Wednesday, August 20, 2008

Study: Smithfield Street should be retail center

Imagine Smithfield Street as Downtown's major retail corridor with stores complementing Saks Fifth Avenue and Macy's, restaurants and shops catering to students, and "affordable luxury" services such as salons offering $45 haircuts.

Those are among the recommendations of a $50,000 retail market study released Monday by the Pittsburgh Downtown Partnership.

"Downtown has a lot of retail, but the problem is it is scattered all over the place," said Michael Edwards, president of the business advocacy organization.

The study has suggestions for retail and restaurant uses throughout Downtown.


The Downtown Partnership wants emphasis placed on the Smithfield Street corridor stretching from Point Park University and Art Institute of Pittsburgh locations on the Boulevard of the Allies to the intersection of Smithfield with Liberty Avenue.

"We want to get some focus so we can have an impact, and have retail that complements retail and creates a place where people want to go," Edwards said.

The study, conducted by Michael Berne of MJB Consulting of New York, recommends courting about 15 retailers.

The Downtown Partnership would not disclose their names, but said they would be a blend of local, regional and national retailers. They could include additional "luxury" outlets, upscale stores that could draw shoppers from the Waterfront in Homestead and Ross Park Mall, which hopes Nordstrom's will complement other high-end stores.

"The Golden Triangle, of all the major shopping destinations, would seem to be the best positioned to capture the one-per-market luxury retailer," the study says.

Keeping Saks happy at its Smithfield Street location is a key, according to the report. Saks officials could not be reached for comment.

City leaders have in recent years met with Saks representatives amid concerns the store might leave Downtown when its lease expires in 2011.

They hope Saks would not suffer the same fate as the heavily subsidized Lazarus-Macy's store at Fifth Avenue and Wood Street and the Lord & Taylor store across Smithfield from Saks, which both closed in 2004 because of a lack of business.

The study describes the intersection of Smithfield and Fifth as Downtown's most desirable retail corner with Macy's store on one corner, and says it is important to re-tenant the vacant Lord & Taylor for the health of retailing Downtown.

The Lord & Taylor and Lazarus-Macy's were centerpieces of a failed effort by the administration of Mayor Tom Murphy to create a critical mass of retailing along Fifth and Forbes avenues.

From 1999 to 2005, three major developers failed to turn Downtown redevelopment plans into a reality, and, in the interim, numerous existing stores closed, including eventually, heavily subsidized Lord & Taylor and Lazarus-Macy's.

Having an upscale retailer like Saks is important to the Downtown, said shopper Nancy Keegan of Mt. Washington, who planned to visit the store to browse.

But Keegan agreed that the central area of the city needs more unique retail destinations, noting that the closing of the Lord & Taylor store is symptomatic of the lack of retailing options available to lure shoppers.

"I come Downtown about once a week, but it's usually for business," Keegan said. "The city has to be more attractive to pull in people."

The Downtown Partnership hopes to hire a coordinator to work with real estate brokers to attract retailers and create a critical mass as the Murphy administration wanted.

Berne of MJB Consulting believes incentives may be necessary to help attract retailers, but says nongovernment funded sources -- such as foundations -- may have to be used because of the failure of past publicly-funded initiatives.

Mayor Luke Ravenstahl, who reviewed recommendations last week, said they could build on momentum already happening Downtown, spokeswoman Joanna Doven said.

"We are experiencing Pittsburgh's third renaissance right now," Ravenstahl said in a statement. "Cranes are dotting Pittsburgh's skyline, Downtown living is on the rise, and in historic Market Square, business is booming. We must build upon this momentum, working together to improve Pittsburgh's retail environment."

Edwards said he hopes the Downtown Partnership's board would refine details of a comprehensive plan to implement the recommendations in September, approve a final version in November and start to implement its recommendations on Jan. 1.

Ron DaParma can be reached at rdaparma@tribweb.com or 412-320-7907. Sam Spatter can be reached at sspatter@tribweb.com or 412-320-7843.

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