Discount retailer T.J. Maxx is leaving downtown Salem for the city’s east side, the latest national retailer to depart the core district.
When the 27,000-square-foot store opened in 2005 next to Rite Aid, it was considered the largest national clothing retailer to open in Salem’s downtown in years, adding 75 jobs to the local economy.
But rumors have swirled about the store’s fate for some time. A spokesman for the company in early December said: "T.J. Maxx has not announced any store changes in Salem at this time." On Tuesday, company spokesman Andrew Mastrangelo reiterated no announcements had been made but did not refute the relocation.
The move further reduces shopping options downtown. Nordstrom at Salem Center mall closed in 2018, and the building remains unoccupied, despite a sale to new owners.
T.J. Maxx’s final destination was not disclosed Tuesday, but the relocation will assuredly bring the store closer to parent TJX Companies' other stores, Sierra Trading Post and HomeGoods, which are located at the Willamette Town Center.
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Urban Development Director Kristin Retherford confirmed the move to city councilors by email Tuesday. "We have received confirmation in the last few days that they will be relocating to the Lancaster area this summer," wrote Retherford, who is acting city manager while City Manager Steve Powers is on vacation.
Tom Hoffert, chief executive of the Salem Area Chamber of Commerce, told the Statesman Journal he was encouraged the business will stay within the city, despite the "unfortunate" departure from downtown.
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City officials have received complaints recently after the homeless moved to Liberty Street NE by Rite Aid and T.J. Maxx, as well as Center Street NE by the former Nordstrom building, Retherford wrote Tuesday.
Curt Arthur, managing director of real estate company SVN Commercial Advisors, said news of T.J. Maxx and the Starbucks departing downtown "needs to be a major wake up call to city leadership to craft a plan to make meaningful changes to our area's homelessness problem."
Starbucks has said it will close one of its downtown stores this winter, with Bentley's Coffee replacing it in 2020.
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"Our vacancy rates for office and retail are near historic lows yet Salem Center continues to struggle, the former Nordstrom building is still dark and no one is even considering new development on the northern side of downtown," Arthur said.
Failing to link the two problems is short-sighted, he said. "We have been approached by other downtown merchants who want to explore alternative locations if this issue isn't resolved."
Jimmy Jones, executive director of the Mid-Willamette Valley Community Action Agency, which offers services to the homeless, countered by saying, "I do not generally support blaming the homeless for the choices some businesses make.
"The city and the non-profits have an obligation to do more to end homelessness, but folks need to remember that this situation did not appear overnight and it will not be solved tomorrow," Jones said. "We need the support of the business community and the chamber (of commerce) if we have any hope of turning this tide."
Alex Rhoten, a Salem real estate broker, said the departure didn't come as a surprise, with retailers "clustering along" Interstate 5.
Still, Rhoten questioned the future of the T.J. Maxx space. "It seems like services for the homeless (are) currently the big demand," he said. "Is that use the next occupant? Time will tell."
Contact reporter Jonathan Bach by phone at 503-399-6714 or by email at jbach@statesmanjournal.com. Follow him on Twitter at @jonathanmbach.
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