Friday, August 31, 2018

Burlington Stores Q2 income surges

Chain Store Age
Burlington Stores’ made a strong showing on its top line in its second quarter.

Total revenue increased 9.9% $1.50 billon, in line with estimates. Same-store sales grew 2.9%, just shy of analyst estimates of 3.0%. . . . more

Signet Q2 earnings, sales well above forecasts

Chain Store Age
The owner of Kay Jewelers, Zales and Jared and other jewelry chains reported earnings and sales that blew past analysts’ estimates amid double-digit online growth and strong sales at most of its banners.

Same-store sales rose 1.7%. Analysts had expected a decline of 4.5%. Same-store sales rose 7.1% at Zales, 11.5% at Piercing Pagoda, and 1.2% at Jared. Same-store sales fell 2.1% at Kay. . . . more

Ulta Beauty earnings jump 30% but outlook misses

Chain Store Age
Ulta Beauty’s second-quarter earnings topped forecasts, but the beauty retailer’s third-quarter guidance disappointed analysts.

Net sales increased 15.4% to $1.488 billion, compared to $1.289 billion million last year. Analysts had expected sales of $1.49 billion.

Same-store sales increased 6.5%, driven by 3.1% transaction growth and 3.4% growth in average ticket. . . . more

Thursday, August 30, 2018

Hollister disappoints as execs reiterate brick-and-mortar plan

Retail Dive
Abercrombie & Fitch Co. on Thursday reported second quarter net sales rose 8% to $842.4 million, driven by a calendar shift and positive comparable sales. That missed the average analyst forecast cited by Reuters for $845.2 million. The company's 3% rise also missed the Thomson Reuters I/B/E/S average analyst​ expectation for a 3.7% boost.

By brand, comps rose 4% and sales reached $500.8 million at Hollister, missing analyst expectations for a 5.3% increase. Comps rose 2% and sales reached $341.6 million at Abercrombie, according to a company press release. Direct-to-consumer net sales rose 16% from last year to $216.4 million and were about 26% of total net sales for the quarter, compared to about 24% last year.. . . more

Brookfield Engages in Joint Ventures, Considers Mixed-Use Alternatives in Trying to Raise the Value of GGP’s Mall Portfolio

Brookfield Property Partners’ $15 billion takeover of GGP—one of the country’s biggest mall REITs—was completed on Aug. 28. The deal hoists Brookfield to become the second-largest U.S. mall owner behind Simon Property Group.

The move to acquire GGP at a time when physical retail is plagued with retail closings and bankruptcies shows Brookfield has confidence in brick-and-mortar retail. And the company isn’t wasting any time in overhauling GGP’s 125-property mall portfolio. It’s bringing in equity partners in many of the malls it acquired with different goals depending on how well each asset is performing, reports the Wall Street Journal.. . . more

Digitally native Eloquii continues offline expansion

Chain Store Age
Online plus-size fast-fashion brand Eloquii has touched down in Miami.

The retailer opened its first Southeast location, at Dadeland Mall, In Miami. The 1,900-sq.-ft. store features the brand’s ever-evolving assortment of runway-driven pieces, from dresses to separates and swim, in sizes 14 to 28. The sleek space has pops of gold throughout, giving it a luxe, indulgent feel. . . . more

Sears Stock Rallies After Amazon Deal Gives Its Stores a Surprise Boost

The summer of 2018 has been another tough period for Sears, but there’s one thing that has reliably helped lift the retailer’s share price: Amazon.

On Tuesday, Sears Holdings announced that it’s expanding a pilot program with Amazon to install and balance automobile tires that consumers buy through Amazon. Under the partnership, Amazon shoppers who buy tires, including the Die-Hard brand made by Sears, can ship the tires to a nearby Sears Auto Center for installation.. . . more

American Eagle Outfitters to ramp up Aerie store expansion

Chain Store Age
American Eagle Outfitters, which on Wednesday reported its 14th consecutive quarter of same-store sales growth, is bullish on its fast-growing intimate apparel brand Aerie.

In the chain’s second-quarter earnings call, American Eagle CEO Jay Schottenstein described Aerie’s performance as “nothing short of spectacular, marking nearly four years of consecutive double-digit growth. . . . more

Wednesday, August 29, 2018

American Eagle Outfitters soars in Q2 but outlook disappoints

Chain Store Age
American Eagle Outfitters topped analysts’ estimates in the second quarter amid its 14th consecutive quarter of same-store sales growth, buts its third-quarter earnings outlook fell short.

