Reinventing retail as era of chains ends

As many national chains retreat from building new stores, projects are stalling or developers are having to re-imagine their plans.

When Latham Circle Mall was torn down last year, an outdoor plaza was proposed that would fit the traditional concept of shopping: national retail chains opening new stores. Walmart, Dick's Sporting Goods and similar stores were among the targeted retailers.

In East Greenbush, another retail plaza on Route 4 that was supposed to center around a Lowe's home improvement store has been abandoned. Another project at routes 4 and 43 in North Greenbush is vacant, the lights and parking lot in place without any buildings.

National retailers are far more likely to close a store these days than to build a new one. In recent months, JC Penney, Kmart, Staples and Radio Shack all have shuttered stores or said they will soon do so.

"It is certainly a challenging time," said Steven Powers, vice president of Nigro Companies. "The brick and mortar stores are being downsized or replaced by Amazon. The retail market will be challenged in terms of new development."

Nigro planned to build Tempel Farms, a 158-acre plaza, in East Greenbush. Announced in 2006, the project remained dormant for years, waiting for the economy to recover.

The developer has abandoned its contract to buy the land, Powers said.

"Tempel Farms is really designed around a Lowe's home improvement store, and Lowe's has pulled back across the country," he said. "I don't see that happening in the near future."

Rather than new construction, Powers said, "The reuse and redevelopment of pre-used retail space will be the focus for us."

Retail is suffering from both online competition and the fact the market is saturated, said Robin Lewis, CEO of The Robin Report, a retail strategy newsletter, and co-author of "The New Rules of Retail."

See the original post:
Reinventing retail as era of chains ends