Friday, May 25, 2018

Grocery-anchored shopping centers get thumbs-up

Supermarket News
Amid headlines of retailer bankruptcies and shuttered stores, supermarkets are seen as a plus by the commercial real estate sector.

Shopping centers anchored by grocery stores “continue to exceed expectations” and are high on the list of desirable sites among retail property investors, according the May 2018 Retail Investor Sentiment Report from Real Capital Markets (RCM), a Carlsbad, Calif.-based commercial real estate marketplace. . . . more

Rise Biscuits Donuts Announces Bicoastal Expansion

Franchising.com
Rise Biscuits Donuts, the nation’s fastest growing biscuits and donuts chain with over 160 units in development across the country, has announced a multi-unit franchise deal for Southern California that will officially stretch the brand from coast-to-coast. Franchisee Bill Propster, an industry veteran who built a career operating Domino’s locations for 6 years, is plotting locations for San Fernando Valley and Ventura County, hoping to open at least one Rise store per year. . . . more

Five Ways the Retail Fitness Industry Might Look Different in the Future

National Real Estate Investor
There are more than 36,000 health clubs, gyms and fitness centers in the U.S., and major markets have seen growth at a rate of 2.8 percent since 2013. But what does the future of the retail fitness industry look like? Many believe, as an internet-resistant sector, the future looks bright for fitness centers and gyms. And while that may prove true, growth in the next five to 10 years may look a bit different than what we’ve witnessed in the last decade. . . . more

Subway executive: ‘Pent-up demand’ drives global growth

Nation's Restaurant News
In July 2017, Walker became the company’s vice president of development, a new position that reports directly to chief development officer Don Fertman. Walker, who held executive-level positions at Baja Fresh, Cinnabon and Johnny Rockets, delivered a speech titled “Location, Location, Location”during the annual conference. . . more

The Burbs May Bring Value, But Some Boston Developers Simply Don’t Care

Bisnow Boston
Real estate investors may think the suburbs are an easier financial pill to swallow than urban Boston’s soaring prices. But the urban core is still a real estate necessity. . . more

Eastern Massachusetts Retail Report Preview

KeyPoint Partners
The 2018 KeyPoint Report for Eastern Massachusetts/Greater Boston, based on our proprietary GRIID™ retail database, is in production and should be available by the end of June. While you’re waiting, here’s a preview - but consider these results preliminary and subject to change:

Vacancy Rate: Eastern Massachusetts experienced a substantial rise in the vacancy rate to 9.4% this year from a level of 8.6% in 2017, reflecting a 10.4% increase in unoccupied space. At the same time total inventory ended the year at 196.4 million square feet, a gain of 1.0%, nearly the same square footage as the increase in vacant space. This resulted in a nominal positive absorption rate of only 104,000 square feet. A considerable number of large format store closings and chain liquidations were responsible for the disappointing outcome, which could have been even worse without a significant number of retail conversions to non-retail space cushioning the impact . . . more

Thursday, May 24, 2018

Lines continue to blur between restaurants and grocers

Supermarket News
A grocery store isn’t just a place to shop for packaged foods and produce anymore. And customers, particularly young ones, like it that way and want to see more foodservice at retail, according to Amanda Topper, associate director of foodservice research at market research firm Mintel. . . . more

Delayed spring takes a toll on Target even as customer traffic surges

Chain Store Age
A strong quarterly traffic gain was not enough for Target, whose profit missed Street expectations amid a late spring and higher costs. The discounter’s net income rose 5.9% to $718 million, or $1.34 a share. On an adjusted basis, it earned $1.32 a share, below expectations of $1.39 a share. Revenue rose 4.75% to $16.782 billion, topping analysts’ forecasts of $16.5 billion. Digital sales increased 28%, on top of 21% growth in the year ago period. Same-store sales rose 3%. Traffic increased 3.7%, its strongest quarterly performance in more than 10 years. . . more

Coffee, iPhones, Wi-Fi? If you thought this was Starbucks or Apple, surprise! It’s Comcast

USA Today
Curl up with a cup of coffee and enjoy the free Wi-Fi. Use a tablet computer to try out a mix of apps. Check out the latest big-screen TV.

