamulak at 11:11 AM
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