Boston Business Journal
As department stores head into the busiest shopping period of the year, the outlook for them is bleak. IHS Markit forecasts US department store sales will drop 6 per cent in November and December, worse than the 2.8 per cent decline in the 2018 season. This bucks the wider trend in US retail, where IHS expects sales to rise 4.6 per cent year-on-year during the two months, to reach more than $730bn.
“In the old days [department stores] acted as a curator of other people’s products under one roof,” said Peter Williams, former chief executive of Selfridges in the UK and now chairman of Superdry. “The internet has blown a hole in that process.” He added: “All the products are available elsewhere and they don’t have a strong enough identity as destinations in themselves.”. . . more
Wednesday, November 27, 2019
Dollar Tree Dives Most Since 2012 as Tariffs Erode Outlook
NREI
Dollar Tree Inc. shares fell the most intraday since 2012 after the budget retailer trimmed its outlook on 2019 profit, saying tariffs on Chinese imports are driving up costs.
While tariffs drove the forecast reduction, Dollar Tree also cited higher wages in its distribution centers, a global helium shortage and more sales of lower-margin items, among other issues.. . . more
Dollar Tree Inc. shares fell the most intraday since 2012 after the budget retailer trimmed its outlook on 2019 profit, saying tariffs on Chinese imports are driving up costs.
While tariffs drove the forecast reduction, Dollar Tree also cited higher wages in its distribution centers, a global helium shortage and more sales of lower-margin items, among other issues.. . . more
Chasing Amazon, retailers are in a never-ending arms race
Boston Business Journal
Retailers are trying everything they can to keep up with Amazon. Macy’s offers same-day delivery and in-store returns for online purchases. Black Friday deals are already starting at Kohl’s. And craft cocktails are served in the women’s shoe department at Nordstrom.
By one measure, these strategies are working. After years when it seemed as if Amazon was swallowing the industry, many large old-school chains like Kohl’s and Macy’s have largely stabilized their lagging sales.. . . more
Retailers are trying everything they can to keep up with Amazon. Macy’s offers same-day delivery and in-store returns for online purchases. Black Friday deals are already starting at Kohl’s. And craft cocktails are served in the women’s shoe department at Nordstrom.
By one measure, these strategies are working. After years when it seemed as if Amazon was swallowing the industry, many large old-school chains like Kohl’s and Macy’s have largely stabilized their lagging sales.. . . more
Best Buy, on strong financial footing, has its holiday playbook set
StarTribune
Best Buy is riding high heading into the holiday-shopping season with a suite of new tools at its disposal including free next-day delivery on thousands of items and dozens of new pickup locations inside of CVS and UPS stores across New York City.
Better-than-expected sales and profits from August to October and increased confidence about the holiday season led Best Buy to raise its profit outlook for the year. The results helped solidify its position of one of the winners in retail along with Target, Walmart and Amazon, while department stores and mall-based specialty retailers are floundering.. . . more
Best Buy is riding high heading into the holiday-shopping season with a suite of new tools at its disposal including free next-day delivery on thousands of items and dozens of new pickup locations inside of CVS and UPS stores across New York City.
Better-than-expected sales and profits from August to October and increased confidence about the holiday season led Best Buy to raise its profit outlook for the year. The results helped solidify its position of one of the winners in retail along with Target, Walmart and Amazon, while department stores and mall-based specialty retailers are floundering.. . . more
Dick's Sporting Goods Kicks It in Third Quarter, Shares Surge
The Street
Dick's Sporting Goods on Tuesday reported third-quarter earnings and revenue that blew past analysts' forecasts and also raised its guidance for the fourth quarter amid stronger foot traffic and sales of its bigger-ticket items.
The sporting goods chain posted net income of $44.8 million vs. $37.8 million in the comparable year-earlier period. Sales came in at $1.96 billion, above consensus forecasts of $1.91 billion.
Same-store sales jumped 6%, driven by increases in both average ticket and transactions, representing the company's strongest quarterly comparable sales gain since 2013. . . . more
Dick's Sporting Goods on Tuesday reported third-quarter earnings and revenue that blew past analysts' forecasts and also raised its guidance for the fourth quarter amid stronger foot traffic and sales of its bigger-ticket items.
The sporting goods chain posted net income of $44.8 million vs. $37.8 million in the comparable year-earlier period. Sales came in at $1.96 billion, above consensus forecasts of $1.91 billion.
Same-store sales jumped 6%, driven by increases in both average ticket and transactions, representing the company's strongest quarterly comparable sales gain since 2013. . . . more
Depot reclaims comp-store lead
HBS Dealer
The dust has settled on last week’s back-to-back Home Depot and Lowe’s earnings-report excitement.
The Home Depot reclaimed its lead in the comp-store sales comparison with its largest rival, posting a 3.8% comps in the U.S., compared to 3.0% growth for Lowe’s.. . . more
The dust has settled on last week’s back-to-back Home Depot and Lowe’s earnings-report excitement.
The Home Depot reclaimed its lead in the comp-store sales comparison with its largest rival, posting a 3.8% comps in the U.S., compared to 3.0% growth for Lowe’s.. . . more
A.C. Moore closing all stores, up to 40 locations set to become Michaels
USA Today
Another retailer is closing all of its stores.
New Jersey-based arts and crafts chain A.C. Moore will close its 145 stores, its parent company Nicole Crafts announced in a news release Monday. Up to 40 of the closing locations will become Michaels.. . . more
Another retailer is closing all of its stores.
New Jersey-based arts and crafts chain A.C. Moore will close its 145 stores, its parent company Nicole Crafts announced in a news release Monday. Up to 40 of the closing locations will become Michaels.. . . more
Monday, November 25, 2019
FTI Consulting Projects U.S. Holiday Retail Sales to Grow 5.2 Percent
AP
FTI Consulting, Inc. today released its 2019 U.S. Holiday Retail Forecast, which projects 5.2 percent growth in discretionary holiday spending and more promising prospects for retailers compared to the 2018 holiday season.
While challenges to the U.S. retail sector remain, the economic backdrop entering this holiday season is much the same as it was a year ago, supporting the forecasted spending increase, according to FTI Consulting’s Retail & Consumer Products practice. The factors driving this growth include positively trending macroeconomic indicators, upbeat consumer sentiment, a resilient job market and tame inflation levels across the consumer sector.. . . more
FTI Consulting, Inc. today released its 2019 U.S. Holiday Retail Forecast, which projects 5.2 percent growth in discretionary holiday spending and more promising prospects for retailers compared to the 2018 holiday season.
While challenges to the U.S. retail sector remain, the economic backdrop entering this holiday season is much the same as it was a year ago, supporting the forecasted spending increase, according to FTI Consulting’s Retail & Consumer Products practice. The factors driving this growth include positively trending macroeconomic indicators, upbeat consumer sentiment, a resilient job market and tame inflation levels across the consumer sector.. . . more
Black Friday is a state of mind
Retail Dive
Lucky for retailers, there's Black Friday. The day itself continues to hold meaning for shoppers as the launch of the holiday season. But, more broadly, the concept helps square their focus on which stores have the best deals and the right merchandise — and even the most holiday spirit.
"Black Friday is still one of the most important shopping events of the year for retailers," Michael Brown, a partner in the retail practice of global strategy and management consulting firm A.T. Kearney, told Retail Dive in an interview. "It's an opportunity to capitalize on a population that really doesn't have much else to do for four days. It's a signal that it's time to start shopping.". . . more
Lucky for retailers, there's Black Friday. The day itself continues to hold meaning for shoppers as the launch of the holiday season. But, more broadly, the concept helps square their focus on which stores have the best deals and the right merchandise — and even the most holiday spirit.
"Black Friday is still one of the most important shopping events of the year for retailers," Michael Brown, a partner in the retail practice of global strategy and management consulting firm A.T. Kearney, told Retail Dive in an interview. "It's an opportunity to capitalize on a population that really doesn't have much else to do for four days. It's a signal that it's time to start shopping.". . . more
U.S. Consumer Sentiment Rises to Four-Month High on Outlook
NREI
U.S. consumer sentiment extended gains in mid-November as Americans' economic outlook improved against a backdrop of solid hiring, record stock prices and the prospect of a trade truce with China.
The University of Michigan's final sentiment index advanced to 96.8 in November from 95.5 in October, data showed Friday. It was also above both the preliminary reading and median analyst estimate of 95.7. The gauge of current conditions decreased to 111.6 while the expectations index climbed to 87.3, and both were higher than in the initial report. . . . more
U.S. consumer sentiment extended gains in mid-November as Americans' economic outlook improved against a backdrop of solid hiring, record stock prices and the prospect of a trade truce with China.
The University of Michigan's final sentiment index advanced to 96.8 in November from 95.5 in October, data showed Friday. It was also above both the preliminary reading and median analyst estimate of 95.7. The gauge of current conditions decreased to 111.6 while the expectations index climbed to 87.3, and both were higher than in the initial report. . . . more
Charlotte Russe rapidly expands store fleet
Chain Store Age
Charlotte Russe is back in expansion mode after filing for bankruptcy in February and liquidating in March. An executive with owner YM Inc.'s U.S. subsidiary, A&M LLC, said the teen apparel brand has opened some 135 stores so far. YM Inc., which acquired the retailer's brand and intellectual property in March, initially said in June that it planned to open a total of 100 Charlotte Russe stores.
Charlotte Russe is back in expansion mode after filing for bankruptcy in February and liquidating in March. An executive with owner YM Inc.'s U.S. subsidiary, A&M LLC, said the teen apparel brand has opened some 135 stores so far. YM Inc., which acquired the retailer's brand and intellectual property in March, initially said in June that it planned to open a total of 100 Charlotte Russe stores.
The expansion efforts will continue in 2020, the executive said. The holding company has opened roughly 25 Charlotte Russe stores per month since it bought the brand and an additional round of store openings will kick off in February, the executive said. . . . more
If you offer good value in retail, you’re winning. Everyone else is in trouble
CNBC
A wave of good and bad retail earnings reports in recent days highlights one key theme for the industry: Value is winning.
Target, Walmart, T.J. Maxx owner TJX and Nordstrom’s off-price Rack business were bright spots in a tumultuous landscape that’s been beaten down with bankruptcies, store closures and management upheaval.
The results from Macy’s, Kohl’s and J.C Penney were much less merry.. . . more
A wave of good and bad retail earnings reports in recent days highlights one key theme for the industry: Value is winning.
Target, Walmart, T.J. Maxx owner TJX and Nordstrom’s off-price Rack business were bright spots in a tumultuous landscape that’s been beaten down with bankruptcies, store closures and management upheaval.
The results from Macy’s, Kohl’s and J.C Penney were much less merry.. . . more
UnitedHealth Group To Open Medicare Centers Inside Walgreens
Forbes
Walgreens Boots Alliance and UnitedHealth Group’s health insurance unit are opening “Medicare services centers” inside the pharmacy chain’s U.S. drugstores in select markets under a new partnership.
Initially, UnitedHealth’s UnitedHealthcare and Walgreens say they will open 14 “UnitedHealthcare Medicare services centers” effective in January 2020. Financial terms of what both sides described as a “multi-year” agreement weren’t disclosed.. . . more
Walgreens Boots Alliance and UnitedHealth Group’s health insurance unit are opening “Medicare services centers” inside the pharmacy chain’s U.S. drugstores in select markets under a new partnership.
Initially, UnitedHealth’s UnitedHealthcare and Walgreens say they will open 14 “UnitedHealthcare Medicare services centers” effective in January 2020. Financial terms of what both sides described as a “multi-year” agreement weren’t disclosed.. . . more
Louis Vuitton buys jeweller Tiffany for $16bn
BBC
The world's biggest luxury goods company is buying US-based jeweller Tiffany & Co for more than $16bn (£12.5bn).
