Wednesday, May 31, 2017

Wall Street bank says a quarter of shopping malls will close in 5 years

Shopping MallAbout a quarter of US malls will most likely close within the next five years, according to a new prediction from Credit Suisse.

In a research note published Tuesday, the bank estimated that 20% to 25% of the nation's 1,100 shopping malls — or roughly 220 to 275 shopping centers — would shut down by 2022.

Credit Suisse cited mass store closings, the rise of e-commerce, and the growing popularity of off-price chains — which tend to be located outside shopping malls — as reasons for the potential mall closings.. . . more

Meadowlands Mall Builder Sets Year's Top Unrated Muni Sale

Image result for meadowlands American DreamThe Canadian developer building the long-stalled mega-mall in New Jersey’s Meadowlands plans to sell $800 million of tax-exempt municipal bonds next week to help complete the construction of the complex begun more than a decade ago.

Goldman Sachs Group Inc. is managing the deal, the largest sale of unrated municipal bonds this year, for mall owner Triple Five Group, run by the billionaire Ghermezian family.. . . more

Bargain Hunters Pounce on Weak Retail Properties

Image result for empty mallsAs investors flee the battered retail-property sector, a few brave ones are picking through the wreckage.

GBT Realty Corp., a Brentwood, Tenn., property developer, is planning to raise a $500 million real-estate fund to purchase 80 to 100 retail buildings in the next decade.

Hendon Properties LLC, a real-estate development, management and brokerage firm based in Atlanta, is also looking to raise a fund to buy weak malls and open-air shopping centers.. . . more

US consumer spending, incomes grew solidly in April

In this Monday, May 15, 2017, photo, shoppers pay for their purchases at a Marshalls & Home Goods retail store, part of the TJX Companies brand, in Phoenix. Americans increased their spending in April at the fastest pace in four months, bolstered by Americans increased their spending in April at the fastest pace in four months, bolstered by a solid gain in incomes. The strong results underscored expectations that the economy is poised to rebound after a lackluster start to the year.

Consumer spending rose 0.4 percent in April after a 0.3 percent rise in March, the Commerce Department said Tuesday. It was the best showing since December. Incomes also rose 0.4 percent, double the 0.2 percent March increase.

Consumer spending, which accounts for 70 percent of economic activity, grew at the slowest pace in seven years in the first quarter. That was a key reason the economy, as measured by the gross domestic product, expanded by just 1.2 percent at the start of the year.. . . more

Amazon patents shipping label with built-in parachute for dropping packages from drones

It’s a bird, it’s a plane … oh wait, it’s my package of diapers.

Amazon customers could someday be repeating this phrase as the online retail giant this morning received a patent for a shipping label with a built in parachute to help packages make a soft landing when dropped out of the air by drone or other airborne craft.. . . more

Payless Plans Second Wave of Store Closures

Image result for payless shoe sourcePayless ShoeSource Inc. is preparing to launch a second round of store closings less than two months after the shoe retailer sought bankruptcy protection.

The country’s largest footwear chain is seeking court approval to trim its retail business by closing up to 408 stores if negotiations with landlords fail to result in rent concessions, according to court papers. The latest closings would bring the total number of recently closed Payless stores to nearly 800. Payless is already in the process of closing nearly 400 of its locations.. . . more

Pop Up Goes the Retail Scene as Store Vacancies Rise

As traditional retail stores close and vacancies mount, landlords across the country appear newly receptive to leases as short as a week, eschewing the typical 10-year time frame, even in locations that once shunned limited stays.

The upswing in pop-up stores, as the short-term placements are called, is playing out in all sorts of ways, and in all sorts of places — including dark malls, former grocery stores and shuttered art galleries, according to real estate brokers, landlords and tenants.

For retailers, the stores can offer lower rents and far less commitment. For the landlords, the reason is just as clear: A short-term tenant is better than no tenant at all.. . . more

Michael Kors slumps on weak forecast; to shut over 100 stores

A Michael Kors Holdings Limited retail store is shown in La Jolla, California, U.S., May 17, 2017. REUTERS/Mike BlakeMichael Kors Holdings Ltd gave a bleak full-year forecast and said it would shut more than 100 full-price retail stores in the next two years as the upmarket fashion retailer struggles to turn around its brand.

