Sears Holdings Corp. is subletting space inside seven of its stores to British fashion retailer Primark. Sears will continue to have a significant presence at six of these, with up to 100,000 square feet at each. Primark will lease -approximately 520,000 square feet of retail space in -total from the company, at mall-based stores in the Northeast. Primark is set to move in within 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 in a press release.
Primark will probably open the first of these stores at Simon’s King of Prussia (Pa.) Mall. The retailer will be joining Dick’s Sporting Goods as a subtenant of Sears there. Primark is to occupy some 100,000 square feet on the lower level; Dick’s occupies about 75,000 square feet on the upper level. Sears will no longer operate a store or auto center at King of Prussia Mall.
Another expected location is General Growth Properties’ Staten Island (N.Y.) Mall. At this location, Sears will continue to operate within 70,000 square feet adjacent to Primark, which will lease some 70,000 square feet itself and joins Lands’ End as a direct tenant of Sears. This Primark store is scheduled to open in 2016. Though Simon had approval rights on the sublet, the firm will not receive a cut of the rent Primark pays, said CEO David Simon on an earnings call. “With respect to the upside, to the extent the transaction is being done by Sears within their store with their capital, it’s their transaction,” he said. “But we certainly benefit: That certainly will strengthen our overall offering for our shoppers.”
The other five locations have yet to be announced. Primark is primed to open its inaugural U.S. store in the latter part of next year, in Boston.
