Dick's becoming new anchor at Richland Mall | Business

Read article : Dick's becoming new anchor at Richland Mall | Business

Dick’s Sporting Goods, a powerhouse in the industry, confirmed last week it will open a 45,000-square-foot store in Richland Mall, which some suggest is facing a critical time in its 37-year existence.

The mall has suffered store defections to Central Texas Marketplace, the sprawling shopping complex at Interstate 35, West Loop 340 and Bagby Avenue. And two original anchors, J.C. Penney and Sears, are experiencing chronic financial problems nationally and have made a habit of closing underperforming stores to catch their breath.

No one has publicly suggested J.C. Penney and Sears Holdings are poised to shutter their Waco stores, but observers of the local retailing scene say Richland Mall could use a fresh name to enhance its profile. Opinions are divided on whether Dick’s Sporting Goods fits the bill.

Construction crews have carved a gaping hole in the west side of Richland Mall where Dick’s will occupy space previously filled by Forever 21, nine small shops and the mall entrance between Dillard’s and J.C. Penney. Dick’s will get its own outside entrance, said Stacey Keating, a spokeswoman for CBL Properties, which owns the mall.

The store is scheduled to open in the spring, CBL President and CEO Stephen Lebovitz wrote in a press release announcing the new store.

“Dick’s will complement other recent upgrades, including the remodels of Bath & Body Works and Victoria’s Secret,” Lebovitz wrote.

Dan Shoevlin, a senior vice president for the Dallas office of CBRE, an international real estate firm based in Los Angeles, said he considers Dick’s a quality tenant. He tried to interest the chain in signing a lease on the vacant 52,000-square-foot Gander Mountain building at Interstate 35 and South Valley Mills Drive, “but they were too far along with Richland.”

Shoevlin said he was somewhat surprised Dick’s chose mall space over a free-standing location. But he said Dick’s does well in Stonebriar Center, a mall in the Dallas suburb of Frisco he is familiar with.

“I’m not sure that was the best decision on the part of Dick’s, but I don’t handle their real estate. If anything, it is a boost for the mall, will create activity for a mall that needs more activity,” Shoevlin said. “It’s no secret that malls in tertiary markets such as Waco are struggling, as are anchor tenants such as Penney’s and Sears, which are on the watch list for closings.

“Dick’s wanted to test the waters in Waco, and if it turns out to be a good market for them, fine, but if the mall eventually fails, they will pull out. I’m sure they have made provisions for that.”

The financial setbacks of J.C. Penney and Sears have been well chronicled, and though Richland Mall still has its fans, shopping malls in general have fallen on rough times in recent years, said Bland Cromwell, a longtime commercial and industrial sales specialist with Coldwell Banker Jim Stewart Realtors.

“I’m not saying this is a bad move, and I don’t want to be negative, but I have to admit I was blown away by the decision to place Dick’s in Richland Mall,” Cromwell said.

“Dozens of malls have closed in the last 10 years, and many more are at risk of shutting down as retailers like Macy’s, J.C. Penney and Sears — also known as anchor stores — shutter hundreds of stores to staunch the bleeding from falling sales,” the article states.

Online buying and changing shopping habits are driving the demise, according to the story, which cites studies that show Americans are more apt to spend money on technology and experiences like vacations than on clothing. When they do purchase apparel, they order from Amazon or visit discount stores.

But Chris Brathwaite, a spokesman for Sears Holdings, said in an email response to questions that “Sears has weathered a number of storms over the years (World Wars, the Great Depression and other dynamic changes in retailing) and we remain a proud business with a large number of hard-working associates all over the country working toward the success of our company and fighting like hell for Sears’ future.

“We have made significant progress in our transformation and believe we are now beginning to turn the corner on the path toward profitability. While the retail environment is as difficult as it has ever been, it is important to remember that Sears has been evolving to meet the needs of shoppers for more than a century.”

Brathwaite said Sears does not break out financial reports on individual locations, “but I can tell you that the Waco store is a good store for us, and we’re happy to be an important part of the Waco community.”

Dick’s, which operates more than 600 stores nationwide, did not return phone calls for comment on the decision to enter Richland Mall.

Keating, the CBL Properties spokeswoman, said Richland Mall attracts about 7 million visitors annually and “is performing well.”

“While sales across our portfolio have been down the first half of the year, we have seen an uptick during the back-to-school shopping season and believe that the upward trend will continue throughout the holiday season,” she said in an email response. “Leasing at Richland Mall has been strong, and late last year we celebrated the opening of H&M. In addition to the investments that we’re making in the property, our retailers are also investing in their stores. Earlier this year, Victoria’s Secret remodeled and added their PINK concept. Bath & Body Works also renovated and added their White Barn Candle concept.

“There are no plans for either Sears or J.C. Penney to close at Richland Mall. We closely monitor the performance of our properties’ anchor stores and are pro-active in discussions with these retailers in order to identify potential opportunities.”

CBL has 45 Sears, 52 J.C. Penney and 28 Dick’s locations in its portfolio.

Sporting and outdoors stores in the Waco market include Cabela’s, which operates at Central Texas Marketplace, and Academy Sports & Outdoors on Valley Mills Drive. Champ Sports and Hibbett Sports have locations in Richland Mall.

Cromwell said those ranks could grow beyond the addition of Dick’s. He is pursuing tenants for a 250-acre lifestyle development across Interstate 35 from the marketplace. The Dallas-based Stainback Organization is spearheading the effort.

“I can assure you that a high-end sporting goods store is among the prospects they are considering,” Cromwell said.

The company is also looking to attract a movie theater, restaurants and upscale retailers not currently in Waco, he said.