The largest luxury goods deal to date gives LVMH's billionaire owner Bernard Arnault a bigger slice of one of the fastest growing upmarket sectors.. . . more
The world's biggest luxury goods company is buying US-based jeweller Tiffany & Co for more than $16bn (£12.5bn).
The largest luxury goods deal to date gives LVMH's billionaire owner Bernard Arnault a bigger slice of one of the fastest growing upmarket sectors.. . . more
Friday, November 22, 2019
Fast-casual restaurant chains will continue to grow at a pace of 24%
Chain Store Age
Despite the fact that real estate deals with restaurants are complex, risky, and require expensive buildouts, the revenue and traffic they churn is so remarkable that landlords continue to seek out more of them for their centers, according to CBRE’s research department.
In the latest installment of its U.S. Food in Demand series of reports, the global research services company placed the restaurant sector as the biggest earner in brick-and-mortar retail with $738 billion in 2018. Restaurant revenues grew 5.6% over the past decade, compared to 4.4% for the rest of retail. . . . more
Despite the fact that real estate deals with restaurants are complex, risky, and require expensive buildouts, the revenue and traffic they churn is so remarkable that landlords continue to seek out more of them for their centers, according to CBRE’s research department.
In the latest installment of its U.S. Food in Demand series of reports, the global research services company placed the restaurant sector as the biggest earner in brick-and-mortar retail with $738 billion in 2018. Restaurant revenues grew 5.6% over the past decade, compared to 4.4% for the rest of retail. . . . more
Online, discount stores tops with teens
Chain Store Age
Brick-and-mortar stores may get a holiday lift from America's teenagers this shopping season.
More than a third of teens (35%) plan to make some of their holiday purchases at shopping malls this year, according to a survey from Junior Achievement USA. Additionally, 52% plan to do much of their shopping at brick-and-mortar discount stores such as Walmart and Target this holiday season, the same percentage (52%) said that they would be doing much of their shopping online. . . . more
Brick-and-mortar stores may get a holiday lift from America's teenagers this shopping season.
More than a third of teens (35%) plan to make some of their holiday purchases at shopping malls this year, according to a survey from Junior Achievement USA. Additionally, 52% plan to do much of their shopping at brick-and-mortar discount stores such as Walmart and Target this holiday season, the same percentage (52%) said that they would be doing much of their shopping online. . . . more
Gap in very weak position, spin-off of Old Navy won’t help it
Chain Store Age
There is no real surprise from Gap’s third quarter figures: Sales are poor, profit is weak although marginally better than forecast, and the outlook remains gloomy.
Given the relative lack of effort from management on resolving the underlying issues plaguing the company, it would be unreasonable to expect a different outcome. However, there is some hope that the recent change in the CEO may result in a more aggressive pace of advancement.. . . more
There is no real surprise from Gap’s third quarter figures: Sales are poor, profit is weak although marginally better than forecast, and the outlook remains gloomy.
Given the relative lack of effort from management on resolving the underlying issues plaguing the company, it would be unreasonable to expect a different outcome. However, there is some hope that the recent change in the CEO may result in a more aggressive pace of advancement.. . . more
Grocery-Anchored Shopping Centers Remain the Safest Retail Bet
NREI
Grocery-anchored shopping centers remain a sweet spot for investors shopping for retail properties in an extremely volatile environment, and one in which overall retail transaction volume is down significantly.
Investors prefer assets anchored by grocers because they see them as less vulnerable to competition from e-commerce and a big traffic driver that benefits other tenants in their centers.. . . more
Grocery-anchored shopping centers remain a sweet spot for investors shopping for retail properties in an extremely volatile environment, and one in which overall retail transaction volume is down significantly.
Investors prefer assets anchored by grocers because they see them as less vulnerable to competition from e-commerce and a big traffic driver that benefits other tenants in their centers.. . . more
Nordstrom escapes department store blues as Q3 earnings beat Street
Chain Store Age
Nordstrom reported earnings that exceeded expectations as sales trends improved across both its full-price and off-price businesses.
The company also raised the lower-end of its full-year profit guidance in contrast to profit forecast cuts by other department store retailers, including Macy’s Inc. and Kohl’s Corp. . . . more
Nordstrom reported earnings that exceeded expectations as sales trends improved across both its full-price and off-price businesses.
The company also raised the lower-end of its full-year profit guidance in contrast to profit forecast cuts by other department store retailers, including Macy’s Inc. and Kohl’s Corp. . . . more
US ecommerce sales rise 17.3% in Q3
Digital Commerce 360
Consumers spent $145.74 billion online with U.S. retailers in the third quarter, up 17.3% from $124.21 billion for the same period in 2018, according to retail data released Tuesday by the U.S. Department of Commerce. This is significantly higher than the year-over-year ecommerce growth registered in the first six months of the year, when web sales in Q1 increased 11.6% and in Q2 jumped 13.6%. Last quarter’s rate also marks the highest quarterly growth since Q4 2011, when online revenue spiked 18.6% over the same period the previous year.
While a banner year for Amazon.com Inc.’s Prime Day sale in July undoubtedly contributed to the strong showing, some analysts are pointing to the retailer’s investments in shortening delivery times from 2- to 1-day shipping and Walmart Inc. expanding its online grocery service as the major reasons why ecommerce flourished last quarter.. . . more
Consumers spent $145.74 billion online with U.S. retailers in the third quarter, up 17.3% from $124.21 billion for the same period in 2018, according to retail data released Tuesday by the U.S. Department of Commerce. This is significantly higher than the year-over-year ecommerce growth registered in the first six months of the year, when web sales in Q1 increased 11.6% and in Q2 jumped 13.6%. Last quarter’s rate also marks the highest quarterly growth since Q4 2011, when online revenue spiked 18.6% over the same period the previous year.
While a banner year for Amazon.com Inc.’s Prime Day sale in July undoubtedly contributed to the strong showing, some analysts are pointing to the retailer’s investments in shortening delivery times from 2- to 1-day shipping and Walmart Inc. expanding its online grocery service as the major reasons why ecommerce flourished last quarter.. . . more
Thursday, November 21, 2019
Asian market to replace North Quincy grocery store
The Patriot Ledger
A California-based Asian supermarket chain is set to take over the former Big Y grocery store in North Quincy, making it the third Asian market on a three-quarter-mile stretch of Hancock Street.
The 99 Ranch Market, a Chinese-American market with more than 50 stores across the country, is now hiring for the new 60,000-square-foot store at 475 Hancock St., which is expected to open in January. The Big Y grocery store, which opened on the property three years ago, shut its doors in August, saying the owner of the property had declined to negotiate a lease extension. . . . more
A California-based Asian supermarket chain is set to take over the former Big Y grocery store in North Quincy, making it the third Asian market on a three-quarter-mile stretch of Hancock Street.
The 99 Ranch Market, a Chinese-American market with more than 50 stores across the country, is now hiring for the new 60,000-square-foot store at 475 Hancock St., which is expected to open in January. The Big Y grocery store, which opened on the property three years ago, shut its doors in August, saying the owner of the property had declined to negotiate a lease extension. . . . more
The Replacements: Avoid the Big Gorilla
KeyPoint Partners
This past decade has been a revolving door of retail tenants closing stores, followed by the ensuing scramble to fill the empty spaces left behind. We all recall the days of large format retailers such as Linens ‘N Things, Circuit City, Borders, Filene’s Basement, Office Max and, more recently, Sports Authority and Toys R Us. There are many more we could add to this list.
And then we have Sears, JCPenney, and Macy’s: the major department store companies that were blind-sided by the impact of ecommerce and the attitude reversal of shoppers that had grown up on regional malls. More closings resulted. Exacerbating the problem was that these were all large format vacancies that needed to be filled. A certain degree of panic set in among landlords who had to find viable replacements in a retail world that was in a state of disarray. Who would they find?. . . more
This past decade has been a revolving door of retail tenants closing stores, followed by the ensuing scramble to fill the empty spaces left behind. We all recall the days of large format retailers such as Linens ‘N Things, Circuit City, Borders, Filene’s Basement, Office Max and, more recently, Sports Authority and Toys R Us. There are many more we could add to this list.
And then we have Sears, JCPenney, and Macy’s: the major department store companies that were blind-sided by the impact of ecommerce and the attitude reversal of shoppers that had grown up on regional malls. More closings resulted. Exacerbating the problem was that these were all large format vacancies that needed to be filled. A certain degree of panic set in among landlords who had to find viable replacements in a retail world that was in a state of disarray. Who would they find?. . . more
Property and Asset Management, Retail Leasing & Tenant Representation, Investment Sales, Construction, Research, Consulting; Retail Real Estate, Office Real Estate, Industrial Real Estate, Commercial Real Estate; New England, New York,Washington, DC, Mid-Atlantic, and more.info@keypointpartners.com
Competition in retail has become a zero-sum game
Yahoo Finance
The current economic and financial market moment is defined by a few major themes.
But perhaps none is more of-the-moment than the stark divide between the companies, industries, workers, and investors that are doing well and those that are struggling. The middle ground has been steadily whittled away. There are winners, losers, and little else in-between.
And few industries sum up this theme more cleanly than the retail business.. . . more
The current economic and financial market moment is defined by a few major themes.
But perhaps none is more of-the-moment than the stark divide between the companies, industries, workers, and investors that are doing well and those that are struggling. The middle ground has been steadily whittled away. There are winners, losers, and little else in-between.
And few industries sum up this theme more cleanly than the retail business.. . . more
Macy’s Is Retail’s Most Unloved Stock And That Might Not Change Anytime Soon
Forbes
Macy’s has become the poster child for everything that is wrong with mall-based retail, and today’s third quarter earnings release did little to change that.
Even before Macy’s reported weak third quarter results, analysts had been piling on the criticism, questioning the ongoing relevance of the company that not too long ago was the country’s best performing retailer.. . . more
Macy’s has become the poster child for everything that is wrong with mall-based retail, and today’s third quarter earnings release did little to change that.
Even before Macy’s reported weak third quarter results, analysts had been piling on the criticism, questioning the ongoing relevance of the company that not too long ago was the country’s best performing retailer.. . . more
Amazon Is Planning to Open Cashierless Supermarkets Next Year
NREI
Amazon.com Inc. is preparing to open Amazon Go supermarkets and pop-up stores, an expansion of the company’s cashierless ambitions that includes the possibility of licensing the technology to other retailers.
The new store formats and licensing initiative could launch as soon as the first quarter of 2020, according to a person familiar with the project. Amazon is testing a supermarket equipped with Go technology in a 10,400-square-foot retail space in Seattle’s Capitol Hill neighborhood. . . . more
Amazon.com Inc. is preparing to open Amazon Go supermarkets and pop-up stores, an expansion of the company’s cashierless ambitions that includes the possibility of licensing the technology to other retailers.
The new store formats and licensing initiative could launch as soon as the first quarter of 2020, according to a person familiar with the project. Amazon is testing a supermarket equipped with Go technology in a 10,400-square-foot retail space in Seattle’s Capitol Hill neighborhood. . . . more
Shares of Victoria’s Secret parent L Brands jump on fourth-quarter forecast, in-line profits
CNBC
L Brands posted mixed third-quarter results Wednesday as declining sales at its Victoria’s Secret brand continued to weigh on its performance.
The company’s earnings matched expectations, though revenue fell short. It also said its fiscal-year earnings would fall within a previously projected range. . . . more
L Brands posted mixed third-quarter results Wednesday as declining sales at its Victoria’s Secret brand continued to weigh on its performance.
The company’s earnings matched expectations, though revenue fell short. It also said its fiscal-year earnings would fall within a previously projected range. . . . more
Amid LBO Talk, Walgreens Opens First Doctor-Staffed Clinics
Forbes
As speculation swirls Walgreens Boots Alliance could be taken private via leveraged buyout, the retail pharmacy chain is opening the first of a coming new model of doctor-staffed primary care clinics attached to its U.S. drugstores.
