WAUSAU, Wis. (WSAU) — Wausau’s city council members questioned their Economic Development Manager Chris Schock about Wausau Center Mall Tuesday, in light of recent announcements that Aeropostale and Sears will close soon.
Schock says the Sears and Aeropostale announcements do not reflect on the performance of Wausau Center Mall. “These are national trends that are facing both companies. Aeropostale is in Chapter 11 (bankruptcy). The entire company is in reorganization, and Sears has been wallowing for quite some time, so these are not reflections on Wausau Center itself.”
Aeropostale has 117 stores set to close. Those stores were responsible for $17 million in losses in 2015. Wausau Center Mall and the Forest Mall stores in Fond du Lac are the only two Aeropostale stores closing in Wisconsin. Sixty-eight K-mart locations and 11 Sears stores will close this summer, including the Hartford, Wisconsin K-Mart and the Wausau Sears. That leaves Kmart with under 900 stores and Sears less than 700 stores.
Schock says CBL & Associates, which owns most of the mall structure, has been working on their revitalization plans, and they’ve known for some time those two national stores may not make it. He says the Sears store closing can bring new opportunities. “In general, when Sears have departed centers, it has been viewed, in general, as a positive issue if redevelopment can happen within a short to medium timeline.”
He says that’s because malls are ranked in a sales per square foot method, and Sears, “has a great deal of space and fairly abysmal sales.”
Before Sears announced their closing, it was clear that Sears was having difficulty nationally. Schock says CBL & Associates did try to get Sears to share their vision of the future, with limited success. “You know, CBL last year approached Sears and said, ‘What is the M-O at the store, where is it going, and are you interested in selling it?’ as they were trying to put their plan together.”
Several concepts have been discussed for the mall revitalization, from a possible convention center to having restaurants and theatres. Schock says some of these could be possible with Sears leaving. “The Sears vacancy could accelerate that, assuming that Sears is willing to sell the property quickly and for a reasonable price.”
Other future changes could make the mall more attractive to new businesses. Schock says CBL is not looking at splitting the mall and running 3rd street all the way through again, but they are looking at opening up the outside walls of Washington Street, creating double-fronted stores accessible from the mall’s inside and the street. He says they are also working on recruiting new stores, and a major annual event that markets to these stores is happening in about a month in Las Vegas.
The $4.1 million dollar loan approved by the city in February to move Younkers to the former JC Penney’s space and buy out their lease has not yet been signed by CBL & Associates. Schock says CBL is reviewing the detailed and lengthy document package.
