Macy's to depart Suburban Square

Suburban Square in Ardmore will lose its Macy's store in January, as part of the retailer's strategy to close stores nationwide in order to cater to the growing number of online shoppers, experts said.

The Ardmore center and the location of the Macy's have historical significance. Suburban Square opened in 1928 as one of the first shopping centers in the United States, and likewise had one of the first department-store anchors when Strawbridge & Clothier opened there two years later. Macy's replaced Strawbridge's in 2006.

When Macy's shutters its Main Line department store next year, it will leave 90,000 square feet for another large retailer to anchor the outdoor shopping center.

"Macy's will terminate the lease on its Suburban Square store in Ardmore in 2016," Macy's spokeswoman Elina Kazan said in a statement Wednesday. "We are delighted to have served the Ardmore community over the decades and look forward to continuing to do so at King of Prussia, Springfield Mall, Plymouth Meeting, Center City, and other Macy's locations."

The retailer intends to relocate its 80 Ardmore employees to other stores in the region, Kazan said.

While Kazan declined to comment on the reason for the closing, retail experts say it is part of Macy's corporate strategy to pare some brick-and-mortar stores, while focusing on meeting growing online demand for merchandise with larger warehouses and distribution centers. Many retail chains are going this direction, those experts say.

JPMorgan senior retail analyst Matthew Boss said in a recent analysis that Macy's was focused on reaching the proper balance between online and traditional shopping.

Kimco Realty Corp. of New Hyde Park, N.Y. - the landlord of Suburban Square since 2006 - said potential tenants are already showing keen interest.

"We are actively marketing that space and are very excited about the opportunities to re-anchor Suburban Square moving forward," said Tom Simmons, president of Kimco's mid-Atlantic shopping center region.

"Our plan is to replace it with another [retail] anchor. The interest has been very strong, so we are encouraged by our opportunities."

Simmons said the vacancy rate at the shopping center historically has been less than 5 percent.

Suburban Square has 103 tenants, including 40 retailers and 10 restaurants, occupying its 350,000 square feet. Located in the heart of the Main Line and near the Ardmore train station, it is in a prime location, generating $899 of sales per square foot, retail analysts say.

The size of the Macy's store far exceeds the size of many of the other stores at Suburban Square. Most are between 5,000 and 7,000 square feet. "The demographics are phenomenal and the sales volume coming out of Suburban Square are phenomenal," Simmons said. "It's located right in the heart of Philly's Main Line, which is retail space that's very sought after by local and national retailers.

"It's every bit as attractive as Center City and King of Prussia," he said.

And this is the only opportunity on the Main Line to replace a 90,000-square-foot retail space, he said.

"Therefore, having this opportunity is very sought after by retailers," Simmons said. "We are very confident in the opportunity to reposition this vacancy."

When opened: Former Strawbridge & Clothier became Macy's in 2006

Size: 90,000 square feet as center's anchor

Employees: 80

When closing: The store will remain open through 2015, close in Jan. 2016

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@SuzParmley