On Wednesday, Walgreens and its primary care partner VillageMD, which operates primary care clinics that contract or employ physicians, opened the first of five locations in the Houston market under the “Village Medical at Walgreens” brand.. . . more
As speculation swirls Walgreens Boots Alliance could be taken private via leveraged buyout, the retail pharmacy chain is opening the first of a coming new model of doctor-staffed primary care clinics attached to its U.S. drugstores.
On Wednesday, Walgreens and its primary care partner VillageMD, which operates primary care clinics that contract or employ physicians, opened the first of five locations in the Houston market under the “Village Medical at Walgreens” brand.. . . more
Macy's cuts outlook for the year with holidays around corner
Daily News
Macy's cut its profit and sales expectations for the year after posting its first comparable store sales decline in almost two years.
The company is citing the late arrival of colder weather, meager tourist business, weak traffic at some malls and problems on its website.. . . more
Macy's cut its profit and sales expectations for the year after posting its first comparable store sales decline in almost two years.
The company is citing the late arrival of colder weather, meager tourist business, weak traffic at some malls and problems on its website.. . . more
Wednesday, November 20, 2019
7 major store closure announcements from 2019 and why they matter
Retail Dive
By November of this year retail store closures were already nearly 55% higher than during the entirety of 2018. That's according to advisory firm Coresight Research, which put the number of closures at more than 9,000 as of Nov. 1.
The total announced closures could hit 12,000 by the end of 2019, Coresight estimates. "Initially it was something of a surprise, but I think you could see the momentum building as the year went on," John Mercer, head of research at Coresight, said of this year's closures. "It's up very strongly against last year." he added. "2018 was, in retrospect, maybe something of a lull in closures between two very strong years.". . . more
By November of this year retail store closures were already nearly 55% higher than during the entirety of 2018. That's according to advisory firm Coresight Research, which put the number of closures at more than 9,000 as of Nov. 1.
The total announced closures could hit 12,000 by the end of 2019, Coresight estimates. "Initially it was something of a surprise, but I think you could see the momentum building as the year went on," John Mercer, head of research at Coresight, said of this year's closures. "It's up very strongly against last year." he added. "2018 was, in retrospect, maybe something of a lull in closures between two very strong years.". . . more
Saks Manhattan Flagship Sees Value Plummet in Retail Apocalypse
NREI
The value of Hudson’s Bay Co.’s Saks Fifth Avenue flagship store has plummeted over the last five years, pulled down by retail woes and sliding rents in a high-profile Manhattan shopping district.
The building at 611 Fifth Ave. was recently appraised at $1.6 billion, according to a filing by the Toronto-based company, dropping almost 60% from about $3.7 billion five years ago.. . . more
The value of Hudson’s Bay Co.’s Saks Fifth Avenue flagship store has plummeted over the last five years, pulled down by retail woes and sliding rents in a high-profile Manhattan shopping district.
The building at 611 Fifth Ave. was recently appraised at $1.6 billion, according to a filing by the Toronto-based company, dropping almost 60% from about $3.7 billion five years ago.. . . more
Breaking Down CBRE’s 2020 Market Outlook
NREI
CBRE provided NREI with an exclusive sneak peek at its 2020 Real Estate Market Outlook report.
CBRE sees more growth ahead for the U.S. commercial real estate industry in 2020, although the pace of expansion could slow thanks to already strong fundamentals that will be tough to improve upon combined with some broader economic headwinds as part of its 2020 Real Estate Market Outlook. . . . more
CBRE provided NREI with an exclusive sneak peek at its 2020 Real Estate Market Outlook report.
CBRE sees more growth ahead for the U.S. commercial real estate industry in 2020, although the pace of expansion could slow thanks to already strong fundamentals that will be tough to improve upon combined with some broader economic headwinds as part of its 2020 Real Estate Market Outlook. . . . more
Urban Outfitters’ Q3 profit falls amid ongoing problems at namesake brand
Chain Store Age
Urban Outfitters’ reported a steep decline in the third quarter even as its total sales rose.
Sales rose 1.4% to $987 million, less than the $1 billion analysts were expecting. The increase was helped by the company’s latest initiative, rental subscription service, Nuuly, which launched last summer.
Same-store sales increased 3%, driven by growth in the digital channel, partially offset by negative retail store sales. By brand, comp net sales increased 9% at Free People, 4% at the Anthropologie Group and were flat at Urban Outfitters. . . . more
Urban Outfitters’ reported a steep decline in the third quarter even as its total sales rose.
Sales rose 1.4% to $987 million, less than the $1 billion analysts were expecting. The increase was helped by the company’s latest initiative, rental subscription service, Nuuly, which launched last summer.
Same-store sales increased 3%, driven by growth in the digital channel, partially offset by negative retail store sales. By brand, comp net sales increased 9% at Free People, 4% at the Anthropologie Group and were flat at Urban Outfitters. . . . more
Lowe's calms nerves with profit forecast raise after Home Depot sales warning
Reuters
Lowe’s Cos Inc raised its annual profit forecast on Wednesday, helping ease concerns over the health of the U.S. consumer after larger rival Home Depot Inc cut its full-year sales estimates ahead of the all-important holiday season.
Fewer discounts lifted Lowe’s profit margins in the third quarter, while an increased assortment of industrial products like drills and power saws attracted more high-spending builders and handymen.. . . more
Lowe’s Cos Inc raised its annual profit forecast on Wednesday, helping ease concerns over the health of the U.S. consumer after larger rival Home Depot Inc cut its full-year sales estimates ahead of the all-important holiday season.
Fewer discounts lifted Lowe’s profit margins in the third quarter, while an increased assortment of industrial products like drills and power saws attracted more high-spending builders and handymen.. . . more
Walmart CEO says the biggest ‘hazard’ for in-home grocery delivery is dogs
CNBC
Running into dogs “big and small” has become a “new hazard of working at Walmart,” CEO Doug McMillon says.
Walmart last month started an in-home delivery option experiment in Kansas City, Pittsburgh and Vero Beach, Florida. It has said it plans to scale this $19.95 a month offering “aggressively.”. . . more
Running into dogs “big and small” has become a “new hazard of working at Walmart,” CEO Doug McMillon says.
Walmart last month started an in-home delivery option experiment in Kansas City, Pittsburgh and Vero Beach, Florida. It has said it plans to scale this $19.95 a month offering “aggressively.”. . . more
High-flying Target raises forecast going into holidays
StarTribune
Target's third-quarter results — including a 4.5% increase in comparable sales — showed that its investments in new brands and faster delivery seem to be paying off at a time when other retailers, such as department stores, continue to struggle.
Most notably, Target said apparel sales, which have been soft industrywide, rose more than 10% in the quarter, helping to not only boost overall sales but also to increase its profits since clothing tends to have higher margins. Executives noted the retailer also sold more apparel at regular price without having to discount it.. . . more
Target's third-quarter results — including a 4.5% increase in comparable sales — showed that its investments in new brands and faster delivery seem to be paying off at a time when other retailers, such as department stores, continue to struggle.
Most notably, Target said apparel sales, which have been soft industrywide, rose more than 10% in the quarter, helping to not only boost overall sales but also to increase its profits since clothing tends to have higher margins. Executives noted the retailer also sold more apparel at regular price without having to discount it.. . . more
Tuesday, November 19, 2019
What department stores gave up when they gave up on the holidays
Retail Dive
Macy's Herald Square in New York City arguably launches the holidays, not just for the department store or even retail, but for a lot of people around the world.
Its Thanksgiving Day parade does the launching, that is — an event that has been televised since 1948, a year after the movie "Miracle on 34th Street" also helped seal its connection to the season, which remains strong decades on.. . . more
Macy's Herald Square in New York City arguably launches the holidays, not just for the department store or even retail, but for a lot of people around the world.
Its Thanksgiving Day parade does the launching, that is — an event that has been televised since 1948, a year after the movie "Miracle on 34th Street" also helped seal its connection to the season, which remains strong decades on.. . . more
3 retail turnaround success stories, and 3 turnarounds to watch
Retail Dive
Turnarounds — however you define them — are hard. That's especially true in retail, where tastes and the markets change quickly. If you are a retailer whose sales trends have turned negative, chances are your path back to greatness, or even stability, is steep.
"A lot of people think of retail as this boring business. But it's not boring at all. It's incredibly exciting and it's changing all the time," said Joel Bines, managing director of consulting firm AlixPartners' retail practice.. . . more
Turnarounds — however you define them — are hard. That's especially true in retail, where tastes and the markets change quickly. If you are a retailer whose sales trends have turned negative, chances are your path back to greatness, or even stability, is steep.
"A lot of people think of retail as this boring business. But it's not boring at all. It's incredibly exciting and it's changing all the time," said Joel Bines, managing director of consulting firm AlixPartners' retail practice.. . . more
A roundup of retail holiday deals
Retail Dive
Fourth quarter of 2019 is a make it or break it time for many retailers.
The stakes are high, especially with fewer days between Thanksgiving and Christmas making for a shorter shopping season, even though studies show that consumers started preparing for holiday gift-giving as early as July. That means retailers are focusing on ways to leverage promotions and go after market share.
Fourth quarter of 2019 is a make it or break it time for many retailers.
The stakes are high, especially with fewer days between Thanksgiving and Christmas making for a shorter shopping season, even though studies show that consumers started preparing for holiday gift-giving as early as July. That means retailers are focusing on ways to leverage promotions and go after market share.
Below is a running list of what some of the biggest players in the industry are doing to compete.. . . more
Kushner Cos.’ Times Square Loan Heads for Workout Amid Rent Woes
NREI
A $285 million loan taken out by the Kushner Cos. will require a renegotiation of terms after the firm’s tenants broke their leases, the real estate company said Friday.
The loan was issued by Deutsche Bank AG in 2016 to allow the firm to refinance six floors of retail space in the former New York Times building. Rent income at the property is falling short of interest payments, according to an analyst note this week on behalf of Wells Fargo & Co., which is managing the loan. The loan was being transferred to a so-called special servicer, which typically oversees such deal talks, according to the note.. . . more
A $285 million loan taken out by the Kushner Cos. will require a renegotiation of terms after the firm’s tenants broke their leases, the real estate company said Friday.
The loan was issued by Deutsche Bank AG in 2016 to allow the firm to refinance six floors of retail space in the former New York Times building. Rent income at the property is falling short of interest payments, according to an analyst note this week on behalf of Wells Fargo & Co., which is managing the loan. The loan was being transferred to a so-called special servicer, which typically oversees such deal talks, according to the note.. . . more
Same-store sales rise for Kohl's, but earnings guidance drops sharply and stock plunges
Milwaukee Journal Sentinel
Sales at established Kohl's Corp. stores rose modestly in the third quarter, but overall revenue was flat, earnings fell short of analysts' expectations and the company sharply lowered its projected annual profits.
The good news was a return to positive sales growth at stores open at least a year after two quarters of declines in the important retailing indicator. For the three months ended November 2, sales at such stores were up 0.4%.. . . more
Sales at established Kohl's Corp. stores rose modestly in the third quarter, but overall revenue was flat, earnings fell short of analysts' expectations and the company sharply lowered its projected annual profits.
The good news was a return to positive sales growth at stores open at least a year after two quarters of declines in the important retailing indicator. For the three months ended November 2, sales at such stores were up 0.4%.. . . more
TJX raises full-year profit forecast after beating quarterly estimates
Reuters
TJX Cos Inc raised its full-year profit forecast on Tuesday ahead of the holiday shopping season and reported better-than-expected quarterly same-store sales as the off-price retailer’s steep discounts brought in more shoppers.
