Thursday, November 20, 2014

Target grows web sales 30% in Q3

Target Corp.’s online sales increased 30% in its fiscal third quarter ended Nov. 1 and projects 40% growth in the current quarter.

Web sales accounted for half of the 1.2% increase in U.S. comparable-store sales growth in the third quarter, Target reported yesterday. That 60-basis point contribution to comp-store sales was double the web’s contribution during the same period last year. For the year, online sales are boosting comparable-store sales 50 basis points while Target’s stores are dragging that metric down by 20 basis points, Target reported.. . . more

Can better data stop the "Coming Physical Retail Death Spiral"


AnalyticsTechnically, the holiday season started November 1st. But we all know that holiday shoppers put their game faces on a week from today on the busiest shopping day of all days in the U.S. – Black Friday. But, this year, brick-and-mortar merchants may be wishing that Santa brought them that crystal ball they asked for last year to see just how retail-ready these shoppers really are. The last year – well, the last several years, really –  have been tumultuous, to say the least. Though brick and mortar is still a dominant 90+ percent of all retail transactions, foot traffic has been on a gradual but persistent decline.

"Reinvention of the physical retail sector is essential, and like Darwin’s theory, only the fittest will survive, " according to MPD CEO Karen Webster.
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Target rebounds and tops Street with strong Q3 helped by increased promotional activity

Target Corp. gained some momentum going into the holiday season with a third quarter that beat both Wall Street and internal expectations as sales as its U.S. stores exceeded estimates and its troubled Canadian division showed signs of improvement. Its results were also driven by increased promotional activity. This was Target’s first quarter under the leadership of CEO Brian Cornell, who replaced Gregg Steinhafel in August. 
Third-quarter net income rose 3%  to $352 million, from $341 million in the previous year. Sales increased 3% to $17.73 million from $17.26 million.  Same-store sales rose 1.2% in the U.S., better than the 1% forecast, and 1.6% in Canada. Target said it increased its promotional activity, causing gross margins to contract to 29.5% from 30%. As a result, operating profits declined to $927 million from $977 million in the third quarter the prior year.. . . more

Best Buy earnings better than expected as holiday looms

Electronics retailer Best Buy heads into the holiday shopping season with some momentum as third quarter earnings beat Wall Street expectations.

Sales in U.S. stores grew 3.2% and online sales rose 21.6%, bolstered by the retailer selling more televisions, computers and tablets than competitors and increasing performance in sales of appliances, as well as video games and game systems.. . . more

Wednesday, November 19, 2014

New Quincy Center Plans Announced Following Redevelopment Project’s March Collapse

There are new plans for development in Quincy Center, after a $1.6 billion, 55-acre downtown redevelopment proposal fell apart earlier this year.

A six-story building with 169 housing units called West of Chestnut (in reference to Chestnut Street) would be built there, and would also include 12,000 square feet of retail space. Construction on that building is expected to start next year and end in the summer of 2016. . . . more

Staples boost profits by shutting 170 stores

staples closing These days it seems like the only hot-selling item at Staples is the company's giant store eraser.

The office supplies chain revealed plans Wednesday to shut an additional 30 stores this year, accelerating its ongoing efforts to slash costs. These store closures would be in addition to the 140 already announced.. . . more

Walgreen guts real estate department, taps brokerage

Walgreen gutted its in-house real estate department in a cost-cutting move, bringing in a Texas brokerage to handle key issues related to the company's growing store portfolio.

The Deerfield-based pharmacy giant recently laid off about 16 in-house real estate managers and outsourced the work to SRS Real Estate Partners out of Dallas, a Walgreen spokesman confirmed in an email. SRS will work on site selection and lease negotiations for new Walgreen stores, he added.

People familiar with the managers Walgreen fired say many were company veterans, some with more than two decades on the job. The move will contribute to a Walgreen plan to slash costs by $1 billion over the next three years, the spokesman said.

