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Olive Branch lands its first PETCO store in Village Shops shopping center

Apr 15, 2011

Memphis Business Journal - by Andy Ashby

Date: Friday, April 15, 2011

 

Olive Branch is seeing increased interest from national retailers, starting with a new pet supply store.

PETCO Animal Supplies Stores Inc. has signed a 10-year, 12,500-square-foot lease at The Village Shops shopping center.

The privately held company, an operating subsidiary of holding company PETCO Animal Supplies, has more than 1,000 stores in 50 states. PETCO has three locations in the Memphis market: 3468 Poplar Ave., 6015 Stage Road and 7126 Winchester Road.

PETCO prefers to be located in shopping centers with established retailers such as Kroger, according to Brooke Simon, company spokesperson.

“We’re a neighborhood store and we like to place our stores in neighborhoods which are growing,” she says. 

The company’s new building will be constructed on the east end of The Village Shops, a 186,500-square-foot retail center at 7501 Goodman Road.

After the new PETCO location is built, there will be enough land for an additional 28,000 square feet of retail space to be built.

John Reed, broker with The Shopping Center Group LLC, represented the landlord, Thompson & Crews Development LLC, in lease negotiations.

“When we take a new listing, we identify what retailer categories are not yet in a market,” Reed says. “Olive Branch has never had a national pet store so we have been chasing PETCO and others to fill that gap.”

Mark Traylor, director of retail properties for Boyle Nashville LLC, represented PETCO in lease negotiations.

The property is located at Goodman Road and Highway 78. Each street has a traffic count of 33,000 vehicles daily. Reed calls the intersection the “Main and Main” of Olive Branch, and the shopping center has a tenant mix that draws other retailers.

“Kroger brings daily repeat shopper visits to the center,” he says.

Kroger is expanding its store from 55,000 square feet to 80,000 square feet.

“That corridor has just exploded,” Joe Bell, spokesman for Kroger, says. “As that whole area grows, we’re going to expand our store with it.”

The Kroger expansion could be completed in 2012.

“There are four or five national retailers that are about to sign leases in Olive Branch that have never been in the market,” Reed says.

Retail development throughout the Memphis area market, which includes DeSoto County, is nowhere near 2005 levels, but is on an upswing, according to Reed.

“Two years ago, retail activity was for the most part confined to two categories: restaurants and discounters,” he says. “Those categories are still very active, but we are also seeing national soft and hard goods retailers touring and signing leases.”

Crews Realty LLC owns the second phase of The Village Shops where PETCO’s new store will be.

The company hasn’t chosen a general contractor yet, but architecture firm Thoda and Associates PLLC is working on the design.

Jason Crews, founder of Crews Realty and a partner in Thompson & Crews Development, hopes to have work started by July 1 and be completed by the end of the year.

The shopping center has 6,500 square feet of vacancy, but is in talks with a potential tenant which could take 5,000 square feet of that. The property also has a 1.1-acre outparcel for sale. Other outparcels are occupied by Applebees, Burger King, McDonald’s and Hampton Inn, among other national retailers.

“We’ve got a lot of people interested in the site,” Crews says. | Memphis Business Journal

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