A number of the 100 department stores earmarked to be closed by Sears Holdings will be converted into dining and recreation destinations by shopping mall operator Simon Property Group, the retail landlord announced Friday.
"A combination of innovative retail, restaurant, and entertainment concepts are in play for each center,” Michael McCarty, CEO of the company’s Simon Malls operation, said in a statement. “Mixed-use elements such as hotel, residential, office, and fitness are also being incorporated.”
Simon did not say how many of the Kmarts and Sears slated to be closed are currently located on one of its properties. Nor did it reveal what brands or types of restaurants might go into the spaces.
A wide array of restaurants currently operate within Simon-operated malls. A single shopping center in the suburbs of Philadelphia, for instance, is host to Bonefish Grill, California Pizza Kitchen, Cantina Laredo, Corner Bakery, Fox & Hound, Grand Lux Cafe, Legal Sea Foods, Maggiano’s, Morton’s, Outback Steakhouse, Seasons 52, Shake Shack, The Cheesecake Factory and True Food Kitchen.
Simon operates more than 200 malls throughout the United States.
Sears Holdings alerted investors on Thursday that it intends to close 100 unprofitable Kmart and Sears stores, 72 of them in the near future.
The staffs of 63 stores have already been notified that their branches will close in early September.
Simon’s plan is another example of restaurant-related businesses trying to capitalize on the demise of brick-and-mortar retailers. Last month, the food and games chain Main Event announced plans to recruit staffers of Toys R Us and Babies R Us, whose 735 stores are closing as those brands go out of business.
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