The Cincinnati city manager has proposed that the city spend $6.6 million to renovate its downtown Saks Fifth Avenue store. The vote is currently before the city council.
The facelift would include improved lighting, the integration of designer shops such as Gucci and Chanel and a general architectural overhaul of the store's older design to reflect the retailer's more current art deco motif. The beauty salon would be expanded, along with the handbags, accessories and ladies shoe departments. The cosmetics department would also be remodeled. And, said Saks, there would be new displays fir certain clothing brands that the vendors are demanding. The agreement would also erase $500,00 in debt that Saks owes Cincinnati from a prior agreement.
In 1996, the city provided the retailer with a $2.1 million package to remodel the store. But Cincinnati is concerned that the loss of Saks – following a streak of incidents that have hampered business – would further cripple the city's downtown. In November 2000, Nordstrom rejected a $50 million offering to build a store in Cincinnati. In April, disturbances caused by a policeman's shooting of a young African-American man caused a slowdown in downtown traffic. Plus, Cincinnati has been victimized by events that have troubled all American cities, a stagnant economy made worse by the September 11 terrorist attacks. Earlier this week, Cleveland lost its last downtown anchor when Dillard's closed its store.
Cincinnati is worried that the loss of Saks might lead to a domino effect of retailers pulling out of the area. The downtown Lazarus store's lease is tied to Saks, and if Saks closes or moves Lazarus has the option of closing as well, though not until 2005.
“An anchor of Saks'prestige and draw makes it easier for us to retain tenants downtown,” said a member of the Downtown Cincinnati advocacy group. But a city councilman said, “I get skeptical when we pour money into downtown retail stores.”