Marshalls, HomeGoods to open in District

by George McConnell

In the face of a severe recession, rising unemployment and a rash of companies going out of business, the Geary City Center, the shopping complex located at the corner of Geary Boulevard and Masonic Avenue, has managed to score two new tenants.

In a hearing that lasted less than five minutes, the SF Planning Commission voted unanimously on Aug. 6 to approve a proposal by Marshalls and HomeGoods to occupy two long-vacant spaces in the large complex. Under the proposal, the stores will occupy the second floor of the vacated Mervyns department store and the space formerly occupied by the Good Guys. Both retailers have ceased operations and filed for bankruptcy.

The four-story center, once solely occupied by Sears Roebuck Company, was renovated and partitioned to accommodate additional retail operations after Sears moved out. There are now nine businesses at the site: the Office Depot, Best Buy, City Dental, Payless Shoes, Subway Sandwiches, Great Tan, Edible Arrangements, Sally's Beauty Supply and Curves Gym.

The first floor of Mervyns remains vacant, but it is being actively marketed, according to Jim Ruben, who represents the owners of the center and spoke on behalf of Marshalls and HomeGoods at the meeting.

"This is an attractive location in the middle of a dense residential area with not a lot of opportunity for larger stores, so there is a lot of active interest. Since word went out that Marshalls is moving in, we've seen a spike of interest in the property," he said.

One commissioner remarked that she was glad that someone was finally moving into the site.

"It's just sitting there empty and it's terrible," she said.

The two spaces total 53,000 square feet and the entrance to both will be on the building's south side, on O'Farrell Street, according to Mary Woods, the city's project planner who presented the proposal to the Planning Commission.

Marshalls and HomeGoods are owned by Massachusetts-based TJX Corporation. The company was started in 1956 when it opened its first store, Zayre's, in Hyannis, Massachusetts. By 1962, it had evolved into a chain of discount department stores. Following the success of its T.J. Maxx division in the late '70s, it grew into the TJX Corporation.

In 1992, it launched HomeGoods, which offers off-price home basics, accent furniture, rugs and lamps.

In 1995, it purchased Marshalls, a discount apparel retailer. Marshalls has since grown to 800 stores and HomeGoods to 320 stores nationwide.

TJX also has a European retail division operating under the name T.K. Maxx, with 235 stores in the England, Ireland and Germany. The company now operates eight retail chains, according to TJX.

The Marshalls proposed for the Geary City Center will be the corporation's second location in San Francisco. Its first store has been operating downtown at the corner of Fifth and Market streets for many years.

Because the site had been occupied by a retail operation, the Planning Department recommended approval from the commissioners.

No opposition to the plan has come forth, Woods said, and no one testified during the public comment period.

In his remarks, Ruben noted that the owners of the shopping center felt it was the right location for a large retail operation.

"The economy seems to have bottomed out. Marshalls is willing to take a chance on this location, and I think the message that they have given to the rest of the retail community is that it's OK," he said.

One commissioner said she thought it was a good use of the site.

"I am personally excited because I love HomeGoods," she said. "I just hope the HomeGoods people buy the best quality line to put in San Francisco."

Another commissioner hoped the jobs generated by the new project would be filled by San Francisco residents.

Ruben said Marshalls anticipates 50 full-time positions and filling them with local residents is good business for them.

According to Woods, TJX wants to open both stores in time for the Christmas holidays.