Shawn Massey, CCIM, SCLS

Weekly Retail and CRE Article Round Up – March 31st, 2013

As we come to the close of the 3rd quarter retail remains robust but still challenging. I hope you enjoy this weeks articles.

http://www.bobarron.com/clarity-series-prospecting-cold-calling-part-1/?goback=%2Egde_4257721_member_225942659

From the Desk of Al Taf
TOP RETAIL NEWS
Lack of Construction Boosts Net Lease Values
March 26, 2013, Investors are increasingly moving into the net lease property sector, but with few new retail spaces coming to market, cap rates in the arena are expected to continue compressing.
Net lease has become “an in vogue sector at the moment. Investors are staying conservative and are looking for opportunities that will yield steady, predictable cash flows. Meanwhile, with interest rates low, few investments promise significant yields.
Consumer confidence drops as Washington budget spats stoke pocketbook anxiety
March 26, 2013 Americans are less confident in the economy than they were last month as massive government spending cuts have stoked economic uncertainty.
The Conference Board, a New York-based private research group, said Tuesday that its Consumer Confidence Index fell in March to 59.7 from a revised reading of 68 in February and the 68.7 that analysts polled by research firm FactSet expected. Confidence is still far off from the 90 reading that indicates a healthy economy.
Store Opening Plans Take a Slight Dip
March 22, 2013, After store opening plans reached a five-year high in January, retailers have pulled back on expansion plans for the next two years, according to the March 2013: National Retailer Demand Monthlyreport put together by RBC Capital Markets. In a slight adjustment, in February, planned store openings fell 0.6 percent from year-end 2012, to 81,467. Most of the scrapped new stores included supermarkets and specialty retail.
At the same time, the number of planned restaurant openings rose to 11,710, from 11,429 in January. In addition, toy stores and stores selling men’s apparel continue to increase their store opening plans. For example, opening plans for the toys and hobbies sector rose 18.7 percent year-to-date, to 342 over the next 24 months. Opening plans for men’s apparel stores rose 3.2 percent, also to 342.
Market Force Study Shows Uptick in Consumers Trying New Retailers
March 20, 2013, Boulder, CO, Despite cautionary spending last year, retailers may have good reason to be optimistic in 2013 – consumers are trying more fashion retailers for the first time, and most are making purchases during those visits. According to a study by Market Force Information, a worldwide leader in customer intelligence solutions, four in 10 (39%) of consumers surveyed reported trying a new fashion retailer over the past 90 days – a 22% gain from 2011, and a 179% increase from 2010 when just 14% of consumers said they’d tried a new retailer. H&M is the retailer that consumers reported visiting for the first time most often, followed by Kohl’s, Macy’s, Abercrombie & Fitch and Forever 21. The Market Force study, conducted in February, was designed to uncover consumer shopping trends and behaviors, including how they’ve shifted over the past three years.
Fed sticks to 6.5% jobless rate forecast by 2015
March 20, 2013 WASHINGTON – The Federal Reserve latest forecast still doesn’t expect the unemployment rate to fall below the threshold for a rate hike until 2015, according to a summary of the central bank’s latest projections released Wednesday. The Fed has said it would keep interest rates at ultra-low levels so long as the jobless rate was above 6.5%, unless inflation got in the way. The Fed modestly lowered raised GDP forecasts for 2013 but also said the labor market would be healthier. The Fed sees the jobless rate falling to a range between 7.3% and 7.5% this year, compared to 7.7% in February. The Fed modestly lowered GDP forecasts for 2013 to a range between 2.3% and 2.8% from the prior estimate of 2.3% to 3.0%. The Fed still sees growth north of 3% in 2014 and 2015. The inflation guidance for 2013 was trimmed to 1.3% to 1.7% from the December forecast of 1.3% to 2%. The forecast for the first rate hike barely changed. Thirteen Fed members expect the rate hike in 2015. One Fed official changed his prediction for the first hike from 2013 until 2014.
Apparel Stores
Children’s Place begins 2013 in time out
March 26, 2013 The nation’s leading specialty retailer of children’s apparel issued a dour outlook for the first quarter of 2013 after a strong finish to 2012.
The company said sales for the 14 week fourth quarter increased 11.3% to $509.2 million and same store sales increased 4.3%. Earning per share increased 32% to $1.15, 11 cents better than analysts forecast. Full year sales grew 5.5% to $1.8 billion and same store sales increased 2%, securing Children’s Place status as the largest children’s specialty apparel retailer in North America. The company ended last year with 1,095 stores after opening 64 stores and closing 18 others.
Rue21 opens 900th store, has plans for 1,000th this year
March 25, 2013,Youth-clothing retailer rue21 (Nasdaq: RUE) said it has opened its 900th store and its 21st location in Missouri.
The Warrendale-based rue21’s 5,000-square-foot store is at the Southern Hills Shopping Center in West Plains, Mo. It is the 500th store rue21 has opened in the past five years and one of 23 that already have been opened in the first three months of 2013.Rue21’s plans call for the opening of 125 stores in 2013.
Department Stores

Survey names Kohl’s, Dollar General, Lowe’s among top brands
March 28, 2013 NEW YORK — Harris Interactive has revealed the brands that Americans rank highest in brand equity. Surveying more than 38,000 American consumers, it measures the level of quality, familiarity, and purchase consideration for each brand, and then awards “Brand of the Year” status to the top-ranked brand from each category.
Kohl’s was the top finisher in the department store category, followed by Macy’s and J.C. Penney. Target came out on top in the mass merchandiser category, with Walmart in second place.
Gordmans sales soft in Q4
March 26, 2013 Regional department store operator Gordmans Stores reported disappointing fourth quarter sales and indicated 2013 is of to a slow start.
Sales for the 14 week fourth quarter ended February 2 increased 9.4% to $202.5 million, but the gain was driven entirely by an additional week in the reporting period and the opening of nine new stores in four new markets and two new states. Same stores sales declined 4.1%. Earnings per share of 41 cents exceeded guidance the company revised in mid-January that lowered expectations to a range of 35 cents to 37 cents from an earlier estimate of 58 cents to 61 cents provided at the end of the third quarter.
Discount Stores
Fred’s misses analysts expectations
March 28, 2013 MEMPHIS, Tenn. — Fred’s total sales for the 53-week fiscal 2012 increased 4% to $2 billion from $1.9 billion for the same period last year. Comparable store sales increased 1.1%. Excluding the effect of the extra week in the current year, fiscal 2012 comparable store sales for the year decreased 1.4% from the year-earlier period.
For the year, profit fell 11% to $29.6 million, or 81 cents per share. Fred’s projected 2013 earnings to fall between 77 cents per share and 88 cents per share in 2013. Analysts had expected 95 cents per share, according to published reports. Fred’s shares were down 1.8% to $13.85 in early morning trading.
Five Below sales and profits rise in Q4; 60 stores on tap for 2013
March 27, 2013 New York — Five Below reported Wednesday that net income for the quarter ended Feb. 2 rose to $19.2 million, compared with $12.4 million in the year-ago period.
Revenue surged 38% to $173.6 million from $125.8 million in the fourth quarter of fiscal 2011. Same-store sales rose 4.4%. For the full year, profit rose to $20 million from $16.1 million and revenue increased 41% to $418.8 million. The company said it expects to open 60 stores this year, including new markets in Texas, as well as adding units in existing markets.

Electronic Stores
Soft console gaming category causes GameStop sales slip
March 28, 2013 GRAPEVINE, Texas — GameStop reported that total global sales for the fourth quarter of 2012 were $3.56 billion compared with $3.58 billion in the prior year quarter. Consolidated comparable-store sales decreased 4.6% compared with the prior year quarter.
GameStop’s fourth quarter net earnings were $261.1 million compared to net earnings of $174.7 million in the prior year quarter. Diluted earnings per share were $2.15 compared with diluted earnings per share of $1.27 in the prior year quarter. For fiscal year 2012, total global sales were $8.89 billion, a 7% decrease compared with $9.55 billion in fiscal 2011. Full-year consolidated comparable-store sales declined 8% compared with fiscal 2011. Digital receipts and mobile sales drove a 21.2% increase in the other category. New hardware, new software and pre-owned sales each declined year-over-year primarily due to the effect of the longevity of the current console cycle.
Grocery Stores
AWG Sales Rise 1% in 2012
March 27, 2013 KASNAS CITY, Kan. — Associated Wholesale Grocers here said sales for its most recent fiscal year hit a new high of $7.85 billion, up 1% over the preceding year.
The cooperative wholesaler also said that a special $5 million cash distribution based on non-recurring income helped boost its patronage dividend to an all-time high of 2.84% for the year, which ended Dec. 28. The dividend totaled $173 million, vs. $163.8 million, or 2.71% of sales a year ago. Total cash distribution exceeded more than $100 million for the first time, with an additional $73 million in short-term patronage certificates.
Restaurant
Report: Restaurant sector boosts franchise growth
March 27, 2013, The International Franchise Association released its updated 2013 forecast today, which predicts that franchise businesses will continue to grow at a slightly faster rate than other businesses in job creation, new business formation, economic output and GDP contribution.
According to the report, The number of franchise establishments in the U.S. will increase by 1.3 percent in 2013, just short of the 1.4 percent initially forecast, from 747,359 to 757,438, (an increase of 10,079); The number of jobs in franchise establishments will increase 1.9 percent, down from the 2.0 percent initially forecast (following a gain of 2.1 percent in 2012) from 8.101 million to 8.257 million (an increase of 156,000)
Smoothie King to open 100 stores in 2013
March 25, 2013 New Orleans — Smoothie King Franchises said Monday it plans to open 70 franchise and 30 corporate locations across the U.S. in 2013.
Since December 2012, the smoothie franchise has acquired six additional locations in Florida and Texas, bringing the total number of corporate stores to seven. The company also has opened six new franchise locations since the start of the year.
Sonic more than doubles profit in 2Q
March 25, 2013 Sonic Corp.’s profit more than doubled in the second quarter, the Oklahoma City-based drive-in operator reported Monday.
Net income rose 113.3 percent in the quarter ended Feb. 28, to $3.6 million, or six cents per share, from $1.7 million in the same period last year. The company had a $900,000 tax benefit in the quarter. Revenue in the second quarter slipped to $111.1 million, from $115.1 million in the year-earlier quarter.
Darden: Specialty group outperforms flagship brands in 3Q
March 22, 2013 Darden Restaurant Group Inc. reported on Friday positive third-quarter sales at brands in its specialty restaurant group amid declines at its three largest brands.
In an otherwise bleak quarter for the casual-dining restaurant segment, Darden reported a same-store sales increase of 2.3 percent at its Specialty Restaurant Group, which is composed of Seasons 52, Eddie V’s, Yard House, The Capital Grille and Bahama Breeze. Group revenue for the quarter ending Feb. 24 increased 61.1 percent to $287 million.
Panda Express opening 100 units in 2013
March 21, 2013, Panda Express is celebrating its 30th anniversary with new menu items, including some healthy twists, and a commitment to growing the 1,600-unit brand, according to a company press release.
This year, the brand hopes to open 100 more units and expects revenue to top $2 billion. It also recently launched “2020 Vision,” which calls for it to be the world leader in “people development, providing growth opportunities for Panda Restaurant Group’s more than 23,000 associates to continuously better their lives, both personally and professionally.”
America Runs on Donuts
March 20, 2013 Dunkin’ Donuts has been strategically expanding in contiguous markets across the country with a long-term goal of having more than 15,000 Dunkin’ Donuts restaurants in the United States alone – that would double its current size.

