Economy leaves many developers skittish on retail

by Elizabeth Crisp
ClarionLedger.com

Facing uncertain economic conditions, some of the nation's largest retailers have scaled back plans for expansions and new stores, slowing several development projects.

The trend is visible in Madison County, where a new mall recently opened with less than 20 of its 60 expected stores, and other developers are focusing their efforts on office buildings and residential properties, waiting for the retail cycle to recoup.

"Without tenants - retailers - it's almost impossible to get a development deal under way," said Bob Flowers, who serves as the Mississippi-Alabama director for the International Council of Shopping Centers.

Analysts have predicted that developers will be more hesitant about announcing or starting new projects in coming months, and that appears to hold true for Madison County.

Developers already have been courting major retailers for projects in the area, but it's not yet clear how much of an impact economic conditions will have on those efforts.

Phase one of the Madison Grandview shopping center near Wal-Mart and the Malco movie theater in Madison is expected to open next fall, with Ashley Furniture as an anchor.

It had been announced last year that Belk department store also would open in Grandview's first phase, but store plans since have been pushed back because of what developers called "changes in construction schedules at (Belk's) corporate level."

"All I can tell you at this point is that the project is on hold for now," said Jim Dezzutti, Belk vice president and regional manager.

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