Walgreen is under pressure to find savings after deciding to keep its headquarters in the Chicago area rather than move it to a lower-tax country.

“Our real estate managers can be proud of the work they did over many years to provide Walgreens with the best retail real estate footprint in the industry,” the company spokesman said in the email.

Source: Crain's Chicago Business

Kings Burlington Set to Open Early 2015

Kings Burlington Set to Open Early 2015
Kings Burlington is gearing up to reopen early next year, following a fire last April, just days before it’s grand opening at 3rd Ave Burlington.

Construction of the new building began over the summer and continues as Kings Burlington readies to bring bowling, dining, cocktails and more to Burlington and the surrounding area. . . . more

Simon discloses stake in shopping-mall owner Macerich

Indianapolis-based Simon Property Group Inc., the biggest U.S. mall owner, said it has accumulated a 3.6-percent stake in rival Macerich Co.

Simon bought 5.71 million shares of Macerich this year and may request that Macerich waive its excess share provision, which restricts stock ownership to 5 percent, the real estate investment trust said Wednesday in a written statement. Simon cited the recent acquisition by another company of a 10.9-percent interest in Santa Monica, California-based Macerich.. . . more

Lowe's Rides Improving Housing Market to Strong 3Q

Earns Lowes Lowe's third-quarter earnings jumped 17 percent as home improvement retailers continue to rebound from a tough start to the year, reaping gains from a nascent recovery in the housing market.
The company also raised its full-year forecast a day after rival Home Depot reported a 14 percent jump in third-quarter earnings. Shares of Lowe's jumped 5 percent to an all-time high in early trading.

Earnings for home improvement retailers were hampered earlier this year by bad weather, rising mortgage rates and a tight housing supply that chilled sales.. . . more

TJX Cos. blames third quarter income drop on warm weather

Off-price retailer TJX Cos. yesterday reported income fell in the third quarter compared to last year, a drop it blamed on unusually warm weather cutting into sales of winter clothing.

The parent company of TJ Maxx, Marshalls and HomeGoods said total third-quarter income was $595 million, down almost 5 percent from $623 million a year earlier.. . . more

Are stores making a mistake opening on Thanksgiving?

PhotoIn the last couple of years major retailers have begun opening their doors on Thanksgiving in an effort to get a jump on Black Friday sales. It's worked well enough that more of them are doing it, and opening earlier in the day.

But is there a growing consumer backlash? The New York Times has called it “the war on Thanksgiving” and a recent poll suggests that many consumers have decided “Black Friday creep” has gone too far.. . .more

Dollar General may have to ax more than 4K stores

Dollar General may have to ax more than 4K storesDollar General may have to divest more than double the 1,500 stores it said it was willing to sell if it wants to gain regulatory approval to buy arch-rival Family Dollar, The Post has learned.

The Federal Trade Commission may require the country’s No. 1 dollar store chain to divest more than 4,000 stores to win approval of its stalled $9.1 billion merger proposal, two sources close to the situation said Tuesday.. . . more

Tuesday, November 18, 2014

Well-known developers team up for Cleveland Circle project

Some established players are teaming up to redevelop site of the former Circle Cinema at the corner of Beacon Street and Chestnut Hill Avenue in Boston.

Boston Development Group and National Development said in a news release that they're forming a joint venture to do the work and that Charles River Realty Investors will provide the capital.. . . more

Sears’s U.S. Appliance-Sales Dominance Is Fading

Sears Holdings Corp., America’s top appliance seller for decades, may lose that title in about two years, another casualty of Chief Executive Officer Eddie Lampert’s plan to remake the department-store chain.

