Sears Names Final Two Stores In Primark Deal

Under terms of a lease agreement entered last year with Primark, a European fashion retailer, Sears Holdings Corp. has named the final two of seven stores that it will partly surrender. Those stores are in the Burlington Mall in Burlington, MA and South Shore Plaza in Braintree, MA, Sears Holdings announced.

In the Burlington Mall, the Sears store and the detached Sears Auto Center will continue to operate in approximately 196,000 gross square feet in the facility’s lower level, Sears stated. Primark will lease approximately 73,000 gross square feet predominantly on the second level of the mall, the company noted. In the South Shore Plaza, the Sears store and Sears Auto Center will continue to operate in approximately 138,000 gross square feet on the lower and second level while Primark will lease approximately 71,000 gross square feet predominantly on the second level of the facility.

Both malls are owned and operated by Simon Property Group, Inc. The Sears store at Burlington Mall is one of the 10 properties that Sears Holdings contributed to a recent leasing joint venture with Simon. The Seritage Growth Properties real estate investment trust formed by Sears Holdings will purchase its 50% interest in the joint venture, which will include the Sears store at Burlington Mall. The Sears store at South Shore Plaza is not included in the venture, Sears Holdings noted.

“Sears Holdings continues to strategically transform its real estate portfolio by working with leading retailers such as Primark and mall owners,” Jeff Stollenwerck, president of real estate for Sears Holdings, stated in announcing the store developments. “Primark will bring increased customer traffic to each of these malls and dramatically enhance the retail shopping experience as we rationalize our selling space to improve the productivity of our stores.”

Last year, Sears Holdings had entered into lease agreements with Primark, for seven standalone stores in the Northeastern U.S. In addition to Burlington Mall and South Shore Plaza, the other Sears locations with Primark as its tenant are Danbury Fair (Danbury, Connecticut), Freehold Raceway Mall (Freehold, New Jersey), King of Prussia Mall (King of Prussia, Pennsylvania), Staten Island Mall (Staten Island, New York) and Willow Grove Mall (Willow Grove, Pennsylvania). All of the space is expected to be delivered to Primark over the next four to eight months.