Paul Clinton
So far this year, business headlines have blared dire news of
store closures from retailers struggling with the economic downturn.
Not so here, an area that is arguably in growth mode with a string of
new shopping centers set to open this year.
Local observers attribute the area's trend-bucking to its affluent
lifestyle and relative plentitude of high-salary jobs.
"In general, I haven't heard of any widespread store closings,"
said Ed Fawcett, the president of the Costa Mesa Chamber of Commerce.
"There's a lot of buying power in Newport-Mesa. This area is well
heeled and not hurting in terms of purchase power."
On Jan. 14, discounter Kmart Corp. announced that it would close
326 "under-performing stores" across the country. In California, 19
stores will be shuttered, but Costa Mesa's branch, at 2200 Harbor
Blvd., was spared. Upon closer inspection, it becomes clear why. It
was among the city's top 25 sales tax generators during the second
quarter of 2002, the most recent data available.
Later in the month, luxury toy retailer FAO Inc. said it would
close about 80 of its FAO Schwartz and Zainy Brainy stores. The
company closed out its FAO Schwartz store in South Coast Plaza in
December of 2001. Both companies have filed for Chapter 11
bankruptcy.
On Jan. 21, Wherehouse Entertainment Inc. said it would close 120
laggards, leaving it with 250 stores across the country. The company,
which operates two stores in Costa Mesa, has not finalized the
closure list, a spokeswoman for the company said. It is still unclear
whether the Costa Mesa stores would be closed.
Rather than glum news of closures around town, Newport-Mesa has
welcomed several new shopping centers this year, and others are on
the way for this year.
Shopping centers are usually developed without much worry about
the short-term economic situation, said Richard Luehrs, the president
of the Newport Beach Chamber of Commerce.
"These are long-term investments that will go through many ups and
downs in the economic cycle," Luehrs said.
In May, the Irvine Co. cut the ribbon on Newport Coast Shopping
Center. In October, the company opened Crystal Cove Promenade. Both
centers have an eclectic offering of specialty stores, including
Trader Joe's, Williams Sonoma, Pacific Whey cafe and Z Pizza.
A third Irvine Co. center, the Bluffs, will open this spring. The
Bluffs is at MacArthur Boulevard and the Corona del Mar Freeway.
"Our centers continue to fare well, in spite of the economic
