By Ashley Fletcher Frampton
aframpton@scbiznews.com
Published May 17, 2010

Saks Fifth Avenue is leaving downtown Charleston after 15 years, the company announced today.

Later this year, Forever 21, a national retailer of affordable apparel and accessories, will take over the high-end department store’s space in Majestic Square, according to The Beach Co., which developed the corner of King and Market streets in 1996.

Anchor tenant Saks Fifth Avenue occupies 33,000 square feet in the 225,000-square-foot mixed-use Majestic Square development. The store will close by July 17.

Also in July, Saks plans to close stores in Portland, Ore., and San Diego.

“In the ordinary course of business, we evaluate the productivity, profitability, and potential for each of our stores and may determine it is appropriate to close a store from time to time,” Steve Sadove, chairman and CEO of Saks, said in the company’s announcement. “The planned closing of our Charleston store is consistent with our focus of utilizing our resources in our most productive stores.”

Saks said it will offer transfer opportunities or severance packages to its Charleston employees, which total about 60.

“Store closing decisions are never easy,” Sadove said. “We are certainly appreciative of the many loyal Charleston associates, some of whom have been with Saks for many years. We are committed to providing needed assistance to our associates during this period.”

New York-based Saks Inc. operates 53 Saks Fifth Avenue stores and 55 Saks Off 5th stores.

Los Angeles-based Forever 21 is scheduled to open at the end of 2010, The Beach Co. said.

The King Street location will be Forever 21’s first store in South Carolina and, according to Larry Meyer, executive vice president, could create as many as 150 jobs.

“Forever 21 is sure to increase the foot traffic for King Street,” said John Darby, president and CEO of The Beach Co. “Securing a top international retailer like Forever 21 is a huge addition to downtown Charleston and will undoubtedly benefit the entire retail shopping district.”

Forever 21 will sell five brands of apparel and accessories for women, men and children.

The company operates more than 480 stores worldwide.

Reach Ashley Fletcher Frampton at 843-849-3129.