Those experiences have become familiar at the local Starbucks or some electronics stores such as Best Buy or Apple. But there's a company offering those perks and more, one not generally thought of as a retailer.

It's Comcast . . . more

Nékter Juice Bar Accelerates National Expansion with Entry into Four New States by Early Summer 2018

RestaurantNews.com
The journey from proof-of-concept in 2010 to more than 100 high-performing restaurants across the country today has made Nékter Juice Bar the clear leader in the modern juice bar category . . . more

The Race Is On For Grocery Delivery, But Most Customers Still Want To Shop In Stores

Forbes
In grocery retail, all eyes are on the prize of capturing the online grocery shopper. The Food Marketing Institute estimates online grocery sales will reach some $100 billion by 2025, or about 20% of the grocery retail market, though today only about 2% to 4.3% of industry sales originate online.

Target, Kroger, Vons/Safeway, Ahold-Delhaize (Giant and Stop & Shop), Foodtown, Harris Teeter, Trader Joe’s, H-E-B, Costco, Walmart and Sam’s Club are answering the call, as are services like Instacart, Peapod, FreshDirect, Google Express and Yummy.com.. . . more

Wednesday, May 23, 2018

Three Major Changes Predicted To Reshape The U.S. Mall In The Next Five Years

Forbes
U.S. retail is definitely not dying, but it is certainly evolving at an accelerated rate. Week by week, the brick-and-mortar retail landscape is changing rapidly—and, in some cases, belatedly—in response to shifts in how and where consumers shop. As Deborah Weinswig noted earlier in May, forward-thinking mall owners are already adapting their shopping centers to cater to changes in consumer behavior, and she predicts that three major factors will pressure them to further adjust their offerings in the next five years.

Prediction 1: One in Five Department Stores Will Close. . . more

Urban Outfitters’ profit more than triples, sales jump 12%

Chain Store Age
Urban Outfitters Inc. posted a strong start to 2018, with surging first-quarter sales online and off.

Total sales jumped 12.4% to $855.7 million, beating analysts’ average estimate of $838.1 million. Comparable retail segment sales increased 10%, driven by strong, double-digit growth in the digital channel and positive retail store sales.. . . more

Bargain-hungry customers help TJX beat sales estimates

CNBC
TJX reported better-than-expected quarterly same-store sales on Tuesday, as deep discounts brought more bargain hunters into its T.J. Maxx and Marshalls apparel stores.

Online shopping has taken a toll on traditional brick-and-mortar stores but TJX, unlike other retailers, has not seen huge cuts in inventory and store closures. . . . more

Amid CEO change, Lowe's blames bad weather for disappointing results

The Charlotte Observer
A day after announcing its new CEO, Mooresville-based Lowe's reported first-quarter earnings Wednesday that fell short of Wall Street expectations, thanks in part to a cold start to the spring season.

Sales for the first quarter rose to $17.4 billion, up from $16.9 billion a year ago but still short of analysts' expectations. Same-store sales, a key industry measures of sales at stores open for at least one year, rose 0.5 percent during the quarter.. . . more

Target reaffirms 2018 outlook as it makes online push

Reuters
Target Corp shares pared losses to trade down 5 percent on Wednesday as investors weighed a lower-than-expected quarterly profit against the retailer’s unchanged full-year outlook.

Price cuts and ongoing investments to ward off competition from Amazon.com Inc and brick-and-mortar rivals continued to hurt profitability in the first quarter even as comparable sales beat estimates and online sales accelerated from a year earlier.. . . more

Amazon cracks down on excessive returns

Boston Business Journal
More companies are using algorithms to track consumers’ shopping and return habits, leading retailers like Amazon to even ban some shoppers from if their returns are deemed suspicious or excessive.

