Tuesday, January 30, 2018

Take a look inside the most valuable mall in America

Ala Moana Center The retail apocalypse has claimed many malls across America, but some of the best in the country have continued to thrive. Located in Honolulu, Hawaii, the Ala Moana Shopping Center was recently named the most valuable mall in America.

With over 350 stores and restaurants ranging from budget-friendly chains to high-end boutiques and department stores, the Ala Moana Center is worth roughly $5.74 billion, with about $1,500 in sales per square foot, according to a recent study by the research firm Boenning & Scattergood, which was reported on by CNBC. . . . more

Expectations Are Tempered for Brick-and-Mortar Retail, In Spite of Strong Holiday Season

Shoppers in the city.The numbers for 2017 are in: It appears the holiday shopping season was a success. But will this translate to a revival for bricks-and-mortar retail in 2018?

The short answer is that it depends. That was the message during real estate services firm Cushman & Wakefield’s recent webinar on the topic, hosted by Garrick Brown, head of retail research for the Americas, and Ben Conwell, senior managing director and e-commerce advisory group lead.. . . more

Amazon is creating a health care company—with two big-name partners

Amazon is teaming up with two influential companies to try to improve a system that others have tried and failed to change over the years.

Amazon, Berkshire Hathaway and JPMorgan Chase will form an independent company, as yet unnamed, that will address health care for the U.S. employees of their respective companies with the aim of lowering costs and improving satisfaction — outside a focus on profit making and other constraints.. . . more

In public filing, Bon-Ton describes turnaround plan that involves closing, opening stores

Image result for bon tonAiling department store chain The Bon-Ton Stores Inc. appears to be headed for a restructuring — sooner rather than later.

In a filing Monday with the U.S. Securities and Exchange Commission, Bon-Ton said it is engaged in discussions with debtholders regarding potential restructuring alternatives.. . . morePeople line up at 6:30 am Dec. 20 to participate in a holiday gift card giveaway outside the Bon-Ton department store at the Westgate Mall in Bethlehem.People line up at 6:30 am Dec. 20 to participate in a holiday gift card giveaway outside the Bon-Ton department store at the Westgate Mall in Bethlehem.

McDonald's to open 1,000 new restaurants

McDonald's plans to open about 1,000 new stores worldwide and speed up plans to add new self-service ordering systems and other store upgrades as the fast-food giant's momentum continues.

The company reported strong fourth-quarter sales Tuesday, fueled by strong interest in its McPick 2 options, beverage deals and a "strong consumer response" to its new Buttermilk Crispy Tenders.

The promising sales report applied to the period immediately preceding January's revival of its popular Dollar Menu, with items priced at $1, $2 and $3.. . . more

Payless in retail realignment

Payless ShoeSource is realigning its North American retail organizational structure, with an end goal of better serving the customer.

The footwear retailer announced that is increasing the number of North America associates who work closer to the store level while reducing layers between its corporate headquarters and retail stores. It did not specify if the realignment will result in the elimination of jobs.. . . more

You could be grocery shopping online in 5 years

Grocers are in a data-driven battle for your businessThe majority of shoppers could be buying their groceries online within five years, much sooner than previously thought.

A joint report from the Food Marketing Institute and Nielsen predicts 70 percent of consumers will be buying at least a portion of their groceries online in the next five to seven years, CNBC reported. Both groups had previously estimated the shift would take place over 10 years.

Shoppers are still expected to spend 80 percent of their grocery dollars in stores, as they tend to be loyal to their grocers, per CNBC.. . . more

Monday, January 29, 2018

Online retail grew less than expected in 2017

Online retail sales grew by 12.1% year on year in 2017, according to the annual IMRG Capgemini e-Retail Sales Index. But although sales grew over the year, annual online retail sales were 2% below the forecast growth rate of 14% – and were below the previous year’s 15.9% online retail sales growth rate.

