Sandy has lost a Linens 'n Things and a Mervyns. Riverton will soon lose a Starbucks.
Little by little, the South Valley is losing retailers amid the state and national downturn.
It's an abrupt change for an area that in the past decade has grown into a substantial retail center, an area of the Wasatch Front that grew in prominence after global furniture giant IKEA decided to build a huge store in Draper.
But as with the rest of the Wasatch Front -- and most of the country, for that matter -- the south valley is being affected as anxious consumers have slammed shut their pocketbooks.
"Clearly we're having an unprecedented down cycle in retail," said John Owens, a retail specialist with Commerce CRG. "I don't know how many store closings we're going to see in Utah this year, but we are going to see more of them."
Even without the store closures, cities already are coping with a decline in retail sales. Draper, for example, said its sales tax revenue in October -- the most recent month available -- was off by 2 percent, compared with October 2007. Experts say cities could see deeper declines in sales tax revenue as the downturn continues.
"Everyone seems to be buying less, but we anticipated that and we've budgeted for it, so I think we'll be OK," said Draper city manager Layne Long.
Draper is not in the same situation as some other cities, which are saddled with a host of struggling retailers such as Circuit City and KB Toys. That's because the city is anchored by IKEA, which is comparatively healthier than a number of other big-box retailers.
But things can change, and quickly, in this downturn. Take hip apparel chain Steve & Barry's, which opened its first store in Utah, in Murray, only a year ago to great fanfare. Company officials talked up the possibility of future locations along the Wasatch Front. Today, the only Utah store has closed, part of a companywide effort designed to help it survive in difficult economic times.
Although some retailers actually are expanding their Utah operations, others, such as Steve & Barry's, are or will exit the state altogether and live on in other states deemed more profitable operating areas.
In other cases, such as with Mervyns and Linens n' Things, retailers are closing all locations everywhere. The Harold's apparel chain, for example, has closed all of its stores in 18 states, including one in the Trolley Square shopping center.
More common than company liquidations, however, are instances in which an established retailer remains in business but pares down its network of outlets. Sears Holding Corp. is liquidating the inventory of its Sears Grand store in American Fork, one of 22 "underperforming" stores nationwide being closed during the first quarter.
Just two years ago, Sears made an investment to convert the outlet, originally a Kmart location, to the more expansive and flashy Sears Grand concept.
Other retailers that are paring down their locations in and out of Utah include Office Depot, which is closing locations in downtown Salt Lake and in Murray, and Starbucks.
Three Starbucks stores -- in Ogden, Syracuse and Riverton -- are set to close early this year, the company has announced, although as recently as a week ago employees said they have not been notified of a closing date.
The spate of closures along the Wasatch Front has pushed retail vacancies higher, so tenants now have the upper hand, and rents are softening.
The good news for the retail sector in Utah is that it may be much less affected than counterparts in other areas of the country, where there is more economic suffering, including job losses and home foreclosures. Utah, although affected by the national downturn, so far remains economically healthier than many other states.
Some retailers, bullish on Utah's strong population growth and comparative strength, are adding locations here. Kohl's plans to open a store in Clinton in March, employing 150 people.
Kohl's also is set to expand in at least one now-vacated Mervyns store in Utah, in the Brickyard Plaza shopping center in Salt Lake City.
Trendy apparel chain Forever 21, which has a small store in The Gateway shopping center, has announced it will expand with a large store in South Towne Center in Sandy in space formerly occupied by Mervyns. Mall spokeswoman Natalie Watson said no opening date has been set.
"Shoppers are excited about the Forever 21 concept" coming to the mall, she said. "It's something different."
Stores opening their first locations in Utah will be harder to come by this year, but there still may be a few. Commerce CRG said grocery chain WinCo Foods, for example, is set to expand with multiple locations.
Compared with other states, Utah is expected to recover its economic health more quickly, which eventually could help stem the tide of store closures and lead once again to retail expansion.
But Utah's economy does have some suffering to do, and more stores will close here. "I think we're going to have a lean year or two, for sure," said John Owens of Commerce CRG.
