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Sunday, January 5, 2003

Closson's sees future in suburbs


Economic reality dictates move from Fourth and Race

By Ken Alltucker
The Cincinnati Enquirer

Closson's, a furniture, art and interior design retailer that thrived for more than 13 decades downtown, will seek new life in the suburbs.

The firm will vacate its downtown store at Fourth and Race streets by March 31, but it will maintain its Montgomery store, which opened in 1997.

President Paul Darwish said Closson's could no longer ignore the economic reality that many downtown retailers face: declining foot traffic and sales.

"It's been a struggle downtown," said Mr. Darwish, named president of Closson's in 2001. "A century in business teaches you nothing if not how to be resilient."

One thing is certain: downtown of the 20th century, where Closson's flourished, is not the same downtown of 2003.

Closson's is one of Cincinnati's most distinctive shops and the longest-running art gallery and retailer west of the Allegheny Mountains. Founded in 1866 as an art gallery by Asa Burton Closson Jr., a New England farmer, the family-owned shop expanded its offering to include interior design services and furniture in the 1920s.

But competition from suburban malls has effectively eliminated downtown's once-dominant retail position.

Other downtown icons - such as the Maisonette and Saks Fifth Avenue - are struggling for survival. The city of Cincinnati one year ago approved a $6.6 million aid package to keep Saks from closing its downtown store at Fifth and Race. The money will be used to upgrade Saks' Art Deco motif and add new sales displays.

The Maisonette has asked its best customers to buy thousands of dollars in pre-paid meals to help pay for an ambitious $5.5 million expansion. The elite restaurant warns it will close if it's unable to complete the project, which includes adding a 500-seat concert venue and opening a take-out cafe.

Two major city-funded retail developments - the lot at Fifth and Race streets and the vacant McAlpin's building on Fourth Street - have stalled with no retailers willing to sign leases.

Closson's is looking north along Interstate 71 for a new flagship store either at the proposed Rookwood Exchange expansion in Norwood or other sites in Oakley or Hyde Park. Closson's discussed a potential store at the Cornerstone of Norwood site across Interstate 75 from Rookwood but was unable to reach a deal with developer Ackermann Group. (Ackermann has since eliminated plans to build retail at the site, instead opting to build two office towers.)

Until the new store opens, the downtown art gallery will move to Hyde Park Square and will be renamed the Phyllis J. Weston Art Gallery at Closson's. (Ms. Weston has directed Closson's art gallery since 1966, helped discover artists such as Frank McElwain and assembled collections for Procter & Gamble and the Ohio governor's mansion.)

Closson's downtown business has declined steadily over the past five years, according to Stuart B Sutphin III, who purchased the company in 1993 after four generations of Closson family ownership. Gift purchases in 2002 dropped 20 percent, a key measurement showing the drop in foot traffic.

It has taken tremendous effort for Closson's to achieve success downtown in recent years. A month ago, more than 800 people attended the gallery's French Holiday open house, which included food and wine by Jean-Robert at Pigall's, artist appearances and valet parking.

Mr. Darwish said a new, 25,000-square-foot store at Rookwood in Norwood or near it is what Closson's needs. Being near other home goods stores and specialty retailers would likely bring more shoppers browsing for furniture or seeking interior decorating advice.

"The big challenge is getting people in the store," Mr. Darwish said.

Not that downtown is completely to blame. The retailer also is looking inward at changes in product mix and store layout to make the store more appealing to younger shoppers, Mr. Darwish said.

The new store likely will have open space as opposed to the numerous walls and rooms of the downtown store, and it could include more contemporary touches such as exposed brick.

Since assuming his job 16 months ago, Mr. Darwish said one of his main goals has been to fight the perception that Closson's caters solely to classic tastes. In fact, the retailer has a healthy mix of contemporary furnishings at its downtown store.

Some customers and downtown observers say Closson's will be sorely missed.

"A lot of people over the years have come from out of town to shop at Closson's," said Nell Surber, the longtime former Cincinnati economic development director. "In today's world, there aren't too many stores like (Closson's). You see the same stores over and over again offering the same merchandise."

Mayor Charlie Luken described Closson's as an "old and valued retailer" but said people shouldn't be quick to blame the city for its closing.

The city offered some aid. One of the major problems Closson's faced was its lack of visibility from Fourth Street. One of the Tower Place garage's entrance ramps wraps around the south side of Closson's facade, but a city study found it would take $24 million to redesign the garage and eliminate the ramp.

"Clearly, the economy has hit retailing very hard," the mayor said. "I usually don't like to point to other cities, but in this particular case, this retailing problem, it's an epidemic. It's an epidemic in the industry as a whole, and for downtowns in particular."

E-mail kalltucker@enquirer.com



Downtown's retail picture dims
Closson's sees future in suburbs
Closson's leaving deprives downtown of marquee name
Closson's gallery was a foundation of city arts scene
A history of Closson's
Brown Co. seeds bud
Struggling Tokyo considers casinos
Loyalty programs can improve business
Small business notes
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