Tuesday, July 28, 2015

REITS Are A Very Bad Idea For Department Stores

Image result for department store reitMost department stores units cannot successfully be packaged into Real Estate Investment Trusts (REITs). Many store locations have limited lifespans.  Plus the retail business is cyclical and subject to any number of outside forces beyond management’s control.   These are not the ingredients that make an attractive REIT.

The retail scene is constantly changing. Right now retailers are struggling to maintain sales momentum in their brick and mortar stores. They have done everything they can come up with to generate traffic. . . . more

The most popular back-to-school retailer is…

A survey released Monday is in line with other reports that consumers do not plan to spend more this year on back-to-school supplies than they did last year. The survey also lists the 10 most popular retail brands for back-to-school purchases.

Target ranks as the most popular retail brand for back-to-school purchases, just ahead of Walmart, in the 21st annual Back-to-School survey by Brand Keys, the New York-based brand loyalty and emotional engagement research consultancy. Macy’s, CVS and Best Buy round out the top five.. . . more

Macy’s Will Compete With Amazon In Online Same-Day Delivery Wars

Macy's Same-Day DeliveryMacy's is aggressively expanding its same-day delivery service in more major markets. The retailer plans to compete with Amazon's similar offering and has partnered with online service Deliv to deliver the packages.

There once was a time when retail shopping was synonymous with one word: Macy's. The iconic brick and mortar retailer was the top department store brand for many decades before the birth of the Internet brought us the likes of Amazon and eBay. The death of the department store was soon predicted, but it turns out many people still like buying their goods in retail stores where they can hold, view, and try on the merchandise, and enjoy a full shopping experience.. . . more

Millennials May Shop Walmart, But They Don't Love Walmart

wmt0715aWhile Walmart is a top shopping destination for the youngest generation, their affinity for the big discounter is lacking. In other words, they don’t necessarily shop Walmart because they want to; this cash-strapped, financially conservative group does so because they have to.

For a better understanding of how Millennials feel about their Walmart shopping experiences, the Net Promoter® Score metric of customer loyalty and satisfaction was examined.. . . more

Insurers of Wayne-based Toys ‘R’ Us said to cut policies after losses mount

Image result for toys r usInsurance companies are cutting back on their coverage of Toys "R" Us Inc. suppliers, bringing another headache to a retailer that has suffered more than two years of losses, people familiar with the matter said.

Coface SA and Euler Hermes Group, which sell credit insurance to vendors, are removing Toys "R" Us from some policies and declining to renew coverage in other cases, said the people, who asked not to be identified because the process isn't public.. . . more

Supervalu may spin off Save-A-Lot division

Image result for save a lotGrocery distributor Supervalu said this morning that it is considering spinning off its Save-A-Lot stores into a standalone, public company.

The Minneapolis-based distributor, which operates a warehouse in New Stanton and supplies the region’s Shop ‘n Save and Foodland stores, said the Save-A-Lot discount grocery operation might do better on its own.. . . more

First look: Shorenstein’s planned $25M renovation of Center Plaza in downtown Boston

Shorenstein Properties has planned an up to $25 million renovation of Center Plaza, a 720,000-square-foot mixed-use complex spanning three buildings across from City Hall in downtown Boston. The renovation plans were designed by CBT Architects.After acquiring the expansive Center Plaza in downtown Boston last year, Shorenstein Co. is planning an up to $25 million renovation of the complex.

The renovation includes enhancements to street-level interior lobbies and exterior walkway/breezeway areas, a rebranding for the complex, rootop upgrades and new retail tenants.. . . more

Monday, July 27, 2015

10-Year Eastern Massachusetts Restaurant Report

In the past ten years a number of restaurant chains have come and gone but the absolute number of restaurants has trended up. In 2005, KeyPoint data showed that 6,179 restaurants operated within Eastern Massachusetts. By 2010, even after withstanding the Great Recession, that number climbed to 6,391 units.

