Smaller Retailers Destined For Former ‘Big Box’ Stores

March 27, 2017 in Latest News

These are dark days for the traditional “big box” retailer.

Sears cast doubt this week that it could stay open, and that followed recent announcements by other struggling retail stalwarts Macy’s, J.C. Penney Co. and Kmart that they would be closing stores across the country in response to the fallout from a consumer shift to online shopping.

Electronics and appliances retailer hhgregg said this month it would be closing all 11 stores in South Florida; the announcement came less than a year after Sports Authority went out of business.

The retailers are vacating spaces of 25,000 to more than 100,000 square feet, forcing shopping center owners to find new tenants or new uses for the buildings.

More yawning spaces could be opening up around South Florida if Sears and Kmart sink amid heavy financial losses. According to their websites, Sears operates 15 locations (14 department stores and an outlet store) in Palm Beach, Broward and Miami-Dade counties. Kmart has seven stores in all three counties.

“This certainly is at the top of [landlords’] minds right now,” said Robert Granda, director of retail investment sales for the Franklin Street brokerage across South Florida. “The challenge in this changing environment is that there are not that many retailers looking to take so much space. There are a lot more tenants looking for 10,000 square feet or less than there are looking for 30,000 square feet or more.”

Alan Esquenazi, a partner at commercial real estate company CREC, agreed that a “resizing” of retail is happening across the nation.

“Bricks-and-mortar retail is unequivocally not dead,” he said. “But you have to be really sharp, really competitive. You have to offer the customer an experience, like Apple does. The retailers that are closing offered nothing different, and they were destined to fail.”

Granda, Esquenazi and other retail observers say one of the best options for landlords is to subdivide the big box buildings into smaller spaces for two or three new tenants.

That’s the plan at former Sports Authority stores in Pompano Beach and Boynton Beach, though the new tenants have not yet been announced, said Katy Welsh, senior vice president of retail services at Colliers International.

The Related Cos. of New York, which owns CityPlace in West Palm Beach, has not announced plans for the two-story, 108,000-square-foot Macy’s that’s due to close this spring. But analysts say filling that space with multiple tenants is a strong possibility.

“My guess is that CityPlace will subdivide that space downstairs, and there likely will be a food and entertainment use upstairs,” said Alan Bush, CEO of Northlake Partners, a retail strategy company based in West Palm Beach. “That combination provides the best return on investment for the landlord.”

Welsh said retailers most likely interested in taking at least part of the space in former big box stores include discount clothing chains Ross, TJ Maxx and Marshall’s as well as Home Goods and Orchard Supply Hardware.

Another possibility is the grocery store chain group, including Trader Joe’s and Lucky’s Market, Welsh said. Lidl, a German grocer, is headed to Florida after expanding into the Carolinas, Virginia and Texas, she said.

Movie theaters are another possibility, but they wouldn’t be an ideal fit in smaller, older centers, analysts say.

Landlords are eager to find new tenants at a higher cost per square foot to replace the retailer-friendly leases signed by Kmart and other chains many years ago, according to Welsh.

As a consumer, she said it’s hard for her to accept that Sears and other former retailing powerhouses are struggling to survive. But as a retail observer, she’s intrigued by what’s ahead.

“From a landlord’s perspective,” she said, “we’ve been waiting for the other shoe to drop for a long time.”

 

Source:  SunSentinel

Retailers: Ups And Downs Heading Into 2017

December 27, 2016 in Latest News

escalatorThe good news for U.S. retailers this holiday seasons is that revenues are expected to rise by about 4% and same-store sales are figured to increase by 1%. The less-good news is that profits for the fourth quarter (ending in January) are expected to fall 1.8%.

Heavy promotional pricing began earlier this year and retailers essentially faced a race to the bottom in an effort to maintain sales. But store traffic has not improved; in fact it’s weakened. And Amazon.com Inc. continues to take sales and profits from brick-and-mortar stores.

The result is likely to be that supposed and announced store closures will go ahead as planned and may even increase for some retailers. According to an estimate made last June from Green Street Advisors, about 25% of all U.S. department stores need to close in order for the industry to return to the sales-per-square-foot levels of 2006.

A total of 14 major retail chains have said that they will close at least 100 stores by the end of 2020. Most will reach that total by the end of 2017. In some cases, these numbers appear to be on the low side, given the difficulties some retailers are encountering.