The teen apparel retailer reported net income of $60.3 million, or 34 cents a share, in the quarter, up from $21.2 million, or 12 cents a share, in the year-ago period. Analysts had expected earnings of 31 cents a share.

Revenue rose to $964.9 million from $844.6 million, which was better than expected. Consolidated same-store sales rose 9%, also more than expected. . . . more

Chico’s tops Street amid ongoing omnichannel initiatives

Chain Store Age
Chico’s FAS sales declined 5.9% to $544.7 million from $578.6 million, but still topped Street estimates of $541.0 million. The decline reflected the impact of 42 net store closings since the year-ago period and a calendar shift with the addition of an extra week in 2017.

Total same-store sales were down 3.2%, as a lower transaction count was partially offset by higher average dollar sales. By brand, same-store sales fell 3.8% at Chico’s, 3.5% at White House | Black Market and 0.9% at Soma.. . . more

Dick's Sporting Goods plunges after saying it saw 'significant declines in Under Armour sales'

Business Insider
Dick's Sporting Goods earned $1.20 a share during the second quarter, easily beating the the $1.06 that Wall Street analysts surveyed by Bloomberg were expecting. Dick's recorded second-quarter sales of $2.18 billion, missing the $2.23 billion that was anticipated. Comparable sales fell 1.9%, worse than the 0.8% drop that was expected.

"As we continue to focus on driving profitable sales, we are very pleased with our strong gross margin improvement. An improved product cycle, fewer promotions, and a favorable product mix contributed to the overall strength in our merchandise margin," CEO Edward Stack said in the earnings release. . . . more

Tuesday, August 28, 2018

Adventure park plans to quadruple its shopping center footprint

Chain Store Age
The master broker for Urban Air Adventure Parks told a convention of retail real estate executives on Monday that the Dallas-based chain was poised to deliver on that promise and would be doubling its shopping center presence to 100 locations this year before doubling them again to 200 by the end of 2019.

“Trampoline parks were the Nineties; people want more,” said Stern, a principal of Edge Realty Partners at the International Council of Shopping Centers show in Orlando. “So we’re giving them indoor skydiving, obstacle courses, zip-lines, and Euro-style go-carts.” . . . more

Here’s How J.Crew Is Going to Win You Back

Out of all the Fashion Week shows, J.Crew’s was always the most laid-back. No runway for models to stomp down, or celebrity appearances to froth over. Instead, the brand used “real people,” dressing employees and friends in the new collection and scattering them around spaces where other brands held runway shows. Still, even that was too much for James Brett, the company’s new CEO, appointed last June and tasked with turning the brand around after years of declining sales. “This brand should never show at New York Fashion Week,” Brett told The Wall Street Journal. “We’re not Gucci.” But no more runway is just a part of a broader revamp and strategy for the new J.Crew: more affordable, less fashion. . . . more

As Sears withers, its former stores fuel a new fortune

Boston Business Journal
Three years ago, Sears sold about 235 stores to Seritage Growth Properties, a spinoff company that was created to convert Sears and Kmart locations — which Sears also owns — into more valuable uses like offices and restaurants. The struggling retailer, in return, got a $2.7 billion infusion of cash.

The real estate play, put in motion by Edward S. Lampert, a hedge fund manager with a large role in both companies, is simple. As Seritage works to redevelop some of Sears’ best locations into more profitable uses, it is also collecting rent from Sears for stores still in operation.. . . more

Monday, August 27, 2018

Foot Locker in comeback

Chain Store Age
Foot Locker is back on track after a lackluster 2017, beating second quarter Street forecasts amid improved inventory management.

Net income totaled $88 million compared to net income of $51 million in the prior year.

Total sales rose 4.8% to $1.78 billion, besting analysts’ estimates of $1.76 billion. Same-store sales inched up 0.5%.. . . more

Friday, August 24, 2018

Children's Place sales jump 20% as it preys on competitors

Retail Dive
The Children's Place barreled through its second quarter and back-to-school season, posting a 20.1% year-over-year spike in net sales, which totaled $448.7 million, according to a company release. Comparable sales were up 13.2% in Q2, partly due to a strong traffic increase at its brick-and-mortar stores and digital sales increases.