Dunkin’ Donuts opened 291 net new locations in the United States last year, a net new unit growth rate of 4%. In 2013, the company says it plans to open 330 to 360 net new restaurants in the United States with growth coming from both new and existing markets, representing an increase of 4.5% to 5%.
Home Improvement & Office Products
Mattress Firm Announces Fourth Fiscal Quarter and Full Fiscal Year Financial Results
March 26, 2013 HOUSTON–Mattress Firm Holding Corp.today announced its financial results for the fourth fiscal quarter (13 weeks) and full fiscal year (52 weeks) ended January 29, 2013. Net sales for the fourth fiscal quarter increased 37.0% to $258.2 million, reflecting incremental sales from new and acquired stores, offset by a comparable-store sales decline of 1.6%. For the full fiscal year, net sales increased 43.1% to $1,007.3 million and comparable-store sales increased 6.1%.
Ace Hardware nails it on revenue growth
March 22, 2013 OAK BROOK, Ill. — Ace Hardware Corp. posted fiscal 2012 revenues of $3.8 billion, up 3.6% from the previous year.
The co-op’s net income of $81.8 million increased 5.3% for the year. In the fourth quarter, the company’s net income of $22.4 million was up 16.7%. Fourth-quarter total revenues were down 1.0%, while fourth-quarter wholesale merchandise revenues to comparable domestic stores declined 0.6%.
Dollar Stores, Warehouse Club & Other Retailers
Finish Line Q4 profit down
March 28, 2013 Indianapolis — The Finish Line said its fourth-quarter profit dropped 18% as gross margins fell and overall sales declined more than analysts expected. The chain’s adjusted earnings and same-store sales growth, however, were in-line with its expectations.
For the fourth quarter ended March 2, Finish Line reported net income of $34.3 million, down from $41.9 million a year earlier. Consolidated net sales were down 3% to $442.7 million. Same-store sales increased 0.7%. Digital sales, which are included in the comparable store sales results, were up 21.0%.
Books-A-Million sales slip in Q4
March 27, 2013 Birmingham, Ala. — Books-A-Million reported Wednesday a profit of $8.1 million for the fourth quarter, up slightly from $7.6 million a year earlier.
Sales dipped 0.8% to $165.6 million, and same-store sales dropped 6.1%. For the full year, the retailer swung from a loss of $4 million to a profit of $2.5 million. Revenue rose 7.5% to $503.8 million.
Dick’s Sporting Goods to open 520th store
March 26, 2013 A Dick’s Sporting Goods store opening early next month in Jacksonville, Fla., will be the chain’s 520th location.
The Findlay Township-based Dick’s (NYSE: DKS) has 20 other stores in Florida. It has operations in 43 other states, including all around the Pittsburgh region.
DG to surpass 11,000 stores in ’13
March 25, 2013 Fourth quarter same store sales increased 3% at Dollar General as the company capped of another record year and indicated it would open 635 stores this year.
Total sales for the company’s 13 week fourth quarter ended February 1, increased 0.5%, to $4.21 billion compared to $4.19 billion during the 14 week fourth quarter the prior year. Excluding the extra week from the prior year’s fourth quarter, sales would have increased 8%. The company said its same store sales increase was driven by consumables and a mix of increased transaction size and customer traffic. Net income for the fourth quarter was $317 million and earnings per share totaled 97 cents, compared to net income of $293 million, or earnings per share of 85 cents, which benefitted by six cents because of the extra week.
ew York & Company returns to profit in Q4
March 22, 2013 NEW YORK — New York & Company reported that net sales for the fourth quarter were $291.8 million, as compared with $271.8 million in the year-ago period.
Comparable-store sales increased 2.3% compared with a decrease of 6.3% in the prior year fourth quarter. Net income increased to $10.5 million, or 17 cents per diluted share. This compares with a net loss in the prior year fourth quarter of $10.9 million, or 18 cents per diluted share.
Tiffany Q4 beats Street
March 22, 2013 New York — Tiffany & Co.’s fourth-quarter net income inched up 0.7%, but its results still topped analysts’ predictions as strong demand in Asia helped to offset domestic weakness. The company also offered an annual sales outlook that topped analysts’ estimates, citing its strong prospects in most Asian markets.
For the quarter ended Jan. 31, Tiffany earned $179.6 million, compared with $178.4 million in the year-ago period. Revenue increased 4% to $1.24 billion. Total sales in the Americas region, which represented 48% of the company’s total revenue last year, rose 2% to $620 million in the fourth quarter and 2% to $1.8 billion in the full year. Same-store sales were down 2% in the fourth quarter and the full year.Clarity Series: Prospecting – Cold Calling Part 1
Terranomics Retail Newsline
Week Ending March 24, 2013
A Quick Review of Who is Doing What…
We are hard at work on our 2013 National Retail and Restaurant Expansion Guide and would like to solicit your input. If you are not familiar with this publication, you can see last year’s edition if you click here. Every year, we compile the growth plans of thousands of major retail and restaurant chains and publish them in our annual Retail and Restaurant Expansion Guide. We make this publication available for free and it is the gold standard in the industry. We estimate last year’s circulation to have exceeded 25,000 people and its reach goes far beyond the world of retail real estate to the investment community and beyond.

We compile this data from a wide range of sources, including broker feedback, media reports, quarterly filings and other sources we deem reliable. But the most reliable source of all are the retailers themselves. And chances are good that if you are receiving this weekly newsletter, you may be involved in retail site selection (about 25% of our subscribers are—ranging from in-house real estate specialists to independent brokers).

If you have a retail or restaurant concept that you would like featured in this year’s National Retail and Restaurant Expansion Guide, I would love to hear from you. Please e-mail me at gbrown@terranomics.com and let me know the following:
1. Name of your concept
2. Type of concept (I.E. Grocery, Pizza, Sporting Goods, etc.)
3. Number of planned openings for 2013
4. Size requirements (storefront SF or pad acreage, etc)
5. Special comments (Looking for high street retail locations, need strong Hispanic demographic, etc.
In the meantime, here is a quick preview of just a few of the notes you will find in the new edition that will be ready in mid-April:

99¢ Only expects to end their fiscal year with 309 locations, after adding 18 this year. Next year they plan on adding 35 locations. They require 15,000 to 20,000 SF.

Rent-to-own furniture retailer Aaron’s is adding 80 to 125 stores before the end of the year. This includes their HomeSmart and RIMCO affiliates. They require 6,900 to 9,000 SF and are looking at former Blockbuster Video, Fashion Bug and Hollywood Video locations as future sites.

Athleta, the Gap’s active sportswear concept, plans to open 20 to 25 stores this year. They opened ten stores in 2011 and 20 in 2012. They prefer to be in malls, lifestyle centers and downtown locations.

Baskin-Robbins looks to open ten to 20 new locations this year, but is also expecting to close 40 to 60 stores. It focuses on Florida, New York City and St. Louis, but will primarily focus on Los Angeles. Baskin-Robbins has three formats; 600 to 1,200 SF freestanding buildings, 1,200 to 1,500 SF end caps and 1,400 to 3,500 when combined with Dunkin’ Donuts.

Bass Pro Shops is adding nine new stores in 2013. They are reducing their size from 200,000 SF to 70,000 to 150,000 in order to enter new markets and be more competitive. They will open their first Tri-State store in Bridgeport, Connecticut in late 2014.

bebe is adding 10 new stores to its current 250 locations. 2b bebe is opening seven of its own stores. bebe requires 3,600 to 5,000 SF, while 2b bebe needs around 5,000. Most of this year’s growth will be focused on outlet centers.

Ben & Jerry’s looks to add to its 265 nationwide stores with ten to 15 in 2013, while focusing on coastal locations and in Chicago. Most new locations will be the full shop 750 to 1,200 SF variety or 450 to 650 SF inline prototype and a few 100 to 200 SF kiosks.

Biggby Coffee is a Michigan-based concept that is looking to branch out into the Midwest. All of their 140 locations are between 1,200 to 1,700 SF.

Blaze Pizza is a build-your-own pizza concept that ten new locations planned for the greater New York City area, six in development in the Milwaukee/Madison, Wisconsin region and also has plans on growing in Southern California. The company’s goal is to open 15 new stores in 2013 and to sign 20 area developers this year. They currently have development agreements in place to open as many as 24 new stores over the next couple of years. They typically use 2,000 to 2,400 SF.

Cabela’s is opening ten new locations this year with plans to open 14 more next year. For the first time they will be using a smaller format of 40,000 to 43,000 SF, while their current 40 stores are between 80,000 and 111,000 SF. Over the next few years, Cabela’s is planning over 160 new stores including locations in California, New York and Alaska.

Caribou Coffee was acquired in December. At that time, they were planning between 50 and 70 new stores for 2013. It is unclear if those plans have changed. They currently have 486 stores with footprints that range between 500 and 3,000 SF.

Carmike Cinemas plans to open eight new locations in 2013 throughout the South and Midwest. They have three openings planned so far for 2014. They would like to increase their number of locations from 232 to 300. Typically they require 49,000 to 74,000 SF.

