The Montgomery Towne Center on East Boulevard is dotted with empty storefronts. Barnes & Noble, one of the anchors of the center, will close in June.
April 23, 2009
Barnes & Noble to close
http://www.montgomeryadvertiser.com/article/20090423/BUSINESS/904230337&referrer=FRONTPAGECAROUSEL
By Cosby Woodruff
Barnes & Noble will close its Montgomery store at the end of June, the national bookseller confirmed to the Montgomery Advertiser on Wednesday.
The store is in the Montgomery Towne Center shopping center at the intersection of East Boulevard and Troy Highway. The center has been declining for years, and a company spokesman said that is one of the main reasons it decided to leave.
"The Montgomery Towne Center has had numerous retailers close over the last year or two, and no new retailers have filled those spaces," David Deason, vice president of development, said in an e-mail statement.
"The performance of the store has deteriorated to the level that it no longer makes sense to continue to operate," he said.
Stores that once called the center home include Old Navy, Office Depot and Circuit City. An empty Italian restaurant is in front of the main building, and an abandoned theater anchors one end of the center.
Kristy Reynolds, a professor of marketing and management at the University of Alabama, said the formula that led to Barnes & Noble's decision is common throughout the United States.
"It is absolutely critical," she said of a retail business wanting to be near other successful stores.
"Part of the draw of a mall is the effect of all stores that are out there," she said.
Once a shopping center loses one or two major retailers and can't replace them, other stores suffer from lost sales. Before the recession, retailers could overlook that, hoping sales would eventually rebound.
The location of a shopping center also can impact stores, she said. If the shopping district is in an undesirable part of town, it is difficult to recruit new stores.
"The location itself can hurt if it is dated," she said.
Now, many companies are looking for ways to cut expenses, and closing under-performing stores is becoming common.
In January, Barnes & Noble announced it was eliminating more than 100 corporate jobs in a cost-cutting move.
Reynolds said closing locations was to be expected.
"Companies are really looking closely at every location," she said. Stores with low or declining sales usually go out of business.
Barnes & Noble will close its Montgomery store June 30. The company did not say how many workers would be affected or if it will consider opening another store in the market.
One other chain bookseller has operations in the market.
Books-A-Million has three locations in central Alabama. It has stores on East Boulevard and at EastChase in Montgomery and one in Prattville.