Friday, Aug. 21, 2009

Shop Around: Economy hurting key retail district

The retail corridor around Bush River at Broad River roads is taking some hits as the economy suffers.

A Kmart that has been in the area for 35 years will close Nov. 15, and S&K Menswear is down to its final days.

But industry experts say the area always will draw tenants because it is the geographical center of the region, connected to two interstates and just 5 to 10 minutes from downtown Columbia.

“That location will always have a draw,” said Ron Anderson, vice president of research for NAI Avant, which markets the Colonial Village shopping center on nearby Colonial Life Boulevard.

The occupancy rate in that market was 86.3 percent in June, down more than 2 percentage points from December, Anderson said.

Gloria Baker, who manages the intersection’s Boozer shopping center with her siblings, said she has never seen occupancy rates this bad in the center’s 45-plus year history. Still, she realizes things are not as bad as they could be.

“With the economy like it is, we’re still doing good,” she said. “We’re not real concerned about the vacancy right now.”

The center has 52 stores and about a dozen vacancies, with two new stores scheduled to open by the end of the year. The center normally has about five vacant stores at one time, she said.

While Anderson said he expects the area’s occupancy rate to stay in the 80 percent to 92 percent range, there is no doubt the closing of Kmart and S&K, with a combined 98,000 square feet of retail space, will have an impact.

Kmart officials would not say why they decided not to renew the lease in that location, just that the decision came after a routine evaluation.

They would not discuss whether a Wal-Mart that opened about a mile away on Bush River Road last year contributed to the decision.

S&K Menswear announced in May that it would close all its stores because of the poor economy.

Dutch Square Center had a small spate of closings last year when some national retailers filed for bankruptcy, said general manager Liz Krejci. But so far this year, they have not had any closings and anticipate several store openings by the end of the year. She declined to talk specifics.

Belk’s at Dutch Square closed its third floor earlier this year and reduced its inventory. Company officials then said sales have been down chainwide but would not discuss store-specific sales.

Anderson, the market researcher, said the area around Dutch Square is unique because it has so many small centers owned and managed separately.

“They’re all responding to (the down economy) differently,” he said. “On the whole ... it’s pretty stable.”

• Shop shorts

• Paul D. Sloan Interiors has moved about a block from its old location to 1012 Gervais St. The new store is more visible and gives the company an open, one-story space with its own parking lot, said designer Jackie Adams. The furniture, accessories and art store made the move at the end of July.

• AT&T recently opened a new retail store at 5540 Sunset Blvd. in Lexington. The 3,500-square-foot store in front of Wal-Mart is managed by Tanya McLendon.

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