Retailers Fleeing Detroit

Posted by: Tim Halbur

19 June 2009 - 5:00am

As recently as the turn of this century, retailers were taking a chance on downtown Detroit. But today, Starbucks, Borders and others are pulling their stores out.

With a shrinking tax base and a 22% unemployment rate, retailers are having a hard time justifying remaining in Detroit.

"One of the few remaining bookstores is the massive used-book outlet John K. King has operated out of an abandoned glove factory since 1983. But Mr. King is considering moving his operations to the suburbs.

Last week, Lochmoor Chrysler Jeep on Detroit's East Side stopped selling Chrysler products, one of the 789 franchises Chrysler Group LLC is dropping from its retail network. It was Detroit's last Chrysler Jeep store.

"The lack of retail is one of the biggest challenges the city faces," said James Bieri, president of Bieri Co., a Detroit-based real-estate brokerage."

Full Story: Retailers Head for Exits in Detroit

Source: The Wall St. Journal, June 17, 2009