Best Buy reports 1Q loss on restructuring costs

Best Buy Co. on Tuesday reported a loss in its fiscal first quarter as it sold its stake in Best Buy Europe and works on a turnaround plan that includes cutting costs and closing some stores.

Read more here: http://www.star-telegram.com/2013/05/21/4872049/best-buy-reports-1q-loss-on-restructuring.html#storylink=cpy

The company has been working on a turnaround plan as it faces increased competition from online retailers and discount stores. The plan includes closing stores, cutting costs and investing in training for its employees. In April it also said it would sell its 50 percent stake in its European joint venture to streamline its business and strengthen its balance sheet. . . .more

Read more here: http://www.star-telegram.com/2013/05/21/4872049/best-buy-reports-1q-loss-on-restructuring.html#storylink=cpy. . . more

Store Opening Plans are at Five-Year High

The retailers in RBC Capital Markets’ database reported plans for 41,713 new store openings in the next 12 months, representing a five-year high in store opening plans.

As in previous months, consignment store Children’s Orchard and restaurant chain Five Guys Famous Burgers and Fries were among the retail concepts planning to expand the most compared to their existing store bases. Children’s Orchard, which operates 100 stores today, plans to double its fleet in the next 12 months. Five Guys, which has 750 existing locations, plans on opening 600 new ones in the coming year.. . . more

Restaurants, Luxury Tenants are Once Again in Expansion Mode

The retail real estate market is finally reaching a state of equilibrium, with several groups of tenants working on aggressive expansion campaigns, according to leasing executives attending the RECon convention in Las Vegas this week. Leasing activity has gotten strong enough that there is now talk of new developments under works for 2014/2015. The caveat is that those trends are much more pronounced in top-tier, urban markets, including Seattle, Dallas and Miami, than they are in smaller areas.

Restaurants, retailers that focus on aspirational luxury items and apparel sellers have been among the most active dealmakers. . . more

Retail Development Back on the Horizon

Looking for proof that the retail real estate industry is in a better place than it was even a year ago? New development is no longer a distant pipe dream, but a tangible possibility as industry players begin conceiving new projects.

Some companies, primarily publicly-traded retail REITs, might already be close to putting shovels in the ground as they sign up expanding retailers to go into their new centers.. . . more

Smashburger plans expansion, possible IPO

Fast food hamburger chain Smashburger plans to more than double its nationwide store count to about 500 in the next few years. The chain currently runs about 200 locations across the U.S.. . . more

Retailer LL Bean Keeping It in the Family

L.L. Bean's grandson Leon Gorman is retiring as chairman of the outdoors retailer after more than a half-century as the company's chairman or CEO, but the privately held firm is keeping the position in the family.

The Maine-based outdoors retailer informed its 5,000 full- and part-time workers Monday that Bean's great-grandson Shawn Gorman is the latest family member to serve as chairman, underscoring a commitment to family ownership in an era in which most large retailers are publicly traded.. . . more

Home Depot Profit Tops Estimates as Housing Market Gains

Home Depot Inc., the largest U.S. home-improvement retailer, posted first-quarter profit that topped analysts’ estimates and raised its forecast for earnings this year as the housing rebound boosts renovation spending.

Home Depot is benefiting from rising U.S. home prices that are giving homeowners the confidence to start projects and spend more. Revenue rose 7.4 percent to $19.1 billion, topping analysts’ $18.6 billion estimate, as the average customer purchase increased 5 percent to $57.24. . . . more

Gas prices lower, but not leading to more spending

Gas prices are slightly lower this year, but that's not leading to a large pick-up in consumer spending, according to a survey by Bankrate.com.

About 80% of the 1,000 people Bankrate surveyed said they have not increased their discretionary spending in response to falling gas prices this year.. . . more

Frugality out: Restaurant sales at all-time highs

Americans seem to be fed up with frugality.

