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Storefronts Closing; More On Chopping Block

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By MICHAEL SASSO

msasso@tampatrib.com

Published: January 9, 2009

TAMPA - The holiday sales figures are in and, as expected, things were ugly at the nation's stores.

Now, retail real-estate brokers and investors are expecting a wave of store closures among retailers that were struggling even before the holidays.

Locally, retail experts say stores in grocery-anchored shopping centers probably will fare the best, because people will continue their everyday shopping. But strip centers without such anchors, big outdoor "lifestyle centers" and regional malls already are starting to see more empty spaces.

Love Goel, whose Minneapolis investment firm has stakes in retail companies, said sectors including women's apparel and home furnishings are too crowded and that there was bound to be a shakeout.

"All that the economy did was just hasten their demise and put them out of their misery," Goel said.

The recession is expected to force some of the weakest retailers to seek bankruptcy protection, while others at least will shed stores. Locally, the women's apparel chain Talbots recently closed at Westfield Citrus Park and will close another store at Hyde Park Village on Jan. 24, according to a Talbots spokeswoman. Taylor Clifton, Westfield Citrus Park's marketing director, said Coach will replace Talbots.

Other closures include two at University Mall: Starbucks and discount apparel store Steve & Barry's. The mall hopes to demolish the Steve & Barry's building and rebuild it as a one-story building with a new unnamed retailer, mall general manager Tom Locke said.

Other mall vacancies are coming with the liquidation of Whitehall Jewelers, which has locations at Westfield Brandon, University Mall and WestShore Plaza, and KB Toys, which has locations at Westfield Citrus Park and Westfield Countryside. Outside of the malls, Linens 'N Things is liquidating all of its stores, while Circuit City is still operating its local stores, but under bankruptcy protection.

One real estate firm, Colliers Arnold, pegged the Tampa Bay area's retail vacancy rate at about 6.9 percent in the fourth quarter of last year. Patrick Berman, a retail broker with the Cushman & Wakefield firm, however, said the vacancy rate is at least 9.3 percent and could hit a troubling 10 percent.

Reporter Michael Sasso can be reached at (813) 259-7865.

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