In a move that could intensify the already heated battle among
department stores in the metropolitan area, Seattle-based retailer
Nordstrom yesterday said it had signed a letter of intent to build a
store in Bethesda's Montgomery Mall.
Confirming recent trade reports, Jim Nordstrom, cochairman of the
specialty retailer, said a letter of intent had been signed by the
company and the mall owner, May Centers Inc. of St. Louis, for a
180,000- to 220,000-square-foot new store. He said the store is expected
to cost between $25 million to $30 million to build, and "we're talking
a minimum of two years, more like three or four years" before it would
Montgomery Mall, which has more than a million square feet of retail
space, is anchored by Woodward & Lothrop, the Hecht Co., Garfinckels,
and Sears, Roebuck & Co.
Advertisement
Located at Democracy Boulevard and I-270, the mall appeals to
Nordstrom for several reasons: It is easily accessible, the management
wants to update and improve the mall, and it has "good demographics,"
Nordstrom said. He noted that the mall has a strong track record of
attracting customers from affluent Montgomery County.
The proposed store would add to the already strong competition
among local department stores as major national chains, including R.H.
Macy & Co., enter this upscale market.
Nordstrom opened its first East Coast store at Tysons Corner in
March after expanding to 47 stores on the West Coast. Its strong showing
at Tysons has prompted company executives to put greater emphasis on the
Share this articleSharecompany's East Coast expansion.
The company wants to open a minimum of five stores in the
Washington-Baltimore area. In addition to Tysons, the company has chosen
Advertisement
sites for two of those stores -- the Pentagon City mall and Towson, Md.,
north of Baltimore.
Yesterday, Nordstrom said the company also "really likes Annapolis"
and has had some discussions with interested parties there. Industry
sources have identified the most logical site as Annapolis Mall.
By increasing the number of its stores in this area to a certain
"critical mass," the company is able to maximize its profits and
streamline other costs, such as the costs of distribution and
advertising.
Because company officials are aware of the concerns of local
politicians over traffic problems that more construction could bring,
they have been reluctant to discuss specific plans for the store.
Neither executives from Nordstrom nor May Centers would discuss
details of the proposed new store.
Although Nordstrom cautioned that it is premature for the company to
Advertisement
announce an opening date or any plans for the store based on a letter of
intent -- and even warned that the deal may not go through -- one
knowledgeable development source said "department stores do not sign
something that is that heavily negotiated and that detailed unless they
are going to go through with it."
Nordstrom said the company has been negotiating with May Centers,
which is owned by a partnership that includes the parent company of the
Hecht Co., for about a year. The letter of intent was signed "in the
last 90 days," he said.
ncG1vNJzZmivp6x7uK3SoaCnn6Sku7G70q1lnKedZK6zr8eirZ5nkqrAqrrErKpoaWlthXB8mGhqaWeepL%2Blv9OrpqZloKGur7%2BMraZmmqWeuaV50q2mq51dnrtuuc6nq6CnnZq%2FunnMmqOlZ2VmsHmtkXJsZnBgln1ugJhuaWaZaJiwboGWamlqa5Vrg6V%2BlWg%3D