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Despite the overall increase in department store shopping, 2006 has been a disappointing year for such shops in the city.
From Macy’s takeover of Marshall Fields (and the resulting low sales) to the closing of Carson’s on State Street, the department stores where many of us grew up shopping have been having a tough time with Chicago buyers.
While the plight of Macy’s/Marshall Fields and Carson’s is well-known, two other Magnificent Mile mainstays are struggling, too. In October, NRDC Equity Partners LLC announced they would be closing the doors of Lord & Taylor at Water Tower Place, following the real estate company’s purchase of the 48-store chain from Federated (yeah, that Federated). Yesterday we learned the impact that the closing would have on the area, with 212 jobs slated to go beginning March 16.
At the same time, Crain’s reports that the too-rich-for-our-blood department store Neiman Marcus may have become its landlord’s worst nightmare. Aetna Insurance has filed a lawsuit against the store, located at 737 N. Michigan, for an alleged failure to pay $150,000 to $450,000 in rent per year over a unspecified number of years. We’ve lived with some less than stellar roommates who’ve failed to pay $200, or even $500 of the rent in a given month, but potentially almost half a million dollars? Per year? For any number of years? If the allegations are true (and Neiman's claims they're not), their landlord sounds like the most lenient one that ever lived!
While we do find ourselves feeling little pangs of sympathy for the department stores we knew and loved, most of these emotions are just nostalgia. We don’t plan to step into a department store for our holiday shopping, instead focusing on some specialty retailers, and, for better or for worse, Target.
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And just think this is all possible with a 1% hike in sales tax last year. Nearly 1 out 10 dollars you spend in Chicago, goes to Chicago. Big Corporations really take notice that they are being gouged by local governments. They are going to start wondering why some other department store in the suburbs are undercutting their prices and why they need a downtown location. Economics 101, mess with the market and the market will mess with you.
that's what makes all the silliness of people saying 'oh, woe are we, for field's is no more,' when they fail to address the matter of more than 200 people at L&T losing their jobs. at least fields/macys is still there and giving people work. People get laid off and businesses move out of town all the time, but for some reason a lot, too many, people would rather direct their energies at crying and moaning over a store changing its nameplate.
The rumor is that American Girl wants to move around the corner to take over a big chunk of the L&T space.
And just think this is all possible with a 1% hike in sales tax last year. Nearly 1 out 10 dollars you spend in Chicago, goes to Chicago.
How do you figure? A 6 1/2% state sales tax is built into that figure (which is actually 9%; in many of the adjacent suburbs, the sales tax is 9% as well)...
200 people plus all the other jobs that go with the store employees. Tradesman, contractors, delivery guys, tons of secondary jobs will be lost.
Mikey if you love paying taxes why don't you give more to the state and the city. They will sure enjoy it. We are paying more taxes now in the city then every before. With property tax and sales tax going up, and job loss like this one, it just is making chicago a very unaffordable place to live (and it hits the poor the hardest). People can blame business and condo owners for unaffordablity, but really it's the government that drives business out with their stupid tax increases. And what the government is doing with all this money, they are giving them big pay raises, hiring their friends and family, and writing blank checks to their friends sham business. The problem with our government is that you are too silly to realize that they are playing with your paycheck.
James, Federated also cut jobs at the new Macy's. Admittedly not as many, but I'm sure for those that did lose their job, 33 jobs are just as important as 200.
olivia, you're right. there are no minor or small layoffs. i certainly don't mean to gloss over the lost jobs at macy's either -- i've been laid off three times in my short career myself, so i certainly am familiar with the seriousness of even one person losing her or his job.
This really does not surprise me.
I've done most of my Christmas shopping on-line this year.
Sign of the times, folks!
Egads, I wouldn't be caught dead in a department store. Williams-Sonoma, though - now there's a store. Maybe while I'm there this weekend (I've had my eye on this new cookware set from Le Creuset that's just to *die* for... and only $900!), I can ask for a few extra bags - one to wear over my head, and one to hide my packages in when I have to shop at Macys.
The problem with our government is that you are too silly to realize that they are playing with your paycheck.
Thanks for clearing that up, jackass. I thought the problem was that you were skewing the facts to support your flimsy arguments...
Nothing shows you have an intelligent counter-argument like using profanity. During in-person arguments, do you repeat the same thing as your opponent in a stupid voice?