‘Global home furnishings retailer’ to fill last of three spaces at former Sears Grand at Gurnee Mills

Despite heavy snow over the past weekend and it being Cyber Monday, an executive with the company that owns Gurnee Mills said she was reminded and encouraged of the importance and relevance of brick-and-mortar stores during a visit Monday.

“They weren’t going to let deals online stop them from coming in, they weren’t going to not be with their friends and their family, they weren’t going to let snow stop them,” said Jocelyn Gubler, vice president of development for Simon Property Group. “They were there.”

As she has several times in recent years, Gubler was presenting to the Gurnee village board for an economic incentive to help Gurnee Mills continue to reinvest and reinvent itself.

In this case, the village’s $2 million incentive will be used to prepare the third and final space available in the former Sears Grand store.

Though not officially identified, information provided to the village suggests the space could be the 10th location in a new, smaller format being rolled out by Ikea.

Under a six-year redevelopment agreement with Gurnee Mills approved Monday by the village board, Gurnee will contribute up to $1 million over four years and rebate up to $1 million in sales tax during the final four years to prepare the vacant anchor space for “a new global home furnishings retailer.”

The project calls for a $12 million private investment, roughly split between Simon and the new user.

“Given its uniqueness in the market, this retailer is anticipated to generate community excitement and draw from a wide geographic area,” according to Ellen Dean, the village’s economic development director.

Even with its $2 million contribution, the village over six years will come out $900,000 ahead as the retailer is expected to generate $2.9 million in sales tax during that time, she said.

“It’s a popular, budget friendly global furniture and home goods retailer,” Gubler explained. “This retailer has been launching smaller format stores as a complement to its larger standard size warehouse type of environment.”

Gubler said she couldn’t give the name at this point but dropped hints that correlate to Ikea including that the company started as a small mail order business in 1943, is now in 62 markets and recently opened its third smaller-style store in San Marcos, Texas.

Gurnee Mills opened in 1991 and is a key economic generator for the village, which perennially ranks first or second in sales tax among Lake County towns.

With more than 200 stores and attractions, it’s billed as the largest outlet and full-price retail shopping center in Illinois and has been on a roll of late with several shops and attractions opened or pending.

The former Sears Grand space represents the next chapter, according to Gubler.

Sears Grand was successful for many years before closing in 2018. But at 201,409 square feet, the immense original box no longer was tenable for a single tenant.

The village board contributed $500,000 — which has been recouped — toward renovating the space for two or more tenants. Hobby Lobby opened in early 2022 and Round One Bowling & Amusement opened last summer, leaving roughly 66,000 square feet remaining.

“As department stores fall by the wayside and as boxes sit empty, we’ve been fortunate at Gurnee Mills to be able to fill those and this is one of our last remaining boxes,” Gubler said.

“The partnerships we’ve had with the village in the past are undoubtedly a huge part of the formula of our success,” she added.

With this addition, Gurnee Mills will be about 95% occupied, according to Gubler.

Retail consultant John Melaniphy, president of Melaniphy & Associates, says Simon has done a tremendous job leasing anchor stores that have turned over in recent years and has leverage with major retail chains across the country.

“Brick-and-mortar retail continues to thrive in select locations,” he said.

The remaining Sears Grand space will be laid out as a single-level store and be complemented by design and planning services, according to Dean.

The full product line will be available online for purchase with free pickup at the store or delivery for a fee.

Construction is expected to begin in January or February and be open for the 2026 holidays.