As the recession ever so slowly recedes, an increasing number of Americans say they are less frugal than they were a few years ago. At the same time, sales at restaurants are at an all-time high and at least one survey says consumers expect to spend more eating out as soon as their pocketbooks allow.. . . more

Seattle’s Best Coffee to open 10 Dallas-Fort Worth locations Monday

Last fall, Starbucks executives embarked on a new strategy. The company opened a prototype Seattle’s Best location in Seattle that was a small drive-through that could be quickly replicated at a lower price than the cost of building an 1,800-square-foot Starbucks.

The Seattle-based coffee giant is opening 10 locations of its Seattle’s Best Coffee chain in the Dallas area on Monday — the largest number of openings in a single market on a single day in Starbucks’ history.. . . more

Private-label products are increasingly important in the grocery industry

These days, virtually any grocery retailer has its own store brands.

Martin’s has them. Kroger has them. Food Lion, Whole Foods, Walmart, and Costco have them.


Store brands account for about 80 percent of Trader Joe’s merchandise. Even a small operation like Ellwood Thompson’s Local Market has store brands.. . . more

Nordstrom Q1 profit and sales disappoint

Nordstrom Inc. reported its first quarter net income fell a greater-than-expected 3%, hurt by weak demand for spring merchandise and softer performance in the Northeast and Midwest. The company also lowered its full-year sales forecast.

Nordstrom Inc. reported its first quarter net income fell a greater-than-expected 3%, hurt by weak demand for spring merchandise and softer performance in the Northeast and Midwest. The company also lowered its full-year sales forecast. . . . more

A tale of two malls: Whitney Field sale imminent, Silver City's luster fades

Local real estate sources have confirmed that two struggling Massachusetts malls — the Mall at Whitney Field in Leominster and the Silver City Mall in Taunton — are on the cusp of resolving their deep financial issues, albeit with completely different outcomes.

This month a California-based investment firm, Vintage Real Estate of Los Angeles, inked a deal to acquire the 664,000-square-foot Whitney Field Mall at a price ranging between $30 million and $40 million.. . . more

Finard tapped for retail development at Mohegan Sun's casino project in Palmer

Mohegan Sun today announced a partnership with Boston-based Finard Properties, a commercial real estate investment company, for retail development at its proposed resort casino off Route 32 in Palmer.

Finard Properties has developed and managed retail properties ranging from urban retail projects to lifestyle centers and large-scale enclosed regional shopping malls. Mohegan Sun Massachusetts will include a 300,000-square-foot Finard Properties retail development, in addition to casino gaming, a hotel, premier dining and other amenities. . . . more

Sheraton developer: Retailer lined up for 40,000-square-foot space

The developer of the Sheraton Portsmouth Harborside Hotel parking lot property on Deer Street said Thursday that there is already a tenant lined up for the 40,000 square feet of retail space in a new mixed-use project proposed for downtown.

"We do have a user for that space, but we're not at the point where we can talk about that just yet," said Chris Thompson, principal of HarborCorp LLC.. . . more

Casino bidders can get second chance in southeastern Mass.

Developers who are unsuccessful in their pursuit of casinos in the eastern or western regions of Massachusetts could compete in the newly opened southeastern region under a plan approved Thursday by the state’s gaming commission.

The decision follows the panel’s recent vote to open up southeastern Massachusetts – known as Region C in the state’s 2011 casino law – to commercial casino bidders. The Mashpee Wampanaog tribe had previously enjoyed exclusivity in Region C while it pursued state and federal approvals for a proposed tribal casino in Taunton.. . . more

Global luxury goods sales slowing

Global sales of luxury goods are off to a slow start in 2013 and aren't expected to match the double-digit growth of the last three years, consultancy Bain & Co. said in a study released Thursday.

Sales of luxury apparel, accessories, jewelry, cosmetics and art are expected to grow just 4% to 5% in 2013, to between $283 billion to $286 billion, according to Bain's study, which was commissioned by Italy's luxury producers' trade association, Altagamma. They increased 10% in 2012, to $272 billion.. . . more

J.C. Penney’s New Plan Is to Reuse Its Old Plans

J. C. Penney already brought back its old chief executive. Now it is restoring his old strategies.

From increasing promotions to bringing back house brands like St. John’s Bay, Myron E. Ullman III, the new C.E.O., is erasing most of the changes made by Ronald B. Johnson, the former Apple retail head who started with much fanfare in 2011. After significant changes and several disastrous quarters, Mr. Johnson was fired this spring and Mr. Ullman, who had been his predecessor, resumed command about five weeks ago. . . . more

Garden project: Builder plans huge hotel, housing, retail complex

A massive twin tower complex of hotel rooms, condos, offices and shops would be the new gateway to the TD Garden under a plan that developers — linked to the Bruins — hope will turn the Causeway Street area into a trendy year-round hangout.

