2009 a year of drama for retailers

By Rachel Tobin Ramos

The Atlanta Journal-Constitution

The retail story of 2009 was a remarkable drama.

It was the year of the bargain hunter who flocked to Wal-Mart and dollar store chains, the year of dwindling department store profits and the year when even grocers felt the pinch.

As the economic malaise deepened and cost many Americans jobs in 2009, shoppers put the brakes on the rampant (and especially luxury) spending that had marked the run-up to the recession. In other words, what was good for Wal-Mart was bad for Saks Fifth Avenue, said Howard Davidowitz, chairman of Davidowitz & Associates Inc., a New York retail and investment banking firm.

Here's a list of 10 events that changed the retail landscape locally and nationally in 2009:

Discounters: More than 80 percent of Americans visited a Wal-Mart this holiday season, a 5 percent increase, said consumer expert Britt Beemer, CEO of America's Research Group, who called those "unheard of numbers."

Jewelers: Hundreds of jewelry stores closed nationwide. In Atlanta, Mednikow is closing its Phipps Plaza store. One bright spot: Brown & Co. opened a second store here.

Bankruptcies: Local chains Limetree and Spa Sydell filed for bankruptcy protection, as did national chains Ritz Camera, Filene's Basement and Crabtree & Evelyn.

Disappearing acts: Brands that shuttered in 2009 include garden retailer Smith & Hawken, outdoor gear maker Eddie Bauer, apparel maker Steve & Barry's, and the Goody's and Mervyn's chains.

Developers: Especially in Atlanta, developers of retail projects felt the burn. Progress halted at Ben Carter's Streets of Buckhead and Stan Thomas' Prospect Park in Alpharetta. Still, Sembler opened Canton Marketplace and Faison cut the ribbon on North Logan Commons in Loganville.

Airport retail makeover: The timing couldn't have been worse as Hartsfield-Jackson International Airport unveiled luxury shops such as Brooks Brothers, Bulgari and Salvatore Ferragamo.

Home front: Home Depot laid off thousands of employees as it shuttered the Expo and Yardbird divisions and streamlined corporate operations.

Furniture: Beverly Hall, a family-owned fine furniture store, began liquidating its Buckhead store after 64 years in the area. Its Roswell location will remain open.

No more magic: The Magic Johnson 12-plex cinema closed at Greenbriar Mall, 13 years after a star-studded opening.

Cheap but still trendy: Swedish retailer H&M opened its fifth Atlanta store since 2008.