By the numbers
103: Number of employees affected
$5.1 M: Clark County Auditor’s value of Target property
$107,843: Annual property taxes paid on Target store
105,000: Approximate square footage of Target store
2000: Year Target store was built
Source: Clark County Auditor’s Office
In-depth coverage
The Springfield News-Sun digs into stories about jobs and the economy in Clark and Champaign counties, including recent stories about uses for the Upper Valley Mall and local unemployment numbers.
Target will close its Springfield location in late January, becoming the next in a string of major retail chains to shut its doors in the community this year.
The store’s 103 workers were notified Monday that the 1885 W. 1st St. location will close on Jan. 30, said Kristy Welker, a spokeswoman for Target. Eligible employees will be offered the option to transfer to other regional stores.
“The decision to close a Target store is not made lightly,” Welker said. “We typically decide to close a store after careful consideration of the long-term financial performance of a particular location. Typically, the decision to close a store is as a result of seeing several years of decreasing profitability.”
This is the third major retailer to close shop in the area this year, although the region has seen signs of some new development as well. In January, JC Penny announced it would close its location at the Upper Valley Mall. Just one day later, Macy’s announced it would also shutter its Springfield retail center.
The back-to-back announcements from the two anchor stores were a blow to the mall, which has faced a series of financial problems. It slipped into receivership last year after former owner Simon Management Associates defaulted on a $47 million loan.
Then last month the Upper Valley Mall was put on the auction block and a two-day, online auction is scheduled to begin on Nov. 16. The minimum bid was listed at $1.5 million on Monday.
Elder Beerman and Kmart have also left the Springfield market in recent years.
A total of 13 Target stores will close on Jan. 30. The other Ohio store that will close is its Columbus South West location.
The chain is based in Minneapolis and operates just shy of 1,800 stores nationwide, according to its web site.
The Springfield property, built in 2000, is valued at $5.1 million and is more than 105,000 square feet, according to information from the Clark County Auditor’s Office. It generates more than $107,000 in property taxes every year.
Losing another major retailer is a concern, but rumors that Target would close have circulated for years, Clark County Commissioner John Detrick said.
“I’m concerned because we have a good mix on our retail base and they’re in our high-traffic area,” Detrick said. “I hate to see a retailer of that quality leaving.”
National brick and mortar retailers face fierce competition not only from traditional stores, Detrick said, but increasingly from online businesses such as Amazon.
Lori Swafford was shopping at the Target store Monday evening. She said it seems like many of the retail stores in Springfield have closed or are struggling, such as Kmart and the Upper Valley Mall.
“Everything is closing. I did not know that they were closing. I hate to hear that. I’d rather have Walmart close. I don’t shop there,” Swafford said.
Retail amenities, especially national chains, are important to offer residents and visitors, Springfield Deputy City Manager Bryan Heck said.
“It’s unfortunate to see a major box retailer exit the community,” he said.
Despite the loss of Target, the busy Bechtle Avenue corridor has seen some recent wins as well. Major retailers including Hobby Lobby and Dick’s Sporting Goods have announced plans to build new stores there.
“It just shows that retail can be a volatile industry in terms of their decision-making in where to locate and when to close stores,” Heck said.
It’s disappointing to lose another retailer, said Horton Hobbs, vice president of the Chamber of Greater Springfield.
“What we’re seeing happen in the retail world is a growing trend among consumers period,” Hobbs said. “The way we are shopping in brick and mortar stores is changing and it’s putting a major stress on traditional storefronts. Retailers are having to change to keep pace.”
Staff Writers Tiffany Y. Latta and Michael Cooper contributed to this report.
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