Sears Ties Up With Primark in Real Estate Deal

10/20/2014
Sears Holdings Corporation has inked lease agreements with Primark, the European fashion retailer, for seven standalone stores. Sears will continue to have a significant presence in six of these locations with a streamlined store format of up to 100,000 selling square feet at each store.

Pursuant to the terms of such agreements and subject to customary conditions, Primark will lease from Sears Holdings a total of approximately 520,000 gross square feet of retail space (approximately 400,000 net square feet retail space) in mall-based stores located in the northeastern United States. The space is expected to be delivered to Primark over the next 12 to 18 months. 

"Partnering with a globally recognized brand such as Primark to help establish its store base in the northeastern United States is testimony to both our attractive store locations and our focus on transforming Sears by working with other retailers, mall owners and brands," said Sears Holdings chairman and CEO Edward S. Lampert.

Primark is expected to open the first of these stores at King of Prussia Mall in King of Prussia, Pa. Primark will join DICK's Sporting Goods as a subtenant of Sears. Primark will occupy over 100,000 gross square feet on the lower level, while DICK's Sporting Goods currently occupies approximately 75,000 gross square feet on the upper level. Sears will no longer operate a retail store or auto center at King of Prussia Mall, which is owned and operated by Simon Properties Group (SPG).

Another expected location is in Staten Island, N.Y., at the Staten Island Mall. This mall is owned and operated by General Growth Properties. At this location, Sears will continue to operate in approximately 70,000 selling square feet adjacent to Primark.  Primark will lease approximately 70,000 gross square feet and will join Lands' End as a direct tenant of Sears. This Primark store will open in 2016.

The other five specific locations and projected store openings will be announced at a later date.  

"These lease agreements with Primark illustrate how Sears Holdings is strategically transforming one of the largest retail real estate portfolios in the United States over time while continuing to operate its existing stores in large, but rationalized selling space," said Jeff Stollenwerck, president of real estate for Sears Holdings.
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