For retailers, it’s the after-Christmas sale that doesn’t seem to stop. But it’s their real estate that is going back onto the market.
HH Gregg was the latest, closing its two Columbia-area stores as the entire electronics retailer shuts down. JC Penney ordered the closure of 138 locations around the US after disappointing holiday numbers, and Macy’s will shut about 100 locations, though it is planning to open a few new stores in what it sees as key sites.
Retail is being reinvented like never before, and it’s clear who the driver is. The two HH Gregg locations are not literally being devoured by the Amazon warehouse in Lexington County, but they might as well be. Amazon is conquering retail like only Walmart before it, and at a faster pace (As of 2015, Amazon is a more valuable company, based on stock price, than Walmart). Amazon intends to keep its steep growth going, too, with its eyes firmly fixed on the grocery and clothing industries.
With that in mind, turn to look at the aspirations for the huge Bull Street project in Columbia.
While we’ve been waiting for some major retail developments to be announced, the appetite for retail expansion has shrunk quite a bit. We’ve heard for a while that major tenants were lined up or close, but it’s hard to be convinced that many anchor retailers are ready to take the plunge on homesteading the undeveloped site in this business environment.
This week we had the first residential development announced, featuring 28 townhomes, with construction set to begin this fall. Home prices in Columbia are strong, especially downtown; these townhomes will be priced from $300,000 to $400,000, according to the Free Times.
Meanwhile, vacant big-box store sites are fairly common, even in sought-after areas, and will become more common soon if retail trends continue.
All this adds up to a needed change in expectations for the Bull Street project. Going forward, this project will thrive best on building successful residential projects and high-end office space and let retail jump in when it gets the strength to do it. Build a great residential neighborhood with some office space that people can walk to for work and see if some retailers find the courage to go in.
It’s hard, I think, to wait on retail in 2017 when much of retail is waiting for the “For Lease” sign to go in the window.