Macy's at the Bellevue Center is closing its doors after one of the weakest holiday shopping seasons since 1969 — the latest sign that a poor holiday season is taking its toll on stores in Nashville and around the nation.
The chain also is closing 10 other stores around the country out of 859 Macy's outlets.
Macy's spokeswoman Marla Shavin said the Bellevue store would be shuttered in part because of economic uncertainty and because its sales were weak, even though extensive mall renovations are planned by Carlsbad, Calif.-based Foursquare Properties at Bellevue Center later this year.
Metro Councilman Bo Mitchell, who represents part of Bellevue, said Foursquare didn't plan to knock down the Macy's building in its makeover of the mall into a "lifestyle center," so the developer will have to tweak the design or find a new tenant.
Foursquare Properties' President Jeff Viteck said the retailer's decision "does not impact our resolve or ability to move our project forward," and the group is working with other potential anchor tenants.
"It's just another hurdle to get over," Mitchell said. Sears is the only other store that remains open at Bellevue Center.
Deal with Metro uncertainMetro has offered $12 million in tax-increment financing help for the project, but that depends on Foursquare nailing down financing by March 30.
Some analysts question whether Foursquare can meet its original timeline, get financing and open the majority of stores by winter 2010.
"I think it was a viable (project) when they started it in 2007 and 2008. I don't know about now," said Steve Rudd, a partner at Nashville-based Restaurant Retail Properties.
The Macy's closure here comes amid national reports of weaker-than-expected December retail sales, from luxury brands to discount houses.
December same-store sales nationally dropped 1.7 percent, the International Council of Shopping Centers reported.
ICSC Chief Economist Michael Niemira said he expects January's numbers to "be very choppy," too.
Sales at San Francisco-based Gap fell 14 percent in December, and the chain cut its profit forecast for the year.
Goody's — the Tennessee-based family clothing chain — will begin liquidating its remaining 287 stores today.
"I think right now everyone is just trying to wait and see what retailers are going to be left," said affiliate broker William Shell of Grubb & Ellis/Centennial.
Jobs lostSeventy-six employees at the Macy's store in Bellevue will either be transferred to other stores or get a severance package, Shavin said.
Ann Daniels, 62, who visited the store on Thursday, said she was disappointed by news of the closure.
"It's sad to see people losing their jobs and not having the old places to shop," she said.
Even same-store sales at Wal-Mart were less than expected in December. Most analysts had expected more than the 1.7 percent increase it reported, and the sub-par results prompted Wal-Mart to reduce its profit estimates for 2008.
"This news out of Wal-Mart has taken a lot of people by surprise," said Craig Peckham, a strategist at Jefferies & Co.
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