Friday, January 31, 2020

First Look: Nordstrom's in-store resale shop

Chain Store Age
Nordstrom is the latest department store retailer to tap into one of retail’s fastest-growing markets: previously-owned clothes and accessories.

Nordstrom has launched, See You Tomorrow, an online and in-store resale shop. Curated by Olivia Kim, VP of creative projects at Nordstrom, the shop features an edited, authenticated assortment apparel and accessories from highly coveted brands, the retailer said. . . . more

Gillette parent P&G to close most Art of Shaving stores

Boston Business Journal
Gillette parent company Procter & Gamble plans to close a large majority of the company’s 83 retail stores operated by the upscale Art of Shaving brand, citing a drastic decline in the popularity of some malls and changing consumer habits that include a growing preference for online shopping.

Seventy of the stores are in the United States. Across the country, some of the stores are in malls, while others are standalone businesses.

According to the company's website, there are three in Massachusetts, including locations in Newbury Street in Boston's Back Bay neighborhood, the Burlington Mall, and Braintree's South Shore Plaza.. . . more

Thursday, January 30, 2020

Sycamore interested in Victoria's Secret

Retail Dive
Private equity firm Sycamore Partners is in talks with L Brands founder and CEO Les Wexner to take over the company's Victoria's Secret brand, according to an updated story yesterday from The Wall Street Journal. A Sycamore spokesperson declined to comment to Retail Dive. Neither L Brands nor Victoria's Secret immediately responded to Retail Dive's requests for comment.

The publication previously reported that L Brands was in talks to sell off the brand and that Wexner was set to step down, except to retain his seat on the board as chairman. That was subsequently confirmed by other news outlets.. . . more

Gymboree makes its retail comeback

Chain Store Age
The Gymboree brand has been revived — by a former competitor.

The Children’s Place announced it is relaunching Gymboree in February. The brand, which went out of business last year, will be available on a new website and in shop-in-shop locations in more than 200 Children’s Place stores across the U.S. and Canada.. . . more

Wednesday, January 29, 2020

Wexner may step down as L Brands CEO, sell Victoria’s Secret

The Columbus Dispatch
The Dispatch has confirmed that L Brands founder Leslie H. Wexner is considering stepping down as the company’s CEO and selling off lingerie brand Victoria’s Secret.

Wexner is in talks that could result in a full or partial sale of Victoria’s Secret. The chain, with about $7 billion in annual sales, has long dominated the U.S. lingerie market but has struggled in recent years with falling sales. The Wall Street Journal first reported the possible sale online Wednesday morning, and The Dispatch confirmed the story through a source close to the company. . . . more

Tuesday, January 28, 2020

Simon Property, Authentic Brands Consider Buying Forever 21

Bloomberg
Mall owner Simon Property Group is considering a bid to buy Forever 21 Inc., the bankrupt teen retailer that’s running out of money and time, according to people with knowledge of the matter.

Simon would pair with Authentic Brands Group LLC to buy and operate the stores and the brand, said the people, who asked not to be identified because the discussions are private. The talks are continuing, and there’s no guarantee that the various sides will agree on terms or that a sale will result.. . . more

Monday, January 27, 2020

Gap closed dozens of stores in 22 US states on Sunday. Here's the full list.

Business Insider
Gap closed 40 stores globally on Sunday, including 29 locations in the US, according to the company's website.

The closings are part of a previously announced plan to shutter 230 stores over the course of two years.

Gap has said that about 130 locations will close in fiscal 2019, and that a majority of those closings will happen in the fourth quarter, which extends into January 2020. . . . more

Silver City Galleria owner says mall not closing even as it bleeds tenants

Taunton Daily Gazette
Is the Silver City Galleria mall closing? That is the question.

Local social media during the past month has been rife with speculation that the 27-year-old shopping center will shut down, either by the end of February or even as soon as the end of this month.

Property owner William Thibeault says he does not plan to close the Galleria, despite the fact that it continues to bleed tenants. . . . more

Sunrise Records owner to buy U.S. retailer For Your Entertainment for US$10M

BNN Bloomberg
Canadian retail chain Sunrise Records is branching out into the United States with the acquisition of For Your Entertainment, a music, film and pop culture outlet that operates across much of the country.