TJX, which draws in price-conscious shoppers with the promise of sought-after and luxury brands like Dolce & Gabbana and Calvin Klein at discounts of up to 60%, has been steadily expanding with a program of new store openings and remodeling of existing ones.. . . more
TJX Cos Inc raised its full-year profit forecast on Tuesday ahead of the holiday shopping season and reported better-than-expected quarterly same-store sales as the off-price retailer’s steep discounts brought in more shoppers.
TJX, which draws in price-conscious shoppers with the promise of sought-after and luxury brands like Dolce & Gabbana and Calvin Klein at discounts of up to 60%, has been steadily expanding with a program of new store openings and remodeling of existing ones.. . . more
Home Depot misses 3Q sales expectations, slashes guidance
Yahoo Finance
Home Depot missed top-line expectations in the fiscal third quarter and lowered its guidance for the full year, as sales results in the company’s home market fell short of expectations.
The nation’s largest home improvement retailer said impacts from tariffs, falling lumber prices and hiccups with its multi-year investment plan created a drag on results.. . . more
Home Depot missed top-line expectations in the fiscal third quarter and lowered its guidance for the full year, as sales results in the company’s home market fell short of expectations.
The nation’s largest home improvement retailer said impacts from tariffs, falling lumber prices and hiccups with its multi-year investment plan created a drag on results.. . . more
Monday, November 18, 2019
39% of consumers have ditched in-store purchases due to out-of-stocks
Retail Dive
Seventy-five percent of millennial shoppers have left a store without purchasing an item and instead bought the item online, according to the 12th annual Global Shopper Survey from Zebra Technologies. Fifty-three percent of Gen X shoppers reported doing the same.
The leading reason for leaving stores to purchase online was out-of-stock items; 43% of retail associates surveyed cited customer complaints about out-of-stocks as their biggest point of frustration, while 39% of consumers left a store without purchasing due to the issue. . . . more
Seventy-five percent of millennial shoppers have left a store without purchasing an item and instead bought the item online, according to the 12th annual Global Shopper Survey from Zebra Technologies. Fifty-three percent of Gen X shoppers reported doing the same.
The leading reason for leaving stores to purchase online was out-of-stock items; 43% of retail associates surveyed cited customer complaints about out-of-stocks as their biggest point of frustration, while 39% of consumers left a store without purchasing due to the issue. . . . more
Brookfield opens brand new mall in Connecticut
Chain Store Age
“This is pretty shocking,” announced the anchor on the local Eyewitness News broadcast in Connecticut recently. “Stores actually opened at a new mall in Norwalk.”
The SoNo Collection, so named because it actually resides in the upscale suburb of South Norwalk, is a brand new “contemporary shopping experience,” from Brookfield Properties that brings Nordstrom and Bloomingdales to Southern Connecticut.. . . more
“This is pretty shocking,” announced the anchor on the local Eyewitness News broadcast in Connecticut recently. “Stores actually opened at a new mall in Norwalk.”
The SoNo Collection, so named because it actually resides in the upscale suburb of South Norwalk, is a brand new “contemporary shopping experience,” from Brookfield Properties that brings Nordstrom and Bloomingdales to Southern Connecticut.. . . more
Bloomingdale’s opens first new store in four years
Chain Store Age
Bloomingdale’s has officially opened the doors to its new location in Norwalk, Connecticut.
Located at the newly opened SoNo Collection shopping center, the full-line store is Bloomingdale’s first new store since it opened in Honolulu, Hawaii in 2015. It also is Connecticut’s exclusive Bloomingdale’s location.. . . more
Bloomingdale’s has officially opened the doors to its new location in Norwalk, Connecticut.
Located at the newly opened SoNo Collection shopping center, the full-line store is Bloomingdale’s first new store since it opened in Honolulu, Hawaii in 2015. It also is Connecticut’s exclusive Bloomingdale’s location.. . . more
Younger consumers more likely to shop during Thanksgiving weekend
Retail Dive
The NRF estimates that the holiday season will generate $727.9 billion and $730.7 billion in sales, a potential increase of between 3.8% and 4.2% from last year. Previous research from Adobe Analytics estimates that online sales between Thanksgiving and Cyber Monday will account for 20% of total holiday revenue.
Even still, the holiday shopping season has technically already begun and will extend beyond Thanksgiving. A report from RetailMeNot found that shoppers began buying their holiday goods in July. Meanwhile, Profitero found that 45% of shoppers started shopping before November. . . . more
The NRF estimates that the holiday season will generate $727.9 billion and $730.7 billion in sales, a potential increase of between 3.8% and 4.2% from last year. Previous research from Adobe Analytics estimates that online sales between Thanksgiving and Cyber Monday will account for 20% of total holiday revenue.
Even still, the holiday shopping season has technically already begun and will extend beyond Thanksgiving. A report from RetailMeNot found that shoppers began buying their holiday goods in July. Meanwhile, Profitero found that 45% of shoppers started shopping before November. . . . more
Haven’t Started Christmas Shopping? These People Are Already Done
The Wall Street Journal
As Thanksgiving-to-Christmas retail promotions batter inboxes and shout ever-louder from stores, some highly motivated shoppers are avoiding the frenzy altogether. The push to wrap up purchases before Thanksgiving is especially strong among mothers, who often still shoulder most of the holiday shopping within families. Fifty-one percent of moms said they started shopping before November this year, up from 47% a year ago, according to a National Retail Federation survey of nearly 8,000 consumers conducted last month. That compares with about 40% of all holiday shoppers in both years.
A shorter-than-usual period between Thanksgiving and Christmas this year is hastening the early push. Some big retailers are pushing marketing promotions earlier, hoping to coax dollars out of shoppers sooner. . . . more
As Thanksgiving-to-Christmas retail promotions batter inboxes and shout ever-louder from stores, some highly motivated shoppers are avoiding the frenzy altogether. The push to wrap up purchases before Thanksgiving is especially strong among mothers, who often still shoulder most of the holiday shopping within families. Fifty-one percent of moms said they started shopping before November this year, up from 47% a year ago, according to a National Retail Federation survey of nearly 8,000 consumers conducted last month. That compares with about 40% of all holiday shoppers in both years.
A shorter-than-usual period between Thanksgiving and Christmas this year is hastening the early push. Some big retailers are pushing marketing promotions earlier, hoping to coax dollars out of shoppers sooner. . . . more
REI Co-op To Open Four Stores On November 15
SGB Media
For the first time in its 81-year history, REI Co-op will open four new stores in a single day on November 15, bringing quality outdoor gear, experiences and expertise to Farmington, UT; Huntsville, AL; Oklahoma City and Williston, VT. By the end of the year, REI will have opened a total of eight new stores, relocated two existing stores to larger locations, and opened three new boathouses in 2019.
In addition to continuing to expand its brick-and-mortar locations, this year REI also grew its rental and used gear business and debuted a new in-store experience in North Conway, New Hampshire that combines retail, experiences and rentals. Over the last five years, REI has seen more than 27 percent growth in membership and 25 percent growth in revenue – much of that growth continuing to come from brick and mortar retail.. . . more
For the first time in its 81-year history, REI Co-op will open four new stores in a single day on November 15, bringing quality outdoor gear, experiences and expertise to Farmington, UT; Huntsville, AL; Oklahoma City and Williston, VT. By the end of the year, REI will have opened a total of eight new stores, relocated two existing stores to larger locations, and opened three new boathouses in 2019.
In addition to continuing to expand its brick-and-mortar locations, this year REI also grew its rental and used gear business and debuted a new in-store experience in North Conway, New Hampshire that combines retail, experiences and rentals. Over the last five years, REI has seen more than 27 percent growth in membership and 25 percent growth in revenue – much of that growth continuing to come from brick and mortar retail.. . . more
Friday, November 15, 2019
Rent the Runway and Nordstrom have big plans to reshape retail
Fast Company
Rent the Runway, the decade-old clothing rental platform now valued at $1 billion, is expanding its partnership with heritage department store Nordstrom. The two companies tell Fast Company exclusively that they will be blending their capabilities along many dimensions, including creating new products together and incorporating Nordstrom inventory into the Rent the Runway system.
For Rent the Runway customers, the most immediate and obvious shift is that they will be able to drop off their rentals at more Nordstrom locations. . . . more
Rent the Runway, the decade-old clothing rental platform now valued at $1 billion, is expanding its partnership with heritage department store Nordstrom. The two companies tell Fast Company exclusively that they will be blending their capabilities along many dimensions, including creating new products together and incorporating Nordstrom inventory into the Rent the Runway system.
For Rent the Runway customers, the most immediate and obvious shift is that they will be able to drop off their rentals at more Nordstrom locations. . . . more
How Prevalent are Rent Renegotiations for Ailing Retailers?
NREI
Fast-fashion retail giant Forever 21 will keep open 60 of its U.S. stores that previously were slated to be shuttered after the company filed for bankruptcy in September. That’s thanks to the struggling retailer securing rent cuts from its largest landlords, according to Bloomberg.
In September, Forever 21 said it would close up to 178 U.S. stores as part of its restructuring, as well as shutter most of its European and Asian locations. Now with the rent reductions, the retailer is looking at closing roughly 111 U.S. stores.. . . more
Fast-fashion retail giant Forever 21 will keep open 60 of its U.S. stores that previously were slated to be shuttered after the company filed for bankruptcy in September. That’s thanks to the struggling retailer securing rent cuts from its largest landlords, according to Bloomberg.
In September, Forever 21 said it would close up to 178 U.S. stores as part of its restructuring, as well as shutter most of its European and Asian locations. Now with the rent reductions, the retailer is looking at closing roughly 111 U.S. stores.. . . more
U.S. companies say consumer still strong even as broader outlook dims
Reuters
Walmart became the latest company to point to a strong U.S. consumer, adding to a raft of firms in recent weeks citing healthy demand at a time when spending is seen as an increasingly key support for the economy.
Several companies including banks and homebuilders have painted an upbeat picture of consumer health in conference calls this reporting season, even as many firms have offered more dour outlooks especially given the lingering U.S.-China trade war.. . . more
Walmart became the latest company to point to a strong U.S. consumer, adding to a raft of firms in recent weeks citing healthy demand at a time when spending is seen as an increasingly key support for the economy.
Several companies including banks and homebuilders have painted an upbeat picture of consumer health in conference calls this reporting season, even as many firms have offered more dour outlooks especially given the lingering U.S.-China trade war.. . . more
Wait. Is that ... hope for JCPenney?
CNN Business
JCPenney has a long way to go before it's a turnaround story. But the company had some rare good news Friday: It was able to trim its losses in the third quarter, and it raised its profit forecast, even as its sales continue to fall.
JCPenney has a long way to go before it's a turnaround story. But the company had some rare good news Friday: It was able to trim its losses in the third quarter, and it raised its profit forecast, even as its sales continue to fall.
The company reported an operating net loss of $97 million in the quarter. That's 41% smaller than the loss it recorded in the same quarter a year earlier. In 2019, JCPenney has lost $300 million.. . . more
Thursday, November 14, 2019
As Gen Z turns away from makeup, beauty braces for an ugly holiday season
Retail Dive
Ulta is the poster child of beauty. So when analysts say things aren't going its way, you pay attention.
By the beginning of 2014, Ulta Beauty (which was then known as Ulta Salon, Cosmetics & Fragrance) made $2.67 billion in net sales and had 675 total stores. Back then, CEO Mary Dillon was fresh on the job, having just joined the team that July.. . . more
Ulta is the poster child of beauty. So when analysts say things aren't going its way, you pay attention.
