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By JANELL HUNTER
and IAN HICKS
Staff Writers
WHEELING -- Add another company to the list of large chain retailers in the Ohio Valley undergoing mass store closings.
Teen fashion retailer Rue21 on Saturday announced it plans to close almost 400 stores around the country, including its location at The Highlands. The Rue21 store at the Ohio Valley Mall in St. Clairsville was not on the list of planned closures, however.
"It's true -- we are closing some stores. It was a difficult but necessary decision," the company posted to its Facebook page Saturday, along with a link to a list of stores that are closing. "We still have hundreds of locations across the country, and our website rue21.com, open for business."
A full list of the retailer's planned closures can be found at rue21.com/store/store-closings. The announcement did not include information on when the stores would close.
Ohio County Commissioner Orphy Klempa, who serves on the Ohio County Development Authority, which manages The Highlands, said county officials learned of the company's plans a few days ago. Although he's confident the development authority will find a new tenant for the space, he acknowledged times are tough for retailers right now.
"It's something I preach everywhere I go … we're going to lose all of our retailers if the online shopping continues to grow," Klempa said.
Locally, Rue21 also operates a distribution center in Weirton, but the announcement did not indicate that facility would be impacted.
The retail industry is going through an upheaval right now, as several large chain retailers have decided to reorganize, close underperforming stores and trim overhead or declare bankruptcy.
Even though Rue21 is maintaining its store at the Ohio Valley Mall, the shopping center has been home to many businesses that are opting to close stores. The empty space at the mall has some local officials and retail experts concerned, although some believe the mall will be able to adapt and innovate according to new consumer needs and trends.
Like Klempa, Belmont County Commissioner Mark Thomas said he believes "retail is in crisis" because of the dramatic increase in online shopping.
"The closings of KMart, Radio Shack, MC Sports and hh gregg have nothing to do with the Ohio Valley Mall or Belmont County, but everything to do with our residents not fully supporting brick-and-mortar retail like they were over the last many years," Thomas said.
However, Thomas remains optimistic that the mall will survive because of the commitment of the Cafaro Co. to its future success. He said that in the meantime, he and other Belmont County officials will continue to prepare the groundwork needed to attract private-sector jobs.
"The more jobs we help indirectly create, the more people spend money and the new retail will follow a vibrant economy. … As the county grows -- and it will -- so will our tax base, and that too includes our friends at the Ohio Valley Mall," Thomas added.
Sue Douglass, executive director of the Belmont County Community Improvement Corp., said she sees the trend moving away from large retail chain stores as being an opportunity for entrepreneurs, small businesses and "non-traditional type business projects."
"There is a trend in the market now for hands-on businesses. We have been encouraged to see more people putting up small businesses and following their dreams here in St. Clairsville, as well as in Martins Ferry," Douglass said.
Douglass' agency helps to connect entrepreneurs with the resources they need to open a small business.
"It is like putting together a huge puzzle. We let them know they don't have to do it alone," Douglass noted. "We can get entrepreneurs to a point where they can formulate a working plan using the right words and definitions, connect them with the right resources and facilitate the process to help them bring their budding idea to fruition. The market is really responding to small business right now, and we are glad to be able to help that in our area."
Douglass said her agency believes large chain retailers have been losing business because of many market factors, including online shopping, and the fact that the availability of goods and how people value goods has changed over the years.
"There are a massive amount of factors that all unhappily collided at once. But people always need goods and services, so we will see how this will translate in the local market. We are just happy that local entrepreneurs are getting more opportunity. There are always ebbs and flows in business cycles. We are always optimistic," Douglass said.
Debra Mitchell, clinical associate professor of Marketing at Ohio State University's Fisher School of Business, is an expert in retail and marketing, and believes that people "should be worried" about the closing of so many retail chains.
"Retail has been declining for a while. Some retailers haven't recovered from the recession yet. Consumer trends are not what they used to be -- there will always be a demand for brick-and-mortar stores, but it will never be like it used to be," Mitchell said. "In order to have a successful brick-and-mortar operation now, you need to give customers a great experience and there must be something different about it, whether it be the service, the products or the experience itself. For example, IKEA has a play area for children, and a cafeteria. It is meant to be a destination."
Mitchell said there is a "wide trend" away from large department stores to specialty retail. She noted that in the past, variety was the biggest advantage and attraction to large department store chains, and Walmart came in and offered everything under one roof.
"And now Walmart is even under pressure from Amazon. Everything is evolving rather quickly. People should be aware of this trend and realize it won't reverse. Mall officials need to be thinking about how to innovate and evolve -- not compete on price. They can't win that game," Mitchell said. "They should be innovating and evolving as to what consumers want that is superior to what they can get from other sources."
Marshalls department store is currently under construction at the Ohio Valley Mall in part of the former Elder-Beerman department store, which vacated its space recently. Mitchell said Marshalls is a store that fulfills a specific "niche" in the market, which is why it is so successful.
"There really is not that much difference between several department stores like Macy's, Sears, J.C. Penney and Kohl's. Variety is the outgoing trend, niche is the current trend," Mitchell added.