Archive for December 12th, 2008

ICSC Asks Shoppers to Buy Local

by David Bodamer December 12th, 2008

That’s more or less the message in a new ad from the International Council of Shopping Centers, which is making a plea to consumers to stay offline and instead buy holiday gifts locally through a new campaign that includes a 60-second spot that will run nationally. The group hopes to educate consumers about the importance of sales taxes to their communities, saying that more than 33% of a municipalities’ annual revenue is generated by sales taxes and those funds go toward schools and hospitals, as well as police and fire departments.

The spot is slated to run this Friday and Saturday on programs including “The Oprah Winfrey Show” and weekend editions of “Good Morning America” and the “Today Show.” It will air on networks including CNN, Fox News, MSNBC and the Weather Channel among others.

Michael Kercheval, president-CEO of ICSC, said the campaign is the biggest consumer-targeted effort the group has ever embarked on. Typically, ICSC focuses on business-to-business communications.


Link.

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

Retailer Liquidations Hurt Existing Retailers

by David Bodamer December 12th, 2008

This is something we heard at the New York ICSC event from a few people. Liquidations are ending up hurting existing retailers because people are going to the stores going out of business to cash in on really deep discounts. So, for example, consumers are going to Linens ‘n Things liquidation sales instead of visiting Bed, Bath and Beyond. The Wall Street Journal has more on this phenomenon.

The sour retail market is leading to a flood of store closings, followed by the inevitable going-out-of-business sales. In a vicious cycle, the “everything must go” banners and ads are siphoning off shoppers from already-struggling retailers, further weakening their results, analysts say.

In the last few weeks, retailers ranging from Signet Jewelers Ltd. to Bed Beth & Beyond Inc. blamed competitors’ liquidations, in part, for sharply reduced revenue and profit in the fiscal third quarter.

On Thursday, KB Toys Inc. said it has returned to Chapter 11 bankruptcy and will liquidate all of its more than 400 mall-based and outlet stores. The company said it plans to quickly start going-out-of business sales “to take advantage of the last two weeks of the holiday selling season.”

1 Comment Related Topics: News, Retail |

State of the Industry

by David Bodamer December 12th, 2008

Madison Marquette’s Places blog has posted a market overview slide show.

madison

No Comments Related Topics: News, Research, Retail Real Estate, Trends |

Commerce Department: November Sales Down

by David Bodamer December 12th, 2008

Retail sales fell 1.8 percent in November, the record fifth straight month of declines since the Commerce Department started tracking statistics in 1992.

The U.S. Census Bureau announced today that advance estimates of U.S. retail and food services sales for November, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $355.7 billion, a decrease of 1.8 percent (±0.5%) from the previous month and 7.4 percent (±0.7%) below November 2007. Total sales for the September through November 2008 period were down 4.5 percent (±0.5%) from the same period a year ago. The September to October 2008 percent change was revised from -2.8 percent (±0.5%) to -2.9 percent (±0.2%).

Retail trade sales were down 2.0 percent (±0.5%) from October 2008 and were 8.5 percent (±0.7%) below last year. Motor vehicle and parts dealers sales were down 25.2 percent (±2.3%) from November 2007 and gasoline stations sales were down 22.0 percent (±1.7%) from last year.

Bloomberg has more.

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Breaking: GGP Refinances

by David Bodamer December 12th, 2008

This just hit the wires. General Growth announced the completion of approximately $896 million of mortgage loans. These are not the loans tied to the Las Vegas properties for which are also scheduled to mature today.

The maturity dates of these mortgage loans range from five to seven years. The proceeds were fully used to retire a $58 million bond issued by The Rouse Company LP maturing December 11, 2008, as well as to refinance approximately $814 million of mortgage indebtedness scheduled to mature in 2009. These refinanced loans are separate from the Fashion Show and Palazzo mortgage loans currently scheduled to mature on December 12, 2008. The Company is continuing discussions with its syndicate of lenders for a further extension of these two mortgage loans. There can be no assurance that the Company will obtain these further extensions.

Past links and stories:

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Macerich Moves Quickly to Plug Mervyn’s Holes

by David Bodamer December 12th, 2008

The Macerich Co. has worked quickly to quell the effect of the Mervyn’s liquidation. According to the company, they’ve filled 22 of 41 Macerich-owned Mervyns sites acquired in December 2007 and the first quarter 2008 with Kohl’s and Forever 21 stores, pending approval by the court overseeing Mervyns bankruptcy proceedings. Forever 21 will be taking 12 of the spaces and Kohl’s will be taking 10. It appears Macerich will gain control of the 19 remaining locations by February, opening the door for it re-lease those sites as well.

Overall, there were 46 sites up for the auction earlier this week. Kohl’s got 31 of the locations and Forever 21 got 15.

According to the company:

Forever 21 and Kohl’s prevailed in the auction of Mervyns leaseholds held Dec. 10, a preliminary step leading to final court approval of new lessees for Macerich-owned Mervyns sites, which is expected within the month. Of the 22 locations, eight are in Macerich-owned shopping centers.

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