Net income in Q2 fell by nearly half, to $7.5 million, partly from costs related to the children apparel retailer's "transformation" efforts, while operating income more than tripled to $10 million. . . . more

Q2 Growth At Walmart, Target, TJX Hints That Retail’s Woes Are In The Rear-View Mirror

Retail Touchpoints
In 2017, the stories of retail bankruptcies, store closures and the decline of department stores conveyed a bleak outlook for the state of retail, giving rise to the term “retail apocalypse.” But one year later, it appears the industry has gone a long way toward righting itself, with some of retail’s top players leading the way in Q2.

Walmart, Target, The Home Depot and TJX all had excellent financial quarters, with the troubled department store sector even experiencing a slight bounceback (excepting JCPenney) on the strength of continued reinvestments. Urban Outfitters, the biggest winner of Q2, is something of a surprise. The retailer’s success showed that fashion and apparel can perform if fast inventory churn and low markdown rates are executed properly.. . . more

Does Sears have a future? Troubles mount with more Sears, Kmart store closures

USA Today
Sears Holdings announced this week that it would close about 5 percent of its remaining stores, all of which it said were losing money.

While the store closures mean it will be harder to find a Sears or Kmart this holiday season, both retailers are likely to survive to see the new year.. . . more

Old Navy does the heavy lifting for Gap in Q2

Chain Store Age
Gap Inc. sales rose 8% to $4.1 billion in the period ended August 5, better than the $4 billion analysts had expected.

Same-store sales increased 2%, marking the company’s seventh-consecutive quarter of positive comp growth. By brand, same-store sales rose 5% at Old Navy and 2% at Banana Republic. Same-store sales fell 5% at Gap, almost double what analysts had expected. . . . more

Thursday, August 23, 2018

Williams-Sonoma delivers impressive Q2

Chain Store Age
Williams-Sonoma reported better-than-expected earnings and sales, fueled by strong performances by its West Elm brand, digital channel and growth across all its brands.

Total same-store sales rose 4.6%. By brand, same-store sales increased 9.5% at West Elm, 5.7% at Pottery Barn Kids and Teens, 2% at Pottery Barn and 1.6% at Williams-Sonoma.  . . . more

Another 46 Sears and Kmart stores closing in November: Here's the list

USA Today
Sears Holdings is closing 46 more Sears or Kmart stores as the struggling retailer seeks stability amid questions about its future.

The department store chain also said it will "continue to evaluate our network of stores" and "make further adjustments as needed," raising the distinct possibility of additional closures as the company continues reeling.

The latest plan involves closing 13 Kmart locations and 33 Sears stores in November, all of which are losing money. . . . more

Do J.C. Penney Stores Have a Future?

To say that J.C. Penney is facing serious problems is an understatement.

The struggling department store’s stock plummeted on Aug. 16 more than 27 percent to $1.75 per share—the lowest level since the company’s listing on the New York Stock Exchange during the Great Depression in 1929, according to Reuters. This plunge followed the release of the retailer’s disappointing second-quarter earnings report, which fell short on both earnings and revenue.. . . more

Wednesday, August 22, 2018

Brookfield Making Over GGP Malls With New Businesses and Tenants

The Wall Street Journal
Brookfield Property Partners had to overcome vocal GGP Inc. shareholder opposition last month to convince stockholders to approve its $15 billion takeover of the mall owner. That may prove to be the easy part.

Now Brookfield has to revitalize GGP’s 125-property portfolio at a time when many shopping malls are reeling. That means expanding GGP’s top-tier shopping centers with additional stores, while scaling back or reconfiguring less successful malls by adding housing, office space or hotels. . . . more

Target firing on all cylinders amid record store traffic, surging online sales

Chain Store Age
There was no stopping Target Corp. in its second quarter — online or off — as it reported skyrocketing digital sales and “unprecedented” store traffic growth.

