Pruning The Retail Landscape As Stores Come And Go, Will Holiday Customers Follow?

Christmas shoppers with credit cards and gift lists firmly in hand also should arm themselves with a map to keep track of stores this year.

Across the region, from downtown Spokane’s River Park Square to Silver Lake Mall in Coeur d’Alene, dozens of stores have closed, opened or changed location during the past year.

Harvey’s Fine Clothing, for example, moved from NorthTown Mall to the Crescent Court. The Gap closed in River Park Square, but kept its location at NorthTown. Izod opened its first Inland Northwest clothing outlet in Post Falls.

The most obvious changes have occurred in downtown Spokane, which is in the early stages of a major redevelopment plan.

River Park Square emptied its entire west wing during the course of the year to make way for construction in the proposed redevelopment. Across the street, Crescent Court, which opened just before the holidays last year with about 38 percent of its space occupied, now is 100 percent full with a total of 15 stores and a food court.

Outside of downtown, the most visible signs of Christmas past are the two large, empty buildings that Smith’s Home Furnishings used to occupy. The closure of Smith’s could create opportunities for competitors, particularly computer and electronics stores. The Portland-based chain was a major player in the home electronics market, one of the few sectors that retail analysts expect to fare well this year.

Shoppers also will find changes at area malls and power centers. A few of the tenants that have left downtown have found refuge at the malls. And a handful of retailers have fled the malls in search of lower rents.

The decision to move represents a significant risk for retailers.

“When you change location, you’re messing around with a big variable,” said Mary Ann Quarton, a marketing and retail professor at the University of Washington. “It’s very hard on small retailers.”

The holiday sales season, when some stores collect as much as 25 percent of annual sales, will help sort out the winners and losers in Spokane’s new retail landscape.

Quarton said whether stores keep their customers after a location change depends on a variety of factors: how far other store locations are from the original site, how close the competition is and how far stores are from a shopper’s home, for example.

Specialty stores with unique merchandise are more likely to keep their customers after a move, she said.

But this could be a tough Christmas for any retailer to test a new location.

Economists predict a modest holiday shopping season. Even usually optimistic retailers are sounding cautious. For example, Toys R Us, the world’s biggest toy chain, called the retail climate weak last week after reporting a 56 percent drop in third-quarter earnings.

Turnover heaviest downtown

Major property owners downtown are taking a long-term view, looking ahead to future Christmases with a renovated River Park Square, expanded Nordstrom and lots of shoppers.

Those hopes hinge on efforts to get Nordstrom and The Bon to remain downtown.

“I have unabashed enthusiasm for what’s going to happen downtown,” said Tom Barbieri, a developer of the Crescent Court. “We feel really positive about Nordstrom and The Bon.”

But those long-term plans pose some short-term problems this year.

At least a dozen River Park Square stores either closed or found new locations. In the west wing’s skywalk level, posters tell shoppers where to find the stores that once were there.

Though cheerful Christmas scenes have been painted on the closed storefronts, shoppers wander through the west wing staring and shaking their heads.

Sandy Jackson, a 21-year Spokane resident, said she’s “sick” about stores leaving River Park Square. “It’s a shame to see,” she said.

But she said she’ll still shop downtown as long as The Bon and Nordstrom are there.

While downtown developers try to secure long-term commitments from those two key stores, River Park Square tenants are doing what they can to attract customers. Some have increased advertising. Others have sent out direct mail fliers informing customers of new locations.

Two longtime stores, Rings and Things and The Children’s Corner Bookshop, moved from the west wing to the shopping center’s skywalk, near The Bon and Nordstrom.

Two stores opened in River Park Square in late October and early November. Cascade Cellular, an AT&T affiliate, sells cellular phones, and Wolf Creek sells Native American blankets, jewelry and other gift items. Jewelry and cellular phones are on analysts’ short list of products that could be hot sellers, so the new stores presumably could help increase customer traffic in the area.

That’s important to nervous downtown retailers, some of whom fear that customers will go elsewhere in search of the shops that have left.

“It’s an obvious loss when stores like The Gap and Casual Corner are no longer here,” said Susan Durrie, owner of The Children’s Corner Bookshop. But, she added, “We’re still in River Park Square. We’re still downtown. We keep our fingers crossed every day.”

Though he’s happy with his new location, Russ Nobbs, the owner of Rings and Things, said customer traffic isn’t what he expected.

“I think downtown is hurting more than we even thought,” he said. “I’m still here because I really like the sense of downtown. It’s a nicer place to be than some sterile mall.”

Across the street, the Crescent Court shopping complex provides a more hopeful view of downtown’s future.

Some say Crescent Court neutralizes the effect of the closed stores in River Park Square. Enough stores have opened to keep shoppers around, they say.

“In terms of the offerings, it’s probably not less than last year,” said D. Patrick Jones, owner of Harvey’s Fine Clothing. “We think downtown is the future for better specialty stores than the malls.”

Playing off the 100-year history of the Crescent department store, which occupied the building for decades, signs hang in the foyer that say “The tradition continues.” Customers tell merchants shopping there makes them feel nostalgic.

Many merchants are thrilled with the business they’ve done since opening.

“We hear constantly, ‘this is just what Spokane needs,”’ said Katie Schulz, manager of The Moose Lake Company, an outdoorsy store that opened in July.

Still, there is concern among Crescent Court merchants that the stores that have left downtown will drive Christmas shoppers elsewhere.

“I hate to see stores close and leave,” said Michele Dirks, owner of de Rika, a clothing store in the Crescent Court. When Fit and Hollywood, an upscale sports apparel and equipment store, announced Nov. 8 it would close after Christmas, Dirks was especially disappointed because the stores complemented each other.

