Friday, May 27, 2016

Saks to exit one of nation’s most upscale malls

Saks Fifth Avenue plans to shutter its 107,000-sq.-ft. store at The Mall at Short Hills, in Short Hills, New Jersey, amid plans to open a flagship in a huge retail and entertainment center in the state.

As previously announced, the upscale retailer plans to open a store at the under-construction, three-million-sq.-ft. American Dream Meadowlands mega-center, in East Rutherford, New Jersey.. . . more

Dollar stores escape the retail blues

The nation’s top two extreme-value discounters aren’t feeling the retail malaise that affected department stores and many specialty retailers in the first quarter.

Rivals Dollar Tree and Dollar General Corp. on Thursday both reported better-than-expected first quarter profits amid increases in traffic, higher spending and lower costs. Summing up a sentiment widely voiced by industry experts and analysts, Dollar Tree CEO Bob Sasser said his company is “part of what I consider, in this economic environment, the most attractive sector in retail.". . . more

Sears’ woes mount; exploring options for key brands

As Sears Holdings Corp. continues to struggle to turn its business around, the chain announced it is exploring ways to expand distribution of its key brands outside its own stores. The troubled retailer also announced its CFO is leaving.

Sears lost $471 million in its first quarter, ended April 30, compared with $303 million in the year-ago period. Loss per share came to $4.41, or $1.86 adjusted for certain items. Analysts estimated a loss of $3.20 per share.. . . more

L.L.Bean said to be opening first Wisconsin store

L.L.Bean continues its national expansion as the Milwaukee Journal Sentinel reports that the 104-year-old Maine business will be opening its first location in Wisconsin in 2017.

According to the Sentinel, a source familiar with the plans who requested not to be identified, said the approximately 15,000-square-foot store will be part of a mixed-used project in the town of Brookfield known as The Corners.. . . more

Thursday, May 26, 2016

Thieves target Walmart POS with skimmers

Criminals have reportedly been targeting some Walmart stores with credit card skimming devices illicitly placed on POS terminals. According to the Krebs on Security blog, the skimmers are designed to overlay legitimate self-payment card readers manufactured by Ingenico and have been found at Walmart locations in Fredericksburg, Virginia and Fort Wright, Kentucky.. . . more

Crayola creates new experience at Mall of America

A 60,000-sq.-ft. Crayola Experience has opened at Mall of America, giving the massive shopping center yet another experiential component to generate traffic.

The Crayola Experience is a family attraction that features 25 hands-on activities inspired by Crayola products and technologies and there is also The Crayola Store offering the world's largest selection of Crayola products and unique souvenirs.. . . more

Tiffany doesn’t sparkle with Q1 misses; will open 11 stores

Tiffany & Co. missed Wall Street expectations for profit and revenue in a lackluster start to fiscal 2016, but still plans to open 11 new stores worldwide.

The retailer reported net earnings of $87 million during the first quarter, down 17% from $105 million the same period a year earlier. Lower gross profit and higher selling, general and administrative (SG&A) expenses drove the reduction in profit.. . . more

Express misses on Q1 earnings, sales

Specialty apparel retailer Express Inc. did not reach Wall Street expectations with declining profit and flat sales in a generally sluggish first quarter of fiscal 2016.

Net income slipped 1% to $12.9 million from $13.1 million in the same quarter the previous fiscal year. Outlet- and IT-related expense growth helped drive down profit.

Net sales stayed essentially flat at $502.9 million, compared to $502.4 million a year earlier. Same-store sales fell 3%, including a 1% dip in e-commerce sales.. . . more

Mars Super Markets to close all stores

Mars Super Markets will close all stores in Maryland, an official said. Mars Super Markets Chairman and CEO Chris D'Anna said in a statement Wednesday that all stores will close by the end of July.. . . more

Uniqlo Says Top Priority Is to Turn Around 'Struggling' U.S. Stores

The head of Uniqlo operator Fast Retailing Co Ltd said revamping the Japanese company’s struggling U.S. operations was a top priority, and that it would focus on raising the casual clothing brand’s profile there.. . . more

Wednesday, May 25, 2016

2016 Top Retail Managers

The listing of the top managers of retail real estate was compiled using responses to NREI's top owners of retail real estate survey, earnings reports and company Web sites. It is based on the total size of the companies' U.S. portfolios as of Dec. 31, 2015.. . . more


The 2016 KeyPoint Report for Eastern Massachusetts/Greater Boston, based on our proprietary GRIID™ retail database, is in production. While you’re waiting, here’s a preview:

Vacancy Rate: An additional 553,700 square feet of retail space became vacant this year, resulting in a vacancy rate of 9.1%, a moderate increase from last year’s 8.8% rate. Retail space inventory also gained modestly, with an increase of 0.5%. New shopping centers that opened the prior year continued to phase in additional space, but no major new shopping center opened in the region this year. Big box closings, notably Sam’s Club, JCPenney, and Kmart, were the primary cause of the increase in vacancy this year. Citibank and City Sports departures from the region also added to the vacancy level.. . . more

365 by Whole Foods debuts today

Image result for 365 by Whole Foods store opening365 by Whole Foods Market is scheduled to make its debut today in the Silver Lake section of Los Angeles.

