Sears’ Bankruptcy: Tom Londres Weighs In

Sears’ Bankruptcy: Experts weigh in

Chain Store Age round up on the bankruptcy filing of Sears written by Marianne Wilson.

Tom Londres, CEO and Principal, Metro Commercial

“Sears going bankrupt is nothing new. People knew this was inevitable. In fact, retail owners have tried to get these Sears boxes back to preempt a massive wave of store closures hitting at once. Additionally, Sears was usually the first anchor secured in a mall, so they typically are located front and center position in these malls, but weren’t known for an aesthetically-pleasing entry way. Landlords and owners are happy to get these storefronts back and upgrade the facade.”

“With the exception of a very few, I predict that over 90% of these spaces are going to be cut up and repurposed into multi-level retail or mixed-use. The best example is PREIT’s repurposing of the former Macy’s box in its Moorestown Mall in Moorestown, New Jersey. The shuttered Macy’s became a HomeSense, Sierra Trading Post, Five Below, Shoe Dept. Encore, and added two restaurants.”

“For these multi-level Sears boxes, landlords will develop these to have each level offer a different experience: one part retail, one part food/beverage, and one part entertainment, like a movie theater. The few freestanding locations might evolve into an alternate use like a medical clinic. But none of these spaces will be filled by another single-use department store.”

Read the full article here.

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