Doug Putman, president of the Sunrise, said the deal is valued at roughly US$10 million and comes with more than 200 locations that he plans to continue operating under the U.S. brand name. . . . more

Amazon’s newest retail format is….

Chain Store Age
Amazon is back in the pop-up game.

After closing all of 87 pop-up shops last year, the online giant has thrown its hat back in the ring. The company has opened five pop-ups in malls, according to a listing on its web site. A sixth, in Seattle and next to Amazon's corporate headquarters, is in the works.

The website for the company's retail stores described the new pop-up concept as “a physical extension of Amazon.com. ” . . . more

Wednesday, January 22, 2020

Express trimming stores in new turnaround move

Chain Store Age
Express Inc. launched a new corporate strategy that involves closing stores and cost reductions.

The apparel retailer said it plans to close approximately 100 stores by 2022, with the total including nine locations that closed in 2019. Another 31 stores will shutter by the end of January 2020, and an additional 35 by the end of January 2021. Currently, Express operates approximately 600 stores. . . . more

Tuesday, January 21, 2020

Papyrus parent to close all stores

Retail Dive
In a letter to employees, Dominique Schurman, COO of Schurman Retail Group, which owns Papyrus stores, said the company would close its doors. The company has hired liquidation firm Gordon Brothers to assist with the going-out-of-business sales, according to the letter, viewed by Retail Dive.

Schurman cited "current challenges of the retail industry" and said the company had been "diligently working to revitalize our business" for months beforehand. Schurman thanked employees and told them more information would follow "as we navigate this difficult time." . . . more

Friday, January 17, 2020

Macy’s newest ‘story’ is wellness

Chain Store Age
Macy’s is encouraging consumers to “feel good” in the newest version of its ever-changing, narrative-driven in-store experiential concept.

The department store retailer has added “Feel Good Story” shops to 36 locations nationwide. The concept is the latest iteration of Story at Macy’s and comes about 20 months after Macy’s acquired Story, the experiential Manhattan retailer that reinvents itself with a new theme every couple of months.. . . more

Tempur Sealy Expands Tempur-Pedic Retail Footprint

Home Furnishings Business
Bedding supplier Tempur Sealy has announced its plans to open its first Tempur-Pedic retail location in Manhattan in June and is opening its 56th store at the Walt Whitman Mall on Long Island on Friday, Jan. 17, expecting to operate 75 to 80 retail locations by the end of 2020.

The one-of-a-kind store in the Bloomberg building in Manhatten will provide customers with a luxury retail experience, and ensure customers have an opportunity to try out and select the right sleep solution for their personalized needs. . . . more

The Department Store of the Future Will Look a Lot Like the Past

The Wall Street Journal
The department store transformed America. Now some of the very forces that fueled its rise have been turned against it. The only way out may be for it to recapture something of its past.

In an era in which online stores such as Amazon.com are battling with giants like Walmart and Target to offer customers anything under the sun, shopping at a department store for many Americans is almost quaint. Retail sales figures from the Commerce Department this past week showed that overall U.S. department store sales were down 7.2% in November and December from a year earlier.. . . more

Thursday, January 16, 2020

Gap is no longer spinning off Old Navy

CNBC
Gap Inc. has called off plans to split Old Navy into a separate public company, the company announced in a press release Thursday.

The apparel maker also announced that Neil Fiske, president and CEO of the Gap brand, is departing.. . . more

Moody’s: Operating income of department stores in 2019 to be down about 20%

Chain Store Age
Another dismal year for U.S. department stores will accelerate change in 2020.

That’s according to a new report from Moody's Investors Service, which said that despite strength in most other sectors of the retail industry in 2019, department stores lost momentum in 2019, with operating income for the year projected to be down about 20%.. . . more

Bose to close all North American, European retail stores

Boston Business Journal
Bose Corp. will close all of its 119 retail stores in North America, Europe, Japan and Australia “over the next several months” as the Framingham-based consumer electronics company handles “the dramatic shift to online shopping in specific markets,” the company announced Wednesday.