Aeropostale. The chain filed for bankruptcy in May 2016 and said it would close 154 stores. Now it appears that the chain will close all but about 230 of its 800 or so stores.

American Eagle Outfitters Inc. (NYSE: AEO). The company plans to close 150 stores over three years.

Chicos FAS Inc. (NYSE: CHS). Planned to close 120 stores between fiscal 2015 and 2017.

The Children’s Place Inc. (NASDAQ: PLCE). Planned to close 200 stores between fiscal 2015 and 2017.

Finish Line Inc. (NASDAQ: FINL). Has said it will close 150 stores by 2020.

Hancock Fabrics. The company filed for bankruptcy in February 2016 and will close all 255 of its stores.

Macy’s Inc. (NYSE: M). Plans to close 100 stores.

Men’s Wearhouse Inc./Jos. A. Banks. Parent Tailored Brands Inc. (NYSE: TLRD) plans to close 250 stores, primarily outlet stores.

Office Depot Inc. (NYSE: ODP). At the time of its merger with OfficeMax, the chain said it would close 400 stores by the end of this year, and that appears to be the case.

Sears Holdings Corp. (NASDAQ: SHLD). Between Sears and Kmart stores, the company plans 142 store closings, with more likely.

Sports Authority. Another bankruptcy, with 140 stores closing.

Walgreen Boots Alliance Inc. (NYSE: WBA). The company planned to close 154 stores. Last week the company announced the sale of 865 Rite Aid Inc. (NYSE: RAD) stores to Fred’s Inc. (NASDAQ: FRED) in an effort to win approval for the Walgreens-Rite Aid merger.

Wal-Mart Stores Inc. (NYSE: WMT). Has said it will close 154 U.S. stores and open 300 in the rest of the world.

Wolverine World Wide Inc. (NYSE: WWW). Expected to close 100 stores worldwide.

 

Source:  24/7 Wall Street

Sports Authority To Close Or Sell 140 Stores

March 7, 2016 in Latest News

sports authoritySports Authority plans to begin liquidation sales as soon as Friday at about 140 stores that are set to close as part of its Chapter 11 bankruptcy.

The Englewood, Colo.-based chain — owned by Los Angeles-based private equity firm Leonard Green & Partners — filed for bankruptcy Wednesday, citing $1.1 billion in debt and saying that its sales had slumped after it failed to keep up with consumer trends.

Nearly one-third of the retailer’s locations will begin liquidation sales within days.

The list includes 25 stores in Texas, 19 in California, 18 in Florida and 11 in Illinois.

The rest could be sold to other retailers or liquidators as the company is currently negotiating with prospective suitors.

A U.S. Bankruptcy Court judge in Delaware was expected to approve the store-closure plan at a hearing Thursday.

“Sales are expected to last for several weeks – the duration will most likely vary at different stores,” Sports Authority spokesman Steven Goldberg said in an email.

Below is the list of store-closures set to begin as soon as Friday, according to a court document filed late Wednesday.

 

