ToNeTo Atlanta was alerted to the upcoming closure of Urban Outfitters (NASDAQ: URBN) at Lenox Square. Interestingly, a post to the Philadelphia-based retailer's Atlanta store Instagram page was seemingly removed.
The company informed customers and staff December 30 that they had elected not to renew their existing lease and would be closing effective January 19. In the days that followed, the company started to market the closure by offering 30 percent off regular-price merchandise and an additional 50 percent off existing clearance merchandise.
In our visit to the store Wednesday afternoon, boxes were still stacked in the store indicating that some merchandise was to be transferred to other stores with other parts of the store were barren and other areas full of mannequins and display pieces.
It's unclear what exactly changed, but sources close to the situation indicate that Lenox Square owner SIMON presented the retailer with an "absurd" renewal offer, which led Urban to decide to close instead. Given the store's size (12,643 square feet) and location (at the back of the mall above the food court) SIMON seemingly did not have people clamoring for the space as they might have elsewhere in the mall and ultimately opted to offer more reasonable terms to which the retailer agreed.
The Urban Outfitters at Lenox Square was the trendy retailer's first store in Atlanta. (When it opened it replaced tomtom bistro, a restaurant from chef Tom Catherall, and a B. Dalton bookstore.) In the years that followed its 2002 opening, the company has also opened stores in Dunwoody (Perimeter Mall), Alpharetta (Avalon), Poncey-Highland, Athens, and Savannah.
In its heyday, the Lenox Square Urban Outfitters reportedly saw annual sales of about $10 million. More recently the company has struggled to remain relevant to young shoppers and is hoping to execute an Abercrombie-like turnaround.
In an earnings call this past October the company admitted it doesn’t know how to sell to Gen Z shoppers and acknowledged missing the “rapid and seismic shifts” between millennials and Gen Z during the global pandemic. This CNN article details elements of the retailer's planned turnaround.
The company's Buckhead presence includes not only its namesake banner, but also sister brands Anthropologie and Free People in Lenox Square, as well as Free People's athleisure offshoot brand FP Movement in Phipps Plaza. In late 2018 the company reduced the size of its second floor Anthropologie store to accommodate the expansion and relocation of what was then a new Apple store.
Lenox Square, long seen as the preeminent shopping destination in metro Atlanta, has in recent years seen its reputation tarnished by a rash of crimes and closures. The incidents have led to metal detectors, an increased police presence, and a general perception that the mall is not as safe as it once was.
ToNeTo Atlanta has, in recent weeks, reported on several closures at Lenox Square and neighboring SIMON-owned mall Phipps Plaza, including Moose Knuckles, TYR, and Bally. Lenox Square has also, in recent months, witnessed the closure of several eateries, including Azucar Cuban, Ponko Chicken, Sugar Daddy Cookies, and Garrett Popcorn Shops.
Are you surprised to learn of SIMON's about-face at Lenox Square? What is your current opinion of Lenox Square? When was the last time you visited Lenox Square?
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