The rising popularity of online retail sales is pushing many big-box stores out of the market, resulting in a surge of chain bankruptcies and corporate restructurings that have closed hundreds of stores across the country. Two such closings will affect Grand Traverse County when MC Sports and Kmart close their doors this spring.

But while Traverse City may not be immune from the big-box decline, developers and officials say the region is still a bright spot overall in the market – with new opportunities coming for employees and buildings affected by the local closures.

In Acme Township, Kmart is expected to close its doors at 6455 US-31 by the end of March – one of 10 Michigan locations closing this year. The store employed roughly 50 part-time staff and a handful of full-time positions, estimates Acme Township Supervisor Jay Zollinger. “I think you’re seeing the same thing all over the country, where (chains) are looking to make changes based on the demographics of the market and online retail,” he says.

While Zollinger says the closure is likely to have some community impact – Kmart had the most cost-effective pharmacy options for veterans, he notes – the overall economic impact will likely be minimal. “We’ll always be affected when a store goes away…but (in terms of jobs) there are a lot of places here looking for people,” he says. Zollinger predicts some former Kmart employees will go to the new Meijer in Acme, while others may turn to new restaurant positions or “change careers.”

In terms of impact to the township’s tax base, Kmart paid just over $2,000 in personal property taxes to Acme Township in 2016. SR Acme LLC – a subsidiary of Sears Roebuck that owns the actual building – paid approximately $60,000 in taxes in 2016. In order to have that payment lowered, Sears Roebuck will need to challenge the building’s taxable value – a viable option if the property remains vacant for an extended period of time. But Zollinger believes that scenario is unlikely.

“There are people who want to go in there,” he says. “Someone could buy the shell and put multiple structures inside it. It could be something else – like it could enhance things for the (Grand Traverse) Resort. There are rumors about everything from car dealerships to houses going in. The best thing from an Acme Township perspective is that it’s one of the last stores on US-31 in our commercial district. Our zoning doesn’t allowing anything commercial going further north at this time, so that makes (the property) valuable.”

Sears Roebuck has already consulted with township officials on possible uses for property, according to Zollinger.

Across town, MC Sports is set to close its doors in early May at 3450 West South Airport Road. After declaring bankruptcy in February, the Midwest sports retailer announced shortly after it was closing all 66 of its retail locations. The company employs more than 1,300 staff members, with an average of 18-20 employees per store.

Similar to Kmart, MC Sports paid approximately $2,400 in personal property taxes in 2016, while Airport 31 LLC – which owns the building – paid nearly $83,000 in taxes. The 65,749 square-foot property is home to four other tenants besides MC Sports, including Buffalo Wild Wings.

Principal Todd Wyett of VERSA Development, owner of Airport 31 LLC, concedes the national climate is “tough” for big-box retailers right now. But he expresses optimism about the long-term longevity of the industry. “People still want to shop, particularly in the long winters,” he says. “The more things change, the more they come back to where they were. Look at Amazon. They started this whole trend, and now they’re opening bookstores.”

Wyett expresses particular enthusiasm about the market in Traverse City. He says VERSA is “very close” to signing leases with tenants to take over the MC Sports space and expects to announce names – which he says will be “100 percent retail” – in early May. “Every big-box retailer that’s not already in Traverse City has called us about that space,” he says.

Indeed, Traverse City has managed to evade the majority of big-box store closures while continuing to attract new business. While Sears, Macy’s and JC Penney have all announced dozens of store closures – including throughout Michigan – Traverse City’s stores have so far been unaffected. And at least four national retailers are opening new locations in Traverse City this year, including Costco, Lucky’s Market, H&M and Dunham’s Sports. DICK’S Sporting Goods has also been circling the market.

Wyett believes Traverse City will continue to be a draw for such retailers. “Not everyone wants to sit at home and shop,” he says. “People still want to get out and have those (store) experiences.”