Some Amazon customers have complained on social media that they were kicked off the shopping site without warning while others received a terse email letting them know that their business was no longer welcome, the Wall Street Journal reported. . . . more

Will J.C. Penney's turnaround ever end?

SOURCE
This year has been rough for J.C. Penney. Already in 2018, the department store retailer cut hundreds of jobs, disappointed investors in consecutive earnings reports and struggled to significantly improve apparel sales after taking dramatic steps to do so last year.

While some analysts still see the retailer as one of the stronger remaining players in the department store world, others are losing their patience with the company's turnaround efforts, which have yet to yield permanent positive profits or comparable sales growth. And that turnaround plan was just complicated by the sudden resignation of Penney's chief executive. . . . more

Tuesday, May 22, 2018

The top five shopping center trends are…

Chain Store Age
Communal dining—or food halls—tops a list of breakout retail concepts in shopping center developments.

The list, from real estate firm Phillips Edison & Company , was released on Monday in conjunction with ICSC’s RECon event, which is occuring this week in Las Vegas. . . . more

Sears is closing 40 stores in 24 states

Business Insider
Sears is quietly closing at least 40 stores in 24 states, in addition to the 166 stores that the company previously said it would close this year.

Most of the stores on the new list will close in July and August.

Sears has not publicly announced many of the store closings slated for this summer. Business Insider confirmed the list of closing stores based on information from multiple Sears employees and local news reports.. . . more

Retail investment will pick back up in second half

Chain Store Age
Investment in retail assets plummeted by 46% in the first half of 2018, but JLL predicts a second-half comeback that should end up surpassing last year’s investment increases.

“We’re pragmatically optimistic of today’s market, and are seeing investors begin to rebuild their confidence in the sector as fundamentals strengthen,” said Naveen Jaggi, president of JLL Retail Advisory Services. “Vacancy is stabilized at under 5% nationwide and rents have reached pre-recession levels.” . . . more

Best Buy launches a Geek Squad fix-it subscription service

bizjournals.com
Best Buy Co. Inc. is rolling out a subscription service for its Best Buy tech support unit, betting that the growing complexity of smart homes and connected devices will create demand for offerings that go beyond the one-off repair job.

The service, which runs $200 per year, provides unlimited phone, online and in-store help on basic tasks like setting up home networks, car-stereo installation and basic data-recovery tasks. Home visits to install theater equipment or do more complex tasks will cost $50. . . . more

Kohl’s Climbs After Earnings Show Turnaround Gaining Steam

Bloomberg
Kohl’s Corp.’s turnaround is gaining steam just as a new leader takes the reins.

Chief Executive Officer Michelle Gass, previously the company’s chief merchandising officer, is looking to distance Kohl’s from other mall-based department stores. Rather than closing underperforming locations -- a strategy adopted by Macy’s Inc., J.C. Penney Co. and Sears Holdings Corp. -- Kohl’s has been touting the fact that its stores have remained open. It’s reformatting many into smaller venues and using them to test partnerships with companies like Amazon.com Inc. and Aldi supermarkets. . . . more

What Retail Apocalypse? Brick-And-Mortar Retail Outlook Remains Positive

bisnow.com
The doomsday scenarios about the retail industry’s demise that have made headlines are grossly overblown, experts say, and many expect retailers to continue to acclimate to the growing presence of e-commerce by shifting how they draw in consumers. Speakers at the International Council of Shopping Centers' RECon conference underway this week delivered reports and their assessment of the state of the industry.

“People still spend money,” JLL President of Retail Advisory Services Naveen Jaggi said at a breakfast panel with media Monday. “Consumer spending is still up. It is incumbent on the owner and retailer to shift and bring consumers in.”. . . more

J.C. Penney CEO Marvin Ellison resigns to become CEO of Lowe's

USA Today
Home improvement retailer Lowe's on Tuesday named the CEO of department-store chain J.C. Penney as its new boss.

