Crate & Barrel is closing its downtown Minneapolis store after doing business on Nicollet Mall for more than 18 years.
A spokeswoman for the upscale contemporary home furnishings chain said Wednesday that the company wants to direct its attention to the new furniture store set to open in Edina's Galleria mall in mid-March.
The Galleria store, which eventually will be Minnesota's only Crate & Barrel, will be nearly three times as big as the downtown shop and will offer extensive furniture lines plus housewares and accessories.
"It's not that we're pulling out," said Bette Kahn, a spokeswoman with the Northbrook, Ill.-based chain. "We're building a much larger store than we can have in downtown Minneapolis, and it's got to be in a spot with lots of traffic."
The Jan. 27 closing won't offer any deeper discounts than the normal after-Christmas sales, Kahn said. Any unsold inventory will be moved to the Crate & Barrel in Southdale. That store also will close when the Galleria location opens.
Rumors had swirled for some time that Crate & Barrel would exit its downtown store, which it opened in the Young Quinlan Building at S. 9th Street and Nicollet Mall in 1989. Kahn said that the store was not losing money and that slowing sales didn't drive the decision to leave downtown.
Retail consultant Jim McComb said he wasn't surprised to hear about the store's closing. When Target opened across the street, McComb said that it was "great for downtown, but not so great for Crate & Barrel," which sells trendy and upscale housewares.
"Look at what Target is doing in those categories that Crate & Barrel sells," McComb said. "Target is selling designer stuff at very competitive prices."