Wednesday, August 22, 2018

Dunkin’ rolls out new ideas

Boston Herald
Cold brew on tap, better mobile ordering, redesigned stores and selfie donuts. These are some of the new features customers can expect when they walk into one of 30 next-generation Dunkin’ — formerly Dunkin’ Donuts — in downtown Boston when they are finished by the end of the year, the company’s latest push to keep pace with competitors and remain relevant.

“Everything is changing, the world, technology, and everything like that. I think things are changing so fast, this has to be part of the equation going forward,” said David Hoffmann, chief executive of Dunkin’ Brands. “If you think you can just be a cash box selling drip coffee, I think the world will pass you by.”. . . more

Tuesday, August 21, 2018

TJX sales up 12% on 16th straight quarter of traffic increases

Retail Dive
TJX Cos. on Tuesday reported that second quarter net sales increased 12% to $9.3 billion and comparable sales increased 6% companywide, according to a press release.

TJX said that the spike in comps was primarily driven by increases in customer traffic across divisions. By brand, comps rose 7% at Marmaxx (which operates T.J. Maxx and Marshalls), 3% at Home Goods, 6% at TJX Canada and 4% at TJX International. Over the quarter, the retailer opened a net of 53 stores.. . . more

What Retail Apocalypse? Ask Some Department Stores, But Not All

NREI
Adapt or die isn’t just a tenet of evolution: It’s also the reality faced by the U.S. department-store industry. And some are doing it far better than their rivals.

Although the chains are often lumped together with other mall mainstays when lamenting the “retail apocalypse,’’ this past week’s earnings reports underscore just how different department stores’ strategies are amid a wider brick-and-mortar slowdown. . . . more

San Francisco Has a New Cashierless Store—and It Isn’t Amazon Go

Ad Week
Automated checkout startup Zippin has launched its software platform and opened a cashierless concept store in San Francisco that sells lunch items, snacks and drinks.

In a release, Zippin said its platform can be easily and quickly deployed by any retailer (although a story in Wired said it doesn’t work for clothes yet), and Zippin said it works accurately in crowded locations.. . . more

America’s favorite home retailers are…

Chain Store Age
A Swedish giant took one of the top spots in an annual survey of consumers’ favorite home furnishings retailers while a specialty hardware store beat out its bigger box competitors in the home improvement category.

Ikea ranks first among consumers when it comes to home furnishings, and Ace Hardware is their favorite home improvement chain, according to a study by customer experience management firm Market Force. . . . more

Sales at Kohl’s Rise Amid Robust Consumer Spending

The Wall Street Journal
Kohl’s Corp. posted improved sales results during the second quarter amid a wave of robust consumer spending that has buoyed many retailers.

Net sales rose 3.9% to $4.31 billion and adjusted comparable sales, which account for an extra week in last year’s retail calendar, rose 3.1% during the quarter, or 4.3% on a fiscal basis. . . . more

From Bed Bath & Beyond To Eggslut: How Taubman Is Shaking Up The Shopping Mall

Forbes
If you were opening a U.S. shopping center in the “peak mall” era of the '80s, there was a definite formula: two department stores, a multiplex, as many national chain fashion stores as you could muster, and a gleaming food court. Simple.

That was the profile of Los Angeles’ Beverly Center when it opened in 1982. Today, however, that kind of retail mix is ancient history, and Beverly Center is in the midst of a $500 million radical reshaping. As reported in the Wall Street Journal, it’s part of a larger strategy by Taubman Centers to “double down” on mall investment in an effort to combat the shift to shopping online.. . . more

First downtown retail pot shop in Salem gets zoning approval

The Salem News
Salem, MA officials have given zoning approval to the first retail pot business seeking to open in the downtown.

Seagrass hopes to open in the old Deschamps Printing Company building at 3 Dodge St. It's the venture of third generation Salem resident Chip Tuttle, who is also chief operating officer of Suffolk Downs, and Nahant resident Don Wyse. . . . more

Monday, August 20, 2018

These are the fastest-growing retailers in America right now

Business Insider
America's fastest-growing retailers are bringing in millions and growing bigger every day.

A recent ranking in the National Retail Federation's Stores magazine used sales data from Kantar Consulting to take a look at the top 100 fastest-growing retailers in America. It found that the fastest-growing companies, based on year-over-year domestic sales growth, were Primark, Bass Pro Shops, and Build.com, with Amazon and Wayfair rounding out the top five. . . . more

Consumer sentiment slides to 11-month low

Chain Store Age
Consumer sentiment dipped in August amid concern about rising prices.

The University of Michigan’s consumer sentiment index fell to 95.3 in August, down from 97.9 in July, according to a preliminary reading. It was the lowest level in 11 months, and below economists’ expectations who were looking for it to reach 98. . . . more

Fast-casual, $300 million restaurant deal backed by founder of Panera Bread

Chain Store Age
Zoës Kitchen is being acquired in a deal that will create the nation’s largest restaurant operator in the Mediterranean category

The fast-casual, 261-unit Zoës has entered into a definitive agreement to be acquired by privately held Cava Group, operators of the fast-growing Cava chain. The combined company will have 327 restaurants in 24 states throughout the U.S. The deal was valued at approximately $300 million. . . . more

Long-delayed $3 billion mega-mall sets opening date

Chain Store Age
One of the nation’s most ambitious retail and entertainment projects has an opening date.

