“The property owners, the Portland Development Commission and I made unprecedented outreach efforts to keep Saks in Portland,” said Portland Mayor Sam Adams. “But we could not overcome national trends buffeting higher end and luxury retailers and the fact that Saks’ Portland lease was up for renewal. My thoughts are with the affected employees and their families.”

“Because we knew losing Saks was a possibility, we used our trips to New York City and Chicago, working with General Growth, to do in-person recruitment with possible replacement retailers,” said Mayor Adams. “We expect to announce within the coming weeks and months new retail offerings at Pioneer Place that we are confident will excite Portlanders.”

Mayor Adams and Portland Development Commission Chair Scott Andrews coordinated Portland’s efforts to retain the Portland Saks store with face-to-face meetings with the CEO of General Growth Properties in Chicago on August 10, 2009, owner of Pioneer Place.  Mayor Adams and Chair Andrews then traveled to meet with Saks CEO Steve Sadove in New York City on August 27, 2009.

Mayor Adams, Chair Andrews and the Portland Business Alliance have been working closely on ways to increase the level of retail, entertainment and dining offered in downtown Portland.

In December 2009 City Council adopted a new Downtown Retail Strategy, which calls for the designation of Morrison and Yamhill as the signature streets within the downtown retail core, the establishment of a unified marketing strategy for the district, and new financial and tactical tools to implement the strategy.  Based on extensive analysis and research on best practices relating to developing a healthy retail core environment in cities, the strategic approach will drive investments and prioritize initiatives for years to come. The action plan builds on recent public/private investments, including:

• Public and private investments of over $400 million since 2007, including the opening of the Green Line
• Increased marketing of downtown to $950,000 in ongoing resources, including holiday season Pop-Up stores to activate empty store fronts
• Increased street cleaning services within the downtown core
• Approval of sidewalk management plan approach in response to a court action that ruled Portland’s Sit/Lie ordinance unconstitutional.

The strategy was developed and is being jointly implemented by the Portland Development Commission, private business owners, property owners and developers, the Portland Business Alliance (PBA), the Downtown Marketing Initiative, and the consulting firm Leland Consulting.

Saks Fifth Avenue today announced it will close its Portland stores, located in Pioneer Place Mall; the men’s store is expected to close on April 25, and the main store is expected to close by July 31, 2010.  According to Saks CEO Steve Sadove, “The planned closing of the Portland store is consistent with our strategy of focusing our resources on our most productive stores.”

According to national retail expert David Leland, “Even though America’s retail is challenged by the recession, the fundamentals of downtown Portland’s retail district remain very strong.  With national anchors such as Nordstrom’s, Macys, and Brooks Brothers and regionally significant retailers such as Marios, The Mercantile, and Columbia Sportswear to name a few; Portland’s retail infrastructure is solid.”

“Retail is real estate’s fastest changing sector,” according to Leland.  “Therefore, the environment in which that retail is located must be healthy, inviting and attractive.  Walkable streets, excellent transit, hotels, nightlife and restaurants, a strong office workforce, and public places such as Pioneer Square, Director Park and the Park Blocks assure a downtown that can accommodate change of retailers without compromising the heart of the city.”

For more information on the downtown retail strategy, click here.

For Saks Fifth Avenue’s announcement, click here.

For further information on Saks’ announcement, click here.

Reprinted from: portlandonline.com