Archive for December 1st, 2008
by David Bodamer December 1st, 2008
The worker at Wal-Mart who died, Jdimytai Damour, had no training in crowd control. He was put at the door simply because he was a large man. That did little, apparently, to dissuade the crowd. A lawyer for his family says it is considering a lawsuit. One would hope that things don’t need to go that far. Wal-Mart should do the right thing by this man and offer them something for their loss. A company that rakes in nearly $400 billion in annual sales surely can come up with something.
A worker trampled to death when customers stormed a Wal-Mart for bargains on the day after Thanksgiving had no experience in crowd control and was placed at the entrance because of his hulking frame, police and a lawyer said Monday.
The details about the deadly stampede came out as police pored over video surveillance provided by the store while considering possible criminal charges. Lawyers were also preparing to sue over the episode.
Nassau County Police Commissioner Lawrence Mulvey noted that the worker, Jdimytai Damour, was 6 feet 5 and 270 pounds, making the trampling all the more stunning. He was killed when a crowd estimated at 2,000 strong broke down the electronic doors in frantic pursuit of bargains on big-screen TVs, clothing and other items.
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Mulvey said an autopsy found that Damour, 34, died of asphyxiation related to his trampling, and he conceded that it would be difficult to file criminal charges against any of the shoppers.
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Attorney Jordan Hecht, who represents Damour’s three sisters, said the family declined to make any public statements about the man’s death. Funeral arrangements were pending, he said.
Hecht said Damour had been working at the Wal-Mart only for about a week and was hired through an employment agency that provides temporary staffing. Damour had not been trained for any security assignments and had no background in crowd control, he said.
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Hecht said that he was considering a lawsuit but that no decision had been made. Two other injured shoppers filed a notice of claim Monday, the first step toward proceeding with a lawsuit.
Related Topics: Management & Leasing, News, Retail, Trends |
by David Bodamer December 1st, 2008
The National Bureau of Economic Research makes official what most have suspected for a long time: the U.S. is in a recession. According to the NBER, the U.S. economy officially entered into a recession one year ago.
The evidence of a downturn has been widespread for months: slower production, stagnant wages and hundreds of thousands of lost jobs. But the nonpartisan National Bureau of Economic Research, charged with making the call for the history books, waited until now to weigh in.
In a statement released Monday, the members of the group’s Business Cycle Dating Committee — made up of seven prominent economists, most from the academic sector — said that the economy entered a recession in December 2007.
“A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in production, employment, real income, and other indicators,” the members said in a statement. “A recession begins when the economy reaches a peak of activity and ends when the economy reaches its trough.”
The committee noted that the contraction in the labor market began in the first month of 2008 and said that the declines in most major indicators, like personal income, manufacturing activity, retail sales, and industrial production, “met the standard for a recession.”
Related Topics: News |
by David Bodamer December 1st, 2008
Retailers are facing a tough decision as they suffer through a tough spell. What do you do with the leases you signed already? Do you sell the lease to another retailer? Do you keep paying and operate a losing store? Do you shut the store and keep paying rent? Do you pay lease termination fees?
The Wall Street Journal looks at how different retailers are approaching this issue.
Office Depot Inc. already has decided to pay rent for stores but keep them shuttered. The office-supply retailer signed 40 new leases that begin next year, but it doesn’t plan to operate all of the locations.
Part of the problem is that new leases are usually the most expensive to break since they have many years to maturity. Office Depot is likely stuck with the unwanted expansion because retailers negotiate leases about a year in advance.
Office Depot has been here before. In fiscal 2005, the company took a charge of $61 million, including lease-cancellation fees, to close 25 stores and three warehouses. Today, such an outlay would deal a heavy blow to the company, which has leases with varying maturities through 2032. Office Depot’s shares are down 86% this year to $1.92 as investors fret about its ability to survive.
Related Topics: Management & Leasing, News, Retail, Retail Real Estate |
by David Bodamer December 1st, 2008
At the helm is President Brett White, a former broker who runs the company from its headquarters in West Los Angeles.
“Conditions have deteriorated on a scale and with a speed that no one could have predicted just a few months ago,” White said in a letter to clients this month after third- quarter profit fell 60% from the same period a year earlier.
“Market conditions of unprecedented strength are roiling the world’s financial markets,” White went on to say. “The global economy is either in, or close to, recession and 2009 is not likely to be a year of great recovery.”