American Dream Meadowlands, the mammoth retail and entertainment destination now taking shape in East Rutherford, New Jersey, will open this spring, reported Patch.com. The long-delayed center will boost such attractions as an indoor Nickelodeon Universe theme park and water park, a Lego Discovery Center, a Sea Life aquarium, 16-story indoor ski slope, a miniature golf course — and more, including some 450 retail stores and a 150,000-sq.-ft. food hall.. . . more

Walmart eyes virtual reality shopping system

Ad Age
Trekking through a crowded, cavernous Walmart supercenter isn't much fun. But what if you could do it from the comfort of your own home through virtual reality?

The world's biggest retailer wants to find out, according to filings with the U.S. Patent and Trademark Office.. . . more

Sears CEO Puts His Own Board on the Spot

The Wall Street Journal
For years Edward Lampert has called the shots at Sears Holdings Corp. as its chief executive, largest shareholder and biggest lender. But his latest play to keep the struggling chain afloat is out of his hands.

The hedge-fund manager turned CEO said earlier this year that he would be interested in buying the Kenmore appliance business and other assets, after a two-year strategic review by the company failed to result in a deal for the units. Frustrated by the pace of deliberations, Mr. Lampert stepped in last week with a $400 million offer to buy Kenmore himself. . . . more

Flood of Toys ’R’ Us Space Comes on the Market; Who’s Going After the Empty Boxes?

NREI
As part of Toys ‘R’ Us’ bankruptcy process—in which it closed its more than 700 U.S. stores totaling millions of sq. ft.—the retailer is in the process of selling off its real estate to other big-box retailers, including Big Lots, Hobby Lobby and Ashley Furniture.

Toys ‘R’ Us is incrementally auctioning off stores that it owns across the country, as well as the leases it has for other stores. Most of the stores are freestanding or located in open-air shopping centers and average around 40,000 sq. ft. . . . more

E‑commerce accounts for an estimated 13.3% of US retail sales in the second quarter

Internet Retailer
U.S. online retailers generated $120.45 billion on the web in the first quarter, a 15.4% increase compared with $104.41 billion in Q2 2017, the Department of Commerce reported today.

This is a slightly lower growth rate than e-commerce for 2017 as a whole, when U.S. online sales rose 16.0% to reach $453.46 billion, compared with $390.99 billion in 2016. It’s also a slightly lower growth rate than the first quarter, when online sales from U.S. merchants grew 16.4%. . . . more

Friday, August 17, 2018

Nordstrom raises outlook as Q2 sales, earnings cruise past expectations

CSA
Nordstrom was firing on all cylinders in its second quarter, fueled by strong gains in digital sales and robust traffic at its off-price and regular-price stores. . . . more

Walmart soars with fastest sales growth in a decade, big online jump

CSA
Walmart showed its might in the second quarter, with earnings and sales that topped the Street amid surging digital sales and a jump in store sales.. . . more

Irvine Spectrum Center unveiling $200 million renovation

SCT
Irvine (Calif.) Spectrum Center officially unveils a $200 million renovation on Saturday that has seen the conversion of a former Macy’s space into 30 stores, entertainment concepts and restaurants. . . . more

Restoration Hardware founder’s latest venture is folding

NY Post
The entrepreneur who founded Restoration Hardware has lost his latest retail bet. Guideboat — an upscale clothing chain started by Stephen Gordon, the visionary who started Restoration Hardware in 1979, only to lose control of it in 2005 — is liquidating its stores after a five-year run, The Post has learned. . . . more

What apocalypse? New concepts are gobbling up vacant space

ICSC.org
All the doom-and-gloom media chatter about the “retail apocalypse” nearly always fails to mention the hundreds of stores, restaurants and entertainment tenants that are queuing up to replace departing retailers. And it is not just value concepts that are pushing up new-store numbers in 2018. A broad, eclectic assortment of tenants continue seeking out strategic shopping center positions — and that includes apparel. . . . more

Planet Fitness reports a very healthy 2nd quarter

NH Business Review
Planet Fitness, which opened a new gym in Merrimack last month, plans to open three more in New Hampshire over the next year or so as part the company’s rapid expansion throughout the nation, the company’s CEO revealed in his earnings call last week. . . . more

Chili's Gets its Mojo Back

FSR
There was a lot at stake for Chili’s in fiscal 2017. CEO Wyman Roberts went as far as calling it “an important and pivotal year for our business,” during an August 14 conference call. The brand was carrying a streak of negative same-stores into the calendar, with a menu too broad, operations too complex, LTOs that hurt execution, and technology that failed to leverage Chili’s standing or core strengths.. . . more

Thursday, August 16, 2018

Marijuana-themed sandwich chain eyes Milwaukee for expansion

Milwaukee Business Journal
A marijuana-themed restaurant chain wants to expand its Wisconsin footprint with a new shop in the Milwaukee region. Cheba Hut, a Colorado-based business, serves a menu of toasted sandwiches in three sizes: the four-inch “nug,” the eight-inch “pinner” and the footlong “blunt. The restaurant also offers salads, a selection of side dishes and desserts on its “munchies” menu and drinks from a list of “cotton mouth cures.” The food does not contain marijuana. . . . more

Retail sales jump again in July

CSA
Retail sales increased 0.4% seasonally adjusted over June, and 4.9% unadjusted year-over-year, according to the National Retail Federation. The NRF numbers exclude automobiles, gasoline stations and restaurants.. . . more

Aldi is going granola to compete with Whole Foods

CNNMoney
Aldi is synonymous with low-cost food staples, canned goods and no frills shopping. But the German grocer is hoping a shift to trendy, natural foods will help it grow its market share in the United States. Last week, it announced the next phase of an aggressive growth initiative that will include a larger emphasis on natural foods. . . . more

For Struggling Restaurants, It's Buy or Die

Restaurant Business
Earlier this month, Real Mex Restaurants, the owner of El Torito, Chevys Fresh Mex and Acapulco, filed for its second bankruptcy in less than a decade and has a buyer willing to pay $47 million.

