SIOUX FALLS, S.D. (KELO.com) -- Online sales have negatively impacted sales tax collections by the State of South Dakota and City of Sioux Falls.
Besides the tax problems, stores physically closing could be a problem.
According to a study by Business Insider, so-called "Big Box" stores and mall anchor tenants could see major closings in the new year. The publication notes that this can then "trigger a multidecade downward spiral for mall owners."
While there is no specific information about any Sioux Falls stores closing, businesses that have locations in Sioux Falls are included on the BI closure list.
Stores operating in Sioux Falls slated for closings nationally, according to the website include:
- Walgreens--600 stories predicted to close. (Standalone stores in Sioux Falls)
- Teavana--379 (Empire Mall)(No closure date given, all stores closing)
- Gymboree--102 stores (Empire Mall)
- Bon-Ton Stores--40 stores (Younkers, Empire Mall)
- Sears--18 stores (Empire Mall)
- Macy's--30 stores (Empire Mall)
- Target--12 stores (Empire East, Dawley Farms)
Except for Teavana, again, this does not mean any stores in Sioux Falls are closing. The Sioux Falls economy is healthy, with low unemployment and good job growth, according to Sperling's Best Places.
However, BI notes that if a major anchor tenant does leave a mall, it causes a domino effect.
"Such closings often trigger clauses that allow the remaining mall tenants to exercise their right to terminate their leases or renegotiate the terms, typically with a period of lower rents, until another retailer moves into the vacant anchor," according to Business Insider.
According to the report, some mall owners like Simon Propery Group--which owns The Empire Mall in Sioux Falls--have successfully sued businesses such as Teavana and Whole Foods not to close stores in their malls.
The report says that only the lowest performing malls are at risk nationally--which is about 300 malls. No Sioux Falls malls were on the BI list.
Meanwhile, other retailers are growing, some of which also have a presence in Sioux Falls. These include Aldi, Ross Stores, TJ Maxx, Dollar General, and Dollar Tree.
