Hoffman Estates, IL–Sears Holdings has signed a long-term lease with Forever 21 to occupy approximately 43,000 square feet of its anchor store at South Coast Plaza in Costa Mesa, California.
Sears will continue to operate out of its remaining 250,000-square feet, offering its full assortment of products and services, Sears executives said on Monday.
The first-of-its-kind deal provides Sears with a means to make its big box anchor location more productive since many of its anchor locations lag in sales per square feet, retail analysts say. And Forever 21, which plans to open its large format concept Forever XXI store at the Sears-owned property next spring, gets a prime location where competitors such as H & M and Zara already have stores. Forever 21 will lease space on both Sears levels and have its own entrances from the mall and the street, distinguishing it as a separate entity from the Sears store.
“Sears Holdings is very excited to welcome Forever 21 to our property at South Coast Plaza,” said Alan Shaw, vice president, leasing and development for Sears Holdings. “Forever 21 is a world-class retailer and will provide energy and excitement to the northwest quadrant of South Coast Plaza, benefiting all the retailers in this area of the shopping centre, including Sears. They will be a wonderful tenant and are an ideal fit for this store location.”
“This agreement is a great example of Sears Holdings selectively redeploying its asset base to improve the retail experience for consumers while working to create long-term shareholder value,” said Jeff Stollenwerck, president, real estate for Sears Holdings.
The agreement follows the unveiling in March of a Sears Web site called SHCRealty.com, a searchable database that lists thousands of Sears and Kmart stores of varying sizes as available for sale, rent or partial lease.