After yet another retailer announced that they would leave Chicago’s Magnificent Mile, officials and shoppers are left to ponder what it all means as the busy holiday season approaches.
Crain’s Chicago Business first reported that Banana Republic was planning to close its doors for good this week. The clothing store joins other retailers like Macy’s, which formerly occupied space at Water Tower Place, and Uniqlo, which used to reside on the opposite corner of Pearson.
The Gap flagship store also closed recently, and all the closures mean that the occupancy rate has continued to dip.
Ald. Brian Hopkins, who represents Chicago’s second ward, says that the news didn’t take him by surprise because the retailer’s lease was up.
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“We weren’t really surprised,” he said. “Their lease came up and they said ‘we’re not gonna renew. We’re out of here.’”
Hopkins says that he’s disappointed in the departure of Banana Republic, but says he hopes that the Magnificent Mile can continue to attract interest from other companies.
“We’re at about 29% vacancy right now,” he said. “We’ve been staying under 30%, but this announcement may be what puts us over, and there’s a psychological benchmark there. It’s a blow to the economy, a blow to Michigan Avenue, but it’s a very desirable location. I have to be optimistic.”
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Shoppers shared Hopkins’ sentiments.
“It’s kinda disappointing to see these things (happen),” Kipp Howe said.
“It feels like the next stage of the pandemic. Online shopping (is big), so these flagship stores are disappearing because no one is going out,” Natalia Kennedy added.
Hopkins also cited retail theft as a challenge that the shopping area needs to overcome, with memories still fresh of widespread looting along the Magnificent Mile during the summer of 2020.
While city officials and police have repeatedly pledged to dedicate more resources to addressing the issue of crime, Hopkins says that concerns are still very real.
“Crime is a very big factor here. Retailers don’t like to talk, and they’ll never admit to closing retail because they can’t keep inventory from being stolen,” he said. “We know it’s a problem, and retail theft rates have increased, and the city isn’t doing enough to combat it.”
With the holiday season and the Mag Mile Lights Festival upcoming, other organizations are hoping to pitch in as well, with street ambassadors out in force on Tuesday, something that shoppers noticed.
“I think the city is finally feeling back to normal,” Dawn Toroker said. “I feel like we’re giving people lots of reasons to come downtown.”