Marvin R. Ellison has resigned as CEO of J.C. Penney to become the new CEO of Lowe's. . . . more

Monday, May 21, 2018

Sears gets financial boost to upgrade its credit card

Chain Store Age
Sears Holdings is upping the rewards for its credit card holders.

Citi and Sears Holdings on Monday announced a long-term extension of their 15-year co-brand and private label credit card relationship along with enhancements to the Shop Your Way Mastercard rewards program. In conjunction with the agreement, Citi will pay Sears $425 million ($400 million of which has been received).

Sears said its cardholders will now enjoy benefits every day that previously were only available on a promotional basis. . . more

President threatens to raise Amazon’s postal rates

Chain Store Age
President Donald Trump just threw another swing at Amazon in his ongoing feud with the company’s CEO Jeff Bezos.

President Trump personally pushed U.S. Postmaster General Megan Brennan to double the rate the United States Postal Service charges Amazon and other firms to ship packages, a dramatic move that probably would cost these companies billions of dollars, according to the Washington Post.. . . more

Coffee, iPhones, Wifi? If you thought this was Starbucks or Apple, surprise! It’s Comcast

USA Today
Consumers may love to hate their cable companies, but Comcast is betting its new retail stores with giant video screens and comfy couches will help strengthen its connection to customers. There will be zones where they can try out products ranging from Comcast's X1 video player to smart locks controlled with the tap of an iPad.

Comcast plans to set up shop in malls and shopping centers, sometimes moving into spaces that more traditional chains have left empty after struggling with slipping sales.. . . more

A.C. Moore to debut small-format store

Courier Post
A.C. Moore is launching a smaller-store format — and its first scaled-back shop will operate next to a mini Target in Haddon Twp, NJ.

The new format, to be called A.C. Moore Essentials, is expected to debut next month at Westmont Plaza. It will occupy about 12,000 square feet in the complex at Cuthbert and MacArthur boulevards, compared to 18,000 to 20,000 square feet for a conventional outlet.. . . more

A new policy at Starbucks: People can sit without buying anything

Boston Business Journal
On Saturday Starbucks announced that “any customer is welcome to use Starbucks spaces, including our restrooms, cafes and patios, regardless of whether they make a purchase.”

Previously it might have fallen to store managers to decide whether people could sit or use the restroom without buying anything, The Associated Press reported.. . . more

Return of ‘Open Newbury’ set to allow shoppers to walk this way with no cars

Boston Herald
Newbury Street will be closed to cars on the second Sunday in July, August and September this year in celebration of the city’s third “Open Newbury Street” concept.

Mayor Martin J. Walsh’s office released the Open Newbury Street schedule yesterday, reminding businesses that the full width of Newbury Street, from Arlington Street to Massachusetts Avenue, will be pedestrian-only from the hours of 10 a.m. to 6 p.m.. . . more

Simon Partners With Marriott To Add 5 New Hotels To Shopping Centers

Bisnow.com
Marriott International and Simon Property Group are planning to develop at least five more hotels under various Marriott brands at Simon shopping centers over the next few years. Two will be in Florida, and one each in New York, Texas and Tennessee.

The thinking is that a more experiential property, with shopping but also dining and entertainment, needs a hospitality component to promote the shopping center as a destination.  . . . more

Friday, May 18, 2018

Lidl U.S. names new CEO

Supermarket News
Lidl U.S. announced Thursday that Johannes Fieber was named company president and CEO. He will replace Brendan Proctor, who has spearheaded the company’s U.S. efforts since 2015.

Proctor played a pivotal role in Lidl’s entry to the U.S., having been appointed CEO of the operation in June 2015, two years before the discounter opened its first stores. The company has seen its growth plans in the U.S. curtailed in the months since announcing them.. . . more

Dillard’s picks up steam in Q1

Chain Store Age
One day after Macy’s posted a strong first quarter, Dillard’s reported net income of $80.5 million, or $2.89 per share, for the period ended May 5, up from $66.3 million, or $2.12 per share, for the year-ago period.