By the beginning of 2014, Ulta Beauty (which was then known as Ulta Salon, Cosmetics & Fragrance) made $2.67 billion in net sales and had 675 total stores. Back then, CEO Mary Dillon was fresh on the job, having just joined the team that July.. . . more
Eight things to know about Starbucks’s massive new store in Chicago
Chain Store Age
Starbucks Coffee Company is opening its largest location ever, a 35,000-sq.-ft. location in Chicago, on Friday.
The new Starbucks Reserve Roastery, housed inside Crate & Barrel’s former flagship on Michigan Avenue, marks the company’s sixth location of its upscale roastery format, an experiential concept that specializes in premium small-batch roasting coffees. Designed to celebrate the company’s heritage, the roasting and craft of coffee and the locale, the five-floor Chicago outpost boasts three coffee bars, a cocktail bar and a bakery and cafe.. . . more
Starbucks Coffee Company is opening its largest location ever, a 35,000-sq.-ft. location in Chicago, on Friday.
The new Starbucks Reserve Roastery, housed inside Crate & Barrel’s former flagship on Michigan Avenue, marks the company’s sixth location of its upscale roastery format, an experiential concept that specializes in premium small-batch roasting coffees. Designed to celebrate the company’s heritage, the roasting and craft of coffee and the locale, the five-floor Chicago outpost boasts three coffee bars, a cocktail bar and a bakery and cafe.. . . more
Brookfield Snaps Up JPMorgan’s U.S. Mall Stakes in Multi-Billion Deal
NREI
Brookfield Property Partners LP has boosted its bet on malls, adding exposure to a corner of the real estate market that some of the firm’s investment rivals are avoiding.
Brookfield recently bought JPMorgan Chase & Co.’s holdings in four U.S. shopping centers in which the firms were co-invested, said people familiar with the matter. New York State Teachers’ Retirement System also had a stake in two of the malls, one of the people said. In a simultaneous deal, JPMorgan and NYSTRS bought Brookfield’s stake in a fifth mall, the Bridgewater Commons in New Jersey.. . . more
Brookfield Property Partners LP has boosted its bet on malls, adding exposure to a corner of the real estate market that some of the firm’s investment rivals are avoiding.
Brookfield recently bought JPMorgan Chase & Co.’s holdings in four U.S. shopping centers in which the firms were co-invested, said people familiar with the matter. New York State Teachers’ Retirement System also had a stake in two of the malls, one of the people said. In a simultaneous deal, JPMorgan and NYSTRS bought Brookfield’s stake in a fifth mall, the Bridgewater Commons in New Jersey.. . . more
Exclusive Research: Light at the End of the Tunnel?
NREI
In a seemingly interminable procession, one venerable retail chain after another shuts down stores, restructures under bankruptcy protection or closes shop entirely. (In some cases, it’s been all of the above.) Retail real estate owners and managers have struggled to cope. They scramble to restructure leases or find replacement tenants. The most creative have changed up tenant mixes, bringing in more entertainment or service-oriented tenants so their income streams are less reliant on the vagaries plaguing the retail sector.
The question looking ahead is whether more of the same is in store for the sector as more sales activity shifts online or if this painful stretch is nearing its end.. . . more
In a seemingly interminable procession, one venerable retail chain after another shuts down stores, restructures under bankruptcy protection or closes shop entirely. (In some cases, it’s been all of the above.) Retail real estate owners and managers have struggled to cope. They scramble to restructure leases or find replacement tenants. The most creative have changed up tenant mixes, bringing in more entertainment or service-oriented tenants so their income streams are less reliant on the vagaries plaguing the retail sector.
The question looking ahead is whether more of the same is in store for the sector as more sales activity shifts online or if this painful stretch is nearing its end.. . . more
Walmart raises earnings forecast, expects strong holiday sales
Yahoo Finance
Walmart Inc reported better-than-expected third quarter U.S. comparable sales on Thursday as people spent more at its stores and website and the retailer picked up market share in food and other groceries.
Sales at U.S. stores open at least a year rose 3.2%, excluding fuel, in the quarter ended Oct.31. Analysts estimated growth of 2.9%, according to IBES data from Refinitiv.
Online sales rose 41%, higher than the previous quarter's increase of 37 pct and greater than the company's expectation of 35%.. . . more
Walmart Inc reported better-than-expected third quarter U.S. comparable sales on Thursday as people spent more at its stores and website and the retailer picked up market share in food and other groceries.
Sales at U.S. stores open at least a year rose 3.2%, excluding fuel, in the quarter ended Oct.31. Analysts estimated growth of 2.9%, according to IBES data from Refinitiv.
Online sales rose 41%, higher than the previous quarter's increase of 37 pct and greater than the company's expectation of 35%.. . . more
Kraft Group to open esports arena at Patriot Place
Boston Business Journal
Esports league Boston Uprising and Helix eSports will open an 18,000-square-foot esports complex at Patriot Place in Foxborough this January, marking the first gaming center adjacent to a major professional sporting venue, the Kraft Group said Wednesday.
The Boston Uprising practice facility and Helix eSports gaming center will feature 100 gaming stations with personal computers, gaming and network infrastructure and 30 public gaming consoles open to the public. Kraft Group Overwatch owns and operates Boston Uprising, which is one of 20 esports franchises competing in the Overwatch League — a professional esports league for the team-based multi-player video game Overwatch. . . . more
Esports league Boston Uprising and Helix eSports will open an 18,000-square-foot esports complex at Patriot Place in Foxborough this January, marking the first gaming center adjacent to a major professional sporting venue, the Kraft Group said Wednesday.
The Boston Uprising practice facility and Helix eSports gaming center will feature 100 gaming stations with personal computers, gaming and network infrastructure and 30 public gaming consoles open to the public. Kraft Group Overwatch owns and operates Boston Uprising, which is one of 20 esports franchises competing in the Overwatch League — a professional esports league for the team-based multi-player video game Overwatch. . . . more
Wednesday, November 13, 2019
Grocery Outlet Taps Walmart Veteran to Lead East Coast Expansion
Winsight Grocery Business
Discounter Grocery Outlet has charged a former executive of Walmart and Boxed.com with awakening a sleepy store base in central Pennsylvania.
Heather Mayo, who recently was Boxed’s chief merchandising officer and spent 12 years with Walmart’s Sam’s Club division as an operations SVP, and before that more than a decade with BJ’s Wholesale Club, joined Grocery Outlet on Oct. 7 as EVP of the company’s East region. In this role, Mayo is expected to lead the expansion of a small pocket of independently owned discount stores to serve as a second front of long-term expansion for the Emeryville, Calif.-based company, which is currently doing most of its new-store growth in Southern California.. . . more
Discounter Grocery Outlet has charged a former executive of Walmart and Boxed.com with awakening a sleepy store base in central Pennsylvania.
Heather Mayo, who recently was Boxed’s chief merchandising officer and spent 12 years with Walmart’s Sam’s Club division as an operations SVP, and before that more than a decade with BJ’s Wholesale Club, joined Grocery Outlet on Oct. 7 as EVP of the company’s East region. In this role, Mayo is expected to lead the expansion of a small pocket of independently owned discount stores to serve as a second front of long-term expansion for the Emeryville, Calif.-based company, which is currently doing most of its new-store growth in Southern California.. . . more
For Retailers, Toys Can Be A Holiday Gift, Or The Nightmare Before Christmas
Forbes
Toys can be a retailer’s worst nightmare before Christmas.
Having hard-to-find, bestselling toys in stock helps retailers draw holiday shoppers to their stores and websites. Those shoppers tend to make other holiday purchases, so luring them in with deals on toys is a smart move.. . . more
Toys can be a retailer’s worst nightmare before Christmas.
Having hard-to-find, bestselling toys in stock helps retailers draw holiday shoppers to their stores and websites. Those shoppers tend to make other holiday purchases, so luring them in with deals on toys is a smart move.. . . more
Amazon plans new grocery store in L.A. as it thinks about how to conquer the industry
The Dallas Morning News
Amazon.com Inc. said Monday that it plans to open a new type of grocery store in Los Angeles next year, another step in the e-commerce giant’s multi-pronged effort to capture a larger piece of the massive U.S. grocery business.
The company said the store in the Woodland Hills neighborhood would be distinct from Whole Foods Market Inc., the higher-end chain Amazon bought in 2017 that specializes in natural and organic groceries. . . . more
Amazon.com Inc. said Monday that it plans to open a new type of grocery store in Los Angeles next year, another step in the e-commerce giant’s multi-pronged effort to capture a larger piece of the massive U.S. grocery business.
The company said the store in the Woodland Hills neighborhood would be distinct from Whole Foods Market Inc., the higher-end chain Amazon bought in 2017 that specializes in natural and organic groceries. . . . more
KKR Makes Formal Approach to Walgreens Boots on Record Buyout
Bloomberg
KKR & Co. has formally approached drugstore giant Walgreens Boots Alliance Inc. about a deal to take the company private, in what could be the biggest-ever leveraged buyout, people familiar with the matter said.
The New York-based private equity firm has been preparing a proposal to potentially buy out shareholders of Walgreens Boots, said the people, who asked not to be identified because discussions are private. It’s unclear how feasible the transaction would be, given the need for large amounts of financing, and Walgreens Boots and KKR could decide against pursuing a deal, the people said.. . . more
KKR & Co. has formally approached drugstore giant Walgreens Boots Alliance Inc. about a deal to take the company private, in what could be the biggest-ever leveraged buyout, people familiar with the matter said.
The New York-based private equity firm has been preparing a proposal to potentially buy out shareholders of Walgreens Boots, said the people, who asked not to be identified because discussions are private. It’s unclear how feasible the transaction would be, given the need for large amounts of financing, and Walgreens Boots and KKR could decide against pursuing a deal, the people said.. . . more
Losing to win: Why major retailers need to close more stores
Retail Dive
It's been a banner year for store closing sales.
At first, that didn't seem likely. While retail closures were rife in 2017, that "slowed considerably in 2018," according to a Credit Suisse note updating its store closure index. But things have picked up again this year, and the firm has recorded the highest number "at this point in the year for any year" in the index's 24-year history: 7,600. . . . more
It's been a banner year for store closing sales.
At first, that didn't seem likely. While retail closures were rife in 2017, that "slowed considerably in 2018," according to a Credit Suisse note updating its store closure index. But things have picked up again this year, and the firm has recorded the highest number "at this point in the year for any year" in the index's 24-year history: 7,600. . . . more
5 store concepts that no longer exist
Retail Dive
Sometimes even the best-performing retailers have bad ideas. And for the retailers that can't afford to make a mistake, missteps can be devastating.
On the surface some ideas appear to be good — expanding into growing categories, rolling out smaller stores with less expensive rent, etc. — but success boils down to execution and whether venturing beyond the core model is worth the risk.
According to Nick Egelanian, president of retail consultants firm SiteWorks, retailers that "get out of their lane have a very high failure rate when they try to get into another lane.". . . more
Sometimes even the best-performing retailers have bad ideas. And for the retailers that can't afford to make a mistake, missteps can be devastating.
On the surface some ideas appear to be good — expanding into growing categories, rolling out smaller stores with less expensive rent, etc. — but success boils down to execution and whether venturing beyond the core model is worth the risk.
According to Nick Egelanian, president of retail consultants firm SiteWorks, retailers that "get out of their lane have a very high failure rate when they try to get into another lane.". . . more
Friday, November 8, 2019
Burlington readies more store openings this month
Home Textiles Today
On track to add 50 new stores to its portfolio in fiscal 2019, Burlington Stores is set to grand-open three units this month.
This fall has been a period of growth for Burlington as the 736-unit chain approaches its goal to eventually reach a 1,000-store count.. . . more
On track to add 50 new stores to its portfolio in fiscal 2019, Burlington Stores is set to grand-open three units this month.
This fall has been a period of growth for Burlington as the 736-unit chain approaches its goal to eventually reach a 1,000-store count.. . . more
Wegmans tops list of best places to work in retail
syracuse.com
Wegmans is the top place to work in retail on a national list once again.
