Sears Holdings Corporation will lease 520,000 sq ft of retail space to Primark over the next 12 to 18 months, allowing the Irish retailer to open seven stores.
Sears will retain a “significant” presence in six of the seven locations, with a streamlined store format of up to 100,000 sq ft of selling space at each store.
Two locations have been confirmed: Staten Island Mall in New York and King of Prussia Mall in Philadelphia.
Primark will take approximately 70,000 sq ft in Staten Island Mall and Sears will continue to operate in approximately 70,000 sq ft of adjacent space. The Primark store is expected to open in 2016.
In Philadelphia, the value retailer will occupy over 100,000 sq ft on the lower level of the King of Prussia Mall. Dick’s Sporting Goods - another subtenant of Sears - currently occupies approximately 75,000 sq ft on the upper level. Sears will no longer operate a retail store at the mall.
The remaining five locations and projected timings are yet to be announced.
“These lease agreements with Primark illustrate how Sears Holdings is strategically transforming one of the largest retail real estate portfolios in the US over time while continuing to operate its existing stores in large but rationalised selling space,” said Jeff Stollenwerck, president of real estate for Sears.
Primark announced in April that it would open a 70,000 sq ft store in Boston towards the end of 2015. It has stores in nine countries in western Europe.