For local malls, it might be time to think outside the big box.
“Malls are starting to rethink the concept of the traditional anchor,” said Scott Krugman, spokesman for the National Retail Federation. “Malls are going to have to start considering different options. If we’re not seeing it now, we’re going to see it soon.”
Boscov’s department stores at Marley’s Station Mall in Glen Burnie, Owings Mills Mall and White Marsh Mall will close in the coming months, leaving a hole in the malls’ roster of retailers.
But retail experts and economists said the best move might not be replacing Boscov’s with another department store that can’t stay afloat.
“The days of department stores being the anchor might be numbered,” said Richard Clinch, an economist at the University of Baltimore.
General Growth Properties, which owns Owings Mills Mall and White Marsh Mall, said it was too soon to determine what it would do with the space left by Boscov’s, adding that a new department store or a collection of boutique stores could be options.
Even with Boscov’s leaving, there’s no shortage of department stores at the three malls. Marley Station and White Marsh both have J.C.Penney, Macy’s and Sears, and Owings Mills has J.C.Penney and Macy’s.
“It seems like, with [Boscov’s] keeping [its] Frederick, Salisbury and Westminster locations, they’re closing the stores in more urban settings where there’s more competition,” Clinch said.
Boscov’s also found itself catering to consumers who don’t shop at discounters like Wal-Mart and Target, or at higher-end stores like Nordstrom and Saks Fifth Avenue, Clinch said. “It seems like more and more, stores are looking for their niche customer.”
More malls have begun replacing department stores with multipurpose shopping areas that include boutique shops, restaurants and an entertainment component, like a movie theater, similar to The Avenue at White Marsh, said Erin Hershkowitz, spokeswoman for the International Council of Shopping Centers.
“It creates a much different atmosphere and really draws the consumer,” Hershkowitz said.
Just hours after news broke Monday of Boscov’s bankruptcy and local store closings, Baltimore County economic development officials urged General Growth Properties to explore new possibilities. The county has pushed the company for an overhaul of Owings Mills Mall, said David Iannucci, county director of economic development.
“This is a real opportunity finally make a real move to improve the Owings Mills Mall,” he said. “It’s a sad day for Boscov’s but it might be a great opportunity for [General Growth] to renovate the entire complex there.”
