Buffums Sells Money-Losing Santa Ana Store

Buffums has thrown in the towel on its money-losing 37-year-old store in downtown Santa Ana.

The 3.7-acre site on Main Street has been sold to Santa Ana-based Hutton Development Co., which plans to convert the department store into office space after Jan. 31, when the store closes.

With a $90-million makeover just about completed at the nearby Main Place/Santa Ana shopping center, Buffums’ executives decided they could not compete with the outdated free-standing store.

“We knew the new mall is coming in, and California customers like air conditioned malls where everything is right at your fingertips,” said Richard McKee, the store manager. He estimated that with the stiffer competition, the Santa Ana Buffums would see its business slide up to 25%.

According to McKee, gross sales at the 105,000-square-foot Santa Ana Buffums totaled $4 million for its 1987 fiscal year ended June 30. “That’s roughly $38 per square foot, or 40% of what’s an acceptable volume in today’s business,” said Robert A. Peterson, a vice president at Coldwell Banker’s Orange office.

Chris Felix, Hutton president, said that up to $4 million will be spent renovating the store, which will be leased for about $1 per square foot. Most office space in downtown Santa Ana rents for $1.50 to $2 per square foot, Felix said.