Carvel has plans for 50 new shops. The larger, co-branded shops will be 2,400 to 3,200 SF, while standalone locations are 1,000 SF and express locations require 100 to 300 SF.

Charming Charlie, with its new smaller 5,000 SF prototype, will end 2013 with 120 new locations and they plan raising their total to 800 within the next few years.

Chick Fil A continues its Western expansion with 16 to 18 new locations in 2013 along with 90 new locations nationally. In 2014 expect 22 new Western locations and again 90 national locations. 2015 is planned for 27 new Western locations and 110 nationally.

Chipotle has over 1,300 locations worldwide and expects to open 182 stores in each of the next two years.

Cinemark is adding their first two bistro locations this year. New food additions will include fresh wraps, hot sandwiches and beer, wine and margaritas. Cinemark acquired 32 Rave Cinema locations which will expand their coverage into New England and they are planning eight new locations in Texas and California for 2013.

Claire’s plans on opening 25 new stores in 2013, while sister concept Icing 35 new locations. Claire’s typically uses 1,200 SF. Their current store count is about 1,550 worldwide.

Coach currently has 25 new stores under development for 2013 and 20 of them are outlet stores. They need to open three more full line stores to meet this year’s goal. Their 356 full line stores require 2,700 to 4,000 SF, while outlet stores need around 4,000 SF.

The Coffee Bean and Tea Leaf plans to end the year with 975 worldwide locations, adding 41 new stores in 2013. They are exploring locations in Arizona, Hawaii, Nevada, Texas and California for their 800 to 2,000 SF shops.

Cold Stone Creamery has not opened a new location since 2010 and has no plans of opening any new locations this year. There are currently 1,049 stores in operation, 1,400 fewer than a few years ago.

Rent-to-own furniture retailer ColorTyme is planning 30 to 35 new locations, after 18 new locations last year. They require 3,800 to 5,000 SF and are looking in Oklahoma City, Albuquerque and Murfreesboro, Tenn.

CVS is planning 150 new locations this year and is working on a new suburban market format for 2014. In the past CVS has needed 13,000 SF for their suburban models and 5,000 to 6,000 for urban locations.

Destination XL, formerly Casual Male, currently has 410 locations. They plan to infill growth while converting to the new brand. They plan on 60 new locations in 2013 and up the number to 65 new locations in 2014.

Dick’s Sporting Goods currently has 519 stores and have 40 new locations planned for 2013. Their goal is to get to 1,100 total units. They have three formats; large, average and small, in 80,000, 50,000 and 35,000 SF.

Dollar General is expected to open 635 stores this year, with 50 in California alone. This is ten more than last year and will double its California number. Their long term plan is double their existing 10,000 stores. In addition, DG Plus and DG Market, Dollar General’s larger concepts expect to see 40 and 20 new stores this year. DG plus stores have a minimum requirement of 10,000 SF and DG Market stores have a requirement of 16,000 SF, while Dollar General stores are about 7,500 SF.

Dollar Tree plans to eventually increasing its number of nationwide stores to 7,000. It is currently at 4,630 stores. Along with its affiliate stores, Deal$ and Dollar Tree Canada, totaled 298 new stores, while adding another 81 relocation/expansion locations. Dollar Tree requires 8,000 to 12,000 SF suburban space, while Deal$ needs only 4,500 to 7,000 SF and prefers more urban space.

Dunkin’ Donuts is looking to double its current store count of roughly 7,300 stores to 15,000 units over the next few years, mostly by migrating west. The chain has multiple formats ranging from 1,000 to 3,000 SF in size and is expected to open as many as 300 new units in 2013, most of which will be in the West.

El Pollo Loco has gone to a new format of 2,800 SF and an even smaller one of 2,300 SF. They plan on 100 new locations in 2013.

Family Dollar opened 500 new stores in 2012 and expects to open 375 to 500 new stores this year and next. Meanwhile, they also have plans to renovate, relocate or expand their 850 locations. Family Dollar prefers to be in 10,000 SF.

Field & Stream plans to add two new locations in 2013 and as many as ten in 2014. They require around 50,000 SF.

Five Below is opening 60 stores in 2013, with plans to do the same number in 2014. First focusing on Texas and Tennessee, then expanding to Atlanta, St. Louis and Michigan. They prefer 7,500 to 10,000 SF.

Fossil is adding 70-75 new stores of both the full line and outlet variety. They currently have 251 full line stores and 157 outlet stores. Outlet stores require 6,000 SF, while the full line stores require only 1,000 to 1,500 SF.

Fred’s, which requires 8,000 to 16,500 SF depending on the market is looking to open 20 to 30 new locations this year. Fred’s also has a smaller requirement of 1,000 to 5,000 SF called Xpress and only carries pharmacy items.

Fresh Market, which prefers to be in 20,000 SF, has 130 existing stores. They would like to get to 500 stores by adding 20 stores over the next few years, mostly on the West Coast.

Gander Mountain will be opening its 121st store in Tuscaloosa, Alabama this year and is looking to add up to four additional openings before the end of the year. They typically prefer to be in 50,000 to 60,000 SF.

GNC plans to open at least 180 new stores in 2013. They plan on exceeding that number in 2014. Their long-term goal is to reach 250 stores annually within the next few years. The typical GNC footprint ranges between 1,000 and 2,000 SF in size.

Golf Galaxy has 81 existing locations and plans on 200 eventually. However, the chain only has one new location planned for 2013.

Golfsmith currently has more than 150 locations nationwide. They plan to open ten new stores in 2013, many of which will be in their new 40,000 SF prototype, “Golfsmith Xtreme.” In the past, most of Golfsmith’s stores ranged between 25,000 and 30,000 SF in size.

Great Clips has about 3,300 existing stores and plans on roughly 200 new locations in each of the next few years. Current plans call for about 20 new locations in 2013 in California alone.

Grocery Outlet has 200 existing stores and plans on 20 new stores in 2013, mostly in California and Washington. Look for strong growth in the San Diego area. They need 15,000 to 30,000 SF.

Guess is closing 12 of its 825 stores this year, four more than last year and expect more closures in the future. They also have plans to open 50 new locations internationally. Guess Accessories, their smallest format, requires 1,000 to 4,000 SF.

Haagen-Dazs plans to add to its 230 stores with 15 new locations over the next two years. Also looking at coastal locations, they require 500 to 1,200 SF for traditional store types and 175 SF for kiosks.

H&M will finish the year with 25 to 30 new locations in the US. They require 16,000 to 57,000 SF per store.

Home Depot currently has 2,256 locations. They have plans to relocate or expand two stores this year and are in the process of opening a store in Puerto Rico, along with nine other locations—mostly in Mexico. Their stores range from 95,000 to 120,000 SF.

Icing will open about 35 new stores in 2013, while sister concept Claire’s is planning on 25 new locations. Icing takes between 1,375 and 1,500 SF. Their current store count is about 390.

Jersey Mike’s Subs plans to increase their number of stores from roughly 610 to about 1,000 nationally over the next few years. 200 are planned for 2013. They require 1,200 to 1,800 SF.

J. Crew is planning on opening a total of 46 new stores worldwide in 2013 (though the overwhelming majority of them will be in the U.S.); this includes 17 Madewell stores, 13 factory outlets and 16 of its namesake units including its first entry into the European market with one new store planned for London.

Kate Spade is adding 40 to 45 new stores in 2013, essentially doubling last year’s growth total of 21. The chain is looking to grow primarily at outlet centers and malls and uses between 2,500 and 3,000 SF of space.

Le Civette is opening its first US store in May on Madison Ave in New York. The second will open later this year in Long Island. They plan on adding ten more locations in the greater New York area over the next 18 months. Le Civette would also like to hit Boston, Chicago, Miami and Washington DC markets. They like their stores to be around 1,500 SF and surrounded by upscale designer apparel chains.

Les Schwab Tires is looking to expand in the Western US, though will likely do so on a slow, but steady, basis. They prefer to buy, rather than lease and need buildings of roughly 11,000 SF with appropriate acreage for parking. We anticipate total growth in the range of about five to ten new units.

Lorna Jane is adding 16 new locations this year, more than doubling its current number of 11 locations in the US. With all current locations in California, they are looking to expand to Colorado and Oregon. Their typical store size is 1,500 SF.

Lowe’s, which currently has 1,754 stores, is planning its first Washington DC location. A 130,000 SF store, is scheduled to open in 2014. For 2013, they plan ten new locations. They need 94,000 to 103,000 SF.

Lucky Brand Jeans, which currently has 177 stores and 47 outlet stores, is expected to open 62 new outlet store locations in 2013. Lucky requires 2,500 to 3,000 SF.

Lululemon is adding 12 new stores this year, down from the 35 they opened last year. They are currently looking for East Coast locations. They generally start with smaller concept stores around 700 to 1,000 SF and follow up with locations about 2,750 SF. Lululemon would like to increase the number of locations from 135 to 300 including international locations.

Lyfe Kitchen, currently with two locations, requires 3,600 to 4,000 SF. It plans five new locations in California, Washington DC and Boston for 2013 and nine more in 2014.

Marble Slab Creamery looks to add 32 new locations over the next two years, with many current locations still branded as MaggieMoo’s. Their locations range from 700 to 1,500 SF

Max Muscle will add at least 13 new stores in 2013. While they continue national growth, their deals in the pipeline for 2013 are in Alaska, Texas and the Midwest.

Menards, with 274 stores, looks to open 18 new locations in 2013. They require 100,000 to 240,000 SF.

Panda Express expects to open 115 new locations in 2013. Their existing locations (now numbering over 1,500), typically use between 1,800 and 2,200 SF. Much of the new growth they have planned will feature their new drive-thru prototype.

Peet’s Coffee and Tea has plans for six new locations in 2013, mostly in California, though they were also looking to open their first Washington DC store. Peet’s prefers 1,200 to 2,000 SF. There are roughly 200 existing locations.

Regal Entertainment Group is adding eight to nine ground-up new locations per year and another 18 through acquisitions. Regal Entertainment Group purchased all 43 Hollywood Theatres locations and acquired 12 Great Escape locations in November 2012.

REI, which usually takes between 25,000 and 30,000 SF, will be opening five new stores this year including their first locations in Florida and Kansas.

Rent-to-own furniture retailer Rent-A-Center is opening 50 new stores, while closing 20 to 30 stores this year. Last year, they opened 35 and closed 45 locations.