“If I didn’t have it, they did and if they didn’t have it, I did,” Dirks said.

Malls see turnover, too

At the malls, stores have come and gone, but the balance sheets seem more heavily weighted on the positive side.

At NorthTown, 14 new stores and restaurants have opened since last Christmas season, said Communications Director Michelle Driano. An additional five have expanded or renovated. Only about six stores left.

At Hot Topic, a store that caters to the 16- to 23-year-old MTV generation with its rock ‘n’ roll T-shirts, vinyl clothing and sparkling makeup, manager Janet Williams said results have been better than expected.

“(Hot Topic) brings people to the mall that normally would not come to the mall,” she said. Her customers are the type who also shop at vintage clothing stores, she said.

At the Factory Outlets and Factory Stores in Post Falls, three new stores have opened since last Christmas season. Management officials are unabashedly optimistic.

“We’re probably going to have a banner Christmas shopping season,” said Ed Adamchak, property manager for the Outlets. “We have a solid mix of stores.”

Departures and arrivals are almost equal at Silver Lake Mall in Coeur d’Alene. Three stores closed or moved to other locations. Two others have recently opened.

Though optimistic about the mall’s shopping season, General Manager Dennis Curtis said the Coeur d’Alene retail market is becoming increasingly competitive. One area that’s particularly noticeable is women’s clothing, he said.

“The big-box stores, Target, Shopko, Kmart, are doing a better job at clothing for women, making it tougher to compete for smaller mall stores,” Curtis said.

Despite store openings and closings throughout the region, many shoppers are loyal to their favorite retail area. The personality of downtown attracts certain types of people, as do the malls.

Shopper Sue McClelland, a Spokane resident for 22 years said she grew up in Pittsburgh and watched that city’s downtown disintegrate. She doesn’t want the same thing to happen in Spokane. “I’m real loyal to downtown,” she said.

In contrast, mall shoppers appreciate the convenience of having everything they need at their fingertips under one big roof.

“There’s more variety,” said Pullman resident Kris Nilsson, as she strolled through NorthTown. “They don’t have as much downtown.”

, DataTimes ILLUSTRATION: 3 Photos (2 color)

MEMO: This sidebar appeared with the story: NEW RETAIL LANDSCAPE Here’s a look at changes at some of Spokane and Kootenai counties’ major shopping centers since the 1994 holiday season:

River Park Square New stores: Cascade Cellular: Affiliated with AT&T opened in November. Wolf Creek: Native American blankets, jewelry and other gifts; opened in late October. Stores that have left or moved: The Gap: Closed; still has location at NorthTown Mall. Andrew’s Hallmark: Closed; still has stores at Shadle Center and Northpointe. Casual Corner: Close only Spokane-area retail story, but has an outlet store at Post Falls Factory Outlets. Children’s Corner Bookstore: Moved from West Mall to East Mall Skywalk. Rings and Things: Moved from West Mall to East Mall Skywalk. Wilsons The Leather Experts: Closed, kept NorthTown store. Claire’s Boutique: Closed, still has stores at NorthTown, Silver Lake Mall in Coeur d’Alene and the Factory Outlets in Post Falls under the name L’ssessory. Card Farm: Moved to Crescent Court. Merle Harmon’s Fan Fair: Moved to Crescent Court. Waldenbooks: Closed; still has at NorthTown location. Louie Permelia Limited: Moved to Crescent Court. Homestead Birkenstock: Closed, also located at Flour Mill and NorthTown Mall. Dim Sum Wok: Moved to Crescent Court.

Northpointe Plaza Stores that have left: Smith’s Furniture: Declared bankruptcy and closed. Wines of Washington. Off the Bench: Athletic wear store.

Factory Outlets and Factory Stores New stores: Big Dog Sportswear Izod: Opened in October. Dress Barn Osh Kosh B’gosh Northwest Gift Outlet

Silver Lake Mall New stores: Pro Beauty Supply: Opened in November. Software Etc. Stores that left: Classic Kingdom: Disney merchandise and other memorabilia; two stores closed in Coeur d’Alene. Jean Nicole Plus: Large sizes store for women; parent company declared bankruptcy. Card Farm: Closed; also located at NorthTown and Crescent Court. Pretty in Blue: Changed name to Idaho Gift Company - changed from women’s clothing to gift shop. Hoagieville: Hamburger restaurant.

NorthTown Mall New stores: Gymboree: Children’s clothing. The Body Shop Franklin Quest: Business planners, etc. Hot Topic: Trendy Generation X clothing and accessories. Piercing Pagoda: Jewelry. Pro Image: Professional and college sports label clothing, hats, etc. Swim In Under the Sun (sunglasses) America the Beautiful Dreamer: Furniture. Watch Gallery Gordon’s Jewelers Schlotzsky’s Deli Hi-Tek Nails Cold Stone Creamery: Ice cream parlor. The Bon Marche Women’s World: Plus size women’s clothing. Stores that have left or moved: Harvey’s Fine Clothing: Moved to Crescent Court. The Gosling: Gift store, moved to skywalk level in Washington Mutual Building. The Forum: Sports clothing, closed. Sport Center: Sports clothing, closed. 2 + 2: Fashion jewelry store, closed. JK Gill: Office supplies, closed.

University City Mall Stores that have left: The Depot: Men and women’s clothing, closed. Fashion Crossroads: Women’s clothing, closed. Fashion Direction: Womens’ clothing, closed. Mandell Jewelers: Closed; also located in skywalk level of River Park Square. New stores: The Comic Book Shop Hands-on Hobbie Katze: Women’s dress store. -Alison Boggs