El Paso's retail landscape has undergone significant transformations, marked by the rise and fall of big box stores and the enduring spirit of local entrepreneurship. From the early days of brewing to the modern era of shopping centers, the city's commercial history reflects both national trends and unique local dynamics. This article explores the legacy of George Dieter, an early El Paso business leader, and how his entrepreneurial spirit connects to the more recent shifts in the city's retail environment, including the repurposing of former big box locations.
The Brewing Legacy of George Dieter
Before the era of big box stores, El Paso had a vibrant brewing industry. The story begins with a brewery that predates Harry Mitchell's arrival in El Paso, a brewery that faced receivership in 1904. Despite brewery president Wilhelm Griesser's pleas to the citizens of El Paso to "save" the El Paso brewer, the brewery was auctioned off on March 15, 1904. John Paul Dieter acquired the brewery for $66,000, with $15,000 as a down payment and the rest due in six months. The plant was estimated to be worth $110,000, and the vats contained 2,793 barrels of beer, worth an estimated $30,000, in addition to nine sets of bar fixtures and nine saloon leases.
Dieter, a German immigrant who arrived in El Paso in February 1881, partnered with A.L. Houck to operate a successful beer, mineral water, soda water, and ice depot. The El Paso Times reported on July 15, 1904, that the El Paso Brewing Company would start selling its own beer the following week, with the company reportedly purchasing the Oxford, Idea, and Roof Garden saloons, and buying the lease on Dunn's roadhouse to dispense their own brand of beer.
Unfortunately, Dieter's tenure as the brewery's owner was cut short by his death from a brain tumor on September 23, 1907. His obituary lauded him as an "honest, progressive, public-spirited public servant" who served the city as an alderman for several terms. The obituary also noted that "Under the capable and active management of Mr. Dieter, the brewery became a big business success and was rapidly accumulating a fortune for him." After Dieter's death, R.W. Long took over as president and general manager, with George G. Sauer as vice president and W.H. Long as secretary-treasurer.
Later, Harry Mitchell, a native of Blechington, England, arrived in El Paso in 1912. After serving in World War I, he worked as a bartender at the Hotel Paso del Norte. In 1926, he founded the famous Mint Café in Juárez. In 1933, following the repeal of Prohibition, Mitchell returned to El Paso and partnered with Will E. Keller to establish the Harry Mitchell Brewing Co. They acquired the site of Dieter's old brewery and constructed a new $250,000 facility, selling their first beer in 1934. By 1945, Mitchell gained complete control of the company by buying Keller's interest.
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Mitchell invested $400,000 in 1949 to add a canning plant, which produced 250 cans of beer per minute, while the bottling plant produced 220 bottles. In 1951, Mitchell sold the brewery to investment banking firms, Harold S. Stewart & Co. of El Paso and Ruff & Co. of San Antonio, who renamed it Mitchell Brewing Co. In 1956, Falstaff Brewing Corp. of St. Louis acquired Mitchell Brewing Co. By then, the brewery had an annual capacity of 150,000 barrels, covering nearly two city blocks and including a five-story brew house, a two-story stock house, warehouses, office buildings, a bottle shop, a garage, and an advertising warehouse. Falstaff discontinued all Mitchell-brand beer and began brewing its own brand.
The Rise and Fall of Big Box Stores
Fast forward several decades, and El Paso's retail landscape was dominated by big box stores like Kmart, Toys 'R' Us, Sears, and J.C. Penney. However, the retail landscape shifted dramatically. The closures of Kmart and Toys 'R' Us stores in El Paso, along with the shuttering of Sears and J.C. Penney locations, left significant vacancies in the city's retail landscape.
In 2018, Kmart, formerly owned by the bankrupt Sears Holding Corp., closed its last El Paso store. Toys 'R' Us also closed its two El Paso stores that same year after declaring bankruptcy. The two-story Sears store in the Sunland Park Mall, which closed in 2018, was recently purchased by a Dallas company. The new owner is reportedly negotiating with potential tenants for the first floor and a portion of the second floor. CBRE Group, a commercial real estate company, is handling the leasing for the building.
The Adaptive Reuse of Big Box Spaces
Despite the decline of some big box retailers, El Paso's retail market has remained relatively strong, with limited retail vacancies. This has led to the adaptive reuse of former big box spaces, with new tenants moving in and developers dividing the spaces into smaller retail centers.
Adam Frank, president of River Oaks Properties, noted that big box spaces are being filled quickly due to El Paso's strong retail market. River Oaks Properties is redeveloping a former Kmart building on Montana Avenue into a small strip shopping center.
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Several former Kmart store buildings are being repurposed. At Home, a home décor superstore chain, has opened a location in one East Side Kmart building and plans to open another in a former Kmart in West El Paso. Two former Toys 'R' Us buildings are being filled with an Urban Air Adventure Park on the West Side and a Floor & Decor warehouse store on the East Side.
Seritage Growth Properties, a spinoff of Sears Holdings, is redeveloping a former Kmart store on Dyer Street in Northeast El Paso. The project, costing over $10 million, is expected to house Ross Dress for Less and dd's Discounts stores.
Another former Kmart building on Montwood Drive and George Dieter Drive in East El Paso is being converted into a mini shopping center with a Planet Fitness gym and potentially three other retail spaces. Joseph Bencomo, CEO of Southwest Gym Management Corp., noted that former Kmarts are well-located with ample parking, making them ideal for redevelopment.
Exceptions to the Trend: At Home and Floor & Decor
While many retailers are downsizing, At Home and Floor & Decor are bucking the trend by expanding their presence in El Paso. Rick Amstater, a partner in RJL Real Estate Consultants, noted that El Paso has always had a demand for large retail spaces, particularly along Interstate 10.
Floor & Decor is occupying the 50,000 square feet left vacant by Toys 'R' Us, as well as an additional 30,000 square feet previously occupied by Big Lots, Office Depot, and the Family Christian bookstore. At Home has leased a former Kmart store building on McRae Boulevard and plans to open another store in a former Kmart on Sunland Park Drive.
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The Future of Retail in El Paso
The transformation of El Paso's retail landscape reflects broader trends in the industry, including the rise of e-commerce and changing consumer preferences. While the big box retail heyday may not return, El Paso's retail market remains resilient, with developers and retailers finding creative ways to adapt to the changing environment.
River Oaks' Frank noted that retailers are downsizing their retail footprints, with Walmart and Target opening fewer stores. Target has shifted towards opening smaller, urban stores.
Rising construction costs have also increased demand for existing retail spaces, leading to the retrofitting of big box spaces to accommodate junior retail anchors like TJ Maxx, Home Goods, and Ross Dress For Less. Retailers are also increasingly seeking infill spaces in established areas rather than new developments on the edges of cities.