Another empty storefront as Rexall announces downtown store closure

All day Wednesday, a steady stream of shoppers filtered in and out of the Rexallon Richmond and Dundas,clutching bags stuffed full of deodorant, soap and antacids.

The scene could lead passersbytothink the drugstore's business was booming, were it not for a brightyellow sign boasting a "store closing sale" in bold-faced type.

"Rexall is reviewing its store portfolio and scaling its retail footprint to fewer but stronger stores," said spokesperson Darius Karus in an email, adding that the brand is relocating employees to other locations where possible.

Rexall's closure comes as the city undergoes significant street construction downtown, which has meantadisruption totraffic flow in the core,said John Winston, general manager for Tourism London.

In that context, Winston called the Rexallclosure'disconcerting' but unsurprising.

"Rexall is a national brand retailer, and for them to make a decision to leaveis not encouraging for other brand retailers to consider the core in terms of investing their businesses in the downtown," said Winston.

Store vacancies can further discouragetourists and other visitors from visiting downtownwhich results in a vicious cycle for business, he said.

"The more vacancy rate increases, the less of a demand or desire there is to shop in the core," he said."I think it's a significant development and one I hope doesn't go further."

The Rexall closure means another empty storefront on London's prominent Richmond St. andDundasSt. intersection. Kitty-corner from theRexallis London's Market Tower, whichdespite abid byFarhiHoldings Corporation to move the health unit headquarters into the buildingalso remains empty at this time.

FarhiHoldings Corporation also owns the space thatRexallis about to vacate.

What business owners on Dundas say

Andrew Kim manages the D&R Smoke Shop across the street from the Rexall, and says he noticed a drop in customerswhen the #2 busline was re-routed off of Dundas and Richmond.

"This used to be the focal point of the transfer for transit, butfor the last almost two months now... We have lost lots of traffic flow in this area," said Kim.

"All of the merchants over here in thedowntown core have lost significant customers, which means big business loss as well."

Bikini Paradise manager Carley Gallawayalso lost a bus stop when the construction on Dundas St. began.

"Buses with random people come off, they see it, kill time, they come in But unfortunately it's not happening any more," said Gallaway."Hopefully the construction will be good when it's done, but it's just getting through the two years."

Gallawaysaid her store has compensated for some of the loss in foot traffic by selling items online.

Kristofer Laing, manager of London Rock, said he's noticed more people are opting to take the bus to either Masonvilleor White Oaks mall, and staying away from downtown altogether.

"It seems like everyone's taken a hit," said Laing, adding that he thinks protected bike lanes on Dundas St. would help bring more shoppers back to the area.

'We just go back to the drawing board'

Janette MacDonald, CEO of Downtown London, said she actually spent some time speaking with Rexall,trying to convince the brand to stay. But now that the decision's been made, MacDonald said she's confident the space will soon attract a new tenant.

In fact, Downtown London has already spoken to some prospective tenants who are interested in the location, although MacDonalddeclined to say what kinds of businesses they represent.

She said that going forward, her group is focusing on recruiting more independent shops, rather than large retailers who have to go where the corporate wind blows.

"A hole atDundasand Richmond's not very helpful, but the beauty of it is that it's renovated now and it should be able to attract a pretty good business," she said."As one goes hopefully another one comes in."