The Real Mex story is a classic story of a zombie restaurant chain: It was shrinking (less than half the size it was before the previous filing), had way too much debt (well over $200 million) and was unable to manage that debt in a period of weakening sales and higher costs. . . . more

Specialty apparel retailer opens Staten Island store

CSA
Lands’ End is giving shoppers in the Empire State a new location to do their back-to-school shopping. The specialty apparel retailer is opening a new store at the Staten Island Mall, New York, on Aug. 18. The new store gives the retailer to a total of 14 standalone locations in the United States. . . . more

Macy's shares tumble as department store struggles to grow sales

CNBC
Macy's shares tumbled Wednesday even after the department store operator reported quarterly earnings and sales that topped analysts' expectations and hiked its forecast for the full year. . . . more

Future bright for malls, physical retail, says report

ICSC
Quality malls and brick-and-mortar retail can expect robust growth in the coming decade, according to a report by fund manager QIC, which cautions against exaggerating the threat from e-commerce and other challenges. . . . more

Wednesday, August 15, 2018

Tiffany to completely revamp Manhattan flagship

SOURCE
Tiffany & Co. will begin a massive renovation of its Manhattan flagship, starting this spring. The 10-story architectural icon, which is owned by the retailer, is located on 5th Avenue at 57th Street. . . . more

Outfitting house and home

STORE'S
An 18-month test initiated by Bealls Inc. has ended successfully with the creation of a chain called Home Centric, the first of which opened this May in Cary, N.C. Bealls operates over 530 stores across 16 states as well as online. Aware of strong and growing sales within its home furniture/decor departments and the fact that “there weren’t a lot of choices out there for off-price home products,” the company decided to expand the home department into a store within a store, says Karen Filips, director of communications and community affairs for Bealls Inc.. . . more

Noon Mediterranean Files for Bankruptcy

Restaurant Business
Noon Mediterranean, the fast-casual chain formerly known as Verts Mediterranean Grill, has filed for bankruptcy protection. . . . more

Famous Dave's Cooks Up Another BBQ Concept

FSR Magazine
Famous Dave’s has been a blend of innovation and legacy over the course of its turnaround stretch. The barbecue brand’s second-quarter report reflected that strategy and promised more changes, including a fresh concept from its new barbecue star, Travis Clark. . . . more

For growth, follow privately funded college housing

CSA
America’s major universities and colleges increasingly look to private real estate developers to provide student housing, and that’s good news for retailers looking to expand, says an investment expert involved in the trend . . . more

Tuesday, August 14, 2018

Million-dollar NH mall makeovers: Rapidly evolving to connect with today's consumer

Union Leader
The Maple Tree Mall in Manchester's North End recently finished a $1 million facelift - including a new facade, sign and revamped parking lot.

"It brought it from the 1980s to 2018," said Emily Martel, marketing manager for Milne Travel, a tenant there.

About a 20-minute drive away, a Massachusetts developer stripped a former Shaw's plaza in Merrimack down to its structural steel, spending more than $6 million to transform it . . . more

Dunkin' Sprints Into the Future

QSR
It seemed like an April Fools’ joke. Only it wasn’t—just a headline-grabbing jolt of marketing genius. In the lead-up to April’s Boston Marathon, one of the globe’s most treasured sporting events, Dunkin’ Donuts teamed with running footwear and apparel company Saucony to release a limited-edition Dunkin’ Donuts–branded running shoe. . . . more

Just Cabinets closing stores

Central Penn Business Journal
A midstate home furniture chain appears to be closing its remaining stores. Just Cabinets Furniture & More, a Dauphin County-based chain with 11 stores, including four in Central Pennsylvania, is in the process of liquidating stores. Merchandise is currently being sold at up to 75 percent off, according to the company's website . . . more

Sleeping and high-tech? Minnesota mattress company mixes it up in Manhattan

New York Business Journal
A Minnesota mattress maker is mixing high technology with sleeping in New York by opening a souped-up mattress store in Manhattan this week. Sleep Number Corp. (Nasdaq: SNBR) said it's continuing its New York expansion by opening a new location in a historic building at 136 Fifth Ave.. . . more

Big-Box Retailers Come Up with Small Concepts to Grow in a Changed Landscape

National Real Estate Investor
The old adage that “everything’s bigger in Texas” gets thrown around a lot. However, that’s not necessarily the case for Walmart as it's testing a small-format store concept in the Dallas-Fort Worth market. . . . more

McDonald’s to undertake nearly $3 billion store remodeling initiative

CSA
McDonald’s Corp. is embarking on an ambitious — and costly — store remodeling program to transform the customer experience inside and outside its restaurants across the country. . . . more

Monday, August 13, 2018

Party City to team up with Amazon

Chain Store Age
Party City has joined the growing list of retail companies that are making deals with Amazon. Amid strong second quarter results, the party supplies retailer and wholesaler announced it is launching a pilot program to sell product on Amazon.com. The pilot will launch in advance of Party City’s biggest selling season—Halloween—and will initially offer a curated assortment focused largely on the costume category. Party City plans to expand the assortment later this year to include products for Christmas and New Year’s celebrations. Further expansion is possible in 2019. . . more