In the past five years the restaurant count in the region has rocketed to 6,946 locations, more than doubling the pace of new openings from the first half of the decade.. . . more

Cabela’s misfires on Q2 profit and revenue; will open seven stores

Specialty outdoor retailer Cabela’s Inc. missed the target Wall Street set for profit and revenue during the second quarter of fiscal 2015. Cabela’s reported net income of $40.5 million, down 8% from $43.5 million the same quarter the prior year.
Growing cost of revenue helped drive down profit. Total revenue grew 10% to $836.28 million, from $761.2 million. Consolidated same-store sales dropped 0.9% due to Canadian currency fluctuations, although same-store sales in the U.S. increased 0.8%.. . . more

Best Buy to sell Apple Watch

Apple Watch Available at Apple Retail LocationsIf you’re looking to get an Apple Watch, you might want to consider walking to the nearest Best Buy store from Aug. 7 onwards.

A month after the launch of Apple’s wearable product in the company’s stores, Best Buy will become the first national retailer besides Apple to stock the Apple Watch. It will be available in more than 100 Best Buy stores and on BestBuy.com. By the time holiday season arrives, an additional 200 stores will feature the Watch.. . . more

Starbucks shows perky performance in Q3

Starbucks Corp. reported impressive financial performance in the third quarter of fiscal 2015 that could be described as downright perky. Net income jumped 22% to $626.7 million from $512.6 million the same quarter a year earlier, with higher pretax earnings offsetting higher income tax charges to produce profit growth.
 
Total net revenues rose 17% to $4.88 billion, from $4.15 billion. Consolidated same-store sales growth of 7%, driven by a 4% increase in traffic, as well as the addition of 431 net new stores globally and same-store customer transactions increased nearly 18 million in the U.S. and more 23 million globally, drove the sales increase. In the U.S., same-store sales rose 8% with a 4% boost in same-store traffic.. . . more

Major new player may enter grocery vertical

According to the Silicon Valley Business Journal, Amazon.com is planning to pilot a drive-thru grocery store concept in Sunnyvale, California.

Sources indicate Amazon’s concept would allow customers to order groceries online and pick them up at a dedicated facility. Developer plans that have been submitted for an 11,700-sq.-ft. facility that includes a drive-thru grocery component in Sunnyvale are believed to be for Amazon, although the tenant is not named in the plans and Amazon has not commented.. . . more

American Apparel on the brink of bankruptcy

American Apparel on the brink of bankruptcyAmerican Apparel’s financial situation is threadbare.

Bankruptcy is looming for the hipster retailer, which is short on cash and faces a hefty bond payment in less than three months — not to mention mounting legal bills from its ouster of former CEO Dov Charney over alleged sexual harassment.. . . more

Department stores must innovate to survive

The department-store business is at an inflection point, Nordstrom CFO Michael G. Koppel told analysts at an investment conference last month. The last time things were this disruptive, tumultuous and thrilling was a couple of generations back, when the big malls cropped up.
“Before that, everybody was in some big downtown department store and had these giant (500,000- to 700,000-square-foot) stores, and they only grew to that box,” Koppel said.
Internet commerce and digital technology have punched through the walls of the mall.. . . more

Tween brand Limited Too returning to stores, online

The brand-management company Bluestar Alliance has purchased the brand trademarks for the tween girl retail brand from Sun Capital Partners, the private-equity firm that owns The Limited.
Limited Too was once part of L Brands, then was spun out under the name Tween Brands. In 2008, Tween Brands dumped the Limited Too name and rebranded the stores with its Justice name.
The new brand will be sold in a mixed-distribution model, in department stores, in shops-within-shops, in stand-alone retail locations and online.. . . more

Thursday, July 23, 2015

Urbanization Is Retail Development’s Main Driver

Retail developers are conservative about the kinds of projects they take on today. They feel most comfortable constructing and redeveloping properties in urban, infill markets, according to experts.

“Overall we are still seeing very conservative approaches to new development even if the actual construction numbers are skyrocketing,” says Garrick Brown, vice president of research, West region, for DTZ. “Most of what I’m seeing is expansions at existing centers. This can be anything from new wings at major trophy malls to just additional pad buildings at existing power or neighborhood centers.”. . . more

Chipotle 2Q same-stores sales rise 4.3%

Chipotle Mexican Grill Inc. reported a same-store sales increase of 4.3 percent in the second quarter ended June 30, the company said Tuesday.

The same-store sales increase was driven largely by an increase in average check, including the benefits of a nationwide menu price hike that was fully rolled out during the second quarter of fiscal 2014, the company said.. . . more