TrafficCourt

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.

While next year might still bring a considerable number of store closures, at least two household name chains will contribute to new store openings. Starbucks has revealed plans to launch a new health and wellness concept in the first half of 2012. It has already bought a juice company called Evolution Fresh in preparation for the launch, planning to incorporate it into the concept.

Meanwhile, McDonald’s, which in recent years became Starbucks’ competitor in the war for Americans’ coffee dollars, announced it will step up both new store openings and store renovations worldwide in 2012.

When two of the largest restaurant chains in the U.S. want to expand, is that a sign that the future might not be as bleak as we may fear?

The world’s biggest retailer seems to be putting out all the stops lately to adapt to a new retail environment. Earlier this year, Wal-Mart launched its small-format Express stores, meant to allow the chain to enter urban markets with high barriers to entry and compete with supermarkets and drug stores on their own turf. Now, Retail & Consumer reports the retailer has opened two pop-up stores, measuring 1,000 sq. ft. and 3,000 sq. ft. at the Topanga Mall in West Los Angeles and at Horton Plaza in San Diego.

Wal-Mart has been quietly working on this initiative for some time, according to The New York Post. In part, this is an attempt to compete with Toys ‘R’ Us’ pop-up Express stores during the holiday shopping season since Wal-Mart’s pop-up units will concentrate on toys and electronics and will operate through December 31.

At the same time, it’s a testing ground used by Wal-Mart’s management to create more synergy between its bricks-and-mortar locations and its online sales, a strategy pioneered by Apple stores. According to a Wal-Mart spokesperson quoted by CSPnet.com:

“The store will display key holiday items such as toys, electronics, gaming and home theater. These items can be picked up at the Walmart.com store or nearest Walmart store via the Site to Store and Pick Up Today options. Products can also be delivered to customers’ homes via the standard shipping options currently available through Walmart.com. Customers will also have an opportunity to purchase a small selection of items at the store, mostly accessories.”

While the current trend in the retail industry is for big-box store operators to go smaller, niche grocery operator Trader Joe’s is pursuing the opposite strategy.

An article in the Los Angeles Times notes the chain is on a major expansion drive and in addition to opening new locations, will likely go from its current 10,000 sq. ft. to 15,000 sq. ft. model to building stores bigger than 15,000 sq. ft. to drive sales productivity.

The issue is that Trader Joe’s built its reputation partly on being really good at utilizing smaller spaces. Plus, some of its long-time customers are unhappy about the chain losing some of its small-store charm, Los Angeles Times reports:

“I’ve driven by, and the new building looks kind of shiny and huge, which doesn’t square with what Trader Joe’s is in my head,” said Geragos, a 42-year-old stay-at-home mom. “I’m bummed about losing the homey feel.”

Trader Joe’s operates at least two stores below 23rd Street in Manhattan, where Retail Traffic is based, including a traditionally small store near Union Square and a 41,000-sq. ft. megastore inside a former Barnes & Noble space in Chelsea. While this editor has never been able to withstand the super-long lines and crowded conditions at the Union Square location, the bigger store has proven much easier to navigate.

But we’d be curious to know how retail real estate insiders feel about expanded Trader Joe’s.

Given the market’s current preference for discount retailers and luxury stores, it’s good to hear about a mid-market department store chain expanding. Lord & Taylor will reportedly open at least three new stores in the coming months.

The New York Post writes that:

The privately owned retailer, which also operates three lower-price outlet stores, is in preliminary talks with landlords to open still more locations during the next several years in additional states, including California, according to sources close to the company.

This is particularly good news given that only five years ago, the retail industry seemed ready to write Lord & Taylor off as a living ghost. Yet after undergoing a makeover, the chain seems to have found new vitality.

This fits in with the overall trend of department stores coming back into favor, along with regional malls.