Archive for February, 2012
by Elaine Misonzhnik February 28th, 2012
Following on the success of its upscale stores in New York, Walgreens decided to open a similar store with expanded selection in the Downtown Crossing area of Boston.
The retailer has signed a lease for a 24,000-sq.-ft. former Borders space at School and Washington Streets, according to Boston.com. Scheduled to open in the fall, the store will include a grocery section, a sushi station and a hair salon, among other amenities.
Borders, which used to occupy 41,000 sq. ft. at the building, left the property last year in the wake of its liquidation. Walgreens will occupy the basement, first floor and mezzanine levels of the store. The landlord is currently negotiating with additional tenants to take over the store’s second floor.
“We had hoped to draw a flagship retailer like Walgreens who would invest in this site. It’s unlike any pharmacy you’ve ever seen,’’ said Michael Murphy, executive director of Clarendon Group USA Inc., which owns the building. “Walgreens will bring an array of products that will address a lot of needs in the Downtown Crossing area.’’
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by Elaine Misonzhnik February 23rd, 2012
Continuing its strategy of capitalizing on high-visibility, high-traffic locations, Apple plans to open a store-within-a-store at London’s iconic Harrod’s department store location in mid-March. The department store measures more than 1 million sq. ft. of space and hosts up to 300,000 shoppers a day.
According to previous reports, the new Apple store will be smaller than a stand-alone Apple location but bigger than the stores-within-a-store the chain currently operates at Best Buy and Target stores. It will not feature a Genius bar.
It will be interesting to see if Apple will try to duplicate the strategy at iconic department stores in the United States. Perhaps the Macy’s flagship at 34th Street in New York? Or the former Marshall Field’s store/current Macy’s on State Street in Chicago?
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by Elaine Misonzhnik February 16th, 2012
Teen apparel retailer Abercrombie & Fitch plans to close 180 of its U.S. stores, or almost 18 percent of its store fleet by 2015, according to the Huffington Post. Last year, the chain already closed 71 stores.
Abercrombie was badly hit during the downturn because of its rather high price point and has experienced some difficulty in coming back to its former glory. Specialty retailers as a group continue to have a tough time because of the popularity of discount concepts like Ross Dress for Less, Marshalls and TJ Maxx.
In fact, when Retail Traffic forecasted upcoming store closings for 2012, specialty apparel chains were singled out as one of the most likely retailing segments to announce store closings this year.
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by Elaine Misonzhnik February 14th, 2012
A story from the Huffington Post claims an anticipated increase in sales of men’s apparel this year should be taken as an indication that the economy has turned around.
The article quotes data from IBM Global Business Services that forecasts U.S. men will spend the most money in 20 years on apparel in 2012. Last year, they spent an estimated $8.4 billion on clothing. This year, the amount should rise by 8.26 percent.
According to Huffington Post:
The estimates are based on data from the Census Bureau, which will publish detailed December apparel sales numbers later this month, and these figures do not include internet sales.
“What is happening here is that men are going back to work. It was harder for a man to get a job than it was for a woman,” Mike Haydock, head of retail analytics at IBM told Reuters.
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by Elaine Misonzhnik February 14th, 2012
Remember Urban Outfitters’ plan from two years ago to launch a new concept aimed at the lucrative bridal market? The retailer has been quietly opening stores under its new BHLDN (pronounced “beholden”) label.
In the summer, the company opened a BHLDN store in Houston, and now it has unveiled a second store in Chicago, near the Waldorf Astoria hotel, according to the Chicago Tribune. The store measures 3,600 sq. ft. and features 15-ft. ceilings and a spiral staircase for that grand, romantic feel. According to the Tribune, the store resembles an old-style European townhouse:
In a nod to nostalgia and modernity, sales clerks are dressed in gray pinafore shopkeeper uniforms, while oversized dressing rooms tout iPod docking stations that allow the bridal party to listen to their own music as they shop.
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by Elaine Misonzhnik February 8th, 2012
Eddie Lampert might be ready to leave the sinking ship that is Sears/Kmart, according to a report in The New York Post.
Though the rumors that Lampert is looking for a buyer are for now “unsubstantiated,” the move would make sense given Sears Holdings’ long-term struggles, its intention to close up to 120 stores and retail industry insiders’ skeptical outlook on Sears’ future.
The question now is who would be interested in buying the bottom rung player in the crowded department store space? Whoever buys Sears would likely do so for the value of its real estate rather than for the value of its retail brand, given that the company owns properties in many of the nation’s oldest and best malls.
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by Elaine Misonzhnik February 2nd, 2012
The same-store sales numbers for January are coming out today and they seem to be pretty good.
Thomson Reuters estimates that same-store sales rose 4.2 percent for the month, much higher than expected, according to The Wall Street Journal. Target, Kohl’s and Saks Fifth Avenue surprised analysts with strong results, while specialty retailers including the Gap and Wet Seals reported sales declines.
Thomson Reuters surveyed a total of 20 chain.
According to ICSC, same-store sales rose 4.8 percent in January, driven primarily by wholesale clubs, luxury stores and discounters. Costco, for example, reported growth of 8 percent, Saks of 10.5 percent and TJX of 7 percent.
Kantar Retail, a Columbus, Ohio-based retail consulting firm, estimates growth of 4.9 percent, based on results from 21 retailers. Particularly heartening is the fact that the gain occured in spite of unseasonably warm weather and tough year-over-year comparisons, according to Kantar’s researchers.
“Whether January’s growth can be sustained may depend on whether shoppers’ spending intentions show more signs of stalling out in the months ahead. That underlying trend appears to be overwhelmed at the moment by the mixed retail and economic reports,” said Frank Badillo, Senior Economist.
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How to Lease a Mall
by Elaine Misonzhnik February 29th, 2012
Retail developers and architects have long been trying to define a formula for creating a successful mall, especially in a multi-level environment. This has been a particular challenge in New York City, where many people are so used to shopping on street level going up an escalator to a third or fourth floor doesn’t hold much appeal.
An article in today’s New York Times takes a look at how the Related Companies made a multi-level format work at Time Warner Center. The success at that venue has much to do with leasing selectively, the article reports.
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