Rite Aid is focusing more on remodeling and/or converting many of its locations to its Wellness format. Currently they have 4,626 locations and require between 14,670 and 17,340 SF. They are expected to close more units than they open in 2013.

Rue21 recently opened its 900th store and has opened more than 500 new units over the past five years. The teen apparel retailer had opened 23 new stores through March 2013 and plans on closing the year with approximately 125 new stores throughout the U.S. Their goal is to eventually reach 1,700 stores nationally.

ShopHouse is Chipotle’s new Asian fusion fast casual concept. They will begin their West Coast expansion this year, adding to the existing stores they currently have in the Los Angeles and Washington DC markets.

Sprouts Farmers Market currently has 151 stores in the western US. They plan for 15 new stores in 2013.

Starbucks has plans to remodel 1,400 current locations. They also have returned to growth mode and plan to end 2013 with 600 new locations after opening 80 in the first quarter and 300 more locations inside other retailers. Their normal store footprint averages about 1,750 SF, but they are testing a new 500 SF design for parking lots along with a few other new prototypes ranging from 1,000 to 4,000 SF. There are currently more than 18,000 Starbucks locations worldwide.

Teavana plans on 30 new locations. They will be introducing a new neighborhood center design.

Tim Hortons, the Canadian coffee and donut giant, has plans to open up to 114 new U.S. stores in 2013. Many new locations will feature double drive thru lanes. They currently have 755 locations in the US and require 1,000 to 5,400 SF.

Togo’s is looking to increase growth in the Western region as well as remodel many of their existing locations in 2013. They need 1,400 to 1,700 SF. With 1,800 current locations and many renewals coming up, they look to pick up the pace of downsizing.

Topshop opened its first US location Los Angeles at The Grove with 25,000 SF of space. They currently have four US locations and are planning ten new stores over the next 18 months. They also have several store sections in Bloomingdales and Nordstrom.

TrueRunner plans two new stores in 2013.

Tully’s Coffee, which is under new ownership, currently has no plans of expansion. Rather they are focusing on improving operations of its 47 locations.

Uniqlo, currently with just five US stores, plans on opening 20 to 30 stores annually until 2020. New York and San Francisco markets alone are expected to house 20 to 30 locations each. Uniqlo plans on first non-mall location in US, both in New York. One at Westchester Ridge Hill in Yonkers and the other in Nyack at Palisades Center, both in about 24,000 SF

Vera Bradley is exploring new markets with most of its 20 new stores. Arizona, Florida, New York, North Carolina, Oklahoma, Pennsylvania, Tennessee, Texas and Virginia will see 18 1,000 to 2,800 SF stores. Currently at 64 stores, Vera Bradley plans to expand to 300 stores in future. Most of the chain’s current growth is focused on outlet centers and malls.

Versona has plans for 15 to 20 new locations in 2013 and has similar expectations for 2014. They need 7,000 to 9,000 SF, along with 60 feet of frontage. Most new stores will be in outlet centers.

Vitamin Shoppe’s long-term plans are to add between 50 and 60 stores annually over the next few years. The traditional footprint for Vitamin Shoppe has been 3,500 SF, however, the chain is adding a 2,500 SF prototype for urban markets.

Vitamin World will likely open about five new stores in 2013. Their stores use 1,200 SF.

Walgreens, which currently has 8,516 locations, is in the process of opening 46 Well Experience locations. In the first quarter alone it either opened or acquired 218 locations. The acquisition part was 141 USA Drug locations.

Zara plans on ten new US stores this year with a typical size range of 25,000 to 30,000 SF per store. They prefer high end street locations. Last year they opened their largest store at 32,000 SF on Fifth Ave in New York.

Terranomics Top Five
Local Retail Won’t Disappear; Mobile Will Transform the In-Store Experience
Streetfightmag 03.25

Consumers Will Keep Spending as US Hurdles Fade
Bloomberg 03.25

Consumer Spending Likely Rose in February
Dallas Morning News 03.24

The death of the cash register as retailers turn to new technology
OregonLive.com 03.22

Deloitte: Consumer spending remains steady in February
Chain Store Age 03.20

The Big Picture
Top 500 Restaurant Chains Show Recovery
MediaPost 03.22

Restaurant chain growth returns to 2007 levels
Pizza Marketplace 03.21

U.S. Clothing Retailers Generally Like Fit of Their Current Store Counts
Costar 03.20

Americans Cut Restaurant Spending as Taxes Bite
Bloomberg 03.20

The Bigger Box Store: Home Improvement Stores That Are Double the Size of Home Depot
Time 03.19

Retailer Roundup
Best Buy Founder Returns as Chairman Emeritus
NBC 03.25

Rue21 bullish on expansion; to open 125 stores in 2013
Chain Store Age 03.22

Walgreens Empire State Building store opens
Drug Store News 03.22

J.Crew opening 46 stores in 2013; to make European debut in London
Chain Store Age 03.22

IKEA Expanding Boston Area Store
Globe Street 03.21

Francesca’s Q3 net earnings up 78%; 80 stores on tap for fiscal 2013
Chain Store Age 03.21

Aéropostale to Open 60 Kids Stores
Display & Design Ideas 03.20

Grocery Grab Bag
Report: Tesco uncertain of commitment to Fresh & Easy
Chain Store Age 03.22

The Restaurant Review
Panda Express Opening 100 Units in 2013
FastCasual 03.21

STACKED: Food Well Built Opens Fourth Restaurant
Restaurant News 03.20

Buffalo Wild Wings Invests in PizzaRev
Nation’s Restaurant News 03.20

America Runs on Donuts will see thousands of new quick service restaurants opening up in the coming years
Costar 03.20

Seattle’s Best Coffee to add drive-thru-only units
Nation’s Restaurant News 03.18

Togo’s CEO boasts big growth plans for another 150 stores by 2015
FastCasual 03.15

Regional News and Development Notes
2012-Built Walmart-Anchored Center Trades
Globe Street 03.21

Bankruptcy/Closure Watch
M&A Mania
Supervalu Completes Sale of Chains to Cerberus
Supermarket News 03.21

Tempur-Pedic completes acquisition of Sealy
The Business Journal 03.18

REIT/Investment Outlook
American Realty Makes $9 Billion Offer to Buy Cole Holdings REIT
Costar 03.20

Turning Stores into REITs is No Easy Feat, Analysts Warn
National Real Estate Investor 03.20

Terranomics Retail Newsline
Week Ending March 17, 2013

Coming Next Week: Who is Doing What in the Year Ahead!
I’ve been on the road a lot in the past week. Had the privilege of speaking on a panel on the changes in retail that the Millennials are driving at the ICSC Idea Exchange Event in Monterey, California late last week and am in Palm Springs today at the California Bankers Association Annual Convention where I will be speaking on the commercial real estate investment market. As a result, I am just sharing this week’s top stories with you this week, but I will be back with an expanded commentary next week in which I will be giving you a quick preview of some of the most recently announced retailer growth plans for the year ahead that we will be covering in immense detail in our soon to be released (mid-April) annual National Retailer and Restaurant Chain Expansion Guide. Thanks and have a great week!
– Garrick H. Brown

Terranomics Top Five
Forecast: GDP to Reach 3% by 2014
Globe Street 03.15

Private Equity’s $36 Billion Retail Bet Not Going so Well
Bloomberg 03.15

Sales at U.S. Retailers Advance by Most in Five Months, 1.1%
Bloomberg 03.13

The Slow and Painful Improvement of Shopping Center Fundamentals
National Real Estate Investor 03.12

U.S. Expansion Remains a Top Growth Strategy for Retailers
BDO 03.12

The Big Picture
The Hottest Retail Brands
Forbes 03.17

Consumer sentiment tumbled in March on fiscal policy concerns
Reuters 03.15

10 Years of Growth in US Retail Sales, Employment and Productivity
Retail Sails 03.15

The Long Journey of Blue Jeans
Vice 03.15

Millennials & Money: A Look at How Young People Shop and Spend in America
Entrepreneur 03.14

Filling in the Strip Mall: Small Stores Make a Comeback
IBIS World 03.14

Lack of Development Bolsters Net Lease Retail
Globe Street 03.13

Combo Special: Grocers Ramp Up C-store Industry Presence
Convenience Store News 03.13

Global restaurant traffic down, but spending up
Pizza Marketplace 03.12

Retailers added new workers in February
Women’s Wear Daily 03.08

Retailer Roundup
H&M Has Plans to Dominate US Market; will open more than 40 US Stores in 2013
Style Blazer 03.17

Kate Spade Reinvents Retail as a Lean Startup
Fast Company 03.17

Why Costco isn’t Failing
Motley Fool 03.17

Microsoft Goes to the Mall
Readwrite 03.16

How to Beat Amazon: Best Buy Edition
Corporate Intelligence 03.15

Destination XL Group profit falls; to open 230 DXL stores by 2016
Chain Store Age 03.15

Zumiez Q4 profit up 22%; 60 new stores planned for 2013
Chain Store Age 03.15

H&M amping up U.S. expansion
Chain Store Age 03.15

Hibbett Sports Q4 income up 22%; to open 65 to 70 stores
Chain Store Age 03.15

Leslie’s Poolmart on track to open 48 stores in spring 2013
Chain Store Age 03.13

Aaron’s opens 32 stores
Chain Store Age 03.13

Costco Plans to Accelerate Openings with 30+ stores in the next few years
Supermarket News 03.12

First Field & Stream Specialty Store to Open Fall 2013 in PA
PRNewswire 03.12

The Restaurant Review
Five Guys to open Midtown, Memphis, location Thursday
Memphis Business Journal 03.11

Dickey’s Barbecue Opens in Madison, Mississippi
Restaurant News Resource 03.11

Papa Murphy’s expanding along eastern seaboard
Pizza Marketplace 03.11

Pizza Hut franchisee accelerates smaller model growth
Pizza Marketplace 03.11

Regional News and Development Notes
M&A Mania
Aeropostale M&A Rumors
Bloomberg 03.17