White insisted, however, that the company had quickly responded to the downturn by reducing expenses and would be positioned to grab a bigger share of the real estate market when the economy eventually improved.
Link.
Related Topics: Investment, News, Trends |
by David Bodamer December 1st, 2008
The New York Times reports that deep discounts by retailers may have gotten people to shop, but not helped retailers turn a profit.
But while spending was up, there were troubling signs in the early numbers. The bargains that drove shoppers to stores were so stunning, analysts said that retailers — already suffering from double-digit sales declines the last two months — would probably see their profits erode even further.
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The National Retail Federation, adding up sales Thursday through Saturday and projected sales for Sunday, said that each shopper spent about 7 percent more this year than last year. Shoppers spent an average of $372.57 Friday though Sunday, according to the federation, a trade group.
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Analysts said the discounts that drew in shoppers over the weekend were so steep that many ailing chains might be no better off in the long run.
“You’re looking at discounts of 50 to 70 percent off,” said Matthew Katz, managing director in the retail practice of Alix Partners, an advisory and restructuring firm. “You have to sell two to three times as much to break even.”
Related Topics: News, Retail |
by David Bodamer December 1st, 2008
Slate has a nice story and slideshow about big box stores being converted into other uses including a church, a library and even a museum about Spam.
Related Topics: Development, News, Quirky, Retail Real Estate |
by David Bodamer December 1st, 2008
General Growth negotiated a two-week extension in $900 million in loans it had coming due last Friday. It is working to secure a longer extension or else sell the properties.
General Growth Properties Inc. said late Sunday that its lenders have granted the heavily leveraged Chicago mall operator a two-week “interim extension” on $900 million of debt, allowing General Growth a bit of breathing room as it struggles to avoid bankruptcy.
The real estate investment trust said it and the syndicate of lenders “are continuing their discussions” on a longer-term extension to the loan, which technically came due Friday.
Past links and stories:
- November 25, Ackman Builds Stake in GGP
- November 20, General Growth Hires Bankruptcy Advisor
- November 17, General Growth Downgraded; Feldman to Stop Filing Public Reports
- November 12, General Growth Roundup
- November 11, General Growth Warns of Default
- November 5, GGP, Kimco Fall After Cutting Forecasts
- November 2, General Growth “Almost Literally Worth Nothing”
- October 17, Management Changes at GGP
- October 15, Margin Calls Hit Two More Retail REITs
- October 7, General Growth Near Bankruptcy?
- October 3, General Growth CFO Steps Down; Company Suspends Dividend
- October 2, GGP Under Fire for Inclusion on Short-Sell Ban List
- October 1, Could General Growth Be Sold?
- September 23, Short Selling Banned on General Growth
- September 22, General Growth Strikes Back
- September 16, General Growth Offers More Recourse
- August 12, Another Look at GGP’s Debt
- August 6, Analysis of GGP’s Debt
- July 25, Stories With Bigger Implications?
- July 14, GGP Lines Up New Financing
- April 16, GGP’s Growing Debt Problem
Related Topics: News, REITs, Retail Real Estate |
by David Bodamer December 1st, 2008
In response to the tragedy last week in which Jdimytai Damour, a Wal-Mart worker in Long Island, was trampled and died on Black Friday, Queens lawmakers are discussing legislation that would mandate retailers (and presumably mall owners) have greater security in place during Doorbuster specials.
New York City Councilman James Gennaro (D- Fresh Meadows) held a midday news conference on the steps of City Hall to announce his plans to craft a “Doorbuster Bill” that would require retailers to enact greater security measures during major sales.
Hours later, in response to a Newsday inquiry, Nassau Executive Thomas Suozzi said he and the legislature’s Presiding Officer Diane Yatauro will meet today to “discuss possible legislation to prevent something so tragic from happening again.” The statement gave no details.
A spokesman for Suffolk County Executive Steve Levy also said Sunday officials will research the need for a similar local law.
It should be noted that most retailers and malls already do heighten security during the holiday season. However, as the Wal-Mart incident shows, when you whip people into a frenzy, no amount of security will suffice. Doorbuster specials–selling a handful of items at deep discounts, say 10 laptops or plasma TVs–spur large crowds. In a recessionary environment, people are even more desperate to save money.
Related Topics: Management & Leasing, News, Retail, Security |
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