Flagship Filene's Basement to shut for makeover
News sends shudders through downtown
By Kimberly Blanton and Steve Bailey, Globe Staff | January 27, 2007
The original Filene's Basement store, where the concept of discounting was invented, will close for up to two years while its building is renovated, creating a void in the heart of Boston's downtown shopping district.
The Downtown Crossing store will temporarily close to accommodate the massive redevelopment of the building where Filene's Basement is housed, according to two people with direct knowledge of the plan. The store is expected to close later this year and reopen once construction is finished.
Filene's Basement officials could not be reached for comment yesterday. The basement has eight other locations in Massachusetts.
Filene's Basement is not only a popular shopping destination among locals but is also one of the city's biggest tourist attractions. Even a temporary closing of the century-old store is a blow to downtown retailers who rely on the basement's foot traffic to lure shoppers to a district that has been struggling.
"They are the attraction in the area right now," Mayor Thomas M. Menino said of Filene's Basement, where he shops for suits. "I'm agitated. It means a lot to Downtown Crossing."
Smaller merchants, such as the owners of the pushcarts that line the streets, are particularly concerned about the basement's temporary disappearance.
When tourists emerge from the Downtown Crossing subway stop, "one of the first questions is, 'Where's Filene's Basement?' " said Linda DeMarco, who owns the Boston Pretzel pushcart. "I'm shocked to hear" about the store's planned closing, she said.
The Boston Redevelopment Authority said yesterday in a statement that it is "very concerned" about nearby retailers and plans to send officials downtown to talk with merchants next week.
"The city is paying close attention to the small business in the area," said spokeswoman Lucy Warsh.
Filene's Basement had originally planned to relocate temporarily upstairs during the renovation of its store in the two basement floors, which are part of a $625 million project to redevelop the former Filene's department store building. The project is to include a 38-story tower, condominiums, a hotel, office space, and retail stores.
But Filene's Basement executives decided that the disruption from the construction and from changing locations twice would inconvenience and confuse shoppers, according to the two people with knowledge of the plan. They asked not to be named before Filene's Basement made an official announcement. The original basement is expected to remain closed for between one and two years.
Developer Gale International and Vornado Realty Trust of New York bought the historic Filene's department store building last year after Federated Department Stores bought Filene's and shuttered the chain. Filene's Basement is a separate company from Filene's department stores.
Mayor Menino has enthusiastically backed the ambitious project to revive Downtown Crossing, and Filene's Basement has said it plans to stay in the redeveloped site.
Edward A. Filene founded Filene's Basement in 1908 as a way to sell excess merchandise from his father's department store upstairs. The basement pioneered the concept of bargains when it devised a system of automatic markdowns, where merchandise is discounted on a set schedule that customers can track.
Even as Filene's Basement opened other stores that also sell designer clothes for bargain prices, only the original basement in Downtown Crossing kept the unique automatic markdown program, selling items like Prada shoes and Hugo Boss suits for a steal.
Over the years, the Filene's Basement chain also became known for its famous bridal sales, dubbed the "running of the brides" because women would line up before the stores opened and then rush in to snag a deeply discounted wedding gown.
With more than 30 stores nationwide today, Filene's Basement has said it hopes to expand to perhaps 100 stores in the coming years. The chain has adopted a more upscale strategy, selling higher-end and higher-priced merchandise and building fancier stores in trendy neighborhoods.
One example is Filene's Basement's Back Bay location, which opened in September. The store, on Boylston Street, features flat-screen TVs, comfy chairs to lounge on, and individual dressing rooms. That's a stark contrast to the no-frills atmosphere of the original Downtown Crossing store, where clothes are commonly sold in bins and women share a big dressing room where they jostle each other to try on clothes and seize a moment at the mirror to inspect their latest finds.
Closing the original store temporarily will have an impact on the Filene's Basement chain, which had more than $440 million in sales last year, said Lee Backus, an analyst with Buckingham Research Group.
"Will it take a hit? Yes," said Backus. "But it's a scar, not a gash."
Kimberly Blanton can be reached at
blanton@globe.com, Steve Bailey is a Globe columnist. He can be reached at
bailey@globe.com or at 617-929-2902.