The Austin, Texas-based company has announced plans for two more 365 stores this year — in Lake Oswego, Ore., in mid-July and Bellevue, Wash., in the fall — plus at least 10 more next year.. . . more

Retail real estate poised for strong finish

The retail real estate market will overcome a slow start to the year and finish 2016 in fine fashion, according to JLL’s U.S. Investment Outlook report.

Released during the International Council of Shopping Center’s RECon show in Las Vegas, the JLL report shows that despite the economy’s ups and downs, retail transaction volumes were strong in secondary markets where population and job growth continued to fuel demand in the first quarter of 2016.The retail sector will likely not see as much volatility as the year progresses while these burgeoning markets and new supply open opportunities for capital that remained dormant in the beginning of the year, according to JLL.. . . more

The retailer with the best customer experience is…

Consumers have spoken, and they have identified the retailers, supermarket chains and fast food restaurants that are tops (and bottom) in overall customer experience.

The top 11 retailers in the 2016 Temkin Experience Ratings are as follows: True Value (78%), (76%), O'Reilly Auto Parts (76%), QVC (75%), Dollar Tree (75%), Sam's Club (74%), Dollar General (74%), Lowe's (73%), PetSmart (72%), Michael's (72%), and BJ's Wholesale Club (72%).. . . more

Retailers Fuel a Warehouse Boom, Racing to Keep Up With Amazon

The Phoenix Fulfillment Center in Goodyear, Ariz.Over the past year, prime warehouse rents are up 9.9 percent across the U.S. and up by double-digit amounts in some large urban areas, according to a recent report.

E-commerce alone is responsible for 20 percent of the current demand, according to Eric Frankel, an analyst at Green Street Advisors, helping to drive the spike in construction despite retail sales growth that has been slower than in previous economic expansions. . . . more

AutoZone motors ahead, comps soften

The nation’s leading auto parts retailer produced modest sales and profit growth during its third quarter but managed to achieve double digit earnings per share growth thanks to stock buyback activity.

AutoZone sales increased 4% to $2.6 billion during the quarter ended May 7, thanks to the addition of new stores and a 2% same-store sales increase. Net income increased 6% to $327.5 million. . . more

Fort Point shops to honor past

Proposed retail looks to fit in

Invesco Real Estate hopes to boost Boston’s growing Fort Point neighborhood with an injection of needed retail shops among its former manufacturing and warehouse buildings.

The Dallas-based company plans to restore and redevelop three buildings at 47 Fansworth St. and 25 and 44 Thomson Place with street-level retail.. . . more

Weis Markets To Purchase Five Mars Super Markets In Baltimore County

Image result for weis marketsWeis Markets plans to purchase five Mars Super Markets stores in Baltimore County, Maryland, including two in Dundalk and individual units in Essex, Arbutus and Carney.

Weis Markets intends to complete the purchase in late July. Once the purchase is complete, Weis will operate nine stores in Baltimore County, essentially doubling its footprint in the region.. . . more

Tuesday, May 24, 2016

RECon Special Report: Retail at the Crossroads

Las Vegas sign in LVCC lobby2What are the biggest issues facing retail real estate today?

As the 2016 edition of RECon got into full swing in Las Vegas on Monday, executives sized up the major issues facing real estate’s most diverse asset category. At the International Council of Shopping Centers’ annual spring event, topics on attendees’ radar included retailers’ efforts to adapt to rapid change, the evolution of the retail center and common misconceptions about the realities of retail.. . . more

Best Buy adds to chorus of woes in retail

A strong start to the year from Best Buy was overshadowed by a lengthening string of declining quarterly sales and a pessimistic outlook that added to a chorus of woes from the retail sector.

Last week, Target Corp. reported slowing quarterly sales and said that it could see more of the same in the current quarter. That would reverse almost two straight years of increases.
Others are seeing the same atrophying sales.. . . more

Stores Make a Comeback: Becoming a Hub for an Array of Customer Services

Image result for nordstrom in store technologyThe store is making a comeback. Even online pure plays are laying down bricks and mortar, setting up “shop-in-shop” stores and large flagships to keep pace in the multichannel world.

And within this channel, physical stores are enhancing their digital capabilities. For example, Nordstrom allows shoppers to text with personal stylists and even purchase a suggested item by simply texting “buy.” They can also enjoy curb-side pickup via text while the H&M store in New York’s Times Square allows customers to pay for items in their dressing room.. . . more

Supervalu takes another step in possible Save-A-Lot spin-off

Image result for save-a-lotSupervalu has renegotiated a $1.5 billion term loan agreement — another necessary step if the grocery retailer spins off discount chain Save-A-Lot.

The Eden Prairie-based Supervalu announced Monday that it completed the amendment of its loan agreement, which will allow the company to undertake transactions necessary for Save-A-Lot to become a separate company.. . . more