Archive for January, 2008
by David Bodamer January 30th, 2008
Dell Inc. is closing its 140 ‘direct store’ kiosks in the U.S. as it moves to sell its products through retailers like Best Buy Co. (NYSE:BBY) , the computer maker said Wednesday.
The 120-square-foot kiosks, set up at malls and airports around the country, let customers speak with sales representatives about computers, digital cameras, printers and other products. They had room for about 12 products shoppers could touch and feel before they bought them directly from Dell.
The world’s No. 2 computer maker, which built its business on selling PCs directly to customers, has been expanding into retail to better compete with rivals such as No. 1 Hewlett-Packard Co. Besides Best Buy, Dell sells computers at stores such as Wal-Mart Stores Inc. and Staples Inc. in the U.S.
Link.
Related Topics: News, Retail |
by David Bodamer January 30th, 2008
Domain Inc.–which operates 27 stores–filed for bankruptcy on Friday. Meanwhile, Crate & Barrel has made a change at the top.
Gordon Segal, the visionary founder of Crate & Barrel, is relinquishing the CEO post, marking the first time the 46-year-old home furnishing chain will operate without Segal’s daily presence.
Segal is handing off his chief executive title to Barbara Turf, Crate & Barrel’s longtime president, who assumes the post May 1.
The change is expected to test Crate & Barrel’s mettle at a time when the housing market downturn is putting pressure on home goods retailers industrywide.
Segal, 69, will remain chairman and keep an office at the company’s Northbrook headquarters. He plans to serve as a retail ambassador, giving speeches, recruiting at colleges and going abroad to explore opportunities to expand. The chain has annual sales of more than $1.4 billion and 160 stores nationwide but, so far, none outside the U.S. (A store in Toronto is slated to open in September.)
Related Topics: News, Retail, Trends |
by David Bodamer January 30th, 2008
This doesn’t seem good.
The credit crunch could see the commercial mortgage-backed securities market passing an ominous milestone — the first month in its two-decade history without a single issue priced.
None of the $37 billion in issues slated for the first quarter has priced, including Blackstone Group’s $10 billion deal backed by Hilton Hotels and bonds assembled by dealers such as Goldman Sachs Group Inc. Their absence bodes poorly for the buyout boom that depended on the market for cheap financing, analysts and investors said.
The commercial mortgage-backed security (CMBS) market has been rocked by the fallout of the mortgage crisis as investors reduce risk appetites for all assets. The market in 2008 has faltered further, pushing yield premiums to record levels, saddling issuers with loan inventories and preventing them from making many new loans.
“If you originated loans in 2007, chances are now you are facing a wider spread environment and it may not make sense economically” to issue bonds, said Alan Todd, head of CMBS research at JPMorgan Chase & Co., a top underwriter. “Also, new originations have been slow” because lenders have not been making new fixed-rate loans, he said.
No demand for floating-rate deals also hurt issuance, said Darrell Wheeler, head of CMBS research at Citigroup Inc.
January appears to be the first month without issuance under the current market format, or since the Resolution Trust Corp stopped issuing CMBS in 1995, he said.
The situation in the CMBS market seems to be deteriorating rapidly. This story follows a couple from late last week. Overall, there was an expectation that CMBS issuance in the U.S. in 2008 could drop to just $100 billion. But I don’t think anyone expected that there would be no issuance at all for the entire month of January.
Related Topics: Finance, News, Trends |
by David Bodamer January 29th, 2008
Wal-Mart announced Tuesday that it will chop prices between 10 to 30% this week on groceries, electronics and other home-related products in an effort to keep its cash-strapped consumers excited about shopping.
While its rivals, including Target, have seen sales decelerate dramatically in recent weeks from a consumer spending slowdown, Wal-Mart has been benefiting from more shoppers trading down to its discount stores.
The world’s largest retailer recently reported that its December same-store sales rose 2.4%, which was at the high-end of its expectations for the month.
Same-store sales, a key gauge of retail store performance, tracks sales at stores open at least a year.
“We all know economic times are tough so our plan is to help with added savings throughout the year, focusing especially on what people want, when they need it,” said John Fleming, Wal-Mart’s chief merchandising officer.
Link.
Related Topics: News, Retail, Trends |
by David Bodamer January 29th, 2008
In addition to changing CEOs, Chairman Eddie Lampert is also stepping back from day-to-day management of Sears Holding Corp.