Pet Pampering Surges as Milennials Practice Parenting

AdAge
Brett Gursky flies first-class. And so does his dog Buddy, a Maltese-Chihuahua mix that he rescued two years ago. When Gursky, a writer-director-producer based in Los Angeles, goes to the Beverly Hills Hotel for meetings, Buddy comes along. And Buddy, who has 3,200 Instagram followers and receives monthly treat boxes from a site called PupBox, is a regular at the Chateau Marmutt—no relation to the iconic Hollywood hotspot Chateau Marmont—where he's pampered with baths, clippings and brushings costing as much as $40 a day. . . more

Retail sales in 2018 could climb higher than forecast, the National Retail Federation says

CNBC
Spending at retailers — excluding automobiles, gasoline stations and restaurants — is now predicted to climb at least 4.5 percent, The National Retail Federation says in its updated outlook for 2018. That compares with a prior forecast range of 3.8 to 4.4 percent. . . more

Friday, August 10, 2018

The Hummus & Pita Co kicking off national expansion with Connecticut opening

Fast Casual
The Hummus & Pita Co will mark the official start of its national expansion Saturday with the opening of its first franchised store in Brookfield, Connecticut. The brand's newest outpost, located at 15 Federal Rd., is part of a multi-unit, statewide franchise deal inked earlier this year, according to a company press release. . . . more

Cold Stone Creamery Celebrates 30th Anniversary With Opening Of 30 Stores In 2018

Restaurant News Resource
Cold Stone Creamery continues their 30th Anniversary celebration with continued growth of the brand. In 1988, Cold Stone Creamery opened its first location in Tempe, Arizona, and will be rolling out 30 new stores domestically and internationally this year. . . . more

Aldi’s aggressive growth on track

CSA
With more than 1,800 stores across the country, Aldi is in the midst of an accelerated growth plan, investing more than $5 billion to remodel and expand its store count to 2,500 by the end of 2022. The company said it is more than halfway through its remodel investment. . . . more

Party City to team up with Amazon

CSA
Amid strong second quarter results, the party supplies retailer and wholesaler announced it is launching a pilot program to sell product on Amazon.com. The pilot will launch in advance of Party City’s biggest selling season—Halloween—and will initially offer a curated assortment focused largely on the costume category . . . more

Winning the Hearts–and Loyalty–of Younger Consumers

CSA
Alliance Data’s 2018 “Rules of NextGen Loyalty” study validates an emerging trend happening with today’s younger consumers: Not only are they financially conscious, they’re also heavily influenced by cost when it comes to purchasing decisions. These new findings build on our 2017 study, “The Generational Perspective,” which looked at all generations, and found that Millennials, as compared to Gen X, Baby Boomers, and the Silent Generation, were most likely to prioritize their budgets when making purchasing decisions. Initially, we thought this was due to life stage, but our recent study proved there is a bigger underlying cause and effect that is shifting how younger consumers shop. . . . more

Analysis: Rite Aid faces ‘questionable future’ after scrapped merger

CSA
The proposed merger by Albertsons and Rite Aid [which was called off on Wednesday evening] was always one based on an overly optimistic view that combining the two businesses would generate incremental revenue and profit.. . . more

Boston Public Market Expands to Logan Airport

BOSTINNO
The time before or between flights can be hectic and stressful or boring and everlasting. Either way, fueling up is essential and The Boston Public Market is on it. The indoor market is expanding to Logan Airport, its second location will be in Terminal C, and is expected to open in spring 2019.. . . more

Thursday, August 9, 2018

Retail collapse: The 57 biggest chains closing stores

NJ.com
It's been a merciless few years when it comes to retail store closings.

As shoppers move online and mall traffic declines, more and more brands are filing for bankruptcy, downsizing or closing retail operations altogether.

Is your favorite retailer closing shop? . . . more

5 trends reshaping retail

Retail Dive
Like many industries today, retail is in an extreme state of disruption. In five years, 25% of malls will be gone. The U.S. has way too much retail space per capita at 23.5 square feet, compared to 16.4 in Canada and 11.1 in Australia. And retail giants Macy's and J.C. Penney have shed over 100,000 jobs since October 2016.

While these figures may seem a bit ominous, innovation sparks opportunity. Digital transformation is driving a new breed of retail that will take consumers where they’ve never been before. . . . more

Jewelry chain files Chapter 11—again

Chain Store Age
A Texas-based jewelry retailer has filed for bankruptcy protection amid a legal probe of its Indian-based parent company.

Samuels Jewelers said that its approximately 122 stores and its e-commerce site will remain open for business as the company seeks to restructure its finances while continuing normal business operations. The retailer, which listed liabilities between $100 million and $500 in its Chapter 11 filing, said it expects the restructuring process will enable it to significantly reduce its outstanding debt.. . . more

Aldi is overhauling its stores to win the grocery wars — and it's coming straight for Walmart and Kroger

Business Insider
Aldi is making big changes to its stores.

The discount grocer is embarking on the biggest product refresh in its history by bringing more fresh, organic, vegetarian, and vegan items to its 1,800 stores across the US.

The changes will be hard to miss; once the product rollout is complete in early 2019, about 20% of the items in Aldi's stores will be new.. . . more

Big-Box Retailers Come Up with Small Concepts to Grow in a Changed Landscape

NREI
The old adage that “everything’s bigger in Texas” gets thrown around a lot. However, that’s not necessarily the case for Walmart as it's testing a small-format store concept in the Dallas-Fort Worth market.

