After Macy’s announced they were closing the Owensboro location, Gulfstream Commercial Services Chief Operating Officer Ed Ray spoke with Owensboro Times about what the loss means for the future of Towne Square Mall.
Gulfstream recently brokered the deal that put TSM Holdings in ownership of Towne Square Mall, with hopes to revitalize the property and make it a destination for local residents and out-of-towners alike.
Ray said he did not necessarily expect Macy’s to close up shop at this time, but said online shopping likely played a role in its closure.
“It was a surprise — we found out at about the same time everybody else did in the community, but then again, it’s not really that big of a shock to us,” Ray said. “The bottom line is, every time somebody shops online or buys something on the internet, that is one less trip they make to local retailers.”
Ray said the incident should make others consider the potential loss that comes with skipping the brick-and-mortar store for online shopping.
“That is one less trip they make to local retailers,” he said. “If we don’t have local sales, we don’t have local retailers. It’s something everybody should think about every time they make a decision about where they go shopping. This is just another example of where retail has fallen to the side of online commerce.”
Since Macy’s owns its building privately, Ray said it will take time for him to predict exactly how the rest of the mall will be affected.
“I really don’t think [Macy’s closure] will have that big of an effect on existing retailers,” he said. “There’s some people who come into the Macy’s location through the outside door — they come in and do their shopping and leave. But there’s a group that goes inside the mall and does what the traditional shopper would do, and go store-to-store.”
Ray admitted losing Macy’s will be a loss for Owensboro, especially for south Frederica.
“There’s occupational taxes that are affected. There’s property taxes that are affected,” he said. “The value of the building being unoccupied — that’s going to have an effect on property taxes when it’s being reassessed. And all that goes into whether or not the local community is supportive of this particular retail establishment.”
