A Bankrupt Borders is Not Good for the Rest of the Block

Turns out, I was a bit too optimistic about the state of the Back Bay economy.

Two weeks ago, Borders Group, Inc. filed for bankruptcy protection. Then, last week, the book store chain announced it would be closing 600 U.S.-based retail outlets this year. The Back Bay branch at 511 Boylston Street is scheduled to close by the end of April, along with five other Massachusetts-based stores.

Terrible news for so many reasons, not the least being that the closing will leave a gaping hole in the Back Bay retail scene, both figuratively and literally. Seeing as it is located in such a prominent location, having it boarded up, even for a short period of time, could have far-reaching effects.

On-site, shoppers going crazy for bargains

I dropped by the store on Sunday to see what I could see. Big posters declaring "20-40 percent off" and "Store Closing" covered all the windows on three streets -- Boylston, Clarendon, and Newbury.

Inside, a swarm of people who looked as excited as those heading to the horse races were pushing their way to find what they hoped to be dirt-cheap bargains. There were two huge lines at the checkout counters; apparently there was pent-up demand for Marlo Thomas’s biography at 20 percent off. (I did notice a fine coating of dust had already gathered on the stack of Scott Brown autobiographies.)

I heard one shopper say to his friend, “Why buy at 20 percent here when you can get 30 percent off, online.”  The irony of this statement was not lost on anyone.

Depressed, I left and started walking up Boylston. Quickly, my depression turned to despair. Turns out, that whole retail block is in trouble.

TD Bank has closed its Copley Square branch. More disturbing, the boutique has a “going out of business” sign in its window. Put this together with the empty space at Louis Boston, and you’ve got thousands of square feet of empty space in the neighborhood Boston magazine just claimed is the Best Place to Live in Massachusetts.

So, what now? What will take Borders’ place? Will the discount-bin at lower Boylston Street continue its crawl toward the public library or will it receive a jolt of quality with a new restaurant here and next door? (Question: is Payless shoe store looking to expand?)

News not all grim

There is a Panera Bread opening on the opposite side of Boylston Street, next to City Sports and the Shreve, Crump & Low store. That’s great. Another branch to go along with the 1,700 it already has in downtown Boston. (I had soup and a salad in there this week, BTW -- delicious, and low in calories.)

When Filene’s Basement and a Marshalls moved into the neighborhood, some residents were disturbed by the move “down market." Owners of The Talbots, next door, would probably agree.

Perhaps H&M or the Basement could expand into the Borders' space - they’re already in the Newbry building. I don’t think they will, nor do I think another bookstore chain will go in there. No Books-A-Million, no Barnes & Noble. The Gap seems to be a good fit but they just pulled out of Newbury Street. Why would they want to open another location, here?

The way things are going, the future Boston is pretty much going to be made up exclusively of Panera Bread, BoLoCo, Starbucks, and Dunkin Donuts restaurants, and nothing else. Oh - maybe a couple of 7-Eleven stores selling cigarettes and scratch tickets. And Bank of America branches on every corner.

Is a restaurant in store?

The Boston Herald says the Borders property will be snatched up. Restaurateurs consider the location to be prime real estate. I'm skeptical. The amount of money it would seemingly take to convert the property into a restaurant seems cost-prohibitive.

Others disagree, but I think the space is too small for a clothes store. Perhaps they could break the property into two pieces; the back, Newbury Street section becoming a single-floor retail outlet, similar to Victoria’s Secret, next door. On Boylston Street, someone could reposition the space as a high-end women's and/or children's clothing shop.

What do you think should go in there?