Target Acquires Cooking.com, Chefs Catalog
Home World Business 03.14

Foreign Affairs
Retail Landlords Battle for High End Tenants
Globe and Mail 03.17

http://www.bizjournals.com/memphis/news/2013/03/25/dunkin-donuts-to-open-southeast.html
New Dunkin’ Donuts to open in Southeast Memphis

http://www.commercialappeal.com/news/2013/mar/23/construction-in-sears-crosstown-to-start-in-2014/
Construction in Sears Crosstown to start in early 2014

http://www.bizjournals.com/dallas/blog/2013/03/mickey-ashmore-on-ron-johnson.html
UCR’s Mickey Ashmore on real estate and other subjects (Video)

From the ICSC
Outlet marketers plan annual festival
The Outlet Marketing Alliance and Shop America Alliance will promote outlet shopping by launching the USA Outlet Shopping Festival this Memorial Day weekend, May 24–27. The organizers say they plan to make the festival an annual event. Shoppers and tourists will be encouraged to shop outlet centers to enjoy promotions and savings. Outlet retailers and landlords are invited to participate and to help market the festival by developing and promoting sales and special events under the festival umbrella.
Meanwhile, organizers are working to develop tie-ins with travel sponsors such as hotels, airlines, car rental companies, tour operators and bus companies. Shoppers who spend at least $150 with their MasterCard during the festival will receive a MasterCard tote bag at participating locations, along with discount offers. State and local tourism offices have agreed to provide marketing support. Tax-free shopping programs in Louisiana, Minnesota, Oregon, Pennsylvania and Texas will be promoted.
“This festival will serve to underscore the popularity of outlet shopping and the importance of tourism to all our partners,” said Lisa Wagner, founder of the Outlet Marketing Alliance, a group of outlet industry retailers and developers, in a press release.
Companies involved include AWE Talisman, Craig Realty Group, Destiny USA, EWB Development, Horizon Group Properties, MasterCard, OutletBound.com, The Outlet Shops of Grand River, Puma, Saks Fifth Avenue Off 5th, Shop California, TaxFree Shopping Texas and Tommy Hilfiger. For details, visit www.outletfestival.com.
Wells Fargo top lender in 2012: Report
Wells Fargo was last year’s top commercial-mortgage originator, followed by Bank of America Merrill Lynch, PNC Real Estate, Prudential Mortgage Capital Co., and KeyBank Real Estate Capital, in that order, according to the Mortgage Bankers Association. Among the various lending types, Wells Fargo was the No. 1 originator of CMBS loans, Bank of America Merrill Lynch topped the list of lenders to commercial banks, MetLife Real Estate Investors for life insurers, TIAA-CREF for pension funds, HFF for credit companies, KeyBank Real Estate Capital for REITS and investment funds, and Cohen Financial for specialty finance. The firms with the largest loan-origination volume for third parties were Wells Fargo, HFF, Meridian Capital Group, CBRE Capital Markets and PNC Real Estate.
Development surging in Latin America, conference told
Latin America’s robust economic growth is reflected in continued retail development across the region, speakers said this week at ICSC’s RECon Latin America conference, in Santiago, Chile.
Brazil is to get nearly 60 additional malls this year, bringing its total to upwards of 500. Colombia has 51 malls in the pipeline, and 16 existing properties are being expanded or remodeled, all of which represents a combined investment of $2.64 billion. Though some 90 percent of Colombia’s roughly 160 existing malls are owned by the tenants — a condominium model that is seen as a detriment to the efficient running and maintenance of centers — nearly 60 percent of that country’s new developments have just a single owner. “Colombia is ripe for new shopping centers and retailers,” said Carlos Hernán Betancourt, executive director of Acecolombia, a mall trade group.
Even Venezuela and Argentina, currently regarded as difficult markets for private investment, continue to see strong development. Argentina’s 107 malls reported a 25 percent increase in sales last year. In Venezuela 12 malls are to be developed over the next two years. Venezuela now has 172 malls that report a combined $9.76 billion in sales annually. “Our mall industry has continued to grow despite the political challenges,” said Claudia Itriago, general manager of Venezuela’s mall trade group. “It is a country of challenges, but also of opportunities.”
Latin America will see continued economic growth, the meeting speakers said. Last year the regional economy grew by 3.1 percent, and projections are for that to expand to at least 3.8 percent this year, according to panelists.
“Latin America plays an important role in the new global economic order, and this is also having an impact on the consumer,” said David Martínez, senior economist of emerging markets for international banking group BBVA. Political and economic stability and a streamlined regulatory environment are all contributing to the region’s growth, speakers noted.
Higher incomes are heightening consumers’ awareness of fashion and international brands, but there remains a demand for discount retail and ordinary stores, noted Christopher Callieri, an AT Kearney principal. Nearly 60 percent of all store openings in Latin America over the coming five years will involve convenience and drugstore units, he said.
European chains open shop in Latin America
A growing number of European retailers are looking to Latin America in search of growth opportunities in relatively untapped markets away from the stagnant economies back home, according to panelists at the fourth annual RECon Latin America meeting, in Santiago, Chile. Two of these retailers in particular — Spain’s Imaginarium and Portugal’s Parfois — have Latin America at the forefront of their global expansion plans.
Imaginarium, an educational-toys chain, opened its first Latin America store 15 years ago but now operates in 10 Latin American countries, seizing on opportunities yielded by the region’s expanding middle class. “We first opened in Colombia literally by chance, but in this second stage, our Latin American expansion is a strategic bet on our niche market,” said Felix Tena, founder and CEO of Imaginarium, speaking to the meeting’s roughly 800 attendees.
Women’s accessories seller Parfois, with nearly 300 stores across 40 countries, opened its first Latin America store last May. The chain says it will have 17 franchised stores across Colombia, the Dominican Republic, Panama, Peru and Venezuela by the end of this year. “Our growth in the region has been quick,” said Filipe Correia, Parfois’ director of expansion. “It has helped that consumers’ tastes [there] are very similar to ours [Europe’s], which … makes this an easier market than Asia.”
The interest these European firms are demonstrating should come as no surprise, in light of the success that Spain’s Inditex Group has enjoyed with its global formula against Europe’s recession, according to Javier García-Renedo, president of Spain’s Association of Shopping Centers. “The Latin American market is in the heads of big European retailers,” he said.
Europe’s economic crisis has hit the Spanish retail sector hard, with 2012 sales at malls there off by 2.4 percent year on year. Spaniards were spending $28 per visit each last year, on average, down from $33 in 2011.
Latin America does present challenges; it is not a homogenous market, and each country has its own import tariffs and regulations. The regulatory environments of Argentina and Venezuela are particularly difficult, and Brazil’s customs regulations are comparatively complex, panelists said. The good news, they noted, is that most countries in the region have streamlined customs over the past five years, making for greater transparency.
Easter sales will stagnate this year
Americans will celebrate Easter on a budget this year, according to a survey of 5,000 consumers conducted by the National Retail Federation. On average, Easter celebrants will spend $145.13 per person on candy, decor, apparel and food, virtually unchanged from last year’s $145.28 per person. Total Easter spending is expected to reach an estimated $17.2 billion.
Much of the consumer budget will go toward a family meal: Nearly 90 percent of the respondents said they plan to spend about $45 on meal items. Almost half said they will purchase clothing this Easter — $25.91 per person, on average, for outfits for the children, and even something new for themselves. About 90 percent said they would stock up on candy: $20.66 per person, on average. The average for gifts will be $20.82 per person, according to the survey, and $9.49 each for flowers and $9.11 each for decorations.
Families will be on the lookout for price and value. Nearly two-thirds of the respondents said they would patronize discount stores, and about 40 percent said they would head over to their favorite department store. Some 25 percent said they will shop at specialty stores, about 20 percent will go the online route, and nearly 11 percent said they will patronize a specialty clothing store.
http://bettercities.net/article/transit-oriented-walkable-places-held-real-estate-values-better-19908
Transit-oriented, walkable places held real estate values better

http://www.bobarron.com/clarity-series-prospecting-cold-calling-part-2/?goback=%2Egde_140488_member_227387747
clarity Series: Prospecting – Cold Calling Part 2

http://www.linkedin.com/groups/Are-Cell-Towers-Going-Be-125984.S.227151896?view=&gid=125984&type=member&item=227151896&trk=eml-anet_dig-b_nd-pst_ttle-cn
Are Cell Towers Going To Be Obsolete In The Foreseeable Future? Hardly!!

http://www.forbes.com/sites/janetnovack/2013/03/26/how-real-estate-investors-can-protect-themselves-from-the-irs/?goback=%2Egde_2132134_member_226686307
How Real Estate Investors Can Protect Themselves From The IRS

http://www.bloomberg.com/news/2013-03-20/americans-cut-restaurant-spending-as-taxes-bite-ecopulse.html?goback=%2Egde_126357_member_226484945
Americans Cut Restaurant Spending as Taxes Bite: EcoPulse

http://www.qsrmagazine.com/news/huddle-house-puts-fresh-face-readies-growth
Huddle House Puts on Fresh Face, Readies for Growth

http://theshoppingcentergroup.com/newsandresources/new-dunkin-donuts-to-open-in-southeast-memphis/
New Dunkin’ Donuts to open in Southeast Memphis

