Dallas-based Neiman Marcus announced Monday that it plans to close its downtown Minneapolis store, which is located at Gaviidae Common, by July 2013.

The Neiman Marcus Group, Inc., which operates the upscale department stores of the same name, opened the 118,000-square-foot Minneapolis store in 1991—and it has served as a downtown retail anchor ever since. (Gaviidae Common is located at Fifth Street and Nicollet Mall, and its other retail anchor is Saks Fifth Avenue.)

“As it is so rare that we close a store, the difficult decision was based on a great deal of thought and a careful study of the market as we very much value the relationships we have established in this market,” Karen Katz, president and CEO of The Neiman Marcus Group, said in a statement. “However, the store did not meet our long-term operational goals.”

The downtown Neiman Marcus store is the only one in Minnesota. It employs 107, and the company said those workers will either have the option to transfer to other stores or will receive severance packages.

In response to Neiman Marcus’ Monday announcement, Minneapolis Mayor R.T. Rybak told the Star Tribune that it was “a sad, but expected, turn of events.” The Minneapolis store was reportedly expected to close as early as 2005, but Rybak said he lobbied to extend its lease.

The Minneapolis newspaper reported that the store’s initial lease lasted 15 years, and then it was renewed in 2008 and will expire next year.

Neiman Marcus’ announcement comes about two weeks after it and Minneapolis-based Target Corporation said they plan to partner on a limited holiday collection. Beginning December 1, more than 50 products from 24 designers will be available at both Target and Neiman Marcus stores and on both retailers’ websites.