Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, April 5, 1990 TAG: 9004050001
SECTION: CURRENT PAGE: NRV1 EDITION: NEW RIVER VALLEY
SOURCE: KIM SUNDERLAND CORRESPONDENT
DATELINE: CHRISTIANSBURG LENGTH: Long
"This is the hub of economic development," said John Lemley, town manager. "I've said it before and I believe it now."
Construction of the New River Valley Mall and the Market Place along a stretch of U.S. 460 annexed by Christiansburg created a retailing boom for the town.
Total receipts, which include retail sales, professional fees and other revenue, have increased dramatically in Christiansburg. In just four years, receipts rose more than 60 percent, from $159 million in 1985-86 to $255 million last year.
Although development may level off, Lemley said, retail sales should continue to climb.
"We have never had anything like that mall," Lemley said.
The New River Valley Mall, which opened in 1988, is doing better than ever, according to Stan Malone, mall manager.
After five stores opened in the past six months, the mall is almost 80 percent occupied. With room for 80 stores, Malone said he thinks it will be full in about two years.
Crown American Corp., which owns the mall, had a strategy for assuring its success.
Demographics compiled by the owners showed that building away from existing downtowns would spur development around the mall, for example, drawing shoppers from stores in other areas.
Sure enough, a shopping center called the Market Place soon opened across U.S. 460 from the mall. A string of restaurants and gas stations have quickly sprung up along the highway. A smaller strip development, Food Lion Plaza, was built within a short distance of the mall, across the road from an older development, Northgate Village Shopping Center.
Despite some retailing relocations and vacancies, the strip centers appear to be stable, with their own appeal.
The Market Place for example, draws customers with three anchor stores: Wal-Mart, Brendle's and Goody's. Sonny Nicholson, project superintendent at the site, said construction of the remaining buildings in the complex should be complete by mid-April.
More than 90 percent of the strip center is preleased, so new retail stores will be moving in soon.
Sidney's clothing and Hallmark left Northgate, where Harris-Teeter, SuperX and a free-standing McDonald's are located, and now rent mall space. "These are basic changes," said Lemley. "They are staying in town, but just moving around."
Downtown is thriving despite the newer centers, according to officials and business owners. "We haven't really been affected by the mall, but it's hard to tell," said Sam Nixon of Nixon & Associates insurance and a partner in Old Town Mall downtown.
"If the [New River Valley] mall weren't here, then things would be different, but we've certainly felt no negative effects from it," he said.
A noticeable change downtown is the transition to more professional offices. "The municipal area . . . lends itself to the small shops, restaurants and offices," said Lemley. In all probability, downtown Christiansburg will become even more of a professional hub.
Town Council approved plans in January to buy three buildings on East Main and Pepper streets for $320,000. Plans include expanded government office space and increased parking.
Montgomery County bought property directly across the street in March for $565,000. Immediate plans were not available, but studies have shown the county should build a health department building within five years and a county administration building within 10.
Rudy Rash, Christiansburg planning director, said the malls actually help the downtown because the increasing diversity of shops keeps shoppers in the area who might have driven to Roanoke. The increase in shoppers has created more businesses.
"Look at the county decals on the cars parked around the area at local stores," said Rash, referring to cars from Pulaski, Floyd and Giles. "You can see that people from further out are coming here to Christiansburg to shop."
Although a recent survey by an urban affairs and planning student at Virginia Tech showed a 23 percent vacancy rate at shopping centers and malls in Blacksburg, Christiansburg and Radford/Fairlawn last fall, local officials predict continued growth for retailing. "Since retail here draws from such a large area, it's hard to say when market saturation will occur," Rash said.
The saturation point may not occur soon, said Paul Mitchem, spokesman for the New River Valley Economic Development Alliance.
"Retail growth in this area is due to the population growth," Mitchem said. "And people have good benefits that will allow them to continue buying items such as food and clothing even after some of the recent layoffs." Since December, 1,300 layoffs have been announced in area, including the closing of AT&T's Fairlawn plant.
An older shopping center in Christiansburg, Hill's Plaza off Roanoke Road, has seen some of its stores close, yet it is surviving.
Dave Easterly, Hill's Department Store general manager, said the store is doing very well at the site it has occupied for almost 20 years because it has its own customers and the mall's newness is wearing off.
"The layoffs will affect most all stores, but we, as a discount store, will probably be hurt the least."
The plaza has seen a Dollar General Store close and a video store relocate, leaving vacancies.
"But this location is fine," Easterly said. "With traffic from [U.S.] 460, we will have no problem here."
Retailing also has helped employment in Christiansburg. Manager Malone said the mall has 2,000 part-time and full-time workers.
"We're not pleased with some of the recent layoffs or the AT&T close-down, but retail hiring has helped cushion the blow," Malone said, also stressing that retail hiring depends on consumer spending.
One way retailers can increase shopper spending is by finding a niche. "Stores need to find a segment of the market that is not being taken care of if they want to make money," Malone said.
Growth at the mall has been just under 1 percent per quarter. "But that's steady growth," Malone said. "And that's healthier than spurts and jumps."
Malone said the future looks good for the mall. He said such larger department stores as Hess's, Sears and Leggett have room to expand.
"Another wing on the mall is not out of the question," said Malone.
In the future, retail sales will be an indicator of changes in other areas of the economy, according to town manager Lemley. "If retail sales decrease, which they haven't in the past five or so years, then that indicates that something else is causing it," he said.
Memo: correction