Archive for February 18th, 2009

Macy’s Hosts Lush’s 100th Location

by David Bodamer February 18th, 2009

British cosmetic retailer Lush just opened its 100th store in the United States that also happened to be its 37th operating in a Macy’s, and, despite the recession, is looking forward to opening up to 30 more outlets in its current roll out across the country.

The numbers suggest Lush is finding a niche in the U.S. and also that Macy’s can demonstrate a nice flexibility in developing partnerships when it so desires.

Lush is counting on product, store experience and price to ensure it can grow in the weak economic environment. Mark Wolverton, president and ceo of Lush North America, pointed out that “65% of our products run under $10,” making them an economical choice in tough times. Yet, Lush doesn’t create a bargain basement environment and, in fact, throws customer parties and runs other promotions regularly that can pack a store with 400 customers, he said. Everyday, customers are enticed by the aromas emanating from the items populating Lush stores. The cosmetics are based on fresh ingredients including lime, banana, papaya, strawberry and other natural and whenever possible organic antecedents, and they even come with sell-by dates. Manufacturing, which in North America takes place in Toronto or Vancouver, is fully vertical, so, Wolverton points out, Lush has control of its product quality and manufacturing costs.

Link.

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AIA Billings Index Falls to New Low

by David Bodamer February 18th, 2009

After edging up slightly in December, the AIA Billings Index fell in January, hitting a new low.

On the heels of a modest uptick in December, the Architecture Billings Index (ABI) dropped to a historic low level in January. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the January ABI rating was 33.3, down from the 34.1 mark in December (any score above 50 indicates an increase in billings). The inquiries for new projects score was 43.5.

* Every January the AIA research department uses a formula from the Department of Commerce that re-estimates ABI data based on seasonal factors resulting in a recalibration of recent figures.

“Now that the stimulus bill has passed and includes funding for construction projects, as well as for municipalities to raise bonds, business conditions could improve,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “That said, until we can get a clearer sense of credit lines being made available by banks, it will be hard to gauge when a lot of projects that have been put on hold can get back online.”

No Comments Related Topics: Architecture & Design, Development, News, Research |

GGP Misses Payments

by David Bodamer February 18th, 2009

General Growth Properties Inc., the U.S. shopping mall owner with $900 million in loans due yesterday, remains in talks with its lenders, a spokesman said.

“We continue to talk to all of our lenders, and as soon as we have something to announce, we will do so,” Tim Goebel, a spokesman for the Chicago-based company, said yesterday in an interview.

General Growth, which owns several local malls, including Harborplace and The Gallery, Towson Town Center and The Mall in Columbia, is also Columbia’s master developer.

General Growth had extended until yesterday payment of a $650 million loan on the Fashion Show Mall and a $250 million loan on the Shoppes at the Palazzo, both in Las Vegas. The loans originally were due in November, and both properties have been up for sale since October. General Growth has said it might have to file for bankruptcy protection if it’s unable to refinance debt.

Link.

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

Six Retailers That Are Thriving

by David Bodamer February 18th, 2009

Kiplinger looks at six retailers that are doing well in this remarkably tough climate.

If you’re anything like most of us, probably not. Retail sales during the Christmas shopping season slipped 3% from the same period in 2007, and the National Retail Federation projects a 0.5% decline in sales for all of 2009. Linens ‘n Things, Circuit City, KB Toys and Sharper Image are just a few of the household names that have already succumbed to the hostile climate. Stalwarts such as Home Depot and Macy’s are laying off thousands of employees.

But a small number of companies are quietly thriving. Some are big enough to offer the best deals on the essentials, some benefit from the demise of rivals, and others offer products too near to customers’ hearts for them to forgo. Add these retail survivors to your shopping list for your next stock-buying spree.

Whales in the pond. Americans are not only buying less of everything, but they’re also spending fewer dollars on the items that they do buy.

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