Losing two stores

By Published by The Editorial Board

Published: November 7, 2008

Boscov’s and Value City represented two starkly different approaches to retailing. But both companies have left the Dan River Region for the same reason: Corporate bankruptcies.

“With tough economic times, sales have been really slow,” said Kristin Mack, a spokeswoman for VCHI Acquisition Co. All of Value City’s remaining 37 stores will be closing.

“The downturn in the overall economy and consumer spending along with the serious credit market crunch have put severe pressure on our company’s financial position,” Boscov’s chairman and CEO Ken Lakin said in a statement in August. Danville’s Boscov’s was one of 10 stores the company closed; 39 others remained open.

This community’s plan to recreate its economy doesn’t begin and end with retail sales. New stores and restaurants are only part of a much larger effort to attract jobs in manufacturing, technology and the service sector.

Boscov’s and Value City were both established when the city government started to pursue what’s been called the retail hub strategy. That strategy involved incentives to develop Coleman MarketPlace, the largest new retail shopping center built in the region since Piedmont Mall.

Coleman MarketPlace wasn’t meant to replace existing retailers, it was intended to augment the local market and give the region’s shoppers even more choices. But when Coleman MarketPlace was developed, the economy wasn’t in recession.

In September, the National Retail Federation estimated that holiday sales would rise just 2.2 percent this year — half of the 10-year average of 4.4 percent.

“Current financial pressures and a lack of confidence in the economy will force shoppers to be very conservative with their holiday spending,” said NRF Chief Economist Rosalind Wells. “We expect consumers to be frugal this season and less willing to splurge on discretionary items.”

Boscov’s and Value City had unique, different niches in this community and their loss will be felt by their respective customers and employees. They leave behind a tough economy for all kinds of businesses struggling to move forward. The best advice we can give people for the holiday season and beyond is to shop local — and hope for a quick economic turnaround.