State Street changes catch up to Carson's
August 27, 2006
BY SANDRA GUY Business Reporter
The writing was on the wall for Carson Pirie Scott & Co.'s departure from its landmark State Street home, much as the last decade's news has been filled with predictions of department stores' demise.
Carson's will depart by March, and the building's landlord predicts a rush of new retailers, restaurants, entertainment and perhaps even a grocery store to fill one-third of the space that Carson's occupied.
The new retailers could even be set up and operating by holiday 2007, even though the Carson's building's owner, Joseph Freed and Associates, plans to tear down interior walls to better market the open space, said Paul Fitzpatrick, managing director at Freed.
That shrinking feeling
Keen observers will note two dovetailing events: Carson's was being edged out inch by inch by rumors that it would shrink in size in the 1 S. State building. At the same time, State Street has come alive with the wildly popular Millennium Park, as well as college students and shops designed to please them (Urban Outfitters, Forever 21, H&M). The dark and foreboding Wabash Avenue is due for a $20 million face-lift this spring, complete with multi-colored lighting of the L tracks.
Bit by bit, State Street cheerleaders have been hinting that Carson's is in the past.
On June 21, 2005, the Sun-Times reported that the Carson's building could keep a scaled-down Carson's store and open up space for specialty boutiques, or it could house a new retailer altogether, even a big-box retailer such as Target.
After all, Freed, the building's owner, has built a reputation as a developer of mixed-use projects such as the Arlington Town Square with Ann Taylor Lofts, Jos. A. Bank Clothiers, California Pizza Kitchen and a six-screen movie theater.
On Sept. 2, 2005, the Sun-Times reported plans were being made to reduce Carson's selling space at 1 S. State and to lease the newly opened space at much greater prices to other retailers.
Not your father's State St.
To get the best rent for the now wide-open Carson's space, Freed will market the Carson's building as two separate entities -- one on State Street and the other on Wabash Avenue. It will also close to pedestrians the crossway that linked one section of Carson's store to the other.
The only department stores remaining on State Street are in the midst of their own reinventions.
Sears, now owned by a billionaire hedge-fund guru, is installing a first-floor shop in its store at 2 N. State, showcasing its preppy Lands' End apparel, including a new Lands' End collection of lacy lingerie.
And the venerable Marshall Field's will disappear Sept. 9, replaced by Macy's, complete with shopping carts, iPod vending machines, upgraded fitting rooms and "runways" of mannequins displaying a variety of ways to wear the outfits that are on the racks.
The shoppers will decide
It's another reflection that shoppers, despite their fondest memories, are putting their money into Wal-Mart, Target, Kohl's, Best Buy and, on the other extreme, Neiman Marcus, Nordstrom and Gucci.
In the best of all worlds, middle-income Americans will demand with their pocketbooks middle American department stores, even in their reincarnations.
152-year-old has weathered bankruptcy, acquisitions
Carson Pirie Scott & Co. is a chain of about 30 traditional department stores that have been in business for over 150 years, appealing to moderate-to-upscale shoppers.
The chain started in 1854 when Irish immigrant Samuel Carson opened a dry goods store in Amboy, Ill., and later attracted partners Pirie and Scott. In 1989, Carson Pirie Scott & Co. was acquired by P.A. Bergner & Co., which filed for Chapter 11 bankruptcy in 1991.
Reorganized and emerging from bankruptcy in 1993, Bergner changed its name to Carson Pirie Scott & Co. In 1998, Carson's was acquired by Proffitt's Inc., which changed its name to Saks Inc. to reflect the acquisition of Saks Fifth Avenue, and moved Carson's headquarters to Milwaukee.
Late last year, Saks put everything except the Saks stores on the block, and BonTon stores bought Carson's for $1.1 billion.
BY SANDRA GUY Business Reporter
The writing was on the wall for Carson Pirie Scott & Co.'s departure from its landmark State Street home, much as the last decade's news has been filled with predictions of department stores' demise.
Carson's will depart by March, and the building's landlord predicts a rush of new retailers, restaurants, entertainment and perhaps even a grocery store to fill one-third of the space that Carson's occupied.
The new retailers could even be set up and operating by holiday 2007, even though the Carson's building's owner, Joseph Freed and Associates, plans to tear down interior walls to better market the open space, said Paul Fitzpatrick, managing director at Freed.
That shrinking feeling
Keen observers will note two dovetailing events: Carson's was being edged out inch by inch by rumors that it would shrink in size in the 1 S. State building. At the same time, State Street has come alive with the wildly popular Millennium Park, as well as college students and shops designed to please them (Urban Outfitters, Forever 21, H&M). The dark and foreboding Wabash Avenue is due for a $20 million face-lift this spring, complete with multi-colored lighting of the L tracks.
Bit by bit, State Street cheerleaders have been hinting that Carson's is in the past.
On June 21, 2005, the Sun-Times reported that the Carson's building could keep a scaled-down Carson's store and open up space for specialty boutiques, or it could house a new retailer altogether, even a big-box retailer such as Target.
After all, Freed, the building's owner, has built a reputation as a developer of mixed-use projects such as the Arlington Town Square with Ann Taylor Lofts, Jos. A. Bank Clothiers, California Pizza Kitchen and a six-screen movie theater.
On Sept. 2, 2005, the Sun-Times reported plans were being made to reduce Carson's selling space at 1 S. State and to lease the newly opened space at much greater prices to other retailers.
Not your father's State St.
To get the best rent for the now wide-open Carson's space, Freed will market the Carson's building as two separate entities -- one on State Street and the other on Wabash Avenue. It will also close to pedestrians the crossway that linked one section of Carson's store to the other.
The only department stores remaining on State Street are in the midst of their own reinventions.
Sears, now owned by a billionaire hedge-fund guru, is installing a first-floor shop in its store at 2 N. State, showcasing its preppy Lands' End apparel, including a new Lands' End collection of lacy lingerie.
And the venerable Marshall Field's will disappear Sept. 9, replaced by Macy's, complete with shopping carts, iPod vending machines, upgraded fitting rooms and "runways" of mannequins displaying a variety of ways to wear the outfits that are on the racks.
The shoppers will decide
It's another reflection that shoppers, despite their fondest memories, are putting their money into Wal-Mart, Target, Kohl's, Best Buy and, on the other extreme, Neiman Marcus, Nordstrom and Gucci.
In the best of all worlds, middle-income Americans will demand with their pocketbooks middle American department stores, even in their reincarnations.
152-year-old has weathered bankruptcy, acquisitions
Carson Pirie Scott & Co. is a chain of about 30 traditional department stores that have been in business for over 150 years, appealing to moderate-to-upscale shoppers.
The chain started in 1854 when Irish immigrant Samuel Carson opened a dry goods store in Amboy, Ill., and later attracted partners Pirie and Scott. In 1989, Carson Pirie Scott & Co. was acquired by P.A. Bergner & Co., which filed for Chapter 11 bankruptcy in 1991.
Reorganized and emerging from bankruptcy in 1993, Bergner changed its name to Carson Pirie Scott & Co. In 1998, Carson's was acquired by Proffitt's Inc., which changed its name to Saks Inc. to reflect the acquisition of Saks Fifth Avenue, and moved Carson's headquarters to Milwaukee.
Late last year, Saks put everything except the Saks stores on the block, and BonTon stores bought Carson's for $1.1 billion.
posted by Anonmous at 10:22 AM
0 Comments:
Post a Comment
<< Home