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Real Estate - Commercial

H&M Set To Open In February As Other Retailers Close

By Cece Nunn, posted Jan 12, 2017
International clothing retailer H&M is scheduled to hold a grand opening celebration Feb. 9 at its Mayfaire Town Center store. (Photo by Cece Nunn)
Amidst announcements about store closings and predictions for more this year, some retailers continue to expand.

H&M, an international clothing store that sells products for men, women and children, is expected to open in a new, two-story, 24,000-square-foot space at Mayfaire Town Center on Feb. 9, according to a Facebook announcement and an email from an H&M spokesman Thursday.

The grand opening celebration for H&M, 833 Town Center Drive, is scheduled to start at noon, and the first 100 shoppers (ages 15 or older) in line will "receive an all-access fashion pass with a mystery amount of store credit up to $300," the announcement says.

Shoppers can also bring in old garments to be recycled before the store opens at noon for 15 percent off their next purchase and the chance to win an H&M gift card valued between $50 and $250.

Retailer Palmetto Moon opened in November in another new building across the street from the H&M location at Mayfaire. The stores are part of the center's latest retail phase, made up of 90,000 square feet.

But while Mayfaire Town Center is welcoming new stores, some big-name shops have closed or are in the midst of closing in the Port City and across the U.S. On Thursday afternoon, "Store Closing" and "Everything Must Go" signs decorated the facade of the Kmart at 815 S. College Road. Kmart owner Sears Holdings announced Jan. 4 the closing of 78 Kmart stores, including Wilmington's, and 26 Sears locations.  

"The decision to close stores is a difficult but necessary step as we take actions to strengthen the Company’s operations and fund its transformation. Many of these stores have struggled with their financial performance for years and we have kept them open to maintain local jobs and in the hopes that they would turn around. But in order to meet our objective of returning to profitability, we have to make tough decisions and will continue to do so, which will give our better performing stores a chance at success," the announcement said.

Change is a constant in retail, explained Tracy Meyer, professor of marketing at the University of North Carolina Wilmington's Cameron School of Business.

"It’s like the cycle of life," Meyer said. "These concepts are great when they’re originally conceived, and then companies get big and they lose their flexibility to change. They get set in their ways and they get left behind. It’s really that simple."

The Limited, a women's clothing retailer founded in 1963, began closing all of its 250 stores this month, laying off thousands of workers. A discount version, The Backroom at The Limited, was closed and empty at Independence Mall, 3500 Oleander Drive, this week. But the Aeropostale Factory Store at the mall, which had sported store closing signs in September, was back in business.

An announcement from Aeropostale this week said the company, which sells clothing and accessories aimed at 16- to 22-year-old shoppers, is reopening 500 stores after its $243 million purchase in September by Authentic Brand Group, Simon Property Group and General Growth Properties.

This year, experts predict "more disruption ahead" as retailers try to figure out the changing behavior of their customers, according to a recent Forbes article.

When it comes to change for older companies that are trying to stay relevant, Meyer said, "It can’t be incremental. It’s gotta be something big and bold and different."

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