Should Commercial Development Be Halted in Westchester?
By Dan Murphy
In just seven years, the way in which American consumers purchase their products has completely changed. In 2012, the Sears at Cross County Shopping Center welcomed the Kardashian sisters, who made an appearance at only a few of Sears’ “golden stores,” including Cross County, to celebrate the one-year anniversary of their Kardashian Kollection of clothing and products for girls.
A few years later, Jaclyn Smith came to Sears at Cross County to sell her wares featured at the store. Now the legendary and top-selling Sears store at Cross County is closing, in part, yes, because of a horrible management team and failed market approach to retail in America today.
A Sears spokesperson confirmed that the store, which is one of the mall’s anchors, will close in late July. “As we continue to evaluate our store network and invest in our best stores, the Sears store in Yonkers at Cross Country Shopping Center did not meet our go-forward criteria,” said the representative. “We invite our members and customers to visit our other Sears locations in the tri-state area and shop sears.com.”
But another reason Sears at Cross County, and Sears at the JV Mall has closed is because of the Amazon effect on American retail, and the ease in which all of us can buy most of the same products, and have them delivered with a day or two, without stepping out of your home.
The Amazon effect can be seen in most Westchester towns, villages and cities, where all of us know of a retail property that has remained unoccupied for some time, and we wait for months, and sometimes years, for another store to move in.
Part of the reason may be that the owner/landlord is doing a bad job finding a new tenant, or the rent may be too damn high. But another reason could be a glut of commercial and retail properties, which sit empty as development in the county continues with mostly residential but some additional retail continuing to be constructed. Should local governments and zoning boards stop approving additional retail development projects?
Greenburgh Supervisor Paul Feiner said he wants those long-vacant commercial properties cleaned up, or else. Feiner has proposed for consideration an Eyesore Tax, which would impose an additional tax on empty storefronts and commercial properties.
One question that many residents have is: Are empty storefront still taxed at the same rate? Yes, properties that are empty are taxed as if they are occupied. But perhaps an additional fine, or surcharge, or tax, for empty retail and commercial properties might accomplish two goals: It would give landlords a financial incentive to spruce up their property or find a new tenant quicker, and it may also make developers think twice before building yet another strip mall.
The question that many of us have is: Why build a Lowe’s superstore in one part of Yorktown while the JV Mall dies a slow death, with a large hole from the departure of Sears? The answer is that most elected officials, and zoning and planning board members, welcome the new tax revenues that come with a new retail or commercial product, while at the same time, the old retail-commercial properties still have to pay their property taxes regardless of whether they have a tenant.
Another Yorktown location that has been vacant for a decade is the supermarket where Kmart sits. With a Turco’s and an ACME in town, is there room for a third supermarket? Probably not.
If a “golden store” like Sears Cross County can close, then are all bets off? The answer that most have, with regard to competing with Amazon, is to have more of an online presence, which doesn’t help us fill the vacant stores in our communities. Walmart now offers free two-day shipping for those spending at least $35. For those who prefer click-to-pickup, parking areas have been altered to make this service convenient and quick.
Walmart gets it… Sears never did. It’s the evolution of the American consumer. But if developers don’t get it and continue to build more and more spaces for the next Subway or Dunkin Donuts, should our community leaders, elected officials and zoning and planning board members try to stay ahead of the curve?
This is not just a Westchester problem, although as I travel to the suburbs of Boston, Pittsburgh and Albany, I see a thriving retail environment and little, if any, vacant storefronts. According to a report by Coresight Research, 7,000 stores have closed in 2019 already, with another 5,000 big names like Payless and Pier One set to close by the end of the year.
More important, future forecasts predict more of the same. According to a report from UBS Securities, 75,000 more stores would need to be shuttered by 2026 if e-commerce penetration rises to 25 percent from its current level of 16 percent.
In one small piece of good news, Toys R Us is considering making a comeback after shutting all of its doors last year. The empty storefronts across from the JV Mall in Yorktown, and in Yonkers, awaits their return.