F .S. mall sales producivity at all-time high in January
U.S. mall sales productivity at nonanchor stores peaked in January, hitting an annualized $526 per square foot, according to ICSC Research data from nearly 500 shopping centers. Stronger-than-average sales in the electronics and apparel categories helped fuel a 17.5 percent year-on-year jump in national sales per square foot. Sales productivity in the electronics category increased 53 percent year on year, the most since March 2011, when the category grew 55.9 percent. Women’s apparel sales productivity grew by 23 percent year on year, jewelry tenants rose by 7.2 percent, and food-court tenants gained 4.8 percent. The Northeast was strongest, with a 33.4 percent year-on-year increase, to $693 per square foot. The West grew by 14.7 percent to $598 per square foot, the South gained 13.6 percent to $504 per square foot, and the Midwest rose by 13.4 percent to $399 per square foot. Sales productivity at Chicago malls increased by 22.4 percent year on year. Denver mall sales grew by 17.7 percent, New York City gained 16.8 percent, Atlanta rose by 15.7 percent, Dallas gained 15 percent, Miami increased by 12.5 percent, Los Angeles gained 14.6 percent, and Detroit increased by 8 percent.
Landlords backfilling Borders stores with ease
Remember all those vacant big-box sites that were supposed to sit and gather dust for decades? Today the only dust to be seen at many of them is the sort kicked up by the processions of tenants scrambling to fill them. Minimal new retail construction coupled with improvements in the housing, employment and lending sectors have retailers and other users refilling boxes of every size.
Though leases have yet to return to prerecession pricing, big-box vacancy rates are dropping, and cash flow is moving faster than many were predicting just a few years ago. The brisk leasing-and-sales activity of the nearly 400 vacant Borders spaces returned to market following the retailer’s 2011 bankruptcy. Even in economically pressed Michigan, 11 of the state’s 18 former Borders sites had been absorbed as of February, and several other deals are pending, according to press reports. One of those is in Borders’ former home base of Ann Arbor, where the bookseller’s two-level, 44,000-square-foot flagship is being subdivided into five first-floor retail and restaurant spaces and a bank of second-floor offices. In Billings, Mont., Jo-Ann Fabric and Craft emerged to take over a former Borders in Marketplace West, beating out a half dozen other national retailers, according to developer and leasing agent Steve Corning.
The Fresh Market took over a Borders last summer on stately St. Charles Avenue in New Orleans, while in central Philadelphia Walgreens is moving into a three-floor Borders. The blitz seems destined to continue. A few miles from the Notre Dame campus in South Bend, Ind., Whole Foods is set to open in a Borders on April 10, and Asheville, N.C.–based Earth Fare opened in a Borders space in Noblesville, near Indianapolis.
“Borders had great real estate, and unlike a lot of the vacant boxes, it was a part of that same tribal gathering of tenants that went into many of the modern-day lifestyle centers,” said David Palmer, head of Dallas–Fort Worth development at Dallas-based Cencor Realty Services. Among retailers taking over Borders spaces in Texas are The Container Store, Last Call by Neiman Marcus and Nordstrom Rack.
But not all the Borders sites went to retailers. One of them, at Westfield Southcenter Mall, in Tukwila, near Seattle, is now home to Hope of the City Church. Texas Children’s Hospital took one near Rice University, in Houston’s affluent River Oaks community.
Four big-box spaces once held by Houston-based Rice Epicurean Markets were leased to Fresh Market, which says it plans to open in all of them later this year and that it will occupy only half of the space and sublease the rest.
Name change earns outlet center a tax break
An outlet center project in Mississippi has been given a new name so that its developer can qualify for tax breaks under state tourism programs. The developer, Spectrum Capital, decided to rename its Outlets at Bloomfield, in the city of Pearl, The Outlets of Mississippi after state officials added the term “cultural retail” to their definition of a tourism project. “Tourism is a major component of outlet shopping,” Jason Voyles, Spectrum’s president, told SCT sister publication Value Retail News. “We have now officially created a combined tourism shopping destination in the Outlets of Mississippi.”
The shopping center, scheduled to open Nov. 14, now qualifies for some $22 million in sales-tax incentive funds. Spectrum will set aside space in the 300,000-square-foot center for a tourism office with information about Mississippi history and attractions. The developer will plant magnolia trees in the parking lot, post signs featuring quotes by famous Mississippians and offer live music. The Outlets of Mississippi is being added to the Mississippi Blues Trail, a National Endowment for the Arts project showcasing the state’s contributions to music.
The developer anticipates drawing some 700,000 visitors per year and is attributing about 1,600 jobs to the project. Signed tenants include Chico’s Outlet, Kay Jewelers, J.Crew, Nike, Under Armour and Saks Fifth Avenue Off 5th.
ICSC cheers e-fairness progress in Congress
ICSC applauds the adoption this week of an amendment to the 2014 Senate Budget Resolution that gives states the authority to require online sellers to collect sales taxes just like brick-and-mortar retailers already do. The amendment provides a common-sense, bipartisan solution to a decades-old problem that has impaired free-market principles and distorted the marketplace, says ICSC President and CEO Michael P. Kercheval. “The shopping center industry would like to thank Senators Mike Enzi, Dick Durbin, Lamar Alexander and Heidi Heitkamp for their unwavering leadership and for working tirelessly to move long-awaited sales-tax-fairness legislation,” Kercheval said. “This vote clearly shows that there are enough votes in the Senate to pass S. 336, the Marketplace Fairness Act.” Voting in favor were 75 Senators from both parties, laying the groundwork for a vote on S. 336 later this year. The vote also sends a strong signal to Republicans and Democrats in both houses that momentum for e-fairness legislation has been building since the end of the last Congress. “Government should not be in the business of picking winners and losers in the marketplace, and our free-market system should not be burdened by an outdated, overly complicated and blatantly unfair tax policy,” said Betsy Laird, ICSC’s senior vice president of global public policy. “This is a matter of basic economic fairness in the marketplace.” ICSC has promoted sales-tax fairness for over a decade, advocating that a “sale is a sale,” regardless whether the purchase takes place on Main Street, at a shopping center, over the Internet or by smartphone. More information is available at www.21stcenturyretail.org.
TRANSACTIONS
Phillips Edison–ARC Shopping Center REIT acquired a portfolio of three grocery-anchored shopping centers from undisclosed owners for $467.6 million. The properties are the 149,000-square-foot, HEB-anchored Kleinwood Center, in Spring, Texas; the 64,400-square-foot, Publix-anchored Murray Landing, in Irmo, S.C.; and the 62,800-square-foot, Publix-anchored Vineyard Center, in Tallahassee, Fla.
Vestar and a fund advised by UBS Global Asset Management bought the 300,000-square-foot Peninsula Center, in Rolling Hills Estates, Calif., from Principal Real Estate Investors for $87.3 million. Rite Aid, T.J.Maxx and Vons anchor the center.
A Delaware-based private owner sold the 207,500-square-foot Mount Pocono (Pa.) Plaza to Heidenberg Properties and Blumberg & Freilich Equities for $12 million. Anchors include Kmart and Weis Markets.
Heslin Becker Properties sold a two-building, 11,700-square-foot portion of Pico Crossings, in Pico Rivera, Calif., to CEO Huang for $4.27 million. Tenants in this portion of the center include Sherwin-Williams, Starbucks and Subway.
RETAILING TODAY
• Vera Wang has cancelled the appointment fees it instituted at its bridal salons worldwide after the policy sparked a backlash. The company had thought to impose the fees to discourage showrooming and the counterfeiting of its designs. At the Shanghai salon, customers were charged $482 for a 90-minute fitting session. The retailer had planned to refund the fee in the event the customer actually made a purchase. Vera Wang received some 2,000 comments critical of the policy on the Sina Weibo social-media site.
• Walmart is following Amazon.com’s lead in using lockers to hold goods ordered online until shoppers pick them up. Starting this summer Walmart will test the concept at 12 stores, said Neil Ashe, CEO of the chain’s e-commerce unit, to reporters at a media event. Online shoppers will have up to two weeks to claim the merchandise from the locker. Amazon.com is installing lockers at the stores of partners such as Staples.
THE COMMON AREA
• It was a green 2012 for Regency Centers. The landlord’s “greengenuity” program boosted its energy savings by 75 percent over 2011, largely through energy-efficient lighting. The firm also achieved LEED certification for three projects and designated half its new project starts for such certification. The firm also reused or recycled some 13,522 tons of construction debris, a 354 percent improvement over 2011. “Our commitment to ‘greengenuity’ leads to better risk management and cost savings, improves our communities, encourages innovation and is in the best interest of our shareholders,” said Mark Peternell, Regency’s vice president of sustainability. “Our 2012 performance metrics are the strongest yet in our ongoing effort to be responsible stewards of natural and economic resources.”
• ICSC received the New York Society of Association Executives’ 2013 Synergy Award for Website Excellence in the trade-association category. The award recognizes outstanding Web design, including ease of navigation, aesthetics, consistency, internal search capabilities, interactability and originality. “ICSC is honored to be accepting NYSAE’s 2013 Synergy Award for Website Excellence,” said Michael P. Kercheval, president and CEO of ICSC. “ICSC prides itself on providing members with the best programs and services, and having a dynamic, user-friendly, member-focused website is a critical part of that mission.” ICSC’s website offers member-to-member access, industry news and information, and a social network exclusive to the membership.
• NewMark Merrill Cos. is teaming up with a college to allow tenants at its shopping centers to take free courses in subjects relevant to retailing and shopping center management. The Woodland Hills, Calif.–based landlord launched a corporate training program with Fremont College for store owners, managers and employees at its roughly 70 properties to take courses at Fremont’s Los Angeles and Cerritos campuses or online.
“With a sampling of various educational opportunities at our sites, we can provide our tenants additional ways to improve their business performance,”
 said Sandy Sigal, CEO of NewMark Merrill. Courses include web development, store management, visual marketing, financial statement analysis, computer literacy and business leadership. “Fremont College students will benefit from the real-world experience of working professionals by being in the classrooms together,” said Fremont College Chancellor Sabrina Kay. “It’s a completely different experience when you’re working with real-time problems. In classroom discussions, students can propose solutions, test them and see what happens in class next week.”