Bose has retail locations at the Burlington Mall and Colonie Center in Albany, New York, as well as factory stores in Wrentham, Merrimack, New Hampshire and Central Valley, New York.. . . more

Wednesday, January 15, 2020

Why Nordstrom Is Keeping Its ‘Passion’ for Stores Amid Broader Retail Downsizing

Footwear News
Amid a rapidly changing retail landscape characterized by widespread store closures and the rise of e-commerce, Nordstrom has arguably managed to stay ahead of many of its competitors.

The Seattle-based retailer has often been lauded for its innovative concepts and omnichannel savvy, including its pioneering of the “buy online, pick up in store” service, a revamped loyalty program and experiential store offerings.

But even as the department store naturally ramps up its focus on digital, it’s hardly scaling back on its brick-and-mortar strategy. According to Co-president Erik Nordstrom, success in today’s highly competitive selling environment lies in balance.. . . more

Express cuts 10% of corporate workforce

Retail Dive
Express on Thursday announced a 10% cut in its corporate workforce, at its Columbus, Ohio, headquarters and its New York City design studio, "to align its organization with the company's go-forward strategy," which has been developed over the past six months.

The specialty apparel retailer is also streamlining its store management operations to make stores more efficient, according to a company press release.. . . more

Strip Centers Shine as Some Shoppers Sour on Malls

The Wall Street Journal
While many stock-market investors have soured on the mall experience, some are still flocking to a more mundane type of retail: strip centers and grocery-store-anchored shopping centers.

The centers, which predate the American mall, offer routine necessities such as groceries for dinner, a gym workout or a visit to the dentist, in contrast to special purchases typically made at indoor malls, like a toy or a new dress.

Whereas mall owners hope to entice customers to spend an hour or more browsing the property, strip-center landlords say they simply want to offer stores and services that bring back local shoppers more than once a week.. . . more

Friday, January 10, 2020

By the numbers: The 2019 holiday sales roundup

Retail Dive
Analysts across the board predicted retail sales to rise during the holiday period. But so far, the gains have not been shared by all.

Profligate discounting could make 2019 the most promotional holiday season since the recession, according to one analyst. And hardest hit by price wars may be department stores, some of the largest of which have reported comparable sales declines for the all-important sales period. . . . more

L Brands lowers guidance as Victoria’s Secret drags down holiday performance

Chain Store Age
L Brands’ sales fell in the crucial holiday shopping season amid the ongoing decline of its signature Victoria’s Secret brand.

The company reported net sales of $3.9 billion for the nine weeks ended Jan. 4, 2020, compared to net sales of approximately $4.1 billion in the year-ago period. Total same-store sales decreased 3% compared to a 4% increase last year. . . . more

US mall retailers hit by declining holiday sales

Boston Business Journal
The persistent difficulties facing America’s mall-based retailers were demonstrated on Thursday when several of the biggest names in the sector reported falling sales over the crucial holiday trading period.

Like-for-like sales at JCPenney, which operates 850 stores and is an anchor tenant at shopping malls across the country, dropped 7.5 per cent year-on-year over the nine-week period to the start of January.. . . more

Thursday, January 9, 2020

Forever 21 Accused by Creditor of Inflating Sales Projections

NREI
Forever 21 Inc. can add a lawsuit to the hurdles it’s trying to overcome as it works to woo investors in time to finance its exit from bankruptcy.

An Alabama mall owner is suing Forever 21, saying it lost millions of dollars leasing space to the retailer based on misleading sales targets.. . . more

JC Penney says holiday same-store sales fell 7.5%, reaffirms outlook for the year

CNBC
J.C. Penney wasn’t able to buck the trend of declining sales at U.S. department store chains this holiday season. But despite a steep sales decline, it reaffirmed its financial outlook for the year.