It was a humbling admission from the powerful hedge fund manager that his hands-on style and three-year-old strategy for Sears and Kmart are not working.
Until now, the heads of several major departments, like marketing and merchandising, reported directly to Mr. Lampert, even though he has no background in retailing or advertising. But from now on, those department heads will report only to the chief executive, the company said.
The executive changes appeared to answer two criticisms: that the company lacks a management team with the retail experience to pull off a turnaround and that Mr. Lampert, 45, is a micromanager who is hampering, rather than helping, the business.
Related Topics: News, Retail, Trends |
by David Bodamer January 29th, 2008
The Big Apple and the nation’s capital edged out other world cities as the top spots for foreign commercial real estate dollars, according to a trade group survey released Monday.
The Association of Foreign Investors in Real Estate said foreign investors named New York as the No. 1 city for commercial real estate investment, up from No. 2 the prior year. Washington, D.C., and London tied for second, while Paris followed at fourth and Shanghai at fifth.
The results marked the first time U.S. cities have taken the top two spots since the category was added to the annual survey.
The survey also showed that foreign investors overwhelmingly believe the U.S. offers the most stable and secure real estate investments despite recent credit market disruptions and a slowing economy.
The U.S. market also offers the best opportunity for capital appreciation, investors said, followed by China, India, Russia and Mexico.
On average, investors said U.S. assets will make up more than 50 percent of their real estate acquisitions this year, roughly the same as last year. The weak dollar has not yet prompted any increase in U.S. allocation, 85 percent of respondents said.
U.S. retail ranked as the most preferred property type among foreign investors. Hotels came in second, followed by industrial, multifamily and office.
The survey was conducted in the fourth quarter of 2007 among the group’s 200 members.
Link. AFIRE’s press release can be viewed here.
Related Topics: International, Investment, News, Research, Retail Real Estate |
by David Bodamer January 29th, 2008
Shark attack in Minnesota? Who woulda thought? Fortunately, the victim was another shark, and that shark survived. But not before a tunnel full of aquarium visitors experienced a true, raw display of nature.
Jessie, the nine foot, 300 pound sand tiger shark is the biggest shark in the Underwater Adventures Aquarium at the Mall of America. On Friday, she chomped down on a four and a half foot, 50 pound white tip reef shark.
Workers used a pair of feeding tongs to grab the tail of the reef shark, pull and eventually free the little shark from Jessie’s death-grip.
Link, which includes video.
Related Topics: News, Quirky, Retail Real Estate |
by David Bodamer January 29th, 2008
The Guardian Angels were given a lukewarm reception Friday after offering to help make the parking lots safer at the Town Center mall, where a mother and daughter were found murdered in December in a case that has drawn national media attention.
Guardian Angels founder Curtis Sliwa said he met with mall security and representatives and a Boca Raton police captain Friday but was not welcomed to patrol the mall’s parking lots and offer customers escorts to cars.
Nancy Bochicchio, 47, and her daughter, Joey Bochicchio-Hauser, 7, were found bound and shot in their black SUV about midnight Dec. 13 in the mall parking lot. Police said they were forced to withdraw money from an ATM. Their killer is still at large.
Mall spokeswoman Billie Scott confirmed the meeting and said the Angels’ offer may be considered.
“All the information that was gleaned from the meeting will be put on the table for discussion by the task force that is being formed,” she said.
Link.
Simon formed a task force for security at the mall two weeks ago.
Related Topics: Management & Leasing, News, Quirky, Retail Real Estate, Security |
by David Bodamer January 29th, 2008
Deer are in the headlights these days, maimed along the nation’s roadways and nibbling away at suburban gardens. Now they’re closing in on one of America’s poshest addresses — New Jersey’s Short Hills Mall, home to high-end stories like Cartier and Coach — and local officials are striking back.
On Jan. 29, Essex County will send sharpshooters into South Mountain Reservation, a 2,000-acre swath of woodland that sits smack in the middle of tony towns like Maplewood, Milburn and the Oranges for a month-long deer kill.
Link.
Related Topics: News, Quirky, Retail Real Estate, Security |
by David Bodamer January 28th, 2008
Fortune has up a great little widget that’s a combined time line and map, showing the spread of the subprime crisis.
Related Topics: Finance, International, News, Trends |
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