Bellevue Square Won't Get Saks Store

BELLEVUE - Saks Fifth Avenue has canceled plans to open a store in part of Frederick and Nelson's old Bellevue Square space, a move that tells as much about modern-day shopping habits as long lines at Costco.

The New York retailer yesterday told Bellevue Square owner Kemper Freeman that the deal was off, largely because of the sour national economy.

The deep recession in California, where Saks has five stores, was particularly significant in Saks' decision, Freeman said. The move may have been part of a larger, nationwide cancellation of all plans for major expansions, he added.

"Based on economic times right now as we try to figure a return on our money, this is not a good year to open," Saks Vice Chairman Gary Witkin said today. "I can't look into my crystal ball and tell you things will be significantly better in '94 or '95, but we do have a commitment to the Northwest. It is just a question of timing."

"I'm not pleased. But I'm not surprised," Freeman said. "You can read the signs from around the country. National retailers with a big presence in Southern California are taking a big whipping."

Instead of filling half of Frederick's old space with a single upscale apparel store, the big Eastside mall will fill it with about 20 smaller specialty shops, according to Freeman. That would bring to between 40 and 50 the number of stores that can be accommodated in the space.

Some 113 retailers - ranging from Tiffany and Co. to FAO Schwarz - have been clamoring for months to get into Bellevue Square. Most have expressed interest in moving there with or without Saks.

Other names mentioned in the past as possible new tenants include super-boutiques such as Giorgio (of Beverly Hills), Rodier of Paris, A-X Armani and Ralph Lauren Polo; Eddie Bauer's new Home Store; clothing stores like Guess, GapKids and Baby Gap; and jewelry stores such as Blackstar & Frost.

Also on the list are Babakies, Ports International, Electronics Boutique, All Week Long, and Knot Crazy, Sesame Street and Warner Brothers.

Freeman has been courting those other stores all along in case the Saks deal fell through.

The addition of the stores is part of a renovation of Bellevue Square, estimated by Freeman to cost up to $100 million.

Consultant Dick Outcalt, of Outcalt and Johnson, Retail Strategists, says shopping habits have changed. Whereas a decade or two ago consumers often turned to major stores like Saks for fashionable clothing, now they often go to smaller boutiques for those goods.

"In the `80s," said Outcalt, "we bought for conspicuous consumption. In the `90s, we buy for other reasons (like) value and function."

Freeman said many of the smaller retailers are expected to sell twice as much as Saks would have. While Saks would have sold about $300 of goods monthly per square foot, the average for the new stores will be in the range of $600 to $800, Freeman said. Currently, stores in Bellevue Square average $425 to $450 a square foot a month.

None of the new stores has yet signed leases. Freeman said the first leases could come soon, while others could take up to six months.