The program will launch at several Southern California shopping centers, including Anaheim Town Center, Bristol Warner Marketplace and Bristol Warner Village, in Santa Ana; Norwalk Town Center and Park Plaza on Main, in Baldwin Park; and Universirom the ICSC

http://www.retailrealestatelaw.com/2013/03/oh-no-not-another-change-to-what-it-means-to-be-an-additional-insured/
Oh No, Not Another Change To What It Means To Be An Additional Insured!

http://www.costar.com/News/Article/Retailers-Stringing-Landlords-Along/146795
Retailers Stringing Landlords Along

http://www.linkedin.com/groupItem?view=&srchtype=discussedNews&gid=60855&item=225773917&type=member&trk=eml-anet_dig-b_pd-ttl-cn&ut=0xAN4bZLsL1RI1

RETAIL FUTURE EXPERIENCE
http://www.businessinsider.com/retail-maps-by-state-2011-4
Maps Of The Biggest Retail Chains In America

Read more: http://www.businessinsider.com/retail-maps-by-state-2011-4?op=1#ixzz2OwTTlrA8

From the Desk of Al Taf
http://nrn.com/latest-headlines/sonic-focuses-new-menu-items-smaller-prototype?NL=NRN-09&Issue=NRN-09_20130320_NRN-09_556&YM_RID=mamorgan@tva.com&YM_MID=1379872&sfvc4enews=42&goback=%2Egde_1870430_member_225400496

Sonic focuses on new menu items, smaller prototype
http://www.arkansasbusiness.com/article/91689/skyline-report-vacancy-rates-dip-for-northwest-arkansas-commercial-multi-family-real-estate
Skyline Report: Vacancy Rates Dip For Northwest Arkansas Commercial, Multi-Family Real Estate
The company’s adjusted earnings per share were 33 cents in the three months ended Feb. 2, up from 20 cents a year earlier, the company said in a statement, while revenue was up 40 percent.

http://urbanland.uli.org/Articles/2012/Dec/NyrenTechnologyOutlook
Technology Outlook: Where Is Technology Taking the Real Estate Industry?

http://www.bobarron.com/clarity-series-prospecting-database/?goback=%2Egde_2141955_member_224756910
Clarity Series: Prospecting – 5 Steps to Build a Database

http://www.dukelong.com/commercial-real-estate-sources/i-officially-join-42floors-the-journey-begins?goback=%2Egde_2141955_member_225873543
I Officially Join 42Floors.The Journey Begins

http://cre-apps.com/2013/03/cre-app-store/?goback=%2Egde_2141955_member_226133047
What’s next for CRE Apps? The CRE AppStore.

http://chainstoreage.com/article/smoothie-king-open-100-stores-2013?goback=%2Egde_2227016_member_226503015
Smoothie King to open 100 stores in 2013

http://www.housinginteractive.com/global-realtor-blog/green-building-real-estate/?goback=%2Egde_129534_member_225942169
Green is the New Gold: Why Real Estate Embraces Green Buildings

http://www.chainstoreage.com/article/rue21-bullish-expansion-open-125-stores-2013?goback=%2Egde_2919153_member_226086321

Rue21 bullish on expansion; to open 125 stores in 2013
http://www.commercialappeal.com/news/2013/mar/30/bar-louie-latest-ingredient-for-freshed-vibe-at/

Bar Louie latest ingredient for freshed vibe at Overton Square
http://www.retailrealestatelaw.com/2013/03/asking-for-option-rights-negotiators-need-to-be-credible-lets-help-them-out/

Asking For Option Rights – Negotiators Need To Be Credible. Let’s Help Them Out.
http://www.bizjournals.com/memphis/news/2013/03/29/cb-richard-ellis-extends-reach-deeper.html
CB Richard Ellis extends reach deeper into Mississippi

From the Desk of Al Taf – TOP RETAIL NEWS
Lack of Construction Boosts Net Lease Values
March 26, 2013, Investors are increasingly moving into the net lease property sector, but with few new retail spaces coming to market, cap rates in the arena are expected to continue compressing.
Net lease has become “an in vogue sector at the moment. Investors are staying conservative and are looking for opportunities that will yield steady, predictable cash flows. Meanwhile, with interest rates low, few investments promise significant yields.
Consumer confidence drops as Washington budget spats stoke pocketbook anxiety
March 26, 2013 Americans are less confident in the economy than they were last month as massive government spending cuts have stoked economic uncertainty.
The Conference Board, a New York-based private research group, said Tuesday that its Consumer Confidence Index fell in March to 59.7 from a revised reading of 68 in February and the 68.7 that analysts polled by research firm FactSet expected. Confidence is still far off from the 90 reading that indicates a healthy economy.
Store Opening Plans Take a Slight Dip
March 22, 2013, After store opening plans reached a five-year high in January, retailers have pulled back on expansion plans for the next two years, according to the March 2013: National Retailer Demand Monthlyreport put together by RBC Capital Markets. In a slight adjustment, in February, planned store openings fell 0.6 percent from year-end 2012, to 81,467. Most of the scrapped new stores included supermarkets and specialty retail.
At the same time, the number of planned restaurant openings rose to 11,710, from 11,429 in January. In addition, toy stores and stores selling men’s apparel continue to increase their store opening plans. For example, opening plans for the toys and hobbies sector rose 18.7 percent year-to-date, to 342 over the next 24 months. Opening plans for men’s apparel stores rose 3.2 percent, also to 342.
Market Force Study Shows Uptick in Consumers Trying New Retailers
March 20, 2013, Boulder, CO, Despite cautionary spending last year, retailers may have good reason to be optimistic in 2013 – consumers are trying more fashion retailers for the first time, and most are making purchases during those visits. According to a study by Market Force Information, a worldwide leader in customer intelligence solutions, four in 10 (39%) of consumers surveyed reported trying a new fashion retailer over the past 90 days – a 22% gain from 2011, and a 179% increase from 2010 when just 14% of consumers said they’d tried a new retailer. H&M is the retailer that consumers reported visiting for the first time most often, followed by Kohl’s, Macy’s, Abercrombie & Fitch and Forever 21. The Market Force study, conducted in February, was designed to uncover consumer shopping trends and behaviors, including how they’ve shifted over the past three years.
Fed sticks to 6.5% jobless rate forecast by 2015
March 20, 2013 WASHINGTON – The Federal Reserve latest forecast still doesn’t expect the unemployment rate to fall below the threshold for a rate hike until 2015, according to a summary of the central bank’s latest projections released Wednesday. The Fed has said it would keep interest rates at ultra-low levels so long as the jobless rate was above 6.5%, unless inflation got in the way. The Fed modestly lowered raised GDP forecasts for 2013 but also said the labor market would be healthier. The Fed sees the jobless rate falling to a range between 7.3% and 7.5% this year, compared to 7.7% in February. The Fed modestly lowered GDP forecasts for 2013 to a range between 2.3% and 2.8% from the prior estimate of 2.3% to 3.0%. The Fed still sees growth north of 3% in 2014 and 2015. The inflation guidance for 2013 was trimmed to 1.3% to 1.7% from the December forecast of 1.3% to 2%. The forecast for the first rate hike barely changed. Thirteen Fed members expect the rate hike in 2015. One Fed official changed his prediction for the first hike from 2013 until 2014.
Apparel Stores
Children’s Place begins 2013 in time out
March 26, 2013 The nation’s leading specialty retailer of children’s apparel issued a dour outlook for the first quarter of 2013 after a strong finish to 2012.
The company said sales for the 14 week fourth quarter increased 11.3% to $509.2 million and same store sales increased 4.3%. Earning per share increased 32% to $1.15, 11 cents better than analysts forecast. Full year sales grew 5.5% to $1.8 billion and same store sales increased 2%, securing Children’s Place status as the largest children’s specialty apparel retailer in North America. The company ended last year with 1,095 stores after opening 64 stores and closing 18 others.
Rue21 opens 900th store, has plans for 1,000th this year
March 25, 2013,Youth-clothing retailer rue21 (Nasdaq: RUE) said it has opened its 900th store and its 21st location in Missouri.
The Warrendale-based rue21’s 5,000-square-foot store is at the Southern Hills Shopping Center in West Plains, Mo. It is the 500th store rue21 has opened in the past five years and one of 23 that already have been opened in the first three months of 2013.Rue21’s plans call for the opening of 125 stores in 2013.
Department Stores

Survey names Kohl’s, Dollar General, Lowe’s among top brands
March 28, 2013 NEW YORK — Harris Interactive has revealed the brands that Americans rank highest in brand equity. Surveying more than 38,000 American consumers, it measures the level of quality, familiarity, and purchase consideration for each brand, and then awards “Brand of the Year” status to the top-ranked brand from each category.
Kohl’s was the top finisher in the department store category, followed by Macy’s and J.C. Penney. Target came out on top in the mass merchandiser category, with Walmart in second place.
Gordmans sales soft in Q4
March 26, 2013 Regional department store operator Gordmans Stores reported disappointing fourth quarter sales and indicated 2013 is of to a slow start.
Sales for the 14 week fourth quarter ended February 2 increased 9.4% to $202.5 million, but the gain was driven entirely by an additional week in the reporting period and the opening of nine new stores in four new markets and two new states. Same stores sales declined 4.1%. Earnings per share of 41 cents exceeded guidance the company revised in mid-January that lowered expectations to a range of 35 cents to 37 cents from an earlier estimate of 58 cents to 61 cents provided at the end of the third quarter.
Discount Stores
Fred’s misses analysts expectations
March 28, 2013 MEMPHIS, Tenn. — Fred’s total sales for the 53-week fiscal 2012 increased 4% to $2 billion from $1.9 billion for the same period last year. Comparable store sales increased 1.1%. Excluding the effect of the extra week in the current year, fiscal 2012 comparable store sales for the year decreased 1.4% from the year-earlier period.
For the year, profit fell 11% to $29.6 million, or 81 cents per share. Fred’s projected 2013 earnings to fall between 77 cents per share and 88 cents per share in 2013. Analysts had expected 95 cents per share, according to published reports. Fred’s shares were down 1.8% to $13.85 in early morning trading.
Five Below sales and profits rise in Q4; 60 stores on tap for 2013
March 27, 2013 New York — Five Below reported Wednesday that net income for the quarter ended Feb. 2 rose to $19.2 million, compared with $12.4 million in the year-ago period.
Revenue surged 38% to $173.6 million from $125.8 million in the fourth quarter of fiscal 2011. Same-store sales rose 4.4%. For the full year, profit rose to $20 million from $16.1 million and revenue increased 41% to $418.8 million. The company said it expects to open 60 stores this year, including new markets in Texas, as well as adding units in existing markets.