Net sales were $1.456 billion, up from and $1.418 billion last year. Net sales includes the operations of the company’s construction business, CDI Contractors. Total merchandise sales (which excludes CDI) increased 2% to $1.409 billion. Same-store sales also increased 2%. . . . more

Nordstrom shares fall despite higher than expected quarterly profit

The Seattle Times
Nordstrom, putting its namesake family’s unsuccessful take-private effort in the rear-view mirror, reported a first-quarter profit that surpassed the expectations of Wall Street analysts. But other details in the Seattle retailer’s report prompted a 7 percent dip in its stock price after the earnings news.

The Seattle-based retailer remains under scrutiny as it invests in an ongoing digital transformation and expansions in New York City and Canada, all while trying to expand profit margins after five consecutive years of shrinkage.. . . more

Samuels proposes $350M mixed-use air-rights project over Mass. Pike

Boston Business Journal
Five years after getting approval from state transportation officials to develop on air-rights above the Massachusetts Turnpike, Boston-based real-estate development firm Samuels & Associates notified city planning officials that it intends to develop a $350 million project at the end of Boylston and Newbury streets.

The site, called Parcel 12, is located on Massachusetts Avenue across from the MBTA Hynes Convention Center Green Line station. It's there that Samuels is proposing a 237-foot office tower and a second 150-foot structure that could feature either residential space or hotel, as well as 70,000 square feet of restaurant and retail space. . . . more

Thursday, May 17, 2018

US e‑commerce accounts for 13.8% of total retail sales in the first quarter

Internet Retailer
U.S. online retailers generated $114.42 billion on the web in the first quarter, a 16.4% increase compared with $98.29 billion in Q1 2017, the Department of Commerce reported today.

The year is off to a good start for e-commerce, as this is a slightly higher growth rate than e-commerce for 2017 as a whole, when U.S. online sales rose 16.0% to reach $453.46 billion compared with $390.99 billion in 2016. . . . more

BJ’s aims to stock up on cash, filing IPO plan with feds

Boston Business Journal
Westborough-based BJ’s Wholesale Club Holdings Inc. on Thursday notified federal regulators of its intent to file an initial public offering after being privately held for the past seven years. The warehouse club operator will be listed under the ticker symbol “BJ.”

A valuation and number of shares has not been determined, but a federal filingindicates the maximum aggregate offering price would be $100 million. The Wall Street Journal in April reported that the company could be valued between $2 billion and $3 billion.. . . more

Kroger’s new partnership allows it to ‘leapfrog’ Walmart and Amazon

Chain Store Age
The recently announced partnership with Kroger Co. and British online grocer Ocado illustrates a shift in online grocery retailing for both players. And it will give Kroger a head-start in realizing true profitability in online grocery in the United States.

Since 2014, Ocado has been exploring selling its technology and logistics expertise in a service model with an external retailer. The move now seems to have just hit its stride as it has partnered with Sobey, Casino and now Kroger in recent months. . . . more

Macy's may have the winning retail formula

CNBC
Macy's may have the winning formula in today's retail world. The department store giant beat earnings expectations Wednesday with a combination of reduced inventories, targeted market strategies and new merchandise.

"Macy's is investing for the future," Matthew Boss, retail analyst at J.P. Morgan, told CNBC on "Squawk Alley" Wednesday. . . . more

J.C. Penney's results fall short of expectations after sales tanked in a cold April

Dallas Morning News
J.C. Penney reported weaker-than-expected results blaming April's cold temperatures and rare snow in the Midwest and Northeast and the closing of 141 stores last summer and fall.

