Back in 2012, PREIT purchased 901 Market St., a building which is part of the Gallery Mall and most prominently has been home to Kmart for many years. When we first told you about this story, we expressed optimism that this purchase could finally signal a change we've been craving for years at the Gallery, as PREIT became the primary property owner for most of the properties that compose this less-than-perfect urban shopping mall. We also mentioned that a plan to turn the mall inside out, with stores opening onto Market Street, would be announced. Clearly, such a plan would come at considerable expense but would completely transform the pedestrian experience on Market Street and open up the mall to a giant new potential customer base.
It's been about a year and a half and we haven't heard any concrete plans for renovations to the mall. Last week though, word came out that Kmart would be closing its location at the Gallery. When the mall opened in 1977, this space was home to Gimbel's, which moved from across the street. Over the years, Stern's, Clover, and finally Kmart occupied the space. Now, according to Philly.com, PREIT will be converting the space from a large store into a collection of smaller stores that are integrated with the rest of the mall. This is due to the fact that many people simply used the Kmart as a pass-through to get to the mall itself- not exactly a great way to operate for a retailer.
Does this mean that the Gallery could soon be taking that next step? Is Kmart the first domino to fall in what will be a years-long renovation and transition for the mall? Will Market8 end up being the second casino choice for Philadelphia, and if so what impact would that have on plans for the Gallery? And finally, will earlier plans for the property, which included the construction of two towers above, someday come to pass?
Stay tuned, folks. We should have at least some of those answers pretty soon.