Electronic Stores
Soft console gaming category causes GameStop sales slip
March 28, 2013 GRAPEVINE, Texas — GameStop reported that total global sales for the fourth quarter of 2012 were $3.56 billion compared with $3.58 billion in the prior year quarter. Consolidated comparable-store sales decreased 4.6% compared with the prior year quarter.
GameStop’s fourth quarter net earnings were $261.1 million compared to net earnings of $174.7 million in the prior year quarter. Diluted earnings per share were $2.15 compared with diluted earnings per share of $1.27 in the prior year quarter. For fiscal year 2012, total global sales were $8.89 billion, a 7% decrease compared with $9.55 billion in fiscal 2011. Full-year consolidated comparable-store sales declined 8% compared with fiscal 2011. Digital receipts and mobile sales drove a 21.2% increase in the other category. New hardware, new software and pre-owned sales each declined year-over-year primarily due to the effect of the longevity of the current console cycle.
Grocery Stores
AWG Sales Rise 1% in 2012
March 27, 2013 KASNAS CITY, Kan. — Associated Wholesale Grocers here said sales for its most recent fiscal year hit a new high of $7.85 billion, up 1% over the preceding year.
The cooperative wholesaler also said that a special $5 million cash distribution based on non-recurring income helped boost its patronage dividend to an all-time high of 2.84% for the year, which ended Dec. 28. The dividend totaled $173 million, vs. $163.8 million, or 2.71% of sales a year ago. Total cash distribution exceeded more than $100 million for the first time, with an additional $73 million in short-term patronage certificates.
Supervalu Cuts 1,100 Jobs
March 26, 2013, MINNEAPOLIS — Supervalu here on Tuesday said it would cut an estimated 1,100 jobs in the wake of its sale of its largest retail chains.The reductions include both current positions and open jobs that will not be filled. The final dates for the affected employees vary.
“The decision to reduce our workforce, although difficult because of the impacts to our people, is the necessary next step in the rebuilding of our business,” said Sam Duncan, Supervalu’s newly appointed president and chief executive officer. “This move is an important part of our strategy to be more focused and efficient in our operations, including how we staff and support our three business units going forward.”
Restaurant
Report: Restaurant sector boosts franchise growth
March 27, 2013, The International Franchise Association released its updated 2013 forecast today, which predicts that franchise businesses will continue to grow at a slightly faster rate than other businesses in job creation, new business formation, economic output and GDP contribution.
According to the report, The number of franchise establishments in the U.S. will increase by 1.3 percent in 2013, just short of the 1.4 percent initially forecast, from 747,359 to 757,438, (an increase of 10,079); The number of jobs in franchise establishments will increase 1.9 percent, down from the 2.0 percent initially forecast (following a gain of 2.1 percent in 2012) from 8.101 million to 8.257 million (an increase of 156,000)

Smoothie King to open 100 stores in 2013
March 25, 2013 New Orleans — Smoothie King Franchises said Monday it plans to open 70 franchise and 30 corporate locations across the U.S. in 2013.
Since December 2012, the smoothie franchise has acquired six additional locations in Florida and Texas, bringing the total number of corporate stores to seven. The company also has opened six new franchise locations since the start of the year.
Sonic more than doubles profit in 2Q
March 25, 2013 Sonic Corp.’s profit more than doubled in the second quarter, the Oklahoma City-based drive-in operator reported Monday.
Net income rose 113.3 percent in the quarter ended Feb. 28, to $3.6 million, or six cents per share, from $1.7 million in the same period last year. The company had a $900,000 tax benefit in the quarter. Revenue in the second quarter slipped to $111.1 million, from $115.1 million in the year-earlier quarter.
Darden: Specialty group outperforms flagship brands in 3Q
March 22, 2013 Darden Restaurant Group Inc. reported on Friday positive third-quarter sales at brands in its specialty restaurant group amid declines at its three largest brands.
In an otherwise bleak quarter for the casual-dining restaurant segment, Darden reported a same-store sales increase of 2.3 percent at its Specialty Restaurant Group, which is composed of Seasons 52, Eddie V’s, Yard House, The Capital Grille and Bahama Breeze. Group revenue for the quarter ending Feb. 24 increased 61.1 percent to $287 million.
Panda Express opening 100 units in 2013
March 21, 2013, Panda Express is celebrating its 30th anniversary with new menu items, including some healthy twists, and a commitment to growing the 1,600-unit brand, according to a company press release.

This year, the brand hopes to open 100 more units and expects revenue to top $2 billion. It also recently launched “2020 Vision,” which calls for it to be the world leader in “people development, providing growth opportunities for Panda Restaurant Group’s more than 23,000 associates to continuously better their lives, both personally and professionally.”
America Runs on Donuts
March 20, 2013 Dunkin’ Donuts has been strategically expanding in contiguous markets across the country with a long-term goal of having more than 15,000 Dunkin’ Donuts restaurants in the United States alone – that would double its current size.
Dunkin’ Donuts opened 291 net new locations in the United States last year, a net new unit growth rate of 4%. In 2013, the company says it plans to open 330 to 360 net new restaurants in the United States with growth coming from both new and existing markets, representing an increase of 4.5% to 5%.
Home Improvement & Office Products
Mattress Firm Announces Fourth Fiscal Quarter and Full Fiscal Year Financial Results
March 26, 2013 HOUSTON–Mattress Firm Holding Corp.today announced its financial results for the fourth fiscal quarter (13 weeks) and full fiscal year (52 weeks) ended January 29, 2013. Net sales for the fourth fiscal quarter increased 37.0% to $258.2 million, reflecting incremental sales from new and acquired stores, offset by a comparable-store sales decline of 1.6%. For the full fiscal year, net sales increased 43.1% to $1,007.3 million and comparable-store sales increased 6.1%.
Ace Hardware nails it on revenue growth
March 22, 2013 OAK BROOK, Ill. — Ace Hardware Corp. posted fiscal 2012 revenues of $3.8 billion, up 3.6% from the previous year.
The co-op’s net income of $81.8 million increased 5.3% for the year. In the fourth quarter, the company’s net income of $22.4 million was up 16.7%. Fourth-quarter total revenues were down 1.0%, while fourth-quarter wholesale merchandise revenues to comparable domestic stores declined 0.6%.
Dollar Stores, Warehouse Club & Other Retailers
Finish Line Q4 profit down
March 28, 2013 Indianapolis — The Finish Line said its fourth-quarter profit dropped 18% as gross margins fell and overall sales declined more than analysts expected. The chain’s adjusted earnings and same-store sales growth, however, were in-line with its expectations.
For the fourth quarter ended March 2, Finish Line reported net income of $34.3 million, down from $41.9 million a year earlier. Consolidated net sales were down 3% to $442.7 million. Same-store sales increased 0.7%. Digital sales, which are included in the comparable store sales results, were up 21.0%.

Signet Jewelers to open 65 to 75 U.S. stores
March 28, 2013 Hamilton, Bermuda — Signet Jewelers Ltd. reported better-than-expected fourth-quarter results, helped by sales gains at its biggest division, Kay Jewelers. The company, which raised its quarterly dividend by 25%, said it anticipates opening 65 to 75 new U.S. stores for the year. 

Signet, which also operates the Jared chain in the United States and the Ernest Jones stores in Britain, said revenue increased 11.8% to $1.51 billion for the quarter ended Feb. 2.
Same-store sales were up 3.5% in the fourth quarter. Same-store sales at Kay increased 5.8%.
Books-A-Million sales slip in Q4
March 27, 2013 Birmingham, Ala. — Books-A-Million reported Wednesday a profit of $8.1 million for the fourth quarter, up slightly from $7.6 million a year earlier.
Sales dipped 0.8% to $165.6 million, and same-store sales dropped 6.1%. For the full year, the retailer swung from a loss of $4 million to a profit of $2.5 million. Revenue rose 7.5% to $503.8 million.
Dick’s Sporting Goods to open 520th store
March 26, 2013 A Dick’s Sporting Goods store opening early next month in Jacksonville, Fla., will be the chain’s 520th location.
The Findlay Township-based Dick’s (NYSE: DKS) has 20 other stores in Florida. It has operations in 43 other states, including all around the Pittsburgh region.
DG to surpass 11,000 stores in ’13
March 25, 2013 Fourth quarter same store sales increased 3% at Dollar General as the company capped of another record year and indicated it would open 635 stores this year.
Total sales for the company’s 13 week fourth quarter ended February 1, increased 0.5%, to $4.21 billion compared to $4.19 billion during the 14 week fourth quarter the prior year. Excluding the extra week from the prior year’s fourth quarter, sales would have increased 8%. The company said its same store sales increase was driven by consumables and a mix of increased transaction size and customer traffic. Net income for the fourth quarter was $317 million and earnings per share totaled 97 cents, compared to net income of $293 million, or earnings per share of 85 cents, which benefitted by six cents because of the extra week.
New York & Company returns to profit in Q4
March 22, 2013 NEW YORK — New York & Company reported that net sales for the fourth quarter were $291.8 million, as compared with $271.8 million in the year-ago period.

Comparable-store sales increased 2.3% compared with a decrease of 6.3% in the prior year fourth quarter. Net income increased to $10.5 million, or 17 cents per diluted share. This compares with a net loss in the prior year fourth quarter of $10.9 million, or 18 cents per diluted share.
Tiffany Q4 beats Street
March 22, 2013 New York — Tiffany & Co.’s fourth-quarter net income inched up 0.7%, but its results still topped analysts’ predictions as strong demand in Asia helped to offset domestic weakness. The company also offered an annual sales outlook that topped analysts’ estimates, citing its strong prospects in most Asian markets.
For the quarter ended Jan. 31, Tiffany earned $179.6 million, compared with $178.4 million in the year-ago period. Revenue increased 4% to $1.24 billion. Total sales in the Americas region, which represented 48% of the company’s total revenue last year, rose 2% to $620 million in the fourth quarter and 2% to $1.8 billion in the full year. Same-store sales were down 2% in the fourth quarter and 2% to $1.8 billion in the full year. Same-store sales were down 2% in the fourth quarter and the full year.

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Cheers,
Shawn

Shawn joined the Memphis Office of The Shopping Center Group in 2003 and became a partner in 2008 to focus on shopping center leasing and tenant representation. He has a Bachelor of Business Administration and an MBA in finance and real estate from The University of Memphis. Prior to joining The Shopping Center Group, Shawn was a Senior Project Manager for Cingular Wireless (AT&T) and was responsible for real estate development management, construction and implementation for wireless antenna and tower infrastructure for Tennessee and Mississippi. He is adjunct professor at The University of Memphis where he teaches the masters level class in real estate development and sustainability. In 2013 in will be working with Homburg Academy and University teaching on-line commercial real estate classes internationally. He holds both the CCIM and SCLS designations. Shawn engages in tenant representation, third party leasing/sales, investment sale and development consulting in the retail sector.

He is the co-founder and Chairman of the Board for the Memphis Business Academy charter schools (K-12th grade) in the Frayser area of Memphis. He is currently the 2013 vice-president of the Memphis CCIM chapter, 2013 Secretary/Treasurer of the MAAR Education foundation. He has serve on various charitable organizations boards in Memphis including Habitat For Humanity, the Binghamton Development CDC Retail Committee and Youth Visions. He is a member of Christ United Methodist Church. His wife is Price Phillips and he has two children Amanda and Matthew.

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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