Great Place to Work and Fortune magazine ranked the grocery store chain first on their list of top places to work in retail for 2019. It's the fourth year in a row Wegmans topped the list.
The rest of the top five included Publix, CarMax, REI and Nugget Market.. . . more
Wegmans is the top place to work in retail on a national list once again.
Great Place to Work and Fortune magazine ranked the grocery store chain first on their list of top places to work in retail for 2019. It's the fourth year in a row Wegmans topped the list.
The rest of the top five included Publix, CarMax, REI and Nugget Market.. . . more
Though a Buyout Deal for Walgreens Is Far from Certain, it Would Make Sense for the Retailer
NREI
Drugstore giant Walgreens is looking to go private, Reuters and Bloomberg reported on Tuesday. Deerfield, Ill.-based Walgreens Boots Alliance Inc., which reportedly has a market value of more than $55 billion, is following in the steps of other retailers including Hudson’s Bay in testing the going-private waters.
Walgreens, which operates roughly 9,200 drugstores around the U.S., has had informal talks with private equity firms, and Reuters reported that the company hired Evercore Partners Inc. to look into a possible deal. . . . more
Drugstore giant Walgreens is looking to go private, Reuters and Bloomberg reported on Tuesday. Deerfield, Ill.-based Walgreens Boots Alliance Inc., which reportedly has a market value of more than $55 billion, is following in the steps of other retailers including Hudson’s Bay in testing the going-private waters.
Walgreens, which operates roughly 9,200 drugstores around the U.S., has had informal talks with private equity firms, and Reuters reported that the company hired Evercore Partners Inc. to look into a possible deal. . . . more
A bad Rx for what ails Walgreens
Chicagobusiness.com
$55 billion in unproductive debt won't solve Walgreens' business problems.
But that's how much the Deerfield-based drugstore chain likely would borrow to fund a leveraged buyout CEO Stefano Pessina reportedly has tried to engineer. The current status of his efforts is unclear, but several media outlets report that he made the rounds of private-equity firms in recent months to gauge their interest in backing what would be the biggest such deal in corporate history. . . . more
$55 billion in unproductive debt won't solve Walgreens' business problems.
But that's how much the Deerfield-based drugstore chain likely would borrow to fund a leveraged buyout CEO Stefano Pessina reportedly has tried to engineer. The current status of his efforts is unclear, but several media outlets report that he made the rounds of private-equity firms in recent months to gauge their interest in backing what would be the biggest such deal in corporate history. . . . more
Party City Just Lost Two-Thirds Of Its Value, But Don’t Blame Only On Helium Shortage Or Halloween Miss
Forbes
Party City has become its own party pooper: the stock slumped 67% on Thursday to its all-time low of $2 a share after the largest U.S. specialty party-supplies chain posted an unexpected third-quarter loss and cut its annual outlook.
The Elmsford, New York-based company reported a 2.3% drop in sales to $540.2 million, hurt by “headwinds from the helium shortage” that dented its balloons sales. Party City, which in September said it was adding about 25,000 temporary employees for its critical Halloween business, also blamed the costumes business shortfall at its stores. . . . more
Party City has become its own party pooper: the stock slumped 67% on Thursday to its all-time low of $2 a share after the largest U.S. specialty party-supplies chain posted an unexpected third-quarter loss and cut its annual outlook.
The Elmsford, New York-based company reported a 2.3% drop in sales to $540.2 million, hurt by “headwinds from the helium shortage” that dented its balloons sales. Party City, which in September said it was adding about 25,000 temporary employees for its critical Halloween business, also blamed the costumes business shortfall at its stores. . . . more
Gap shares tumble after CEO Art Peck steps down and retailer issues weak forecast
CNBC
Gap Inc. shares tumbled in extended trading Thursday after the company said CEO Art Peck will be stepping down immediately, and be replaced by the founders’ son temporarily.
Gap, which has been struggling to revive its sales, also slashed its forecast for the year, citing a “challenging quarter.”
Robert Fisher, currently the company’s non-executive chairman, will serve as CEO on an interim basis. He previously served as interim CEO in 2007. . . . more
Gap Inc. shares tumbled in extended trading Thursday after the company said CEO Art Peck will be stepping down immediately, and be replaced by the founders’ son temporarily.
Gap, which has been struggling to revive its sales, also slashed its forecast for the year, citing a “challenging quarter.”
Robert Fisher, currently the company’s non-executive chairman, will serve as CEO on an interim basis. He previously served as interim CEO in 2007. . . . more
Thursday, November 7, 2019
Sears to close 96 more stores; gets cash lifeline
Chain Store Age
The parent company of Sears and Kmart is lowering the boom — again.
Transformco will close another 96 Sears and Kmart stores, leaving the Sears/Kmart chain with a total of 182 locations. Store-closing sales will start on Dec. 2, with the locations expected to go dark by February.. . . more
The parent company of Sears and Kmart is lowering the boom — again.
Transformco will close another 96 Sears and Kmart stores, leaving the Sears/Kmart chain with a total of 182 locations. Store-closing sales will start on Dec. 2, with the locations expected to go dark by February.. . . more
Is the shortened holiday season just an excuse for retailers to post soft sales results?
Retail Dive
While Black Friday is still weeks away, several retailers have already begun rolling out holiday promotions in an attempt to make up for this year's shortened shopping season.
Target in October announced it would offer free shipping on "hundreds of thousands of items" beginning in November and running through Dec. 21. The mass merchant touted the fact that consumers can receive such benefits with no membership required, a move that takes direct aim at Amazon's Prime membership, which costs $119 annually. . . . more
While Black Friday is still weeks away, several retailers have already begun rolling out holiday promotions in an attempt to make up for this year's shortened shopping season.
Target in October announced it would offer free shipping on "hundreds of thousands of items" beginning in November and running through Dec. 21. The mass merchant touted the fact that consumers can receive such benefits with no membership required, a move that takes direct aim at Amazon's Prime membership, which costs $119 annually. . . . more
Papyrus considers store closures as it negotiates with landlords
Retail Dive
Stationary retailer Papyrus is working to win rent concessions from landlords and could close some stores, according to an emailed Debtwire report. The retailer's owner, Schurman Retail Group, did not immediately respond to Retail Dive's request for comment.
Stationary retailer Papyrus is working to win rent concessions from landlords and could close some stores, according to an emailed Debtwire report. The retailer's owner, Schurman Retail Group, did not immediately respond to Retail Dive's request for comment.
The retailer, which last said on its website it had more than 260 stores, has hired A&G Realty as it looks to negotiate with its landlords, according to Debtwire.. . . more
Under New Leadership, Will McDonald’s Grill Up a New Real Estate Strategy?
NREI
Steve Easterbrook became president and CEO of McDonald’s Corp. in March 2015, just eight months before the fast-food chain rejected the idea of spinning off its vast real estate holdings into a REIT. But now that Easterbrook has been ousted as the head honcho of McDonald’s, will the country’s No. 1 fast-food chain as measured by revenue revisit the REIT route?
Don’t count on it, experts say. It’s about as likely that McDonald’s would launch a REIT spin-off as it would be to spot the new president and CEO, Chris Kempczinski, chowing down on a Burger King or Wendy’s hamburger.. . . more
Steve Easterbrook became president and CEO of McDonald’s Corp. in March 2015, just eight months before the fast-food chain rejected the idea of spinning off its vast real estate holdings into a REIT. But now that Easterbrook has been ousted as the head honcho of McDonald’s, will the country’s No. 1 fast-food chain as measured by revenue revisit the REIT route?
Don’t count on it, experts say. It’s about as likely that McDonald’s would launch a REIT spin-off as it would be to spot the new president and CEO, Chris Kempczinski, chowing down on a Burger King or Wendy’s hamburger.. . . more
CVS adds to store closings and announces plans to shutter 22 stores next year
USA Today
After closing 46 stores this year, CVS Health announced it plans to shutter another 22 locations in 2020.
The upcoming "planned closure of 22 underperforming retail pharmacy stores" cost CVS about $96 million as a "store rationalization charges" in its third-quarter earnings report released Wednesday.. . . more
After closing 46 stores this year, CVS Health announced it plans to shutter another 22 locations in 2020.
The upcoming "planned closure of 22 underperforming retail pharmacy stores" cost CVS about $96 million as a "store rationalization charges" in its third-quarter earnings report released Wednesday.. . . more
Food halls drive mall traffic, not clothing sales
RetailWire
Food courts and halls are attracting traffic to malls around the country, according to a new survey by UBS. They are not, however, proving successful in helping retail stores in those same shopping centers sell more clothing.
UBS’s research, CNBC reports, finds that consumers are increasingly going online to buy clothing rather than visiting malls. Today, 25 percent of all apparel is bought online, according to the investment bank, which forecasts that 31 percent of clothing sales will be purchased through digital channels by 2023.. . . more
Food courts and halls are attracting traffic to malls around the country, according to a new survey by UBS. They are not, however, proving successful in helping retail stores in those same shopping centers sell more clothing.
UBS’s research, CNBC reports, finds that consumers are increasingly going online to buy clothing rather than visiting malls. Today, 25 percent of all apparel is bought online, according to the investment bank, which forecasts that 31 percent of clothing sales will be purchased through digital channels by 2023.. . . more
Costco and Instacart team up with free one-hour Rx deliveries
CNBC
Costco is teaming up with delivery start-up Instacart to test free delivery of prescription drugs to members.
The pilot program is limited to California and Washington state, according to two people familiar, and it includes delivery to a Costco member’s home or office. One Costco member who has used the service told CNBC that he received a text earlier this month to offer him the medication delivery option as an alternative to picking up the meds in store. . . . more
Costco is teaming up with delivery start-up Instacart to test free delivery of prescription drugs to members.
The pilot program is limited to California and Washington state, according to two people familiar, and it includes delivery to a Costco member’s home or office. One Costco member who has used the service told CNBC that he received a text earlier this month to offer him the medication delivery option as an alternative to picking up the meds in store. . . . more
Facing shorter holiday season, U.S. retailers rev up faster delivery, early deals
Reuters
U.S. retailers are rushing in with faster-than-ever delivery deals and earlier Christmas promotions in hopes of easing the impact of this year’s shorter holiday selling season, a period that can be make-or-break for retailers.
Thanksgiving, the traditional kick-off of the U.S. holiday shopping period, falls on Nov. 28 this year, a week later than last year’s Nov. 22, leaving retailers with six fewer days to drive sales between Thanksgiving and Christmas day.. . . more
U.S. retailers are rushing in with faster-than-ever delivery deals and earlier Christmas promotions in hopes of easing the impact of this year’s shorter holiday selling season, a period that can be make-or-break for retailers.
Thanksgiving, the traditional kick-off of the U.S. holiday shopping period, falls on Nov. 28 this year, a week later than last year’s Nov. 22, leaving retailers with six fewer days to drive sales between Thanksgiving and Christmas day.. . . more
Wednesday, November 6, 2019
Walmart overtaking Amazon? Not so fast
Retail Dive
Purchase frequency and even Prime membership at Amazon is declining, while Walmart is on the rise, according to a consumer study from retail analytics firm First Insight emailed to Retail Dive. In 2017, 80% of consumers shopped Amazon six or more times each month, but that has declined, to 49% last year and 40% this year, according to the report. Meanwhile, those shopping at Amazon twice a month or less has risen from 11% in 2017 to 33% last year and 39% this year.
Walmart is on the opposite trajectory, with the percentage of those making more than four trips there each month edging up from 58% in 2018 to 63% in 2019.. . . more
Purchase frequency and even Prime membership at Amazon is declining, while Walmart is on the rise, according to a consumer study from retail analytics firm First Insight emailed to Retail Dive. In 2017, 80% of consumers shopped Amazon six or more times each month, but that has declined, to 49% last year and 40% this year, according to the report. Meanwhile, those shopping at Amazon twice a month or less has risen from 11% in 2017 to 33% last year and 39% this year.
