One in, one out may be the story of big retail business in
Morgan Hill. Just as Home Depot gets ready to open, Mervyn
’s could be leaving.
One in, one out may be the story of big retail business in Morgan Hill. Just as Home Depot gets ready to open, Mervyn’s could be leaving.
Target Corp, which bought all Mervyn’s stores in 1978, announced in March that it was “reviewing strategic alternatives for Mervyn’s and Marshall Field’s.” This could include selling some less-successful stores, as Kmart did when it was facing bankruptcy, or all stores.
“Beyond that statement there is nothing new to announce,” said Greg Terk, a Bay Area Mervyn’s spokesman.
The mid-market department store in Cochrane Plaza is one of 266 Mervyn’s in 14 states, 37 in the Bay Area with a 2003 gross revenue of $3.6 billion.
Originally based in Chicago, Marshall Field’s is a traditional department store with a name for fashion, quality and service. Its headquarters in Minneapolis operates 62 stores in eight upper-Midwest states.
Questions about the store’s future were directed to Target Corp.’s headquarters in Minneapolis.
The Morgan Hill store was the 13th largest private employer in the city during 2003, with 133 employees and added a significant amount to the city’s general fund in sales taxes.
“We care about them,” said Jack Dilles, city finance director.
Dilles said he expected Home Depot’s expected sales taxes to make up for the loss to the city treasury of Kmart, which vacated Home Depot’s space in the Lawrence Oaks shopping center at East Dunne Avenue and Hwy. 101. If Mervyn’s were to close, Home Depot’s arrival would make less of a dent in the on-going budget crisis.
A company news release said that in weighing alternatives, the effect on guests, team members and the communities they serve would be considered. No date has been announced for the decision.
In the meantime, Cochrane Plaza’ Mervyn’s will remain open, a Mervyn’s spokeswoman said.
