J.C. Penney (Plano, Texas), which removed itself from one of the anchor positions at Atlanta's Perimeter Mall nearly a year ago, is reportedly talking to Dillard's (Little Rock, Ark.) about taking over the still-vacant space.
Michael Bryant, a vp with The Rouse Co. (Columbia, Md.), owner of Perimeter Mall, said Dillard's is in negotiations with J.C. Penney about its empty department store space. “Dillard's is one of [the companies under discussion],” Bryant said, referring all other questions to Penney's. “Beyond that, I couldn't say. We would like to see the store activated.”
An earlier deal Penney's had with Bloomingdale's fell through after that chain backed off negotiations. Bloomingdale's, a New York-based division of Federated Department Stores (Cincinnati), has said it still plans to enter metro Atlanta, though nothing has been announced.
While J.C. Penney said it doesn't discuss deals until they're completed, Dillard's officials did not deny that a deal is in the works. “Perimeter is a great mall,” said Wes Cherry, Dillard's vp of real estate. “But I wouldn't comment on any pending deals, if there are any.”
J.C. Penney bailed out of the 31-year-old mall, on Atlanta's northern perimeter, last summer because of lagging sales. Analysts had said Penney's was misplaced in Perimeter Mall, which caters to higher-income shoppers with its other anchors: Nordstrom, Rich's and Macy's.
In the last two years, Rouse has completed a $20 million wing, with new retailers and restaurants. The mall now has more than 1.5 million square feet.
In 2000, before the expansion, Perimeter reported sales of $375 per square foot. Bryant said Penney's closing hasn't affected Perimeter's sales, though he didn't release more-recent sales figures.
Dillard's already has Atlanta-area stores at Mall of Georgia, North Point Mall and Arbor Place, but has long been attempting to expand its metro-Atlanta presence even more, especially at Perimeter, where it would be in the company of two Federated-operated stores.