NEW PHILADELPHIA Elder-Beerman, the last of the four original anchor stores at New Towne Mall in New Philadelphia, is expected to close by the end of June.
"That's what we are assuming, but we don't have an exact date," said Kimberly Green, spokeswoman for Washington Prime Group, the parent company of New Towne Mall.
"We are exploring opportunities with potential new tenants and we will share details in the future," she said.
Bon-Ton Stores Inc., Elder-Beerman’s parent company, announced in April that it would be closing all of its Elder-Beerman stores within the next 10 to 12 weeks.
According to Lou Conforti, CEO and director of Washington Prime Group, "The liquidation of Bon-Ton Stores was expected and we planned for it. We are currently vetting opportunities for the 16 stores within Washington Prime Group’s portfolio."
In recent years, New Towne Mall has seen the loss of two of its original anchors, Sears and J.C. Penney, as consumers turn more to purchasing goods online rather than from traditional brick-and-mortar stores.
Green said officials will Washington Prime Group are not concerned.
"We view it as a retail reinvention and evolution," she said. "We don't see it as the apocalypse."
Malls have seen retail brands come and go over the year. "Consumers are looking for experiences, and a major focus for Washington Prime Group has been to bring in options not currently available at the mall," she said.
Retail research has shown that millennials prefer shopping in stores, but those stores have to be a relevant retailer, Green said.
"We have to make sure the experience is up to par," she said. "Millennials are looking for something new and exciting and different."
Retailers that don't provide that kind of experience are in trouble, she said.
Green said Washington Prime Group is taking steps to address the changing retail world.
"As it relates to traditional department stores, we continue to significantly reduce exposure," she said. "Since 2015, Washington Prime Group has completed, commenced or approved 15 department store repositioning projects, ranging between $5 million and $20 million. These projects bring dynamic new uses to the center and reflect increases in traffic and sales."
Added Conforti, "Tenant-driven redevelopment remains one of our most intriguing value propositions. Washington Prime Group has allocated between $100 million to $125 million for redevelopment projects across our core portfolio in 2018. Current redevelopment includes 34 projects ranging from between $1 million to $60 million with an estimated project yield of approximately 10 percent. We also continue to activate common area space with new initiatives such as local craft beer bars and restaurants, as well as events and activities that are relevant to our demographic constituency."
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