April apparel sales declined drastically following sales increases in February and March, said chief executive officer Marvin Ellison during a conference call with analysts Thursday morning. Sales declined 12 percent in the first week of April and declined 24  percent in the second week, he said. But recovered with the weather in the second half of the month, rising 9.5 percent in the third week and 10 percent in the last week. . . . more

Walmart's U.S. e-commerce growth rebounds

Reuters
Walmart Inc, the world’s biggest retailer, posted a rebound in its U.S. e-commerce business on Thursday and beat profit and revenue expectations. 

Walmart’s e-commerce sales grew 33 percent during the first quarter ended April 30, above the 23-percent growth in the previous three months. It said it is on track to increase U.S. e-commerce sales by 40 percent for the full year. . . . more

Investors urge GameStop to overhaul retail strategy amid management upheaval

gamesindustry.biz
Retail giant GameStop is being urged by investors to conduct a strategic review following the sudden departure of CEO Michael Mauler.

According to a letter seen by CNBC, hedge fund Tiger Management described the recent upheaval as "an unprecedented opportunity" to overhaul the retailer's strategy and "revive shareholder confidence in the sustainability of the GameStop business model". . . . more

Target is ‘most popular’ in survey

Chain Store Age
A retailer’s popularity varies depending on whether a shopper values low prices or has expensive tastes.

That’s according to a survey by Internet-based market research and data analytics firm YouGov that ranks the most popular department stores in the United States. . . . more

Wednesday, May 16, 2018

Ripple effect from big box blight

Real Estate Weekly
Across the country, big-box retailers are shuttering at a record pace but for landlords, that’s just the tip of the iceberg.

When a Macy’s or Nordstrom goes dark as part of a nationwide cull it continues to pay rent so landlords don’t see an immediate loss of revenue.

However, these departures create ripple effects through co-tenancy agreements, lease clauses that can allow other tenants to pay reduced rent or close completely. . . . more

Amazon to give Prime members extra discounts at Whole Foods

Boston Herald
It's Prime time at Whole Foods: Amazon said it will give its Prime members extra discounts at the grocery chain.

The new benefits started Wednesday at Whole Foods stores in Florida and will expand nationwide this summer. Prime members get an additional 10 percent off sale items and exclusive deals on certain items. This week in Florida, for example, Prime members can get $2 off a pound of organic strawberries or save $10 a pound on wild halibut steaks. . . . more

‘Leery’ Customers Prompt Walmart to Shelve Self-Scanning Service

Bloomberg
Walmart Inc. has ended a service where customers could ring up their own purchases, showing that old habits die hard even in the digital age.

The retailer had offered its so-called “Mobile Scan & Go” technology in about 150 Walmart stores, after a successful rollout across its Sam’s Club warehouse chain. But while the service worked in Sam’s -- which carries fewer products, all of which are prepackaged -- it confused some Walmart shoppers, who found that bagging, weighing and then scanning items including fresh fruit and vegetables was a hassle. . . . more

Macy's sees second straight quarter of boosted sales

The Cincinnati Inquirer
Macy's Inc. has broken free of its 11-quarter sales slump, posting its second straight quarter of increased earnings at its stores.

Macy's reported comparable sales were up 3.9 percent in the first quarter of 2018 at stores it owned, and up 4.2 percent when licensed stores were included. That's the second straight quarter of growing sales for the department store chain, which had seen nearly three years of declining sales. . . . more

Another first for Lord & Taylor: An online pairing with Walmart

Boston Business Journal
Lord & Taylor is teaming up with Walmart to create an online store on Walmart.com that will offer about 125 fashion brands, including Tommy Bahama, La La Anthony, H Halston and Effy.

Billed by both companies as a “premium” shopping destination, the new online store reflects Lord & Taylor’s desire to reach a wider audience and Walmart’s hope to attract a different type of customer. . . . more

Seaport eateries struggle to stay

Boston Herald
High rents are choking the food sellers in the booming Seaport say restaurateurs who are leaving or afraid they’ll be forced out of a saturated market they say is making business bad for everyone.

