[ALERT] DSW Walking Away From Atlantic Station, Replacement In The Works

DSW (Designer Shoe Warehouse) at Atlantic Station is closing as of January 24, according to signage at the store.  The national shoe retailer was one of the mixed use development's original tenants in 2005.  Real estate sources indicate that the closure was anticipated and that a replacement tenant has already been identified.  

"Atlantic Station has been aware of DSW’s upcoming departure as part of their natural lease expiration. We’ve been actively working toward a replacement tenant that supports Atlantic Station’s long-term retail merchandising vision. We look forward to sharing details once a new lease is finalized," according to a Hines (Atlantic Station) spokesperson.  

The roughly 27,000 square foot store has a lobby located at street level (1374 Atlantic Drive) but the store itself is essentially located above the Publix supermarket, which as ToNeTo Atlanta was first to report December 1, is, like another small format store in DeKalb County, slated to close December 27. 

Although publicly traded, DSW and its parent company Designer Brands Inc. (NYSE: DBI) is affiliated with/part owned by Schottenstein Stores, a holding company that also has stakes in American Eagle and American Signature Furniture, which last month declared bankruptcy and is in the process of closing all of its Atlanta area stores.  

Food for thought: DBI trades at less than five bucks a share and is down about 8% YTD (year to date) while fellow Atlantic Station anchor Dillard's (NYSE: DDS) today trades at about $700 per share and is up roughly 55% YTD.  

According to online research, DSW has earlier this year closed at least three other stores across the country including those in Kalamazoo County, MI (November), Rockford, IL (September) and Louisville, KY (May).

Following the closure of the DSW in Atlantic Station, the Columbus, Ohio-based company will still operate about 500 stores across the country including eighteen in Georgia with several in metro Atlanta such as those in Buckhead Station in Buckhead, Cumberland Mall near Smyrna, Perimeter Village in Dunwoody, The Forum Peachtree Corners in Peachtree Corners, and Camp Creek Marketplace II in East Point, among others.  

Are you a frequent DSW shopper?  Where do you do the majority of your shoe shopping?  What tenant would you like most to see open in place of DSW (or Publix) at Atlantic Station?  

Please share your thoughts below.