Old Navy store on State Street closing as stores continue to close around city
CHICAGO (CBS) -- In just 24 hours, there will be another empty storefront on State Street in The Loop - with Old Navy's flagship departure now official.
CBS 2's Tara Molina had a close look Monday at retail in The Loop, the number of stores they've left, and what it all means for the city and everyone in it.
Old Navy has been a staple on State Street for years now. The current store has been in business since 2012 at 150 N. State St., at Randolph Street. Before that, going back to 1998, Old Navy occupied the present-day Primark location at 35 N. State St. at Washington Street.
The decision to close followed a full review of the current property. There are no plans to relocate.
An Old Navy spokesperson released this statement:
"We regularly and thoughtfully review our real estate to support the best path forward for our brand and Gap Inc. Our Old Navy State Street location will close end of day on Tuesday, 1/24. Local customers can continue to shop at our other Chicago locations including Roosevelt Collection, North & Kingsbury, and Riverpoint Center, or shop our family of brands online. "
The specific addresses of the other Old Navy stores referenced in the statement are 150 W. Roosevelt Rd., 1596 N. Kingsbury St., and 1730 W. Fullerton Ave. – just over a mile, about three miles, and about five miles, respectively, from the Loop store that is closing.
As for The Loop, Old Navy is hardly the first store to announce its departure. Unfortunately, vacant storefronts are not an uncommon site in The Loop, or in Chicago's prime shopping districts.
The closing of the downtown Old Navy is a sad sign of the times for more than one reason. The Illinois Retail Merchants Association reported retail vacancy in Chicago is now around 20 percent.
"The pandemic is part of it. Crime is part of it," said Illinois Retail Merchants Association President and Chief Executive Officer Rob Karr.
So is inflation, as well as pay increases for workers, according to Karr.
"The days of underperforming stores are over," he said.
Karr said the focus when looking at vacancy needs to be on keeping stores operating in storefronts - because those retail sales tax dollars make a big difference, especially in Chicago.
"As goes retail, so goes the state, so goes the local governments, so goes the local services we all rely upon," Karr said.
Molina asked a spokesperson for the Chicago Loop Alliance about vacancy rates. The organization issued this statement from Michael Edwards, President and CEO of the organization:
"Chicago Loop Alliance is heartened by the increased investment in retail along State Street, including the recent announcement of Saks Off Fifth returning to the Loop. Although Old Navy has decided to end operations, we look forward to the continued progression of our district as a thriving social and economic center for Loop residents, workers, and visitors. Other major retailers and forward-thinking companies like Google are investing in the future of the Loop, because it is a smart business decision."
Saks Fifth Avenue had closed its Loop store in 2019. The Chicago Loop Alliance also shared this article about the return of Saks Fifth Avenue to State Street, and another web feature about investments in the Loop.
But we wanted to know more. So we took a closer look at business licenses, so as to get a better look at the retail picture in Chicago - focusing on a common license for retailers.
We found both license renewals and new license numbers were the lowest we've seen in decades on State Street in The Loop - with three new licenses issues in 2022, and 24 renewed.
Some of those that haven't renewed Old Navy, Blick Art Materials, Disney, New York & Company, Foot Locker, and Aldo Shoes.
We specifically analyzed State Street between Lake and Van Buren streets.
The line graph is below. Business license renewals peaked in 2004 with 192 and have generally been in decline since.
Old Navy will close its State Street store at the end of the day on Tuesday.
We are still waiting for information from the city's Department of Business Affairs and Consumer Protection on the low number of licenses and renewals and what's next.