Salvatore’s, a fixture for more than a decade on Northern Avenue near D Street, closed at the end of April and owners of J. Pace and Son, a neighboring longtime tenant, are worried they may have to leave as well. . . . more

Tuesday, May 15, 2018

U.S. consumer spending picking up, gasoline prices a threat

Reuters
U.S. retail sales increased marginally in April as rising gasoline prices cut into discretionary spending, but consumer spending appeared on track to accelerate after slowing sharply in the first quarter.

The Commerce Department said retail sales rose 0.3 percent last month after surging 0.8 percent in March. April’s increase was in line with economists’ expectations. Retail sales in April advanced 4.7 percent from a year ago. . . . more

The most trusted retail brand is…

Chain Store Age
A regional supermarket retailer enjoys a high degree of trust among consumers.

Wegmans took the No. 2 spot on Temkin Group’s 2018 Temkin Trust Ratings. Based on a study of 10,000 U.S consumers, the ratings, which are now in their eighth year, benchmarks the level of trust that consumers have with 318 companies across 20 industries. USAA’s banking business, with a rating of 81% earned the top spot, followed H-E-B (79%), credit unions (77%), and USAA’s credit card and insurance businesses (75%). . . . more

Mall for One and One for Mall

Chain Store Age
It’s a turbulent time for many American malls, and several owners and operators have had success reversing the fortunes of underperforming malls by transforming them into mixed-use destinations. This can radically change a mall’s fortunes – particularly those with great locations and favorable demographics – but it is not a magic bullet. Mixed-use redevelopments take time. They come with design and development challenges, new value calculations, and complex economic, demographic, and leasing considerations.

For retailers, the process can be extremely beneficial, but also incredibly disruptive. They need to be attuned to the signs that a redevelopment is needed and cognizant of what they can do to navigate the process once it begins. . . . more

Amazon Go stores are coming to Chicago and San Francisco

CNNtech
Amazon's cashier-free grocery store of the future is coming to San Francisco and Chicago.

The company is expanding its experimental Amazon Go store to the two US cities, but did not say when they would open. It has posted job listings for store managers in the cities on its own site, which were first noticed by the Seattle Times. . . . more

Walmart, Home Depot, Macy’s Earnings to Give New Pulse on Retail

NREI
Several of the largest consumer-facing companies report results for the first quarter -- the three months immediately following the critical holiday season that sets the stage for the rest of the year. Walmart Inc., Home Depot Inc. and Macy’s Inc. are three of the major chains scheduled to update shareholders on the state of their operations.

Their performance will give fresh perspectives into the health of brick-and-mortar retail and the strength of buyer sentiment in the U.S. So far this year, the consumer climate has been pretty strong. Although Americans aren’t running out to the mall in droves with their tax-refund dollars, they say they’re in the mood to ramp up spending. . . . more

The Time May Be Right for More M&A in the REIT Sector, Analysts Say

NREI
There are several large proposed REIT mergers in the books already in 2018, but analysts in the space say the activity may not be done yet.
 
Following a long slowdown of consolidation activity, the recent M&A announcements have spanned REIT sectors. First, General Growth Properties Inc., a mall REIT, in March agreed to a buyout  offer from Brookfield Property Partners. . . . more

Home Depot’s Sales Chilled by Long Winter With a Thaw Seen Ahead

Bloomberg
The long and brutal winter didn’t just ruin your al fresco spring plans -- it also drove Home Depot Inc. to miss sales estimates at the start of what’s traditionally its biggest selling season.

But as temperatures heat up, revenue may too for the world’s largest home-improvement retailer, which is already seeing same-store sales in the double digits this month after missing analysts’ first-quarter predictions, according to Chief Financial Officer Carol Tome. . . . more

Monday, May 14, 2018

Sears moves to sell Kenmore

money.cnn.com
The struggling retailer announced Monday that it had formed a "special committee" to explore the sale of its in-house appliance brand.

