Chicago's Magnificent Mile Hits a Rough Stretch

The Wall Street Journal reports:

Tomas Coppinger flew here from Ireland this week with $6,000 in his pocket. But he barely spent any of it on the iconic shopping promenade known as the Magnificent Mile.

"Beautiful street," Mr. Coppinger said as he paused beneath the skyline along Michigan Avenue. "But the prices are too high."

Softness in the tourism and convention businesses -- as well as bargain-hunters like Mr. Coppinger -- are hurting the Midwest's most prestigious retail district. It has weathered past downturns relatively well, thanks largely to the curiosity of out-of-town visitors.

But today the Magnificent Mile is enduring its highest vacancy rate since 1992. Retailers Lord & Taylor, Talbots Inc. and William-Sonoma Inc.'s Pottery Barn all recently shuttered large stores.

It's hard to compete when the Magnificent Mile has the highest retail sales tax in the United States at 11.25%.