The company said its same-store sales over a nine-week period that ended on Jan. 4 dropped 7.5%. . . . more

Kohl’s shares tank on dismal holiday sales results, lowered outlook

CNBC
Kohl’s said same-store sales during November and December fell 0.2% due to weakness in its core women’s apparel business, leading it to lower the bar for its full-year outlook.

Kohl’s has been expected by analysts to deliver same-store sales growth during the fourth quarter, which includes the holiday season, of 0.4%. . . . more

Wednesday, January 8, 2020

Macy's says it will close 29 stores

Retail Dive
Macy’s is shuttering "28 Macy’s locations and one Bloomingdale’s store in the coming weeks," a company spokesperson told Retail Dive in an email on Wednesday.

The company didn't immediately respond to Retail Dive's request for more specifics on which stores will shutter, although they include one in Cincinnati, home to one of the company's headquarters, according to a notice filed Jan. 6 with the Ohio Department of Job and Family Services. According to a roundup of local reports compiled by USA Today, others include a store in Connecticut, four in Florida, two in Georgia, one in Idaho, two in Illinois, and three in Washington state, among others.. . . more

Macy's eases holiday season sales worries, shares rise 6%

Reuters
Macy’s Inc reported just a 0.6% drop in holiday period same-store sales on Wednesday, quelling fears of a more dramatic fall in the department store operator’s numbers for the crucial annual shopping season after an earlier profit warning.

Macy’s, which cut its annual profit forecast in November blaming weak international tourism and sluggish mall traffic, is among the first major corporate names to report sales for the holiday season - seen as a barometer for the health of U.S. consumer spending.. . . more

This Leominster mall just sold for $16M

Boston Business Journal
Hull Property Group has bought The Mall at Whitney Field in Leominster from Colony Capital for $16 million.

The 744,107-square-foot mall is 95 percent leased and anchored by Sears, Macy’s, JCPenney, Burlington and Market Basket.. . . more

Tuesday, January 7, 2020

Macy's is closing at least 15 stores — here's the full list

Business Insider
Macy's is closing at least 15 stores in the early part of 2020.

In 2016, Macy's said that it would close 100 stores after it reported six consecutive years of declining sales. Since then, it has been shuttering these locations as their leases expire.

A spokesperson for the company did not comment on whether this recent wave of closures was included in the 2016 plan but said that Macy's "regularly reviews" its store portfolio and will update investors in its upcoming investor day on February 5.. . . more

American Dream Mall Bucks Retail Nightmare, Nears 90% Lease Rate

NREI
When shoppers visit the long-awaited American Dream mega-mall in New Jersey this spring, they can expect to see it crammed with stores, restaurants and entertainment activities. It didn’t always seem that way.

Developers have leased almost 90% of its available 3.3 million square feet, a figure which rises to nearly 100% when leases under negotiation are included, according to a filing. . . . more

US shopping mall vacancies hit two-decade high

Boston Business Journal
Vacancies in US shopping malls have hit the highest level in at least 20 years, a milestone that shows how landlords are struggling to come to terms with the age of Amazon.

More shopping centre units lay empty across the country at the end of 2019 than any time during the past two recessions, according to figures published on Tuesday by Reis Moody’s Analytics.. . . more

Friday, January 3, 2020

Is The Sears Death Watch Entering Its Final Stages?

Forbes
Will 2020 be the year Sears finally goes out of business?

While it’s certainly a likely scenario for the once-mighty retail empire, the same exact question could have been asked in 2019 … and 2018 … and 2017 … and for years before.

But this year could really be it as the death-defying circus act that Sears has become could face its final goodbye sometime over the next 12 months, spurred on by its most recent activities.. . . more

Thursday, January 2, 2020

The two retail sectors that stood out during the past decade were…

Chain Store Age
Retail same-store sales posted an estimated 1.9% growth during the past 10 years.

That’s according to a review of U.S. retail highlights of the past decade by Refinitiv, which found that the 1.9% growth was slightly above the long-term average of 1.7% since it started collecting the data in 2004. The report found that the two sectors that stood during the past decade were discounters and department stores: The department stores deteriorated the most of all the retail sectors, while the discounters started outperforming towards the end of the decade. . . . more