Pen Centre dealing with loss
Management at St. Catharines’ largest shopping centre is contemplating a big void with the demise of Sears.
The former Sears department store at the Pen Centre may end up being divided into smaller units as the mall considers what to do with the space.
The store, which had been an anchor since 1966, closed on Jan. 14 after the retailer liquidated its locations across the country.
“We’re exploring multiple options at this point but nothing has been finalized,” said John Bragagnolo, manager of the Pen Centre.
Bragagnolo said the plan would most likely involve dividing the space up into multiple units. That’s been done in other malls that have large department store spaces to fill.
“Malls are like big Lego buildings. At the end of the day we just move walls and do what needs to be done to accommodate, so it’s not unusual for sure in redevelopments,” he said.
Part of the consideration for smaller stores is the fact there aren’t many retailers that require such large spaces. The Sears store had three levels, including a basement that housed children’s wear, luggage, travel and catalogue departments.
“It’s a changing retail climate and the big department stores of years gone by are slowly diminishing from the retail landscape,” Bragagnolo said. “That would be the reason for sure.”
Sears at the Pen Centre opened as Simpson-Sears in 1966 at a time when the mall underwent a massive expansion. People were pressed up against the glass before the store’s doors opened for the first time.
The national chain faced financial troubles in recent years. In October, Sears Canada received court approval to liquidate its remaining stores after reporting it couldn’t find a viable buyer for the company.
The move put 12,000 employees across the country out of work.
At the time of the announced closures, the St. Catharines store had 122 employees, 21 of whom were full-time and 101 part-time. It was the last Sears store in Niagara, as the Welland Seaway Mall Sears store closed in 2015.
Bragagnolo said the department store space at the Pen is still in Sears’ hands for the time being, even though it has closed to the public. Under its agreement with the mall, Sears must return the space back completely empty of any merchandise or fixtures in a “broomswept condition.” That will likely happen in February.
It’s too soon to speculate whether current Pen Centre stores will move into the space or if it will be solely new tenants.
“At this point no decisions have been made, but we’re definitely not limiting ourselves,” Bragagnolo said, adding everything will be considered. Bragagnolo said Niagara has always been a strong attraction for retailers, and many who want to expand into the region have a desire to come to the Pen Centre.
“We’re fortunate the Pen Centre is the premier shopping destination to Niagara so as a result we get a lot of those marquee tenants,” he said. “If they are coming into the Niagara region, chances are they’re going to come here at the Pen.”
The impending transformation of the Sears space isn’t the only change coming to the mall.
The Pen Centre currently has construction underway in the northeast parking lot.
Bragagnolo said some sanitary and storm lines are being moved in advance of potential redevelopment of the Target store.
He said he couldn’t get into details because the deal isn’t finalized. But The Standard reported in October that Walmart Canada submitted a building application to the city with a plan to expand the Target store footprint by 50 per cent.
The company wants to build south into the current mall and east into the parking lot.
Walmart announced in May 2015 that it had purchased the Target site for a fourth St. Catharines store but has not moved in yet.