Two towers would go up on a 2.8-acre site beside the Garden — currently a parking area — featuring 500 residential units, 200 hotel rooms, 800 underground parking spaces, 300,000 square feet of retail on multiple floors, and 600,000 square feet of office space.. . . more

High Level of Leasing Activity Expected at RECon 2013

The retail real estate industry holds high expectations for this year’s RECon convention, taking place in Las Vegas from May 19 through May 22, in spite of lingering concerns about the pace of the country’s economic growth and lackluster consumer confidence.

ICSC estimates there will be more than 33,000 retail real estate professionals in attendance at the show in 2013. Many of those going have full meeting schedules and anticipate strong leasing activity from retailers, including both deals that are already in the works and new contracts.. . . more

Another massive loss for J.C. Penney

There's one great thing about J.C. Penney's last quarter: It's over.

The struggling retailer lost a whopping $289 million for the three months ended on May 4, with sales plunging 16.4% versus a year prior. . . . more

Eastern Massachusetts KeyPoint Report Preview

The annual KeyPoint Report for Eastern Massachusetts/Greater Boston, based on our GRIIDTM, isn’t quite ready for public consumption yet, but we are at a point where we can skim off the top and share some of the key findings with you. So here goes:

Vacancy Rate: After suffering through the most dreadful economy in more than half a century, the Eastern Massachusetts retail climate is finally showing some giddy-up in the pace of activity. Earlier this year the retail vacancy rate fell below 8.0%, perhaps its version of the “Mendoza line”, for the first time since 2008.

The vacancy rate in the region currently stands at 7.8%, declining more than a full percentage point since last year. Although this is the third year in a row that the vacancy rate has declined, it is the largest percentage drop in more than a decade.. . . more

DDR to Acquire Select Prime Power Centers from its Blackstone Joint Venture for $1.46B

DDR Corp. announced an agreement to acquire a portfolio of prime power centers from its existing joint venture with Blackstone Real Estate Partners VII.

The portfolio being purchased is comprised primarily of market dominant prime power centers located in the top 40 MSA's of the United States, and includes all ten properties that DDR has a current right of first offer to acquire, such as fortress shopping centers Shoppers World in Boston and others. . . . more

US housing starts fell in April but permits surged

U.S. builders broke ground on fewer homes in April, one month after topping the 1 million mark for the first time since 2008. But most of the decline was in apartment construction, which tends to vary sharply from month to month.

And applications for new construction reached a five-year peak, evidence that the housing revival will be sustained.. . . more

Restaurant sales, traffic improve in April

The restaurant industry saw relatively strong sales and traffic in April driven by solid performances across all segments and strengthening both operator and consumer confidence, according to the latest NRN-MillerPulse survey.

Industry same-store sales rose 2.9 percent in April, an improvement from the 1.3-percent increase reported in March. When broken down, sales also rose 2.9 percent at both full-service restaurants, which include casual-dining and fine-dining brands, and quick-service restaurants, which include fast-food and fast-casual brands, the survey found. . . . more

Kohl’s Q1 profit falls 5%

Kohl's Corp. reported a 5% drop in first-quarter profit on weak sales fell due to unseasonably cold weather in large parts of the United States.

Kohl's net income fell to $147 million in the quarter ended May 4, down from $154 million a year earlier.
Sales fell 1% to $4.2 billion. Comparable-store sales fell 1.9%.. . . more

Wal-Mart’s Q1 sales, profit disappoints; issues tepid Q2 outlook

Wal-Mart Stores on Thursday reported profit and sales that were just below Wall Street expectations as the giant retailer struggled with a number of issues that impacted its U.S. sales, from the payroll tax increase to an unseasonably cold spring to delayed tax returns. The discounter also scaled back its earnings expectations for the current three-month period.