Arizona

Casa Grande store in Case Grande

Mesa store in Mesa

Ahwatukee store in Phoenix

Arrowhead store in Glendale

Tuscon Broadway store on Broadway Boulevard in Tuscon

Tuscon Calle store on South Calley Santa Cruz in Tuscon

Tuscon Oracle store on North Oracle Road in Tuscon

California

Bakersfield store in Bakersfield

Redding store in Redding

Riverside store in Riverside

Camarillo store in Camarillo

Cerritos store in Cerritos

Santa Ana store in Santa Ana

Corte Madera S.A. Elite store in Corte Madera

Topanga Mall S.A. Elite store in Los Angeles

Stockton store in Stockton

West L.A. store on South Sepulveda Boulevard in Los Angeles

Ventura store in Ventura

Canoga Park store in Canoga Park

Midtown Crossing store on West Pico Boulevard in Los Angeles

Thousand Oaks store in Thousand Oaks

Rancho San Diego store in El Cajon

Grossmont store in La Mesa

Escondido store in Escondido

Walnut Creek store in Walnut Creek

San Luis Obispo store in San Luis Obispo

Colorado

Bowles Winter Sports Outlet store in Littleton

Denver Sportscastle store in Denver

Arapahoe store in Greenwood Village

Connecticut

North Haven store in North Haven

Bridgeport store in Bridgeport

Danbury store in Danbury

Delaware

Concord store in Wilmington

Florida

Fort Myers store in Fort Myers

Melbourne store in Melbourne

Orlando West store in Orlando

Daytona Beach store in Daytona

Waterford Lakes store in Orlando

Tallahassee store in Talahassee

Port Richey store in Port Richey

Bradenton store in Bradenton

Bonita Springs store in Estero

Cypress Lakes store in Fort Myers

Spring Hill store in Spring Hill

Fowler store in Tampa

Lakeland store in Lakeland

North Port store in Nort Port

Wellington store in Wellington

Port St. Lucie store in Port Saint Lucie

Altamonte Springs store in Altamonte Springs

Ocala store in Ocala

Georgia

Hiram store in Hiram

Stone Mountain store in Lilburn

Illinois

Springfield store in Springfield

Water Tower Place store in Chicago

Northbrook Court store in Northbrook

Calumet City store in Calumet City

Matteson store in Matteson

Lake Zurich store in Lake Zurich

Yorktown store in Lombard

Geneva store in Geneva

Joliet store in Joliet

Schaumburg store in Schaumburg

Orland Park in Orland Hills

Kansas

Lenexa store in Lenexa

Wichita store in Wichita

Maine

Auburn store in Auburn

Maryland

The Mall in Columbia store in Columbia

Gaithersburg store in Gaithersburg

Waldorf store in Waldorf

Catonsville store in Baltimore

Massachusetts

Framingham store in Framingham

Danvers store in Danvers

Holyoke store in Holyoke

Michigan

Clinton Township store in Clinton Township

Minnesota

Rochester store in Rochester

Missouri

Tiffany Springs store in Kansas City

St. Peters store in St. Peters

Fenton store in Fenton

Bridgeton store in Bridgeton

Nebraska

Omaha Maple Road store in Omaha

Omaha 72nd St. store in Omaha

New Hampshire

Nashua store in Nashua

New Jersey

East Brunswick store in East Brunswick

Cherry Hill store in Cherry Hill

Wayne store in Wayne

Piscataway store in Piscataway

Manalapan store in Manalapan

New York

Brooklyn store at 500 Gateway Dr. in Brooklyn

Bronx store on 171 W. 230th St. in Bronx

Westbury Outlet S.A. Elite store in Garden City

Syracuse store in Syracuse

Riverhead store in Riverhead

Smithhaven store in Stony Brook

Yonkers store in Yonkers

Commack store in Commack

Ohio

Dublin store in Dublin

Reynoldsburg store in Columbus

Oregon

Roseburg store in Roseburg

Klamath Falls store in Klamath Falls

Salem store in Salem

Hillsboro store in Hillsboro

Pennsylvania

Allentown store in Whitehall

Lower Nazareth store in Easton

Puerto Rico

Carolina store in Carolina

Plaza Las Americas store in San Juan

Ponce store in Ponce

Tennessee

Collierville store in Collierville

Wolf Creek store in Memphis

Texas

Southpark Meadows store in Austin

West Plano store in Plano

Legacy store in Mansfield

LBJ store in Farmers Branch

Caruth Plaza store in Dallas

Rockwall store in Rockwall

East Plano store in Plano

Denton store in Denton

Hulen store in Fort Worth

Frisco store in Fort Worth

El Paso store in El Paso

Pearland store in Pearland

Post Oak store in Houston

Gessner store in Houston

The Fountains store in Stafford

Mills Road store in Houston

Deerbrook store in Humble

Baybrook store in Webster

The Woodlands store in Shenandoah

League City store in League City

Pasadena store in Pasadena

Cinco Ranch store in Richmond

McAllen store in McAllen

Stone Ridge Market store in San Antonio

La Plaza Del Norte store in San Antonio

Utah

Redwood store in Taylorsville

Southtowne store in Sandy

West Jordan store in West Jordan

Newgate store in Ogden

Virginia

Norfolk store in Norfolk

Hampton Roads store in Hampton

Virginia Beach store in Virginia Beach

Sterling store in Sterling

Fredericksburg store in Fredericksburg

 

Source:  USA Today