Bloomingdale's shops sites in G'town, East End

Eleni Kretikos
Washington Business Journal

Federated Department Stores executives spent time in the District this week scouting sites for a new Bloomingdale's concept that caters to a young and hip crowd.

The real estate execs July 12 toured at least one site in Georgetown -- the former Staples building at 3307 M St. NW, owned by Georgetown developer Anthony Lanier. Lanier expects the four-story building to be vacant, with the exception of a Cingular Wireless store, within 90 days.

Federated also may have had time for a quick driving tour through the entertainment and shopping-heavy East End, home to retail-friendly properties such as Yeni Wong's building at Seventh and H streets NW in Chinatown, Douglas Development's Atlantic Building, 950 F St., and Akridge's Carroll Square, 975 F St.

Sources say Bloomingdale's would like to open a smaller store, of 20,000 to 30,000 square feet, aimed at the trendy and urban consumer. The mini-department store would sell a smaller-than-typical line of men's and women's apparel, cosmetics, shoes and accessories.

The Georgetown site could provide up to 50,000 square feet. Lanier is quick to say he's not in official negotiations with Federated.

Developer Douglas Jemal has heard of Federated's plans but says he hasn't been in contact with the company since 2002, when Federated pulled the plug on a deal to open a Macy's in Jemal's Woodies building at 11th and G streets NW.

"Maybe if they brought me an apple pie I would accept them again," Jemal says, but he quickly warms to the idea: "There are places where I could possibly put them."

Susan Linsky, special assistant in D.C.'s economic development office, says she was not aware Federated execs were in town this week but acknowledges they have visited at least twice in the past year.

"They know it's a hot market," she says. "They just have to find the right property."

Formats in flux
Sources say that while Federated seems serious about opening at least one, and possibly two, stores in the District, the company may not know exactly what it wants or where it wants to put it.

Federated, which earlier this year merged with May Department Stores, is still trying to digest its massive new portfolio and settle on which consolidations and closings are best.

A Federated spokeswoman would say only that "in our recent history, we have certainly experimented with various formats around the country."

We're worth it
Retailers, and department stores specifically, are realizing their future depends on driving traffic to nontraditional, non-shopping-mall locations.

"Department stores are doing this because they can't expand in malls anymore," says Mike Pratt, a principal of Madison Retail Group. "They are looking into other alternatives."

Last year, Bloomingdale's -- whose typical stores are 250,000 square feet -- opened a 90,000-square-foot store in New York's SoHo neighborhood, which is full of upscale shopping.

In that way, the Georgetown location makes sense, considering its fashion renaissance in the past few years.

The tony neighborhood has added Anthropologie, Intermix, Sisley and Wink, among others. Barneys New York is close to a deal for a 10,000-square-foot Co-op store next to M Street's Barnes & Noble.

"This is the recognition of the fact that we're a market worth going after," says Len Harris, vice president of retail leasing for Vanguard Realty Group. "For the longest time, [retailers] weren't sure. We're real, we have money and it's worth doing business here."