Sam’s Club closes store

Opens door for relocation to Capitol Heights

Friday, August 5, 2005

Sam’s Club, a longtime anchor of the ¹9­acre Landover Crossing shopping center, has closed its doors, with plans to move down the road to the Ritchie Station Marketplace when the new mall opens next year, according to business officials.

Sam’s Club, a wholesale food store with more than 46 million members nationwide, has long been in discussions with The Michael Cos. of Lanham, a real estate agency, to move to the $250 million Ritchie Station project in Capitol Heights.

The ¹¹2,600­square­foot store closed this week, and displaced ¹80 employees after ¹¹ years in the Landover Crossing shopping center, said Rhoda Washington, a Sam’s Club spokeswoman.

According to Arthur Turner, chairman of the Prince George’s Chamber of Commerce’s economic development committee, Sam’s Club officials and the shopping center could not agree on leasing terms. The landlord, Turner said, wanted Sam’s Club to sign a long­term lease to anchor the strip mall. Sam’s Club officials, however, knew they would soon move the store to Ritchie Station, Turner said. Sam’s Club officials decided to close the store and move merchandise into other locations.

Employees were given a 60­day severance package and allowed to apply for jobs at other company locations, including those of its parent, Wal­Mart Stores. Terms of the package and the leasing agreements were not disclosed. Sam’s Club representatives did not disclose last year’s profit or revenue numbers.

‘‘We couldn’t negotiate our lease,” which expired Sunday, Washington said. ‘‘It was a very difficult decision because we really wanted to stay. We’re trying to make this as smooth a transition as possible.”

When asked about the discussions to move to the Ritchie Station Marketplace, Washington said only that Sam’s Club officials were viewing ‘‘other sites” for the Prince George’s store.

Sam’s Club employees stood outside the store Wednesday morning, offering free bottled water and dinner rolls to Sam’s Club members as they shopped there for the last time. One employee said the event was supposed to ease the transition for members who shopped at the Landover location.

Sam’s Club departure from the ¹73,495­square­foot Landover Crossing shopping center is probably the knockout blow to a mall that last year lost Circuit City to the Boulevard at the Capital Centre in Largo. The mall now has a liquor store, nail salon and two fast­food restaurants. Without an anchor store, the shopping center’s days are likely numbered, Turner said.

‘‘I would anticipate that those stores are not far behind,” he said. ‘‘They’re real close to going.”

Developers of the ¹30­acre Ritchie Station project have also talked with officials from Wal­Mart, Kohl’s and Sears Grand about occupying spaces in the development.

With FedEx Field and a used­car dealership nearby, Landover has now become a graveyard for Prince George’s County business. Three years ago, the ¹.2­million­square­foot Landover Mall closed after losing Hecht’s to the Bowie Town Center. Though Sears stayed open, the mall was largely filled with discount stores.

Sam’s Club, which, with 550 stores, is the nation’s second largest warehouse buying club behind Costco, reported sales of $34.5 billion in 2004, according to Hoover’s, an online business information service.

Sam’s Club’s now has ¹2 locations in Maryland, including stores in Laurel, Gaithersburg and Frederick.