Retailers looking for fresh starts

By Stuart Eskenazi
Seattle Times staff reporter

"Slow," the signs warn. "Watch for pedestrians."

The strip mall of stores selling value-priced goods opened in 1993 to cash in on Canadians' weakness for spending their money across the border. The timing, however, coincided with the tumble of the Canadian dollar. The mall stayed full until the late 1990s, but today more than half of its 32 storefronts are vacant. Windows are whited out, signs above them serving only as reminders of who fled.

A sign of hope is positioned along the road — a large one saying "For Lease." The mall's new owner, ORIX Capital Markets LLC of Dallas, which took over the majority of the mall in May after the property emerged from foreclosure, has distributed a brochure to tenants laying out its plans — a mixed-use, value-oriented retail center of stores and restaurants. ORIX describes it as a "new beginning."

Whatcom County retailers that rely heavily on Canadian customers welcome fresh starts. Business, already bad, slowed even more after Sept. 11, when Canadians grew reluctant to cross the border.

In 1991, when the Canadian dollar ended the year at 87 cents on the U.S. dollar, 28 million people crossed the border into Whatcom County. In 2001, when the Canadian dollar value dropped to 63 cents, 12.8 million crossed into the states.

The International Cafe and Motel & Casino in Blaine, which depended on Canadians for about 50 percent of its business, laid off about half of its staff after Sept. 11. Nearly 11 months later, owner-manager Steve Lawrenson still works in the kitchen twice a week to reduce overhead.

Retail growth has been relatively flat across Whatcom County, but it is not flat-lining. Annual taxable retail sales increased 23 percent from 1991 to last year, compared to 67 percent in King County.

Bellis Fair Mall in Bellingham opened in 1988, when the Canadian dollar was peaking. When the Canadian dollar devalued, sales skidded. The mall's marketing focus shifted south, luring residents of Skagit, Island and north Snohomish counties to enjoy a relaxing shopping experience in Bellingham instead of tackling Seattle.

It seems to be working. Bellis Fair vacancies have been rare, and sales have increased modestly each year since the mid-1990s, said Bob Buchanan, general manager.

Stuart Eskenazi can be reached at 206-464-2293 or seskenazi@seattletimes.com.