Wal-Mart’s net income rose 1.1% to $3.8 billion. Revenue edged up 1%, to $113.4 billion. Same-store sales in the United States fell 1.4%, while comp traffic was down 1.8% and the average ticket increased 0.4%.. . . more

Riverway Plaza in Weymouth sold for $22M

Boston developer Samuels & Associates has sold Riverway Plaza, the 265,000-square-foot shopping center in Weymouth, for $21.5 million. The buyer was CBRE Global Investors.

Samuels, best known for transforming a section of Boylston Street in Boston’s Fenway neighborhood from a series of gas stations and one-story buildings into mixed-use projects with glass towers and ground floor retail, bought the mall in 2001 for $6.3 million.. . . more

Mashpee tribal chairman says he expects federal ruling soon on land-in-trust request

Cedric Cromwell came before a legislative committee Wednesday, asking lawmakers to approve his tribe’s revised revenue-sharing compact with the state to build a casino.

But Cromwell, the chairman of the Mashpee Wampanoag tribe, knows the more important hurdle isn’t getting this revised compact through Beacon Hill. The bigger challenge: ensuring that the federal government approves the tribe’s land-in-trust application for property in Taunton that would be used for a resort casino. The tribe wants the compact, but could eventually move ahead with a gambling facility even without one. No land-in-trust, no dice.. . . more

Macy's 1Q profit rises 20 pct on solid sales

Macy's Inc. reported a 20 percent increase in first-quarter profit even though cool temperatures and economic worries dampened some of its shoppers' spending on spring clothes.

Macy's, a standout among its peers throughout the economic recovery, is the first of the major retailers to report first-quarter results that should provide insight into Americans' mindset heading into the summer season. The latest results show that while the job market is improving and housing market is recovering, Macy's and others that cater to middle-income shoppers still face hurdles.. . . more

RadioShack heads to campus

RadioShack will start offering a tailored assortment of consumer electronics products in college stores operated by NACSCORP, a subsidiary of the National Association of College Stores, this fall. A five-year agreement will establish branded RadioShack sections within college stores that offer both branded and private label electronics products and accessories.. . . more

Retail Picture Brighter Than Expected

The U.S retail economy may be poised for a bounce back.

The latest MarketPulse survey from Chicago-based Information Resources tells the tale: U.S. consumers feel significantly better in the first quarter of 2013 than they did the last quarter of 2012.. . . more

America's 10 Most Popular Stores

Recession or recovery, good times or bad, Americans like to spend. And what's more, we tend to go back to the same stores time and time again to do it.

Which retailers get our business month in and month out? The top of the heap is dominated by fast food chains, discount retailers and pharmacies, according to Placed Insights, a consumer habits data service provider. Their surveys show that only a few companies are visited by more than one in 10 Americans each month.. . . more

New York City second to Hong Kong in world’s highest retail rents

CBRE Group released research findings on Tuesday that showed Hong Kong’s continued top position as the world’s most expensive global retail market, recording prime rents nearly 150% higher than New York City.

London ranked third, with prime rental rates 400% lower than Hong Kong’s.. . . more

J.C. Penney stores, real estate worth $4.06 billion

A Tuesday report by Reuters said that J.C. Penney Co.’s real estate holdings – including stores, DCs and headquarters – are worth a total of $4.06 billion.

An appraisal was conducted for Penney and subsequently disclosed in a presentation to potential lenders that was also filed with U.S. regulators.. . . more

Payroll tax hike prompts spending cuts

Most Americans plan to cut spending to make up for income lost from the payroll tax hike, according to a New York Federal Reserve study released Wednesday.

The payroll tax cut, which was in effect in 2011 and 2012, reduced the amount withheld from workers' paychecks to 4.2%, down from 6.2%. That put an additional $1,000 a year in the pocket of the average household earning $50,000 a year. The provision was not renewed in January's fiscal cliff deal.. . . more