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Four New Stores To Help Fill Crystal Mall's Vacancies
Wednesday, August 05, 2009 11:15 AM


(Source: The Day)trackingBy Patricia Daddona, The Day, New London, Conn.

Aug. 5--WATERFORD -- Four new retail stores are coming to the Crystal Mall, offsetting more than a dozen vacant retail spaces that dot the retail landscape there.

ReNEW, a home improvement contractor, will open on Aug. 15, a mall manager said. Spirit Halloween and Day By Day Calendar will both open in late August. Ez-Phone, a cell phone service provider, will open on Sept. 1. In addition, the LongHorn Steakhouse just opened last week in the parking lot just outside the mall.

The mall has about 130 outlets, plus major department anchor stores that include Sears, Macy's, J.C. Penney, the Christmas Tree Shop and Bed, Bath and Beyond. A walkthrough Tuesday revealed 14 storefronts closed to business, either with curtains draped out front or benches and potted plants in the doorways.

"We are optimistic for the future and are actively building toward it," the mall owner, Indianapolis-based Simon Property Group Inc., said Tuesday in a statement.

Workers at kiosks and carts in the mall corridor said traffic has picked up somewhat, particularly on the weekends.

"It's not too bad," said Tara Swan, a retail sales associate with one of two T-Mobile kiosks. "It was off to a slow start (a month ago) but we're picking up business. We're happy."

The stagnant occupancy rate is actually better than it was last November, when there were 15 vacant storefronts.

In a second-quarter earnings report Webcast Tuesday, David Simon, the parent company's chairman and chief executive officer, acknowledged that occupancy in its regional malls and other outlets has been affected by the "weak" retail environment and closings by retailers who filed bankruptcies this year and last.

Simon's regional mall occupancy as of June 30 was flat, or down less than 1 percent from a year ago, to 90.9 percent. Sales per square foot were down from $494 to $442 over the same period. Average rent per square foot was up, however, from $38.81 to $40.29.

For the six months ending June 30, the company reported net income at just over $132 million, well below the $243 million reported for the same period a year ago. The stock closed Tuesday at $61, up 9 cents.

"While the economic and retail environments remain difficult," Simon said, "we believe we have maintained our industry leadership position due to our high quality diverse portfolio and our willingness and ability to access capital."

Ritz Camera & Image of Beltsville, Md., one of the mall stores that closed recently, had been in bankruptcy and has just emerged from it, said Alex Goldman, a Ritz media director.

"If we had to close a store, it was because the landlord was not willing to help with some of the overhead costs," said Goldman.

Simon said the corporation doesn't comment on lease negotiations.

Ritz has split into two corporations. Ritz Camera Centers and www.ritzcamera.comhandle equipment sales, while Ritz Camera & Image and www.ritzpix.comhandle photo developing and other services. Of its 298 remaining bricks-and-mortar stores, those in Connecticut include one in Greenwich, one in Southbury and two in Danbury.

Local customers can still do business with Ritz by calling 301-419-0000 or visiting its Web sites, Goldman said.

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Copyright (c) 2009, The Day, New London, Conn.

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