The first ‘anchor’ store to open at the Southern Park Mall, Sears, announced last week it will close its doors.
      Sears first opened in 1969 when Southern Park was developed by the Edward J. DeBartolo Corp. Anchor stores were crucial to the development of the mall concept, and at Southern Park, Strouss’ and JCPenney Co. were the other original anchors.
      Announcement of Sears closing cast doubts on the future of retail at Southern Park, despite an announcement by W. P. Glimcher, current operator of the mall, that the some 175,600 square feet of space, will be redeveloped. Overall, Southern Park had some 1.198 million square feet of retail space.
      Sears Holding (Nasdaq:SHLD) is a retailer with more than 1,000 stores across the United States. The company has struggled operationally over the last few years, with a significant reduction in sales prompting the closure of several stores, in light of what has been called a “staggering drop” of some 18 per cent in sales over the last few years.
      “We have been strategically and aggressively evaluating our store space and productivity, and have accelerated the closing of unprofitable stores as previously announced. This is not an effort solely aimed at cost savings but is part of a strategy we have been executing against as many of our larger stores are too big for our needs. Having fewer stores – and the right format – will help us bring Sears Holdings to a size and place to meet the realities of the changing retail world,” a statement from Sears Holdings said on the closing of its store in the Southern Park Mall.
      WP Glimcher, current operator of Southern Park, countered the closing with the following announcement:
      “Washington Prime Group Inc. announced its most recent redevelopment effort, a multi-million dollar project anchored by the addition of diversified tenants at Southern Park Mall, a Tier One asset...
      “The company is in discussions with new tenants, which will be announced in the future, for the high visibility anchor space currently occupied by Sears. The company proactively negotiated an early termination of the lease to gain control of the real estate and commence redevelopment efforts.”
      According to Lou Conforti, CEO and director at Glimcher, “The redevelopment opportunity at Southern Park Mall further illustrates our mandate to diversify tenancy and establish this asset as the dominant town center within the Youngstown Metropolitan Statistical Area. The 550,000 residents which comprise this [area] deserve differentiated retail, dining, entertainment and services, and it is our objective to continue to provide them with the established tenancy they expect, as well as new and exciting offerings, the unexpected.”
      Additional details on the redevelopment project will be announced in the future, Glimcher said.
      Brian Gabbert, general manager of Southern Park Mall looked to the future, saying “We are excited for the opportunity to welcome new tenants to Southern Park Mall. Our redevelopment efforts demonstrate our commitment to the Boardman community and greater Youngstown area. We remain focused on providing our guests with an increasingly enjoyable environment to shop, dine and spend time together.”
      Sears at Southern Park Mall will close its doors by mid-July. About 120 business operate at Southern Park.
      The Southern Park Mall is valued at some $50 million and generates annual property taxes of some $1.5 million, according to the Mahoning County Auditor’s Office.
      Some suggest, in light of the closing, that the ‘Sears’ portion of the mall will be razed, possibly this fall, and then redeveloped next year.