Michael Kors, like other brick-and-mortar retailers, has been facing slowing sales as more customers shop online and spend less on apparel.. . . more

Tuesday, May 30, 2017

Rue21 Closures Put $100M In CMBS Loans At Risk

Rue21Teen retailer Rue21 filed for Chapter 11 bankruptcy protection earlier this month after announcing plans to shutter 400 stores, putting retail properties backed by $100.7M in CMBS loans at risk as a result.

In its latest report, Morningstar Credit Ratings identified 11 CMBS loans that are secured by properties where Rue21 is a primary tenant. Morningstar said the 400 locations the retailer already plans to close do not pose a great danger to exposed CMBS loans because the properties do not account for a significant portion of net rentable area. But that could change if Rue21 decides to close another chunk of its 1,179-store portfolio.. . . more

Lidl Reveals Locations Of First Nine U.S. Stores That Will Open June 15

LidlUSStoreExterior1Lidl will open its first nine U.S. stores in Virginia, North Carolina and South Carolina at 8 a.m. Thursday, June 15. Each store will kick off a four-day grand opening celebration after a 7:40 a.m. ribbon-cutting ceremony.

The European grocer’s first U.S. stores will open in:

• Kinston, North Carolina, at 4050 W Vernon Avenue;. . . more

RECon RECap: Shopping Center Owners Shift Focus to Capitalize on Recaptured Store Spaces

About 37,000 retailers, retail brokers, investors and other retail professionals gathered in Las Vegas this week for RECon, the industry's largest trade convention, amid a tangible sense of frustration -- not so much about the retail real estate business, which remains uniformly good, but rather over the gloomy headlines and negative narrative regarding store closures and retailer bankruptcies that have dominated recent headlines.

Attendees adopted a defensive stance with a hint of defiance about what many described to CoStar as overblown sense of negativity by news outlets and industry analysts in reporting and dissecting the woes of retailers such as Sears, JCPenney, Macy's and a series of apparel chains and others that have announced closures. . . . more

Taco Bell Plans to Open More Boozy Cantinas

Taco Bell is embarking upon a massive expansion that will bring more alcoholic slushies and fried chicken chips to America’s biggest cities. The chain also plans to open more of its Cantina concepts, which offer booze in a more fast-casual atmosphere.

The fast-food giant will bring around 300 of its city-style restaurants to urban areas throughout the U.S. by 2022. Taco Bell introduced its first Cantina in 2015, which features designs geared towards foot traffic (read: no drive-thru) and offers beer and mixed drinks. Cantinas also boast flashy millennial-baiting features like digital menu boards, digital queues, open kitchens, and shareable tapas-style menus.. . . more

Big Lots has big quarter

Big Lots provided an upbeat outlook and posted a strong first quarter, beating profit expectations. 
The chain reported income of $51.5 million compared to $38.7 million in the year-ago period.
Same-store sales decreased 0.9%. Net sales decreased 1.2% to $1.30 million, a result of the comparable store sales decline and a lower store count year-over-year, just missing estimates.. . . more

Coach launches offer to acquire

Coach has made it official.
The upscale handbag and accessories retailer launched a formal tender offer to acquire Kate Spade & Company for $18.50 per share in cash. Coach announced its plans to acquire the brand at the beginning of May, in a deal that has a total value of $2.4 billion.. . . more

Albertsons can’t find a grocery chain to take over

Image result for albertson's Cerberus Capital-controlled Albertsons, America’s second-largest grocery chain, had approached Sprouts Farmers Market months ago, but Sprouts is now trading at too high a multiple for a transaction to happen, two sources close to the situation said.

Albertsons also sniffed around Whole Foods Market in what could be a $14 billion merger, but Whole Foods has not been a willing seller, one of the sources said.. . . more