The discounter’s stellar quarter came as the chain has focused on revamping its business to better compete in an omnichannel environment. Target’s hefty investments (totaling some $7 billion) in expanding its digital operations, remodeling its existing stores, rolling out new smaller-format locations, and enhancing its merchandising mix with an array of new house brands appear to be paying off.. . . more

A 'scary' development is taking place at Victoria's Secret

Market Insider
Pricing power continues to erode at L Brands as the brand extends more and more promos and yet the consumer still isn't responding. It's a major red flag considering Pink is a $3 billion business and accounted for all of Victoria's Secret's segment growth over the past 5 years, Konik added.

"Victoria's Secret brand is broken and PINK is now breaking," Konik reiterated in Monday's note.. . . more

Wall Street Investors Increase “Big Short” Bets on CMBS Retail Loans

Hedge fund company Alder Hill Management is one high-profile player shorting CMBS with high concentrations of retail loans. The Wall Street Journal first reported on the hedge fund’s short 18 months ago, followed by a more recent story in early August that said the hedge fund made an additional short investment on 2012 and 2013 era loans. Earlier this spring, Bloomberg also reported that Deutsche Bank and Morgan Stanley had both recommended buying credit protection against, or shorting, segments of CMBS with heavy concentrations of retail loans.

Some people are looking at retail loans as the next “big short”, says Manus Clancy, senior managing director and the leader of applied data, research, and pricing departments at Trepp. . . . more

Tuesday, August 21, 2018

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

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

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

Sales at Kohl’s Rise Amid Robust Consumer Spending

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

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

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

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

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

Monday, August 20, 2018

These are the fastest-growing retailers in America right now

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

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

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

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

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

Sears CEO Puts His Own Board on the Spot

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

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

Friday, August 17, 2018

Irvine Spectrum Center unveiling $200 million renovation

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

Nordstrom raises outlook as Q2 sales, earnings cruise past expectations

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

Restoration Hardware founder’s latest venture is folding

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

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

Chili's Gets its Mojo Back

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

Thursday, August 16, 2018

Future bright for malls, physical retail, says report

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

Retail sales jump again in July

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

For Struggling Restaurants, It's Buy or Die

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

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

Specialty apparel retailer opens Staten Island store

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

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

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

Wednesday, August 15, 2018

Famous Dave's Cooks Up Another BBQ Concept

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

Noon Mediterranean Files for Bankruptcy

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

Outfitting house and home

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

Tuesday, August 14, 2018

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

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

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

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

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

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

Monday, August 13, 2018

Why One of the Biggest Mall Owners Is Doubling Down on Malls

Wall Street Journal
While mall owners have faced record store closures and bankruptcy filings as more Americans shop online, Taubman Centers Inc. has doubled down. It is reinvesting in design, technology, big-data tools and new store mixes for its 24 malls. One of the biggest overhauls is a $500 million revamp of the Beverly Center in central Los Angeles...more

Friday, August 10, 2018

JLL: Co-working spaces in malls on the rise

With some 43% of employed Americans now saying they spend at least some time working remotely, flexible spaces are on the rise and seeking new, unconventional locations to root their operations. And malls are in the mix...more

The leading developer of new malls abroad is a retailer

Can you name the biggest developer of Ikea-anchored shopping centers in Europe and Asia? If you answered the Sweden-based furniture retailer itself, reward yourself with an order of Swedish meatballs...more

Party City to team up with Amazon

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

Winning the Hearts–and Loyalty–of Younger Consumers

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

Thursday, August 9, 2018

Retail collapse: The 57 biggest chains closing stores
It's been a merciless few years when it comes to retail store closings.

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

Is your favorite retailer closing shop? . . . more

Jewelry chain files Chapter 11—again

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

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

Wednesday, August 8, 2018

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

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

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

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

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

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

Tuesday, August 7, 2018

Women’s apparel retailer extends credit agreement

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

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

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

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

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

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

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

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

Monday, August 6, 2018

Hanover Mall redevelopment forum scheduled Thursday night

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

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

A tale of retail: The shopping mall

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

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

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

Jamba Juice acquired by fast-casual giant

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

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

Friday, August 3, 2018

Sally Beauty closing stores, launching click and collect

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

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

Thursday, August 2, 2018

Do Fast-Fashion Chains Still Have Room to Grow?

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

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

Brookstone filed for Chapter 11

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

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

Wednesday, August 1, 2018

10 retailers at risk of bankruptcy: Q2 update

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

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

Retail Industry to Make a Comeback by Regaining its Rightful Spot

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

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