Sears had 28 percent of the major appliance market in the U.S. last year, and that share may plummet to 10 percent by the end of 2016 according to a Credit Suisse Group analyst. If Lowe’s Cos. picks up a quarter of the share Sears loses, it would be the top appliance seller by the end of 2016.. . . more

Berkshire, Boston Global, WS Development Break Ground on $600M One Seaport Square in Boston

One Seaport SquareBerkshire Group, WS Development and Boston Global Investors (BGI) have begun construction on One Seaport Square, a three-acre mixed-use development located within the 23-acre Seaport Square. Seaport Square is the largest master-planned project in the city of Boston. According to The Boston Globe, One Seaport Square’s development costs will total roughly $600 million.

Upon completion, which is expected in 2017, the development will include two residential towers, named The Benjamin and VIA, constructed above 250,000 square feet of retail space across the towers’ first three floors.. . . more

Monday, November 17, 2014

Lowe's and Home Depot Bright Spots In Retail This Season

home depotAmericans may not spend as much as retailers hope this holiday season, but analysts expect more outlays to flow to home improvements. Quarterly earnings reports from Home Depot and Lowe’s this week are expected to show solid growth in home repairs and remodeling as brighter housing and job markets help homeowners spiff up before end-of-the-year festivities.

Building material sales rose 7.6 percent in September compared with a year ago and 5.1 percent in October, according to federal data. That’s higher than the retail sector’s average 3.7 percent gain in October, excluding cars. Clothing, sporting goods, music, books and general merchandise all posted slower sales growth than home materials in recent months.. . . more

Gourmet stores to fortify World Trade Center

Gourmet stores to fortify World Trade CenterIn addition to Eataly in the base of 4 WTC, Westfield Corp. — which owns all the retail space at the 16-acre complex — has signed leases with 14 gourmet food stores and grab-and-go spots.

All the new leases total around 24,000 square feet and combined with Eataly’s 41,000 square feet, already account for more than half of the 120,000 square feet Westfield has earmarked for food at the WTC.

Westfield has a total 350,000 square feet for retail and food uses at various locations in the Oculus, the base levels of 3 and 4 WTC, and in the underground concourses that connect them. . . . more

Shoppers line up to christen new Goodwill store in Somersworth, NH on Saturday

PictureA ribbon was cut with giant scissors, a line reached around the corner of the building and two doors opened to a brand-new Goodwill store in Somersworth on Saturday.

Moved from its original Dover location, the building is larger and employs more people — from 39 to 50-something workers.. . . more

RadioShack lines up new products, ads, policies for critical holiday season

Radio Shack 101Paul Rutenis, who took over as RadioShack’s chief merchant just over a year ago, says the 2014 holiday sales theme is “Gift Smart,” a nod to high-tech items big and small aimed at luring new customers like TCC students and setting the struggling consumer electronics chain apart.

He points out a cluster of items dealing with home automation, a mix of name-brand headphones including the addition of JBL along with house brands, and an array of drones “that will knock the socks off the market.. . . more

Work to start at Market Basket in Attleboro with aim to open store first week in January

Market Basket South AttleboroElectricians necessary to hook up refrigeration and other units to get Market Basket up and running are expected on site Saturday with the aim of opening the store the first week of January.

Attleboro Building Inspector Doug Semple said this morning that the electrical contracting company to do work on the store in Bristol Plaza contacted him about going into the building and starting the work Saturday.

He said the contractor told him the store’s opening is planned for the first week of January.. . . more

Nordstrom boosts profit, revenue 3Q

 Nordstrom reported a profit of $142 million for the third quarter, up from $137 million in the year-ago period.

Sales jumped 9% to $3.14 billion, beating the expected $3.11 billion in revenue. Same-store sales rose 3.9%.. . . more

Early Holiday Promotions Eat Away Black Friday Sales

Target holiday 2014 campaignTraditionally, the excitement around holiday sales started the morning after the leftovers hit the fridge. But in the past few years, stores began opening on Thanksgiving Day (some have taken to calling it Gray Thursday).

The trend is so strong that Black Friday is losing relevance. In fact, this year, Super Saturday -- on the weekend before Christmas -- is expected to overtake Black Friday as the top sales day of the year for the first time since 2005, according to ShopperTrak.. . . more