Justin Opie, managing director of IMRG, said several macro-economic factors, such as rising inflation and interest rates, may have contributed to the slow growth, and that retailers should expect 2018 to be even harder. . . . more

Boxed may have another suitor—and it’s a giant one

Image result for amazon kroger and boxedJeff Bezos’ e-commerce giant invited Boxed founder and Chief Executive Chief Huang to Amazon’s Seattle headquarters on Wednesday to discuss an acquisition of the four-year-old company, a source with knowledge of the trip and discussions told The Post.

It is the first time Huang has met with the Seattle behemoth and comes on the heels of reports that Boxed — which sells bulk grocery goods — is an acquisition target of Kroger, the country’s largest grocery chain.. . . more

Mattress Firm shakeup as CEO resigns

Mattress Firm’s president and CEO Ken Murphy is stepping down after two years on the job. He will be succeeded by Steve Stagner, executive chairman, effective March 1. Stagner, who has been with Mattress Firm for more than 20 years, previously served as CEO from February 2010 to March 2016, handing over the reins to Murphy.

Stagner returns to the CEO role at a turbulent time in the company. In September 2016, Mattress Firm was acquired by South African conglomerate Steinhoff International Holdings in a $3.8 billion deal that included Steinhoff assuming more than $1 billion in debt the U.S. retailer had racked up in an expansion move that saw it acquire several major competitors. Last December, Steinhoff’s president and chairman resigned following the discovery of what the company described as “accounting irregularities.”. . . more

Dollar General is looking for a few good…

Dollar General will hold its first-ever Innovation and Supplier Diversity Summit in April. The event is designed to pair potential vendors with respective buyers and category managers from the chain. It is open to new suppliers and also those who have not sold products to the company within the past 18 months.

In addition, in order to be eligible to attend, suppliers must sell items in at least one of the following categories:

• Beauty, personal care and over-the-counter/wellness
• General merchandise/all non-food
• Grocery
. . . more

By Shrinking, Can Sam’s Club Keep Up With Costco?

Image result for sam's clubThis month, the Wal-Mart Stores Inc. chain closed 63 U.S. Sam’s Club locations. The closures cut about 10,000 jobs and are the largest since Wal-Mart founder Sam Walton opened the first Sam’s Club in 1983. Wal-Mart says some of those workers will get jobs in other stores.

The closures aren’t only a result of retail’s rapid shift online, but are part of a strategy pivot by new Sam’s Club Chief Executive John Furner to turn what has long been Wal-Mart’s underperforming sibling into a retailer that can rival its most successful competitor, Costco Wholesale Corp.. . . more

Staples hires Coke executive to replace Goodman as CEO

Image result for staplesStaples Inc. is bringing on an outgoing Coca-Cola Co. executive to serve as its next chief executive, the company said Friday, the same day that CEO Shira Goodman left the company.

J. Alexander “Sandy” Douglas Jr., most recently the president of Coca-Cola North America, will become Staples CEO on April 2, according to a statement from Staples. Coca-Cola had announced in October that Douglas would be retiring from the Atlanta-based beverage giant on March 1. He has spent the past 30 years of his career at Coke.. . . more

Friday, January 26, 2018

Should Net Lease Investors Worry About Convenience Store Tenants?

7-elevenIn 2018, net lease investors can expect middling performance from convenience stores.

Recent estimates suggest that convenience stores will achieve total sales of about $73 billion in 2018—on the lower end of the spectrum for this sub-sector—and total sales growth of just 5.5 percent, according to the “Retail, Apparel and Restaurants—U.S., 2018 Outlook,” from Moody’s Investors Service.. . . more

Retail, restaurant chains among 30 most polarizing brands in U.S.

Image result for chick fil aA survey by Morning Consult ranks the companies, brands, and organizations that are the most politically divisive—or the ones that divide Democrats and Republicans the most. And at the top of the list is Trump Hotels.

Media companies dominate the top 30. But five retail/restaurant companies also are included: Chick-fil-A (#15), Bass Pro Shops and Papa John’s (tied at #21), Starbucks (#25), and Cabela’s (#26).. . . more