Minneapolis maps next steps as big stores exit

Published 9:53 am Tuesday, December 13, 2016

By Martin Moylan

MPR.org/90.1 FM

MINNEAPOLIS — Sandy Nelson’s Northern Lights Tea Company sits in a skyway that ties her business to Macy’s, the anchor of downtown retail Minneapolis. Reaching Nelson’s shop these days, though, requires passing several empty storefronts.

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“Big stores keep leaving,” Nelson said, ticking off a list of high-profile retailers that have disappeared from downtown. “Sports Authority, the Office Max is gone, the Neiman Marcus is gone, Saks Fifth Avenue left. They came back but they’re not the same as they were.”

Nelson and others worry that Macy’s, downtown’s last remaining giant, may be about to fall. The company is selling off stores and said last month it continues to explore options for flagship locations in Chicago and Manhattan.

If Macy’s leaves Minneapolis, it won’t be a shock. Big Retail has been dying for years in downtowns here and across the country as suburban and online shopping explode. Experts say Minneapolis must find a way to recreate a vibrant shopping district and lure back the region’s shoppers knowing the department store giants won’t be returning.

City and business leaders say they’re working on the revival.

“The city is working with property owners and brokers and downtown residents to figure out what are the steps we can all take to make the downtown Minneapolis retail experience as much as we can make it,” said David Frank, the city’s planning and economic development director.

Frank said he believes the $50 million revitalization of Nicollet Mall, the city’s retail spine, will play a key role in making downtown a compelling enough destination to overcome the hassle of winter weather and the absence of free parking. “It will be a must-see destination in downtown.”

Downtown needs more unique stores, one-off retailers that won’t be found elsewhere, he added.

City leaders see plenty to work with as they rebuild. Minneapolis job growth is steady, the unemployment rate is just 3 percent and downtown residency is booming. Consumers are moving into the area.

“You have to be optimistic about residential growth, hotel growth, job growth, public investment in projects like the Nicollet Mall,” said Minneapolis Downtown Council President Steve Cramer.