Owners of Bloomington’s Eastland Mall say they are in talks with new tenants to take over the spaces left vacant by Macy’s and JCPenney closing its stores.  But other challenges may come soon as Sears Holdings talks of closing its stores.  (Photo courtesy of visitbn.org)

It could be characterized as a one-two punch. In the first quarter of 2017, word came down Eastland Mall, one of McLean County’s retail epicenters, was losing not one, but two, of its longtime department store anchors.

In January, Macy’s announced Eastland Mall was one of 68 stores it planned to shutter. The Cincinnati-based department store chain completed its liquidation sale March 31.

In mid-March, as Macy’s was rapidly winnowing its store inventory and selling off store fixtures, word came down Eastland Mall would soon host yet another department store closing.

Plano, Texas-based JCPenney included the Bloomington store on its list of 138 locations on the chopping block this year as part of a massive cost-cutting effort.

“We believe closing stores will allow us to adjust our business to effectively compete against the growing threat of online retailers,” Marvin Ellison, chairman and chief executive officer of JCPenney, said in a statement, outlining the rationale behind the decision.

The JCPenney liquidation is expected to start soon and wrap early this summer. The going out of business sale was to have kicked into high gear by this point, but company executives are delaying the rollout of the store closures, citing an uptick in customer traffic.

On its face, the loss of two large retailers might seem troubling to Eastland Mall, but marketing manager Melissa Cavanaugh said the announcements continue to present new opportunities for a deeply rooted commercial property that is going through a metamorphosis in a changing retail environment.

“In anticipation of these closures, we’ve proactively engaged in conversations with a number of prospective users,” said Cavanaugh, who is employed by Eastland Mall’s owner, Chattanooga, Tenn.-based CBL and Associates.

Cavanaugh said JCPenney has been leasing its anchor space at Eastland Mall, which gives CBL the flexibility to seek alternative uses for the site. She declined to divulge any further details at this point.

“We have redevelopment plans in the works for the JCPenney space, and we’re currently finalizing negotiations with replacement tenants,” Cavanaugh said. “We’ll be excited to share more information when we’re able.”

CBL has announced a similar strategy for the now-emptied Macy’s space. Unlike JCPenney, Macy’s had owned its department store building, separate from the rest of the mall.

Four of Macy’s store closures this year were at CBL-owned properties. In each instance, Cavanaugh said CBL worked swiftly to purchase the buildings from Macy’s so the company had control over future redevelopment efforts.

Thus far, Cavanaugh said there are no firm announcements on the future of the Macy’s building at Eastland Mall, though talks have been ongoing.

“We have proactively engaged in conversations with a number of prospective users, and there is great interest in the space,” Cavanaugh said. “While it’s too soon to announce any tenant names, we’ll be excited to share more information as soon we’re able.”

The loss of Macy’s and JCPenney leaves Eastland Mall with three remaining traditional department store anchors: Bergner’s, Kohl’s and Sears.

Hoffman Estates-based Sears Holdings Corporation, which owns the Sears and Kmart nameplates, is in a financially precarious situation after years of sales declines.

SHC has been aggressively closing stores in recent years. So far, the Sears at Eastland Mall has eluded each of the company’s ongoing store closing lists.

But a statement in SHC’s annual report, released last month, has fueled speculation the entire company might file for bankruptcy in the near future.

“Our historical operating results indicate substantial doubt exists related to the company’s ability to continue as a growing concern,” SHC management wrote in the annual report.

Bon-Ton, which owns the Bergner’s brand, has experienced troubles of its own, and company management have announced plans to close a small handful of stores this year. Specific locations have yet to be released.

The company, with dual headquarters in Milwaukee and York, Pa., recently faced the risk of having its publicly traded stock delisted because it fell below $1 per share.

Menomonee Falls, Wis.-based Kohl’s is in the healthiest financial state of the three department stores, though the company did report disappointing holiday sales across its fleet of brick-and-mortar locations.

— Troubles for major retailers being felt at Bloomington’s Eastland Mall —