Gurnee Mills to Get Overhaul

The Mills Corp. (Arlington, Va.) has announced a $10 million makeover for Gurnee Mills, the Chicago-area shopping giant that was the first in its stable.

Next spring, the mall will open a 200,000-square-foot Sears Grand, one of five pilot stores that Sears, Roebuck and Co. (Hoffman Estates, Ill.) plans to test around the nation, to compete with big-box retailers. It will also soon open two new concepts from Abercrombie & Fitch (Columbus, Ohio), an outlet store for children and Hollister Co., for young teens.

Gurnee Mills had been a retail and tourism powerhouse almost from the day it opened for business in 1991, but it has reportedly lost its standing with shoppers. The overhaul comes at a time when Gurnee Mills' occupancy is falling and expenses are rising, according to a report in Crain's Chicago Business. Ann Taylor Loft, Filene's Basement, Macy's Outlet and Spiegel Outlet have all been closed, a reflection, says Crain's, “of the anemic retail environment and time-starved shoppers' affinity for strip centers.”

Gurnee still generates an estimated $330 million a year in sales and ranks among the state's largest tourist attractions, but it is meeting increased competition. Last year, Vernon Hills, Ill., 10 miles away, unseated the village of Gurnee as the largest retail sales generator in their county, as Target, Kohl's, Circuit City and Home Depot's Expo Design Center opened for business.