Walmart is on the opposite trajectory, with the percentage of those making more than four trips there each month edging up from 58% in 2018 to 63% in 2019.. . . more
Brilliant Earth continues retail store expansion
Chain Store Age
Brilliant Earth opened its eighth physical location, a showroom in the heart of Philadelphia's Rittenhouse Square. The 2,000-sq.-ft. showroom, in the penthouse suite of 1701 Walnut Street, is designed to provide a low-pressure environment with an appointment model that allows for a more hands on, personalized interaction tailored to customers’ individual preferences.
Brilliant Earth opened its eighth physical location, a showroom in the heart of Philadelphia's Rittenhouse Square. The 2,000-sq.-ft. showroom, in the penthouse suite of 1701 Walnut Street, is designed to provide a low-pressure environment with an appointment model that allows for a more hands on, personalized interaction tailored to customers’ individual preferences.
The new Brilliant Earth features contemporary architectural elements, including high ceilings and glass walls, juxtaposed with exposed brick that evokes the building’s historic nature. It joins the brand’s existing spaces in San Francisco, Los Angeles, Boston, Chicago, San Diego, Denver, and Washington, D.C.. . . more
Mastercard SpendingPulse: Holiday sales to rise 3.1%; lists top 10 shopping days
Chain Store Age
A just-released holiday survey is not quite as robust as most others.
U.S. retail sales are expected to grow 3.1% (excluding automotive) between November 1 and December 24 this year over last, according to Mastercard SpendingPulse. By comparison, the National Retail Federation forecast holiday sales to increase between 3.8% and 4.2% over 2018. . . . more
A just-released holiday survey is not quite as robust as most others.
U.S. retail sales are expected to grow 3.1% (excluding automotive) between November 1 and December 24 this year over last, according to Mastercard SpendingPulse. By comparison, the National Retail Federation forecast holiday sales to increase between 3.8% and 4.2% over 2018. . . . more
Pier 1 gets new CEO — and more time from NYSE
Chain Store Age
Pier 1 Imports has tapped its finance head to do double duty.
The struggling home décor retailer named Robert Riesbeck as CEO and a director of the company. Riesbeck, who joined Pier 1 in July as CFO, will also continue to serve in that position. As CEO, he replaces Cheryl Bachelder, who has acted as interim chief since December 2018. She will remain a member of the board.
Pier 1 also announced that the New York Stock Exchange has accepted the company’s plan to regain compliance with NYSE continued listing standards. . . . more
Pier 1 Imports has tapped its finance head to do double duty.
The struggling home décor retailer named Robert Riesbeck as CEO and a director of the company. Riesbeck, who joined Pier 1 in July as CFO, will also continue to serve in that position. As CEO, he replaces Cheryl Bachelder, who has acted as interim chief since December 2018. She will remain a member of the board.
Pier 1 also announced that the New York Stock Exchange has accepted the company’s plan to regain compliance with NYSE continued listing standards. . . . more
UPS and CVS deliver prescription medicine via drone to US residential customers
TechCrunch
UPS is rolling along with its drone delivery program, working with partner CVS Pharmacy to deliver prescription drugs to customer doorsteps via its newly deployed commercial drones. UPS delivered medications to two paying customers on November 1 using the Matternet M2 drone system that the logistics company is using in partnership with Matternet.
UPS received approval last month from the FAA to fly its fleet of commercial drones in service of customers, and now it plans to iterate its drone delivery program “in the coming months,” with the aim of ensuring that it can deploy UAVs in a commercial capacity at increasing scale. It also launched “UPS Flight Forward,” a dedicated division focused on autonomous drone delivery.. . . more
UPS is rolling along with its drone delivery program, working with partner CVS Pharmacy to deliver prescription drugs to customer doorsteps via its newly deployed commercial drones. UPS delivered medications to two paying customers on November 1 using the Matternet M2 drone system that the logistics company is using in partnership with Matternet.
UPS received approval last month from the FAA to fly its fleet of commercial drones in service of customers, and now it plans to iterate its drone delivery program “in the coming months,” with the aim of ensuring that it can deploy UAVs in a commercial capacity at increasing scale. It also launched “UPS Flight Forward,” a dedicated division focused on autonomous drone delivery.. . . more
Check out the Seaport's long-awaited first grocery store
Boston Business Journal
Popular California-based grocery chain Trader Joe's is now open in Boston's Seaport District – the long-awaited first grocery store for the booming neighborhood.
The store is located at 44 Thomson Place, a brick-and-beam former warehouse that's part of the Thomson Place retail corridor — a block of three historic warehouses that had served as offices for Thomson Reuters prior to its redevelopment by Invesco Real Estate and Crosspoint Associates Inc. Margulies Perruzzi Architects designed Thomson Place, which Lee Kennedy Co. built.. . . more
Popular California-based grocery chain Trader Joe's is now open in Boston's Seaport District – the long-awaited first grocery store for the booming neighborhood.
The store is located at 44 Thomson Place, a brick-and-beam former warehouse that's part of the Thomson Place retail corridor — a block of three historic warehouses that had served as offices for Thomson Reuters prior to its redevelopment by Invesco Real Estate and Crosspoint Associates Inc. Margulies Perruzzi Architects designed Thomson Place, which Lee Kennedy Co. built.. . . more
Tuesday, November 5, 2019
Walgreens Boots Alliance reportedly considers going private
Drug Store News
Walgreens Boots Alliance is looking into whether or not it should take the company private, according to a report from Reuters. The company, which has a roughly $55 billion market cap, has been in preliminary talks with large private equity firms, the report said, noting that it would constitute the biggest leveraged buyout ever.
Reuters cited anonymous sources who said the company has retained Evercore Partners to see whether a deal would be possible, and added that several firms have been reticent, citing concerns around funding the deal and the company’s future business prospects. . . . more
Walgreens Boots Alliance is looking into whether or not it should take the company private, according to a report from Reuters. The company, which has a roughly $55 billion market cap, has been in preliminary talks with large private equity firms, the report said, noting that it would constitute the biggest leveraged buyout ever.
Reuters cited anonymous sources who said the company has retained Evercore Partners to see whether a deal would be possible, and added that several firms have been reticent, citing concerns around funding the deal and the company’s future business prospects. . . . more
Wedding gown retailer David’s Bridal reaches deal to remain in business
The Dallas Morning News
Wedding gown retailer David’s Bridal Inc. reached a debt deal that would head off a second trip to bankruptcy court, according to people with knowledge of the matter.
The company held talks with lenders and equity holders from its previous bankruptcy including Oaktree Capital Group, said the people, who asked not to be identified because the talks are private. . . . more
Wedding gown retailer David’s Bridal Inc. reached a debt deal that would head off a second trip to bankruptcy court, according to people with knowledge of the matter.
The company held talks with lenders and equity holders from its previous bankruptcy including Oaktree Capital Group, said the people, who asked not to be identified because the talks are private. . . . more
Kroger projects momentum for same-store sales, improved profit for 2020
Supermarket News
The Kroger Co. is updating investors today on how its Restock Kroger framework is repositioning the company to create value for shareholders, customers and associates at its Investor Conference being held at the New York Stock Exchange.
Under its two-year-old Restock Kroger program, the company has been focusing on private label brand growth and merchandising, rearranging store layouts and expanding services such as home delivery and self-checkouts.. . . more
The Kroger Co. is updating investors today on how its Restock Kroger framework is repositioning the company to create value for shareholders, customers and associates at its Investor Conference being held at the New York Stock Exchange.
Under its two-year-old Restock Kroger program, the company has been focusing on private label brand growth and merchandising, rearranging store layouts and expanding services such as home delivery and self-checkouts.. . . more
UPS expects 26% jump in returns this peak season
Retail Dive
UPS projects returns will peak on Jan. 2 with 1.9 million returns, representing a 26% bump from the peak return day in 2018, according to a press release.
UPS projects returns will peak on Jan. 2 with 1.9 million returns, representing a 26% bump from the peak return day in 2018, according to a press release.
Returns volume before Christmas day will be even more intense in aggregate, however, with UPS projecting 1.6 million returns per day in the week preceding the holiday. . . . more
NYC’s Fifth Avenue Sees Steep Rent Decline as Tenants Struggle
NREI
A few blocks makes all the difference when it comes to rent on Manhattan’s Fifth Avenue.
Lower Fifth Avenue, an area between 42nd and 49th streets, saw the biggest asking rent decline among Manhattan’s prominent retail corridors in the third quarter, falling 25% from the same period last year, according to a report by Jones Lang LaSalle Inc. In contrast, rents along upper Fifth Avenue, a swanky shopping district that runs from 49th Street north to Central Park, slipped just 0.7% over the same period.. . . more
A few blocks makes all the difference when it comes to rent on Manhattan’s Fifth Avenue.
Lower Fifth Avenue, an area between 42nd and 49th streets, saw the biggest asking rent decline among Manhattan’s prominent retail corridors in the third quarter, falling 25% from the same period last year, according to a report by Jones Lang LaSalle Inc. In contrast, rents along upper Fifth Avenue, a swanky shopping district that runs from 49th Street north to Central Park, slipped just 0.7% over the same period.. . . more
Costco unveils holiday savings with early Black Friday deals, discounts on Apple MacBook, TVs and more
USA Today
Costco has released its "holiday savings offers," including some of its Black Friday doorbusters with deals on televisions, electronics, gaming systems, jewelry, food and more.
The members-only warehouse club is holding its sale in five windows, with some deals set to begin three weeks ahead of Thanksgiving and others to continue through Cyber Monday. . . . more
Costco has released its "holiday savings offers," including some of its Black Friday doorbusters with deals on televisions, electronics, gaming systems, jewelry, food and more.
The members-only warehouse club is holding its sale in five windows, with some deals set to begin three weeks ahead of Thanksgiving and others to continue through Cyber Monday. . . . more
Shake Shack Cuts Key Sales Forecast, Stock Plunges
Investor's Business Daily
Shake Shack trimmed its same-store sales outlook for the full year to around 1.5%. That's down from the company's earlier expectations for around 2%. However, Shake Shack ratcheted its forecast for total revenue higher, to $592 million to $597 million.
Shake Shack defines same-store sales as sales at stores open at least two years.
For the third quarter, that metric grew 2%. A bump in consumer traffic and a menu prices helped that increase. But the figure was below Consensus Metrix forecasts for a 2.9% gain. . . . more
Shake Shack trimmed its same-store sales outlook for the full year to around 1.5%. That's down from the company's earlier expectations for around 2%. However, Shake Shack ratcheted its forecast for total revenue higher, to $592 million to $597 million.
Shake Shack defines same-store sales as sales at stores open at least two years.
For the third quarter, that metric grew 2%. A bump in consumer traffic and a menu prices helped that increase. But the figure was below Consensus Metrix forecasts for a 2.9% gain. . . . more
Where Boston ranks among places with the most franchises
Boston Business Journal
Boston is among the nation's top 50 metro areas where franchising is most popular, according to a recent report by LendingTree.
“A lot of people think about doing franchises as an easier way to get into business ownership,” said Derek Miller, senior research analyst with LendingTree. “Obviously, franchises can provide support and branding that business owners need when they get started. But it’s good to know in an area when you’re starting, is the market already saturated? Is there demand for this sort of thing?”. . . more
Boston is among the nation's top 50 metro areas where franchising is most popular, according to a recent report by LendingTree.
