SAN DIEGO COUNTY, Calif. – Two Kohl’s department stores in San Diego County are set to close this weekend, adding to a growing list of vacant storefronts in the area. The closures, part of a larger nationwide trend, reflect the ongoing shift in consumer behavior towards online shopping.
The Kohl’s locations on Balboa Avenue in Clairemont Mesa and El Camino Real in Encinitas will cease operations on Sunday, marking the end of an era for these local retail fixtures. These closures are part of Kohl’s plan to shutter 27 underperforming stores across 15 states, representing less than 3% of its over 1,100 locations.
“Well, it’s a sign of a long-term trend in retailing,” said Alan Gin, economics professor at the University of San Diego. Gin attributes this trend to the rise of e-commerce, stating, “Once Amazon took off and it became convenient to shop online and have the products delivered. That started the trend, and the pandemic accelerated it.”
The Kohl’s closures follow recent announcements from other major retailers. Macy’s plans to close 150 stores over the next three years, including locations in Mission Valley and Otay Ranch Town Center. Party City and Big Lots have also announced store closures.
The increasing number of vacant retail spaces poses challenges for the commercial real estate market. Mark Powell, a local commercial real estate broker, explained, “The bad part about it is you’re going to have these empty stores, and what that does is it really affects the commercial real estate market, because commercial real estate is sold due to how much money it’s generating through rent.”
To address this issue, some communities are exploring alternative uses for empty storefronts. Powell mentioned examples such as indoor pickleball courts and tech hubs. “There’s actually a company that will facilitate that and help you design it, put in the pickleball courts,” he said. Another option is repurposing buildings into data centers to support AI technology.
While some suggest converting vacant stores into housing, Powell noted that this option is often financially impractical due to the high costs of retrofitting retail spaces for residential use.
As the retail landscape continues to evolve, businesses and property owners will need to get creative in finding new uses for these large, empty spaces. The closures of these Kohl’s stores serve as a reminder of the ongoing changes in consumer behavior and the challenges facing traditional brick-and-mortar retail in the digital age.
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