Closure of Mervyns leaves giant empty space on McHenry

Two and a half months after announcing it was closing shop, little is left of the Mervyns department store that once helped define McHenry Avenue as a retail strip.

Bargain-hunting shoppers cleared the store of merchandise by year's end. A few tables, clothing racks and a pile of brooms is all that remains after 36 years in business in Modesto.

It's unknown what will fill the 61,000-square-foot building.

"We're looking for another retailer -- not an easy thing in this market," said Tim Bettencourt of Cosol Commercial Real Estate, which is looking to fill the department store space.

"It could be something other than retail: a supermarket or a call center. It's a great location. I've put retail on McHenry for years, and they seem to do well."

A bustling location in the center of town might not be enough to draw a major retailer these days, said Doug Sweetland, director of economic development at the Stanislaus Economic Development and Workforce Alliance.

"There may be alternative uses for the facility," Sweetland said.

If it does not remain retail, what does that mean for the rest of a shopping center where all but one store has cleared out over the past year?

"The draw, the anchor of that center was Mervyns, so everything there is affected," said Steve White, a CB Richard Ellis broker trying to fill the other vacancies near the former Mervyns space.

"I'm confident in the strength of the location," White said.

"Someone will take advantage of a big-box vacancy. Then, we'll benefit from the new kid on the block."

Over the past year, Mer- vyns hasn't helped the shops near it. Neighboring business people predicted it was on the way out and jumped ship before it left.

In addition to the department store closure, Mervyns vacated two additional storefronts in the center.

Only one store in the once-busy shopping center is still open. Hy-Step Corner shoe store occupies a space in the main complex behind the two banks that flank the center. The shoe store, which has been around Modesto for 40 years, moved into the center 12 years ago.

"We have a loyal clientele, and don't think (Mervyns leaving) is really going to affect us," said Leslie Bush, assistant manager of Hy-Step.

Four other former Mervyns sites in the San Joaquin Valley are facing similar challenges, filling large spaces at a time when retailers are hesitant to expand.

Stockton, Manteca, Sonora and Turlock lost Mervyns stores larger than Modesto's. A Kohl's store will move into the former Mervyns location in Merced.

The Mervyns' closures follow years of financial troubles and came five months after the company filed for bankruptcy.

Bee staff writer Eve Hightower can be reached at ehightower@modbee.com or 578-2382.

This story was originally published January 6, 2009 at 2:56 AM with the headline "Closure of Mervyns leaves giant empty space on McHenry."