The move comes less than a month after Sears CEO Eddie Lampert wrote a letter to the board urging it to sell the brand. He offered to buy it himself if necessary, along with other assets.

There is a good chance that Lampert will be the one buying Kenmore.. . . more

Ahold Delhaize sees rebound in U.S. same-store sales

Supermarket News
Ahold Delhaize reported improved same-store sales in its U.S. division as revenue edged up in the 2018 first quarter.

The Zaandam, Netherlands-based grocery retailer said Wednesday that sales for Ahold Delhaize USA came in at $10.86 billion, up 2.1% from $10.64 billion a year earlier and accounting for nearly 60% of the company’s overall sales in the quarter. Online sales showed stronger growth, rising 9.4% to $222 million from $203 million. . . . more

How a Startup is Helping Retail Landlords, Tenants Arrange Short-Term Leases

NREI
Men’s sportswear retailer Rhone recently participated in a growing retail trend. It booked a one-year, 368-sq.-ft. space in Brookfield Place, the retail concourse in New York City (still locally referred to as the World Financial Center), after renting space in three other shopping centers for even shorter terms.

In previous eras of retail leasing, a young company in a competitive segment such as apparel might not have hoped to attain such a deal. Yet these are extraordinary times in retailing. Bankruptcies and store closures are on the rise for anchors and specialty tenants, including the apparel sector, putting pressure on retail landlords to keep their common areas bustling with shoppers. . . . more

GameStop is on the hunt for a new CEO

Chain Store Age
After only three months on the job, GameStop’s CEO is stepping down.

Michael Mauler is resigning from his role as CEO, effective immediately. He is leaving for personal reasons, according to the company.

Board member and GameStop co-founder Daniel DeMatteo will serve as interim CEO during the search for a new chief executive. DeMatteo previously served as CEO from August 2008 to June 2010. . . . more

Tax Cuts, Gas Prices to Duke It Out in U.S. Retail-Sales Report

Bloomberg
Two burning questions may be answered with Tuesday’s retail-sales report: How much are lower taxes boosting U.S. economic growth, and how much are higher gasoline prices hindering it?

The median projection in a Bloomberg survey of economists calls for a 0.3 percent rise in April retail sales from the previous month. A broad advance would indicate bigger take-home pay is more than compensating for a pickup in fuel costs to a level last seen in late 2014. However, higher receipts that are concentrated at service stations would indicate gasoline purchases are eating into discretionary sales at other merchants.. . . more

Amazon Doesn't Have to Be Retail's Worst Nightmare

Bloomberg
For years now, it's been a common view in the retail world that a win for Amazon.com Inc. is a loss for some old-school retailers. But these days, that’s not necessarily the case.

Traditional brick-and mortar chains are starting to strike some innovative partnerships with their arch-competitor, turning to unconventional arrangements in the hopes of getting more shoppers back into their stores. If executed properly, there's a good chance these once-unthinkable alliances end up being a rare win-win scenario, with both the legacy retailer and Amazon getting something they need to unlock new growth. . . . more

Legoland Discovery Center in Somerville debuts virtual reality ride

Boston Herald
You are speeding down a racetrack, desperately trying to avoid your competitors, explosions, falling rocks and a cacophony of other obstacles, and cross the finish line first.

But this is no ordinary race. Your competitors are a ragtag group consisting of pirates, mummies and a wizard.

Also, everything is Lego, and you’re in virtual reality.. . . . more

Big Changes Proposed for Former Sears Location at Burlington Mall

BCAT
There could be some big changes coming to the Burlington Mall.

Recently representatives of Simon Property Group, the company that owns the mall, were at the Planning Board meeting to discuss a proposed project for the former Sears and Sears Automotive sites. Those properties, once owned independently by Sears, were acquired by Simon Properties and they are now looking into ways to redevelop them to better fit the modern mall market. . . . more