The big-box retailer is building 3,000-sq.-ft. convenience stores with fuel pumps—called Walmart Fuel Station—in some parking lots of existing 180,000-sq.-ft. Walmart Supercenters that don’t already have gas pumps. . . . more

Rite Aid, Albertsons call off merger deal ahead of vote

Boston Herald
Rite Aid and the grocer Albertsons called off an agreement to become a single company with the deal facing shaky prospects in a shareholder vote.

Rite Aid Chairman and CEO John Standley said in a prepared statement late Wednesday that after hearing the views of shareholders, the drugstore chain is "committed to moving forward and executing our strategic plan as a (stand-alone) company.". . . more

Amazon Prime Day 2018 analysis in 5 charts

Internet Retailer
The fourth-annual Amazon Prime Day is in the books and it is Amazon.com Inc.’s biggest sales event ever.

Amazon doesn’t disclose sales figures on Prime Day, but Internet Retailer estimates sales hit $4.19 billion globally this year during the 36-hour sale July 16-17, up nearly 74% from $2.41 billion during last year’s Prime Day (a 30-hour sales event July 11-12, 2017). Comparatively, in 2017 Amazon grew its overall Prime Day sales by 60% over the 24-hour Prime Day 2016 sales event.. . . more

Wednesday, August 8, 2018

Shopping mall owners fill empty stores with offices as coworking companies branch out

CNBC
Across America, stores once occupied by now-bankrupt retailers like Toys R Us and Bon-Ton are being converted into shared office space.

Coworking space is predicted to grow at retail properties by a rate of 25 percent annually through 2023, according to a new report from Jones Lang LaSalle.. . . more

Off-price craze driving foot traffic to Marshalls, Macy's

Retail Dive
Consumers shopped more in stores in the second quarter this year compared to the first, favoring home improvement big box stores and mall stores, according to a report from location-based advertising platform GroundTruth emailed to Retail Dive. May saw the largest increase with a 1.1% gain in foot traffic, correlating with the highest monthly retail sales growth in over eight months.

Within fashion, off-price retailers performed well, along with Marshalls, Old Navy, Gap Body, Coach and Macy's, which saw the largest increase of foot traffic. Saks Off Fifth and Macy's Backstage also saw a 0.5% uptick, while mid-tier apparel and accessory brands lost some ground, according to the report. . . . more

Natural Grocers working toward a footprint of 1,100 stores

Retail Leader
Natural Grocers is leveraging dietary education and store experience into sustained sales and earnings growth on its way to 1,100 stores.

Natural Grocers by Vitamin Cottage Inc. reported an impressive third quarter, with a 9.5 percent net sales increase to $213.1 million, a 5.2 boost in same store sales, and a 233 percent net income surge to $2 million with diluted earnings per share of 9 cents.

During an earnings call presentation, Natural Grocers says it is working toward a footprint of 1,100 stores across the United States. It currently has 147 stores in 19 states.. . . more

Denny's Shifts Course as Value Wars Heat Up

FSR Magazine
Since 2009, Denny’s has opened more than 500 restaurants, which represents about 30 percent of its entire system and is one of the more impressive growth charts in casual dining. Following its second-quarter review July 30, the brand revised its outlook for fiscal 2018 for total operating revenue to $626–$634 million from $634–$642 million. A slowdown in net restaurant growth being the main culprit.

Denny’s said it now expects to open 35–45 restaurants this year, down from the 40–50 it forecasted earlier. And overall, Denny’s predicts to end 2018 with five–10 fewer units than it had to start the calendar.. . . more

Casper, a Web Pioneer, to Open 200 Stores

The Wall Street Journal
Online mattress seller Casper Sleep Inc. plans to open 200 of its own stores in the next three years, expanding across North America to stave off competition from dozens of internet copycats.

Casper, which launched in 2014, opened its first permanent retail shop in New York City earlier this year. The 200 stores will include 18 existing temporary locations that Casper is transitioning to permanent shops. The brand also distributes some products throughTarget Corp. , Nordstrom Inc. and Amazon.com Inc.. . . more

CVS to offer nationwide telemedicine service through smartphone video

USA Today
Drug store giant CVS Health plans to offer a nationwide service to treat easy-to-diagnose maladies and other medical issues via its smartphone app.

The telemedicine service will be offered for diagnosis of conditions like colds and flu, skin issues and general wellness matters.

The video visit service, which will be provided on smartphones, will cost $59 and can be paid by credit card or debit card. . . . more

What consumers consider the most ethical company

Boston Business Journal
Walmart tops the list of corporations that American consumers think are most ethical, according to a new poll by market research company Morning Consult, which also found that people would prefer that companies stay out of politics.

The top 10 companies on the list are all large retailers, restaurants or tech companies.. . . more

Tuesday, August 7, 2018

Women’s apparel retailer extends credit agreement

Chain Store Age
Christopher & Banks Corp. is getting a reprieve on its credit facility.

The women’s apparel retailer entered into an agreement to extend its current senior secured revolving credit facility of up to $50 million. The deal also includes an additional $5 million through a first in, last out (FILO) loan, which is as an advance on unsold merchandise. . . . more

Rite Aid updates full-year outlook

Chain Store Age
Rite Aid revised the outlook it issued in April based on a more stable reimbursement rate environment, fees under the Walgreens Boots Alliance transition services agreement, generic drug purchasing and other factors. However, the new figures don’t include the expected impact of its proposed merger with the privately-held grocer, Albertsons.

Rite Aid said it expects its generics purchasing efficiencies to come in $80 million less than expected in April, which has an effect on its adjusted EBITDA, net loss and adjusted net loss per diluted share estimates. It now expects adjusted EBITDA to stand between $540 million and $590 million, down from the range of $625 million to $675 million it had expected earlier this year.. . . more

National Stores Files for Bankruptcy Protection

The Wall Street Journal
Discount retailer National Stores Inc., which operates under the Fallas brand and others, filed for chapter 11 protection Monday with plans to close 74 of its 344 stores.

The retailer is working with its vendors, lenders and other creditors on a reorganization plan that it hopes will allow it to survive bankruptcy, according to a news release.. . . more

Mattress Firm explores U.S. bankruptcy to close stores

Reuters
Mattress Firm Inc, the largest U.S. mattress retailer, is considering a potential bankruptcy filing as it seeks ways to get out of costly store leases and shut some of its 3,000 locations that are losing money, people familiar with the matter said.

Mattress Firm’s deliberations offer the latest example of a U.S. brick-and-mortar retailer struggling financially amid competition from e-commerce firms such as Amazon.com Inc . . . more

In a U.S. Mall Owner’s World, ‘Boring’ Is Actually Pretty Good

NREI
Mall landlords, besieged for the past two years by the rise of online shopping, are trying to push a new narrative of improving sales and increased demand for empty space at their properties.

Second-quarter earnings results for the biggest owners were largely in line with expectations, according to DJ Busch, an analyst at Green Street Advisors LLC, a research firm that specializes in real estate investment trusts. And that’s good news for an industry that’s struggling to stay relevant. . . . more

The Mall is Dead. Long Live Bricks-and-Mortar?

NREI
Recently, GGP shareholders approved the Brookfield Property merger deal by a wide margin. Sure they did. The value was reported to be in the range of a 6 percent cap rate, a number that any self-respecting, not fee-driven real estate owner would consider aggressive.

Yes, I have heard the commentary. The cap rate was on the low side because the properties are Class-a, located in great locations and therefore protected from the “retail apocalypse” (if that’s still a thing). Also, GGP has begun to convert many of these malls into more experiential facilities, which serves as proof positive that they will overperform in the new age of retail. Now that I mention it, what in fact is the new age of retail? Have retail tenants even settled on a proven new-age prototype around which we can build new-age properties?. . . more

Target hiring employees for new Porter Square store

Boston Business Journal
Target Corp. is currently on the hunt for 40 employees to work at its newest small-format store in Cambridge’s Porter Square, set to open this fall.

Target is planning to open the store at 822 Somerville Ave., along with another small-format store in Burlington, on Oct. 21. They will mark the company's sixth and seventh small-format locations in the Boston area. The Minneapolis-based retail giant plans to open 130 such stores nationwide by next year. . . . more

Monday, August 6, 2018

Hanover Mall redevelopment forum scheduled Thursday night

The Patriot Ledger
A public forum on plans to convert Hanover Mall from an enclosed mall to an open-air shopping center similar to Hingham’s Derby Street Shoppes and The Launch will be held from 6:30 to 8 p.m., Thursday, Aug. 9 at the former JC Penny at the mall.

The forum will include discussion of how the new shopping center, Hanover Crossing, will affect schools, water, traffic and a new wastewater plant that could go near the mall.. . . more

A tale of retail: The shopping mall

The Sun Chronicle
Victor Gruen went to his grave cursing the structures for which he became famous — the enclosed shopping center, better known as “the mall.”

The renowned architect came to America in 1938 after fleeing the Nazis who took over his native Austria.

But four decades later and much to his distress, his architectural brainstorm had reshaped the retail landscape in a way he never intended, and he regretted it until the day he died.. . . more

Algorithms feeding unsustainable price cuts online

Retail Dive
While consumers and sellers alike may think that Amazon itself is driving price competition, it's now often third-party marketplace sellers, on Amazon and Walmart, that initiate price-based skirmishes, according to the report. Dynamic pricing algorithms have enabled retailers to detect every online price change, including temporary promotions, and that's, "leading to race-to-the-bottom behavior and permanent drops in Average Selling Price," Profitero said.

Consumers are benefiting and abetting the practice. Aided by their smartphones, 54% now habitually suss out prices, even shopping in store. And, while not as speedy as machines, they're now conditioned to not only search out the best online price, but also to wait for price drops, Profitero said.. . . more

Walmart pilots ‘first-of-its-kind’ robotics system

Chain Store Age
Walmart is adding a new member to its online grocery fulfillment team — but it’s not an associate.

Walmart is set to launch a pilot, in collaboration with start-up Alert Innovation, that uses “first-of-its-kind” automated technology to help associates fill online grocery orders faster than ever before. The system, called “Alphabot,” — developed specifically for the chain — will automatically bring items from storage to associates who will consolidate the items in the order.. . . more

Jamba Juice acquired by fast-casual giant

Chain Store Age
Focus Brands Inc. has added another brand to its expanding portfolio.

Focus Brands Inc. announced it will acquire Jamba (whose wholly-owned subsidiary is Jamba Juice Company) for $13.00 per share in cash, in a transaction valued at approximately $200 million. The deal is expected to close during the third quarter of 2018.. . . more

Retail jobs up in July

Chain Store Age
Retail industry employment in July increased by 66,000 jobs unadjusted over the same time last year showing on-going industry growth, the National Retail Federation said today. Retail industry unemployment dipped from 4.5% to 4.4%. (The numbers exclude automobile dealers, gasoline stations and restaurants.)

July saw monthly gains in general merchandise stores, which were up by 14,000 jobs, clothing and accessories stores up 10,000 jobs, and food and beverage stores up 8,000 jobs. Offsetting the gains, employment decreased by 32,000 jobs in sporting, hobby, book, and music stores.. . . more

From Amazon to Alibaba, Grocers' Agony Is Endless

Bloomberg
Want to know what Amazon.com Inc. will be doing in physical retail tomorrow? Look at what is happening in China today.

If you’d taken this advice, you wouldn’t have been surprised when the behemoth spent $13.7 billion last year buying Whole Foods. Eighteen months earlier Alibaba Group Holding Ltd. had launched Hema, a technologically advanced blend of online grocery shopping, dining and bricks and mortar.. . . more

Friday, August 3, 2018

Sally Beauty closing stores, launching click and collect

Retail Leader
Sally Beauty plans to close as many as 100 stores and launch click and collect as part of its long-term transformation strategy.

The beauty retailer made the announcement as part of its fiscal third quarter report, which was less than impressive. Same store sales for the period ended June 30 decreased 2% in the quarter. Net sales were $996.3 million, a decrease of 0.2% compared to the prior year. . . . more

Amazon forms U.S. Postal Service lobby group

Chain Store Age
Amazon has formed a group that will lobby to keep U.S. Postal Service delivery services “reliable and affordable.” And it’s not alone.

Amazon, QVC, Columbia Sportswear, Express Scripts, and the National Retail Federation among others have formed “The Package Coalition,” a group that is lobbying to keep the U.S. Postal Service’s package delivery services “reliable and affordable,” according to Reuters. The group was created to educate elected officials and others about why proposed rate hikes to the Postal Service could hurt corporations, small businesses and consumers across the United States, according to the report.. . . more

Online no-brand retail upstart secures new funding to fuel growth

Chain Store Age
An online retailer that sells no-name home staples — mostly at $3 a pop — is resonating with consumers and investors.

Brandless announced it has raised $240 million in Series C funding, led by the SoftBank Vision Fund.

Launched in July 2017, Brandless makes and sells a curated assortment of “no-brand” everyday essentials — from organic, non-GMO food and clean beauty and personal care products to non-toxic cleaners and home goods. Most items are priced at $3. . . . more

Online home furnishings and decor brand to open store

Chain Store Age
Yet another e-tailer has decided to try out the physical space.

Wayfair plans to open a retail outlet in the Cincinnati suburb of Florence, Kentucky, according to a tweet by the city of Florence.

The 20,000-sq.-ft. location will open early next year, reported Furniture Today, and will sell returns and closeouts.. . . more

Back-to-school in a box: Parents keep it simple with supply kits

Chicago Tribune
Nearly two-thirds of U.S. consumers who have the option to purchase a back-to-school kit from their child’s school or parent teacher organization have done so at least once, and most are repeat buyers, according to a 2017 report from market research firm The NPD Group.

Fans of the kits praise the convenience of filling a child’s backpack without spending hours tracking down folders with the requested combination of pockets, prongs and colors. Other parents question how good a deal they’re getting or say their kids still like browsing the aisles at traditional school supply destinations themselves.. . . more

Outdoor apparel retailer Filson set to open Seaport store

Boston Business Journal
Seattle-based outdoor apparel retailer Filson is opening its first New England store in Boston’s Seaport this month, as the 121-year-old brand undergoes a rapid expansion.

The new 3,177-square-foot store at 52 Seaport Blvd. will be Filson’s second-largest location when it opens Aug. 16. The company has launched 14 of its 17 global stores within the last five years.. . . more

US employers add 157,000 jobs, jobless rate hits 3.9 pct.

Boston Herald
U.S. employers slowed their hiring in July, adding 157,000 jobs, a solid gain but below the healthy pace in the first half of this year.

The unemployment rate ticked down to 3.9 percent from 4 percent, the Labor Department said Friday. That's near an 18-year low of 3.8 percent reached in May.. . . more

Thursday, August 2, 2018

How to Secure Financing for Retail in Today’s Climate

REBusiness Online
Retail financing, both debt and equity, has become a challenge for many owners, developers and investors throughout the U.S. based on negative press about retail, a perception that the internet will take down many tenants and the weak financial condition of a number of large retailers.

Though capital markets are strong, many property owners and investors are finding it difficult to identify lenders willing to provide the type of financing they need for their retail developments, acquisitions and redevelopments.. . . more

Do Fast-Fashion Chains Still Have Room to Grow?

NREI
Fast-fashion powerhouses H&M, Zara and Forever 21 disrupted the specialty apparel sector by imitating runway fashions at affordable prices, and generally, have been able to beat other retailers in the market to the latest, hippest styles.

These chains boast short production and distribution lead times, allowing them to respond to changes in the market in a matter of just a few weeks. Over the past decade, fast-fashion chains have grabbed huge market share in the apparel sector and grew aggressively, opening hundreds of stores. . . . more

Rising Interest Rates, Bid/Ask Gap Lead to Tempered Growth in Investment Sales in First Half of 2018

NREI
Amid uncertainties related to rising interest rates, the over-extended real estate cycle and a lingering bid/ask gap, investment sales volume remained steady in the first six months of the year, while one property sector—hotels—posted a standout performance.

There was also a surprise in the retail sector, which saw a 39 percent year-over-year sales volume surge in the second quarter, with $20.7 billion worth of deals, according to RCA. But Costello notes that this increase was primarily the result of Unibail-Rodamco completing its acquisition of mall owner Westfield Corp.. . . more

Pizza Hut and Taco Bell comps fall short of expectations

Reuters
Yum Brands Inc’s quarterly sales fell short of Wall Street estimates on Thursday, as fewer customers dined at its Pizza Hut and Taco Bell chains.

Same-store sales at Pizza Hut posted a surprise drop of 1 percent, missing expectations of a 1.21 percent increase, while Taco Bell’s 2 percent rise also fell short of estimates.. . . more

IHOP says fake name change was a big success

USA Today
Those who mocked IHOP for pretending to switch its name to IHOb aren't getting the last laugh. That belongs to the dining chain's management.

The restaurant company's management said Wednesday the advertising shtick worked. The Glendale, California-based company credited the buzz generated by the faux name change with fueling the uptick in business. . . . more

Brookstone files for bankruptcy protection and plans to shutter all 101 mall stores

CNBC
Brookstone filed for Chapter 11 bankruptcy protection on Thursday and said it is shuttering all of its 101 stores in malls across the United States.

It blamed a "continued deterioration of traditional mall traffic.". . . more

Starbucks opens first Princi bakery in Seattle

Seattle Times
Starbucks’ latest bet on artisanal baking as a stand-alone proposition gets its first test with the opening Tuesday of a Princi location in Seattle.

The Italian-style bakery on Westlake Avenue about a block south of Denny Way will feature breakfasts including baked eggs and pastries; pizzas, soups, salads and sandwiches at lunch; deserts and breads. Coffee will include a Starbucks blend designed for the bakeries, and espresso beverages. It will also serve cocktails, beer and wine — the latest effort in Starbucks’ ongoing quest to drive sales in the afternoons and evenings.. . . more

Wednesday, August 1, 2018

10 retailers at risk of bankruptcy: Q2 update

Retail Dive
This year, two iconic retail brands — Bon-Ton and Toys R Us — shut their doors in bankruptcy.

Indeed, the year started with several bankruptcies in the early months, hinting that the crush of Chapter 11 filings in the industry, which last year outpaced those during the most recent recession, wasn't over. After all, many of the challenges to mall and specialty retail remained: declining foot traffic at malls, rapid e-commerce encroachment, shifts in consumer spending and large debt loads for those retailers that have gone through leveraged buyouts.. . . more

Retail Industry to Make a Comeback by Regaining its Rightful Spot

Nasdaq
Over the past year, the retail industry has been in a downward spiral. A lot of U.S. malls saw a decline in occupancy rates of many different stores over the past two years. Many retailers like Sears SHLD and Claire's shut down many of their stores, leaving commercial retail estate in the dirt. However, many shop owners and companies believe that this year the retail industry will make a comeback.

What Exactly Happened?
With the rise of e-commerce and online retailers, the decline of brick-and-mortar stores as well as the importance of shopping malls started to lose popularity amongst consumers. Over the past few years, shopping from places like Amazon AMZN and Warby Parker have become a more comfortable option. According to The Atlantic , Amazon's sales for North America alone increased from $16 billion to $80 billion between 2010 and 2017.. . . more

Q2’s top retail news and trends from SmartBrief

SmartBrief
Retail news did not slow down as the first half of the year came to a close. Following our Q1 recap, the top 25 stories from SmartBrief's retail newsletters in the second quarter included big news like Best Buy’s brand refresh and the loss of beloved designer Kate Spade, but there were also some recurring themes that drew attention from readers:

Successfully capturing younger shoppers is easier said than done -- Even retail behemoth Amazon has trouble figuring out how best to appeal to Generation Z shoppers, many of whom eschew private labels for trendy pieces and prefer the in-store experience to shopping online. Meanwhile, fast-fashion player H&M is trying its hand at bridal in a bid to appeal to cost-conscious millennial brides. Its Wedding Shop launched in Q2, offering bridal gowns starting at $129 and bridesmaid dresses starting at $59.99.. . . more

Auction scheduled for more Toys ‘R’ Us locations

Chain Store Age-
Toys “R” Us, which officially closed the doors to its U.S. operations at the end of June, has put leases on its stores in 29 states up for auction.

The auction will feature 123 properties, including Toys “R” Us and Babies “R” Us locations, as well as side-by-side or combined stores featuring both nameplates. There are 112 owned and 11 ground-leased properties available.. . . more

The RealReal takes online experience to brick-and-mortar

Chain Store Age
With luxury resale booming, online consignment start-up The RealReal is on a roll, opening its second permanent store on the heels of securing a new round of funding.

The company’s new outpost is located on trendy Melrose Avenue in West Hollywood, Calif. The 12,000-sq.-ft. space, which includes a separate 5,500-sq.-ft. men’s shop with its own entry, encompass The RealReal’s entire merchandise offering, from designer apparel for men, women and children to jewelry and accessories to furniture and art. It also features a café.. . . more

As supermarkets struggle, local groceries innovate to serve niche audiences

Boston Business Journal
Most North Americans still buy their food at the classic supermarket, with its wide aisles and seemingly limitless choices. But stores like Kroger, the nation’s largest chain with more than $105 billion in sales in 2017, are being cannibalized by a host of discount competitors like Dollar General and Aldi on one side, and by the growing dominance of Amazon and online delivery on the other.

“By and large, supermarkets are kind of behind the eight ball” in responding to changes in how people shop, said Diana Smith, associate director of retail and apparel for the market research company Mintel.. . . more

Breweries hit record number in U.S. as openings and closings heat up

The Chicago Tribune
Craft breweries are on pace to see a record number of openings and closings in 2018, the Brewers Association said Tuesday.

As of June 30, the nation was home to 6,655 breweries, the most in modern history. A year ago, the figure was 5,562. Thirty years ago — the year Chicago’s longest-tenured brewery, Goose Island Beer Co., opened — that number was less than 200. . . . more