Archive for November, 2007

KB Considering Mass Store Closings

by David Bodamer November 5th, 2007

A scary report in the Washington Post talks of KB Toys’ plans to potentially close 156 stores in early January, which could be viewed as an indication that the company doesn’t foresee itself having a very strong holiday season.

The company, which has fewer than 600 stores, plans to hand over management of the selected shops to Gordon Brothers liquidators on Thursday and shut them for good in January, according to a memo from a KB executive to employees. In another memo, dated Oct. 29, KB said it planned to close stores at Fair Oaks Mall, Manassas Mall and Dulles Town Center in Virginia and Bowie Town Center, Montgomery Mall and Silver Spring’s City Place Mall in Maryland.

The documents were provided by a store manager, who spoke on the condition of anonymity because the company has not publicly released the information. Geoffrey Webb, KB Toys director of advertising and sales promotion who also handles media inquiries, declined to comment on the documents or potential store closings. KB Toys Chief Executive Andrew Bailen had said in news reports in August that the company planned to close a significant number of stores this fall.

No Comments Related Topics: News, Retail |

GGP, SEIU Bang Heads

by David Bodamer November 5th, 2007

The battle between General Growth Properties and SEIU became a little more heated after the union staged a rally at a GGP property in California.

Shortly before noon, about 20 to 25 chanting janitorial workers and union organizers tried to gain access to the mall’s business offices near the food court. A scuffle broke out between the demonstrators and five security guards who were blocking access to the offices.

“It just got out of hand,” said Blanca Perez, 72, a former janitor at the food court. “The security guards were pushing people out, manhandling women, pepper-spraying people. It was like a heat-of-the-moment thing.”

Hayward police arrived on the scene shortly after the scuffle.

“The demonstrators left peaceably,” Lt. ReidLindblom said. “No arrests were made. There were no reports of physical injuries other than irritation to the eyes from the pepper spray. Everyone left under their own power, as we understood it.”

For background on the SEIU’s campaign to organize workers at malls, check links to previous blog posts and magazine articles below.

No Comments Related Topics: Management & Leasing, News, Retail Real Estate, Trends |

CBL Expands Presence in Brazil

by David Bodamer November 5th, 2007

CBL & Associates Properties is entering Brazil.

CBL & Associates Properties Inc. today announced it has agreed to partner with a Brazilian company to develop shopping center projects in that South American country.

Chattanooga-based CBL will partner with Tenco Realty in the development and acquisition of shopping center properties in Brazil.

CBL will initially invest $15.3 million to acquire a 60 percent interest in a new retail development in Macaé, Brazil.

The 220,000-square-foot project, Plaza Macaé, is currently under construction with a grand opening scheduled for summer 2008.

No Comments Related Topics: Development, International, Investment, News, Retail Real Estate |

When Lowering Interest Rates No Longer Works

by David Bodamer November 5th, 2007

NetGain Real Estate has some suggestions for policies beyond cutting interest rates.

What happens when interest rates are lowered and after a reasonable period of time businesses don’t expand, employment doesn’t increase, consumers’ confidence doesn’t go up, and consumers don’t spend more money?

The aggregate of the individual and corporate tax dollar numbers, both from the collection and the spending side, is huge (over $5 trillion). When you combine those numbers with the federal government’s ability to pass legislation, the programs that are available to motivate consumer spending are limited only by the creativeness of the minds in the federal government. The following action plans are examples of possible strategies that have a high probability of stimulating the economy, and they are intended to be partisan-neutral.

No Comments Related Topics: Commentary, Finance, Investment, News |

The Sam Walton Statue

by David Bodamer November 5th, 2007

There are now pictures available of the Sam Walton statue in Kingfisher, Ok.

sam_walton

Thanks Guy!

No Comments Related Topics: News, Quirky, Retail |

Rosen Predicts REIT Downturn

by David Bodamer November 1st, 2007

Kenneth Rosen is a very, very smart economist.

That’s one reason his prediction about a REIT downturn is so alarming.

But given the strong third quarter results from regional mall REITs–a sector you’d think would be at risk, I’m not sure I see it.

REIT managers certainly aren’t selling signals that they think things are going bad. That’s at least how I read the fact that 50 REITs have instituted share buyback plans in recent months.

No Comments Related Topics: Commentary, Finance, Investment, News, REITs, Retail Real Estate |