It has signed a letter of intent to lease 150,000 sf, with a125,000-sf retail area, in Manhattan Mall, which, as GSR reported,was acquired this January by Vornado Realty Trust. The store,located on Sixth Ave. between 32nd and 33rd streets, is one blockfrom rival Macy's flagship in Herald Square. It will be constructedin conjunction with Vornado's redevelopment of the mall.

This will be Penney's first store in Manhattan. MichaelDastuque, Penney's SVP of property development, said it will be"the centerpiece of Manhattan Mall . . . a showcase in the fashioncapital of the US." As GSR previously reported, Penney set up atemporary "pop up" store in Times Square in 2006, where itshowcased its newest fashion merchandise and sold throughinteractive kiosks.

Houston and Chicago are also among the markets slated foradditional Penney units as it picks up the pace. Dastuque says thecompany opened just one new store in Chicago over the past 10years. By contrast, it will open six new units there this year,another three in 2008, "and we're pursuing more in 2009 andbeyond," he says.