Sears Holdings Corp. has sublet the second floor of its two-story Sears store in the King of Prussia Mall to Dick’s Sporting Goods.
Sears operates the 215,000-square-foot store on a long-term ground lease with Simon Property Group, the Pennsylvania mall’s owner. Sears will maintain exterior entrances on both levels, and Dick’s will have exclusive use of the mall entrance on the second floor, as well as its own exterior entrances.
“The sublease agreement with Dick’s Sporting Goods is a great example of Sears Holdings selectively redeploying its asset base to dramatically improve our retail shopping experience while working to create long-term shareholder value,” said Alan Shaw, vice president of real estate leasing and development for Sears.
David Contis, president of Simon Malls, noted that the addition of Dick’s “will bring more energy and activity to this area of the mall, where customers will find easy access to restaurants and other dining choices.”
With 2.9 million square feet of space and more than 400 merchants as tenants, King of Prussia is purported to have the largest amount of leasable retail space of any mall in the U.S. Anchors include Nordstrom, Macy’s, Neiman Marcus, Bloomingdale’s and Lord & Taylor.
Since 2011, Sears has sublet space in three stores — in Albany, N.Y.; Clearwater, Fla., and Greensboro, N.C. — to Whole Foods, and in two stores —in Costa Mesa, Calif., and Greenville, S.C. — to Forever 21. Bay Club took space in a store in Cupertino, Calif., last year, and Northgate Gonzalez Markets at a Kmart unit in 2011.
In its annual report for 2012, Sears reported $47 million in revenue from subleasing arrangements for the year versus $30 million in 2011 and $52 million in 2010. Prior to the Dick’s sublet, subleasing obligations from tenants for the years 2013 and beyond were listed at $192 million.
The sublet follows Sears’ report last week of a 7.4 percent decline in its same-store sales during November and December and a reduction in its credit rating, to “Caa1” from “B3,” by Moody’s Investors Service.
Sears’ shares Thursday gained 4.6 percent to close at $38.37 in Nasdaq trading.
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews