Shawn Massey, CCIM, SCLS

Weekly CRE and Retail Article Updates – October 4th, 2012

I hope you enjoy this week’s articles.  Very frustrating week with computer problems and could not get links to several sources. 

http://www.dukelong.com/trends/digby-localpoint-mobile-platform?goback=%2Egde_2141955_member_170758062

Digby Localpoint™ Mobile Platform

http://m.retailingtoday.com/article/peapod-rolls-out-virtual-grocery-store-concept

Peapod rolls out ‘virtual grocery store’ concept

http://www.costar.com/News/Article/Landlords-Retailers-Think-Out-Of-The-Box-as-Cycle-Swings-Upward/141882

Landlords, Retailers Think Out Of The Box as Cycle Swings Upward

http://nreionline.com/news/private_equity_firms_hungry_for_retail_09272012/?NL=NREI-05&Issue=NREI-05_20121001_NREI-05_817&YM_RID=shawnm@theshoppingcentergroup.com&YM_MID=1343189&sfvc4enews=42

Private Equity Firms Are Hungry for Retailers, But Only the Best of Them

http://nreionline.com/news/net_lease_props_hot_09262012/?NL=NREI-05&Issue=NREI-05_20121001_NREI-05_817&YM_RID=shawnm@theshoppingcentergroup.com&YM_MID=1343189&sfvc4enews=42

Net Lease Properties Become a Hot Commodity Due to Low Yields on Alternative Investments

http://www.google.com/url?sa=X&q=http://www.memphisdailynews.com/news/2012/sep/28/dewitt-to-steer-council-with-passion-for-real-estate//print&ct=ga&cad=CAcQAhgAIAEoATAAOABAyv2mgwVIAVgAYgVlbi1VUw&cd=-dDrWqvh9YU&usg=AFQjCNEv6ONLPXPzbjnLELC0XVZ6jBxKVw

DeWitt to Steer Council With Passion for Real EstateMemphis

 http://www.google.com/url?sa=X&q=http://www.sbnonline.com/2012/10/how-chris-maguire-led-srs-real-estate-partners-through-a-crisis-by-going-back-to-basics-and-taking-small-steps/%3Ffull%3D1&ct=ga&cad=CAcQAhgAIAAoATAAOABAgvumgwVIAVAAWABiBWVuLVVT&cd=mn5i0DxMdIQ&usg=AFQjCNGPTW_IG5ISEgshyHcyhD6gVEJBSA

 How Chris Maguire led SRS Real Estate Partners through a crisis by going back

http://www.google.com/url?sa=X&q=http://www.commercialappeal.com/news/2012/sep/30/fast-growing-memphis-based-edr-transforms/&ct=ga&cad=CAcQAhgAIAAoATAAOABAy9qhgwVIAVgBYgVlbi1VUw&cd=XwW3cscGq4Y&usg=AFQjCNF4IzvLQMyfgB_UufgtObSKbYer-A

Fast-growing Memphis-based EdR transforms college housing

http://www.google.com/url?sa=X&q=http://www.commercialappeal.com/news/2012/sep/30/struggling-restaurants-in-some-memphis-show/&ct=ga&cad=CAcQAhgAIAAoATABOAFAy9qhgwVIAVgBYgVlbi1VUw&cd=XwW3cscGq4Y&usg=AFQjCNF3_Ipd80ZpduGtjh7OG02FgEedfA

Blue-collar blues hit many Memphis eateries

http://www.fastcodesign.com/1670889/an-experimental-new-starbucks-store-tiny-portable-and-hyper-local

An Experimental New Starbucks Store: Tiny, Portable, And Hyper Local

Innovation By Design

A new style of smaller, LEED-certified Starbucks may touch down near you soon. It’s all part of a plan to evolve the coffee giant’s business.

http://www.commercialrealestateshow.com/retailtenant92712.html?goback=%2Egde_2227016_member_170099547

Retail Tenant Strategies
Original Air Date: September 27, 2012

http://www.google.com/url?sa=X&q=http://www.nwaonline.com/news/2012/sep/29/2-counties-glut-commercial-space-shrinkin-20120929/%3Fbusiness-arkansas&ct=ga&cad=CAcQAhgAIAAoATAAOABAkaCcgwVIAVgBYgVlbi1VUw&cd=dDad3LGIF_Q&usg=AFQjCNF7sEKQKsaaHN2BthNeUXElh4E8aw

2 counties’ glut of commercial space shrinking, report says

http://kwcommercialsa.com/blog/?p=6855&goback=%2Egde_41881_member_169768640

Tips for Getting the Best Value for Your Property

From the Desk of Al Taf

TOP RETAIL NEWS

 ICSC: Holiday chain store sales to rise 3%

SEPTEMBER 25, 2012 New York — A holiday preview report released Tuesday by the International Council of Shopping Centers said that sales are forecasted to rise 3% during the traditional November-December 2012 holiday period.

 Additionally, ICSC said it anticipates that the other two measures of U.S. industry holiday sales – shopping-center sales and GAFO-store sales – will increase slightly as well. 

 As big-box retailers struggle, destination shopping centers have big gaps

September 25th, 2012, FORT MYERS, Fla. — Big-box stores are closing and so many other chains are struggling that some large shopping centers continue having trouble filling their empty spaces.Blame it on a sluggish economy and increasing Internet sales, experts say

 Revenues for power centers — clusters of major retailers such as Best Buy and PetSmart — aren’t keeping pace with other types of malls. Still, some experts say these destination shopping centers may bounce back with the next economic upturn. But to do so, they’ll have to adapt to a changing market with an open mind to new types of tenants and new ways to use their space.

 US economic data help world markets recover

September 25, 2012, Consumer confidence in the U.S. jumped in September to its highest level since February, according to the Conference Board whose index rose to 70.3 points from 61.3 in August. Market expectations were for a more modest gain.

 A separate report showed U.S. home prices kept rising in July in all 20 cities tracked. It’s the third straight month in which prices rose in every city.

 RILA applauds East Coast port labor extension

September 21, 2012 Arlington, Va. — The Retail Industry Leaders Association (RILA) issued the following statement in response to an announcement that the U.S. Maritime Alliance and the International Longshoremen’s Association have agreed to a 90-day extension of the collective bargaining agreement due to expire on Sept. 30.

 RILA will continue to closely monitor the progress of negotiations and strongly urge the parties to reach a long-term agreement as soon as possible in order to remove the threat of a devastating work stoppage at the East and Gulf Coast ports.

 Apparel Stores

 UNIQLO Opens Store in Westfield Garden State Plaza Mall in NJ

September 25, 2012, NEW YORK, The global clothing retailer, will open their new Paramus, New Jersey, store in the Westfield Garden State Plaza this Friday, September 28th.

 At 43,000 total square feet and two stories, the UNIQLO Westfield Garden State Plaza store will be their largest mall store in the world and will serve as the prototype for UNIQLO’s many future U.S. shopping mall locations.

 Department Stores

 Macy’s expanding presence in Las Vegas

September 24, 2012 Cincinnati — Macy’s is enhancing its presence in the Las Vegas market. The department store retailer has signed on as the first anchor tenant at the Shops at Summerlin, in west Las Vegas. 

 Macy’s will build a two-level, 180,000-sq.-ft. store in the open- air center, which is being developed by The Howard Hughes Corp. The new Macy’s is expected to open in fall 2014, with construction beginning in fall 2013.

 Discount Stores

 Kohl’s opens 12 new stores

September 26, 2012, Kohl’s Corp. is opening 12 new stores in 10 states this week, bringing its total to 1,146, it said Wednesday in a news release.

 The stores are opening in Connecticut, Georgia, Iowa, Kansas, Maryland, Massachusetts, North Carolina, South Carolina, Virginia and Washington. Eleven of the 12 stores are small-format stores with 64,000 square feet or less of retail space. Kohl’s also is remodeling about 50 stores this year. The new stores will create 1,500 jobs, the release said.

 Walmart to hire 50,000 holiday associates

September 21, 2012 Bentonville, Ark. — Wal-Mart Stores Inc. said Friday it will add about 50,000 seasonal associates to staff its stores this year, as well as offer additional hours to existing personnel.

 “This is our busiest time of the year and we are focused even more on providing excellent service to our shoppers throughout the holiday season,” said Gisel Ruiz, executive VP and COO, Walmart U.S. “One way we do that is by ensuring our stores are adequately staffed by our associates.”

 Target announces 7th U.S. store opening for 2013

September 19, 2012 Target Corp. said Wednesday it will open a new store in East Peoria, Ill., next March.

 The 135,000-square-foot store will employ 150 to 200 people, Minneapolis-based Target said in a news release.

 Drug Stores

 Rite Aid’s Second-Quarter Loss Narrows

September 20, 2012 Rite Aid reported a smaller-than-expected quarterly loss on Thursday as cheaper generic drugs raised its pharmacy gross margins, but the drugstore chain cut its full-year sales forecast.

 Rite Aid, which is remodeling hundreds of stores and closing others, is stepping up its marketing efforts in the second half of the year to lure shoppers with its Wellness loyalty card and by trying to give more flu shots. The push comes as Walgreen, its bigger rival, is just bringing out its loyalty card and other major chains are trying to win over shoppers with similar strategies.

 Electronic Stores

 Best Buy Mobile plans expansion in Minneapolis-St. Paul area

September 25, 2012 Best Buy Co. Inc. will open seven of its small-scale Best Buy Mobile stores in the Twin Cities as part of the retailer’s bid to reinvent itself.

 The Pioneer Press reports on the new stores, which at about 2,500 square feet are about twice as big as previous Best Buy Mobile locations, but are still well smaller than its traditional big-box stores. Best Buy’s restructuring, announced this spring, will shutter some of the traditional stores while renovating others and opening more of the smaller-scale Mobile stores. The idea is to create more stores with less total square footage

 Grocery Stores

 Unilever promotion drives sales and grows trees

September 26, 2012 An intriguing shopper marketing initiative involving Unilever and Tesco’s Fresh & Easy Neighborhood Market division was launched today in select markets.

 The two companies launched an intriguing program designed to help shoppers save money, drive sales of Unilever brands at Fresh & Easy stores and help the Arbor Day Foundation plant trees.

 Fairway Market files plans to take company public

September 25, 2012 New York — Fairway Group Holdings Corp., a chain of natural and organic grocery stores, filed paperwork Monday to take the company public.

 Fairway has 11 stores in New York, New Jersey and Connecticut. It is 80% owned by Sterling Investment Partners, who will still control the business following the proposed IPO, said the company.

 Grocer Bella’s Market files for bankruptcy, four stores temporarily closed

September 25, 2012, A grocery chain that serves eight small towns in eastern Colorado and another in Kansas has filed for bankruptcy and closed four of its stores, though its CEO said stores will reopen soon.

 Samuel J. Mancini, president and chief executive of Bella’s Market said the stores in Wiggins, Haxtun, Akron, and St. Francis, Ks. are expected to reopen Wednesday. He did not say what prompted the temporary closures.The chain also operates stores in Wray, Limon, Stratton, Walden, and Wellington

 Discount grocer ALDI opening 3 new stores across Michigan

September 24, 2012, TRAVERSE CITY, MI – Discount grocer ALDI is looking for 20 workers for its first Traverse City store. The store, which will open in December, is part of the Batavia, Ill-based retailer’s effort to move its expanding footprint into northern Michigan.

 More immediately, ALDI will open locations in Mount Pleasant, at 4512 E. Bluegrass Road on Nov. 1 , Traverse City, at 3123 W. South Airport Road on Dec. 3, and in Brighton, at 8345 W. Grand River Ave. in January. In total, those new stores will generate about 60 new Michigan jobs.

 Meijer is only Michigan company to make list of fastest-growing retailers

September 21, 2012, Meijer Inc. landed at No. 88 in a list of the 100 fastest-growing retail chains, a nod to the company’s success at its Midwest stores and beyond the region through online sales.

 The Walker-based supercenter chain was the only Michigan business to make the Hot 100 list compiled by the National Retail Foundation’s STORES magazine.

 Home Improvement & Office Products

 Staples plans to close stores in U.S. and Europe in restructuring

September 25, 2012, FRAMINGHAM, Mass. — Staples is speeding up the closure of about 15 of its U.S. stores and plans to close 45 stores and some delivery businesses in Europe.

 The office products company also says it will invest more in its online and mobile efforts and will expand the product assortment that it offers to its business customers. Staples said Tuesday that these moves and other actions are part of a strategic plan to better serve customers’ needs and accelerate growth.

 Office Depot’s Largest Shareholder Sees Opportunities in Major Downsizing

September 19, 2012, New York-based Starboard delivered a letter to Office Depot chairman and CEO Neil Austrian and the company’s board of directors, expressing its opinion that, based on its research and analysis, Office Depot is deeply undervalued and a substantial opportunity exists to improve the company’s performance and valuation.

 In the letter, Starboard outlines a number of opportunities to improve operating performance and increase EBITDA. For CRE purposes, among the suggestions was that Office Depot could downsize to smaller store formats in order to drive higher operating margins. Starboard suggested the retailer cut store space by nearly 75% — a cut that could reduce Office Depot’s square footage by about 7 million square feet.

 Restaurant

 

The Restaurant Industry Begins to Rebound as Establishments Continue to Open throughout the U.S.

September 25th, 2012, Chicago, IL,   Chicago-based foodservice database, marketing, and analytics firm, CHD Expert reports that the number of restaurants has increased nationwide in 2012, according to CHD Expert’s 2012 Year-To-Date Net Market Changes Report.

According to this report, the following ten states saw the largest percentage of positive net change in the restaurant industry, from January to June 2012: West Virginia, New York, Connecticut, California, Texas, Arkansas, Nebraska, Utah, Kansas, and North Dakota. West Virginia and New York took the lead, at 3.6 percent and 2.6 percent positive net change respectively, while Kansas and North Dakota rounded out the top ten, both at 1.2 percent net change

T.G.I. Friday’s closes local restaurant

September 24, 2012 Springfield’s T.G.I. Friday’s closed its doors permanently Sunday.

The Bistro Group, the third largest franchisee of T.G.I. Friday’s, announced Monday it had closed the Springfield location as a result of evolving guest and consumer needs.

Dollar Stores, Warehouse Club & Other Retailers

 

Report: Sports Direct to buy 60 JJB stores

September 27, 2012 London — A Thursday report by Reuters said that British sports retailer Sports Direct will buy 60 stores from struggling competitor JJB Sports.

Citing an unnamed source, Reuters reported that JJB said it is close to appointing KPMG as administrators to sell its assets and brands after failing to receive an offer for the entire company. JJB operates 180 stores. Sports Direct is majority-owned by Mike Ashley, owner of the Newcastle United soccer club. He will pay about $48 million for the 60 stores.

Cabela’s to continue Outpost rollout with Montana store

September 27, 2012 Sidney, Neb. — Cabela’s Inc. said Thursday it will open a Cabela’s Outpost Store in Kalispell, Mont., joining the outdoor retailer’s single full-line Billings store in the state.

Construction on the 42,000-sq.-ft. location is scheduled to begin in spring 2013 and Cabela’s said it expects to open the store in fall 2013.

Esprit fiscal-year profit soars, sales fall off

September 27, 2012 Hong Kong — Esprit Holdings Ltd. reported Wednesday that net income of the fiscal year ended June 30 surged to $112.6 million, compared with $10.2 million the year before, boosted by one-time writeoffs for store closures.

Sales dropped 11% to $3.89 billion from $4.35 billion.

Toys ’R’ Us to hire 45,000 employees for the 2012 holidays

September 25, 2012  Wayne, N.J. — Toys “R” Us said Tuesday it will hire 45,000 seasonal employees for the 2012 holiday season, about 5,000 more than last year.

The increase, said the retailer, is driven in part by the addition of positions resulting from omnichannel programs such as “Buy Online, Pick Up In Store,” “Ship from Store” and “Ship to Store.”

National Bank Holdings goes public

September 21, 2012, Greenwood Village-based National Bank Holdings Corp., which recently relocated from Boston, launched its initial public offering on the New York Stock Exchange Thursday with its shares priced at $19.25.

The shares closed Thursday at $19.60, and on Friday rose to to $19.84 before ending trading at $19.66. Timothy Laney, National Bank Holdings president and CEO, told SNL Financial —a Charlottesville, Va.,-based financial information firm — that the IPO price was “noteworthy” in that it suggested “it is arguably a buyer’s market.”

Cushman & Wakefield launches capital markets division

http://www.cnbc.com/id/49106707

Here’s Proof: Bigger Beer Menus Boost Restaurant Sales

http://www.qsrweb.com/article/201431/Restaurant-traffic-sales-up-for-15th-consecutive-month?utm_source=NetWorld%20Alliance&utm_medium=email&utm_campaign=EMNAQSR10042012

Restaurant traffic, sales up for 15th consecutive month

http://www.thesocialmedia411.com/get-folks-to-read-your-blog/?goback=%2Egde_3929151_member_170633306

Social Media 411: 5 Ways to Get Folks to Read Your Blog

http://r.yieldkit.com/v1/redirect?url=http%3A%2F%2Fblogs.wsj.com%2Fdevelopments%2F2012%2F10%2F02%2Fretail-landlords-malls-doing-well-despite-online-sales%2F&api_key=a8487120aa1566f559fe98bfa1744f36&type=url&source=http%3A%2F%2Fpaper.li%2FTheCoStarGroup%2F1322506664%3Futm_source%3Dsubscription%26utm_medium%3Demail%26utm_campaign%3Dpaper_sub%23&cache=OA91C13KD76V7A2SM020JEB965C2AQ6R

Retail Landlords: Malls Doing Well Despite Online Sales

http://www.commercialappeal.com/news/2012/sep/30/taxes-fines-deter-potential-buyers-of-abandoned/?partner=RSS

Taxes, fines deter potential buyers of abandoned Memphis real estate

http://www.wmctv.com/story/19723695/despite-slow-recovery-in-commercial-real-estate-innovation-key-to-long-term-growth-deloitte

Despite Slow Recovery in Commercial Real Estate, Innovation Key to Long Term Growth: Deloitte

http://www.cresa.com/atlanta/blog/2012/09/the-art-of-the-deal-what-concessions-are-landlords-willing-to-offer-to-tenants/?goback=%2Egde_2874736_member_169385577

The Art of the Deal: What Concessions are Landlords Willing to Offer to Tenants?

http://creoutsider.com/2012/10/cre-generation-gap/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+CREOutsider+%28CREOutsider%29

The CRE Generation Gap

http://www.ccim.com/newscenter/232404/2012/10/02/2012-us-presidential-election-guide-commercial-real-estate-issues

2012 U.S. Presidential Election Guide on Commercial Real Estate Issues

http://www.memphisdailynews.com/news/2012/oct/2/daunting-vision/

Daunting Vision

Sears Crosstown redevelopment team acknowledges risk, moves forward

http://www.google.com/url?sa=X&q=http://www.wmctv.com/story/19703301/commercial-real-estate-leader-colliers-international-connects-globally-fosters-community&ct=ga&cad=CAcQAhgAIAEoATAAOABArqWsgwVIAVgAYgVlbi1VUw&cd=H0qdfZQu5Zo&usg=AFQjCNFI3jFYI31mqFSh5BTkqch0gKZeTQ

Commercial Real Estate Leader Colliers International Connects

I hope you will check out future weekly commentary at

www.RetailRocksintheMidsouth.com.   If you enjoy the commentary please subscribe online.

Cheers,

Shawn

Shawn Massey, CCIM, SCLS is a partner with The Shopping Center Group a 3rd party retail real estate advisory firm in their Memphis office, an adjunct professor in the graduate real estate program at The University of Memphis and a co-founder and Chairman of the Board for the Memphis Business Academy charter schools (K-12th grade) in the Frayser area of Memphis.  

For all your retail real estate needs (tenant representation, landlord representation and property, investment & land sales) I hope that you will choose The Shopping Center Group and me to represent you and your business.  We understand that representation is a privilege and that you have a choice!

The opinions expressed in this post are entirely my own.  They should not be considered the opinion of The Shopping Center Group, LLC in which I am associated.

 

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