“A lot of people think about doing franchises as an easier way to get into business ownership,” said Derek Miller, senior research analyst with LendingTree. “Obviously, franchises can provide support and branding that business owners need when they get started. But it’s good to know in an area when you’re starting, is the market already saturated? Is there demand for this sort of thing?”. . . more
Monday, November 4, 2019
6 of the biggest blunders from industry history
Retail Dive
Every now and then in retail, decisions turn out so badly that leaders can't even blame the weather. Or "fashion misses."
To be fair, in many segments the industry is fiercely competitive and rapidly changing. It's hard to get right. Margins are thin. Retail businesses are complex. Predicting future trends is speculative work. Consumer taste and loyalty can be fickle. The business world (and media) tend to applaud risk-taking, until a losing hand is drawn.
But there are times when a decision, or its execution, or both, are so flawed or ill-fated that they change the trajectory of a year, or two, or a company's entire future. These stand as cautionary tales for the entire industry. . . . more
Every now and then in retail, decisions turn out so badly that leaders can't even blame the weather. Or "fashion misses."
To be fair, in many segments the industry is fiercely competitive and rapidly changing. It's hard to get right. Margins are thin. Retail businesses are complex. Predicting future trends is speculative work. Consumer taste and loyalty can be fickle. The business world (and media) tend to applaud risk-taking, until a losing hand is drawn.
But there are times when a decision, or its execution, or both, are so flawed or ill-fated that they change the trajectory of a year, or two, or a company's entire future. These stand as cautionary tales for the entire industry. . . . more
Holiday weather outlook looks good for retailers
Chain Store Age
The weather is not expected to play all that big a role in holiday sales this year.
That’s according to a forecast by AccuWeather, whose meteorologists are forecasting no major snowstorms for major cities in the Northeast corridor and for temperatures to be higher than last year from Thanksgiving to Christmas in Eastern cities, such as New York and Philadelphia, and Southeastern cities like Atlanta and Miami. . . . more
The weather is not expected to play all that big a role in holiday sales this year.
That’s according to a forecast by AccuWeather, whose meteorologists are forecasting no major snowstorms for major cities in the Northeast corridor and for temperatures to be higher than last year from Thanksgiving to Christmas in Eastern cities, such as New York and Philadelphia, and Southeastern cities like Atlanta and Miami. . . . more
Price wars, investment costs dampen Moody's outlook on retail
Retail Dive
This year has been hard-fought for retail after it made gains in 2018. As the Moody's analysts tell it, "[R]etailers have been locked in a battle of mounting competition for market share — waging pricing wars while plowing more cash into necessary investments for future growth."
Beyond general price pressures, specific sectors have been struggling with their own troubles. Slowing housing markets are weighing on home improvement stores, apparel and specialty retailers have been hit by continued foot traffic declines and discounting, and drugstores are dealing with pressure on reimbursement rates. . . . more
This year has been hard-fought for retail after it made gains in 2018. As the Moody's analysts tell it, "[R]etailers have been locked in a battle of mounting competition for market share — waging pricing wars while plowing more cash into necessary investments for future growth."
Beyond general price pressures, specific sectors have been struggling with their own troubles. Slowing housing markets are weighing on home improvement stores, apparel and specialty retailers have been hit by continued foot traffic declines and discounting, and drugstores are dealing with pressure on reimbursement rates. . . . more
Olympia Sports Selects Agent To Conduct Closing Sale For 76 Stores
SBG Media
Olympia Sports, the Maine based athletic footwear and apparel chain, has selected SB360 Capital Partners LLC (www.sb360.com), as their exclusive agent to conduct “Store Closing” sales in 76 stores. Olympia, which was recently acquired by sports retailer JackRabbit, will continue to operate its remaining 75 stores under the Olympia Sports’ banner.
The 76 closing stores were not part of the acquisition.. . . more
Olympia Sports, the Maine based athletic footwear and apparel chain, has selected SB360 Capital Partners LLC (www.sb360.com), as their exclusive agent to conduct “Store Closing” sales in 76 stores. Olympia, which was recently acquired by sports retailer JackRabbit, will continue to operate its remaining 75 stores under the Olympia Sports’ banner.
The 76 closing stores were not part of the acquisition.. . . more
Bed Bath & Beyond reverses longtime tradition and will be open on Thanksgiving for first time
USA Today
Bed Bath & Beyond is bucking its longtime tradition of staying closed on Thanksgiving.
For the first time, the New Jersey-based home goods retailer will kick off its in-store Black Friday sale on the holiday.
Stores will be open on Thanksgiving from 5 p.m. to midnight and then will reopen at 6 a.m. on Black Friday. The 25% coupon will be available through noon local time Nov. 29.. . . more
Bed Bath & Beyond is bucking its longtime tradition of staying closed on Thanksgiving.
For the first time, the New Jersey-based home goods retailer will kick off its in-store Black Friday sale on the holiday.
Stores will be open on Thanksgiving from 5 p.m. to midnight and then will reopen at 6 a.m. on Black Friday. The 25% coupon will be available through noon local time Nov. 29.. . . more
Barneys' Madison Avenue store to remain open for at least a year
Reuters
Barneys New York Inc’s flagship Madison Avenue outlet in Manhattan will remain open for at least another year in a slimmed-down form while the buyer of the luxury retailer’s brands negotiates with the store’s landlord.
Barneys New York Inc’s flagship Madison Avenue outlet in Manhattan will remain open for at least another year in a slimmed-down form while the buyer of the luxury retailer’s brands negotiates with the store’s landlord.
A bankruptcy judge approved the sale of Barneys brands and other intellectual property to Authentic Brands, a firm that acquires and licenses brands, on Thursday. The deal closed on Friday, Authentic Brands said.. . . more
Walmart appears to be gaining ground against Amazon
CNBC
Less shopping is happening on Amazon, and consumers are favoring Walmart, according to a new survey.
The frequency of people buying items on Amazon six times or more per month has dropped to 40% this year from 80% in 2017, according to surveys by First Insight, a retail analytics firm that collects data to help retailers such as Dick’s Sporting Goods, Crocs and Kohl’s make product decisions.. . . more
Less shopping is happening on Amazon, and consumers are favoring Walmart, according to a new survey.
The frequency of people buying items on Amazon six times or more per month has dropped to 40% this year from 80% in 2017, according to surveys by First Insight, a retail analytics firm that collects data to help retailers such as Dick’s Sporting Goods, Crocs and Kohl’s make product decisions.. . . more
Friday, November 1, 2019
Iconic luxury retailer Barneys will likely close after bankruptcy judge approves its sale
ABC News
Famed luxury retailer Barneys New York is expected to be sold for $270 million following a federal bankruptcy court decision Thursday.
No other offer materialized by the time Judge Cecilia Morris approved the sale of Barneys to Authentic Brands Group, which had signaled it would close stores, including the Madison Avenue flagship, and license the name to Saks and other rivals.. . . more
Famed luxury retailer Barneys New York is expected to be sold for $270 million following a federal bankruptcy court decision Thursday.
No other offer materialized by the time Judge Cecilia Morris approved the sale of Barneys to Authentic Brands Group, which had signaled it would close stores, including the Madison Avenue flagship, and license the name to Saks and other rivals.. . . more
HomeGoods adding new stores across eight states
Home Textiles Today
HomeGoods is opening nine new stores and reopening an updated existing unit across eight states in November – just in time for the holiday selling season.
And among these is the TJX Companies nameplate’s first location in Seattle. . . . November 3rd scheduled openings include:
HomeGoods is opening nine new stores and reopening an updated existing unit across eight states in November – just in time for the holiday selling season.
And among these is the TJX Companies nameplate’s first location in Seattle. . . . November 3rd scheduled openings include:
- New Hampshire: Riverside Plaza, 354 Winchester Street in Keene more
'Cyber Week' will generate 20% of holiday revenue
Retail Dive
The five days between Thanksgiving and Cyber Monday will drive $29 billion in online shopping revenue, according to a report from Adobe Analytics. That "Cyber Week" revenue will account for 20% of total holiday revenue, and total online holiday spending is expected to surpass $143.7 billion — a 14.1% increase year over year.
Large e-commerce retailers saw a revenue increase of 65% during November and December in 2018, while smaller retailers only saw a 35% boost, the report noted.. . . more
The five days between Thanksgiving and Cyber Monday will drive $29 billion in online shopping revenue, according to a report from Adobe Analytics. That "Cyber Week" revenue will account for 20% of total holiday revenue, and total online holiday spending is expected to surpass $143.7 billion — a 14.1% increase year over year.
Large e-commerce retailers saw a revenue increase of 65% during November and December in 2018, while smaller retailers only saw a 35% boost, the report noted.. . . more
Forever 21 Plans to Close About 60 Fewer Stores After Rent Cuts
NREI
Forever 21 Inc. will keep open more than 60 U.S. stores previously set to shutter as part of the company’s bankruptcy restructuring after the retailer secured rent concessions from its biggest landlords, according to people with knowledge of the situation.
It’s an early win for the fast-fashion company after it filed for Chapter 11 protection in September as talks with mall operators about a possible rescue broke down. The company had no plan for reorganization when it filed, and said it would close at least 178 U.S. stores and dozens more internationally as it worked toward a turnaround.. . . more
Forever 21 Inc. will keep open more than 60 U.S. stores previously set to shutter as part of the company’s bankruptcy restructuring after the retailer secured rent concessions from its biggest landlords, according to people with knowledge of the situation.
It’s an early win for the fast-fashion company after it filed for Chapter 11 protection in September as talks with mall operators about a possible rescue broke down. The company had no plan for reorganization when it filed, and said it would close at least 178 U.S. stores and dozens more internationally as it worked toward a turnaround.. . . more
Honey Baked Ham to launch store remodeling program — inside and out
Chain Store Age
The Honey Baked Ham Company is giving its stores a makeover.
A year after unveiling its new brand identity, which featured a revamped logo and new burgundy and warm orange color palette, the company announced plans to launch a major remodeling program across its network of 435 HoneyBaked locations. In addition to updating the look of the stores, the initiative also aims to provide an enhanced customer experience. . . . more
The Honey Baked Ham Company is giving its stores a makeover.
A year after unveiling its new brand identity, which featured a revamped logo and new burgundy and warm orange color palette, the company announced plans to launch a major remodeling program across its network of 435 HoneyBaked locations. In addition to updating the look of the stores, the initiative also aims to provide an enhanced customer experience. . . . more
J.C. Penney creates the store of its wishes in Hurst, settles on using it as a lab
The Dallas Morning News
J.C. Penney chief executive officer Jill Soltau has a ways to go to get the Plano-based retailer out of the trouble it’s been in for a long time.
But she has ideas as big as her own closet, which she describes as overflowing with new clothes that she’s been buying at Penney’s.
Soltau ended her first year leading the company by officially unveiling a department store experience that she said came straight from Penney customer research.. . . more
J.C. Penney chief executive officer Jill Soltau has a ways to go to get the Plano-based retailer out of the trouble it’s been in for a long time.
But she has ideas as big as her own closet, which she describes as overflowing with new clothes that she’s been buying at Penney’s.
Soltau ended her first year leading the company by officially unveiling a department store experience that she said came straight from Penney customer research.. . . more
Hudson's Bay going private deal faces Catalyst hurdle
Reuters
Hudson’s Bay Co shareholder Catalyst Capital Group Inc has opposed an agreed deal by the struggling Canadian department store operator with a group led by executive chairman Richard Baker to be taken private.
Catalyst and other investors holding about 28.24% of shares of Hudson’s Bay intend to vote against the agreement, the private equity firm said on Thursday.. . . more
Hudson’s Bay Co shareholder Catalyst Capital Group Inc has opposed an agreed deal by the struggling Canadian department store operator with a group led by executive chairman Richard Baker to be taken private.
Catalyst and other investors holding about 28.24% of shares of Hudson’s Bay intend to vote against the agreement, the private equity firm said on Thursday.. . . more
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