Kroger in Partnership with The Little Clinic
Cincinnati (May 29, 2008) The Kroger Co. and The Little Clinic LLC on Thursday announced a partnership aimed at bringing walk-in medical clinics and consumer-health solutions to Kroger stores across the country.The Little Clinic currently operates 26 walk-in medical clinics inside Kroger stores.
Kroger said it has made a significant investment in The Little Clinic to support a substantial clinic rollout. Financial terms of the investment were not disclosed.
Walgreens Expanding to Alaska
Deerfield, Ill. (May 29, 2008) Walgreen Co. will open its first stores in Alaska in 2009, giving the chain a presence in all 50 states, plus the District of Columbia and Puerto Rico.
The first store is planned for Anchorage, with an opening date of summer 2009. Two more locations are expected to open by the end of that year. The company is initially focusing on Anchorage and Southcentral Alaska.
Starbucks Enters Argentina
Seattle (May 29, 2008) Starbucks Coffee Co. is supporting its international expansion with its first coffeehouse in Argentina. The location is set to open Friday.
The store will be a joint venture between Starbucks Coffee International, a wholly owned subsidiary of Starbucks Coffee Co., and Operadora Internacional Alsea, S.A. de C.V., a wholly owned subsidiary of Alsea S.A.B. de C.V. The store will be located at Alto Palermo Shopping Center, one of the country's premiere shopping centers.
Costco's Profit Up 32%
Issaquah, Wash. (May 29, 2008) Costco Wholesale Corp. said Thursday that its quarterly profits jumped 32%, beating expectations. The company credits the increase to consumers who are shopping the stores to take advantage of the chain's discounts on food and gasoline.
Costco reported a net income of $295.1 million for the fiscal third quarter, compared to $224.0 million a year earlier.
Blockbuster Launches In-Store Downloads
Dallas (May 29, 2008) Blockbuster is preparing to pilot in-store kiosks that will allow customers to download movies onto their portable devices within two minutes. James Keyes, Blockbuster's chairman and CEO, revealed the test at the company's annual shareholder meeting Wednesday.
The kiosk, designed for the pilot version by NCR, allows shoppers to search and browse for downloadable films, watch trailers and buy or rent movies with a credit card or pre-loaded Blockbuster card. Over time, it will also allow them to subscribe to kiosk or other service usage.
Barnes & Noble Launches Mobile Site
New York City (May 29, 2008) Barnes & Noble introduced B&N Mobile on Wednesday. This e-commerce site (www.bn.com/mobile) is accessible via any mobile device with a Web browser. However, the application is tailored for Blackberry and iPhone users.
"Our goal is to serve customers from wherever they are, in a multitude of platforms," said B&N chief executive Marie Toulantis.
Sears Blames Slumping Sales for 1Q Loss
Hoffman Estates, Ill. (May 29, 2008) Sears Holding Corp. reported a $56 million first-quarter loss Thursday. It blamed the fact that consumers were spending more of their money to cover the rising costs of gas and food.
These factors affected all of the company's divisions. Sears store sales dropped 9.8% domestically, while Kmart stores sales slumped 7.1%. Total domestic same-store sales declined 8.6%.
Phillips-Van Heusen Shuts Geoffrey Beene Outlets
New York City (May 29, 2008) Phillips-Van Heusen said Wednesday that it will shutter the 100-unit outlet division of its Geoffrey Beene menswear brand.
Approximately 25 of the stores will be converted into Calvin Klein outlets, a brand the company also operates. These stores are expected to generate more traffic and higher profits than the Geoffrey Beene line. The remaining stores will be closed by the end of the fiscal year.
Sweetbay CEO Leaves Post
Tampa, Fla. (May 29, 2008) Shelley Broader is leaving her post as CEO of the Sweetbay Supermarket chain, effective June 15. She will be accepting a position "in retailing outside of the supermarket industry," the Delhaize-owned chain said Wednesday. Broader's successor at the 107-store Sweetbay chain has not yet been identified.
Broader, who joined Sweetbay's sister banner, Hannaford Bros., Scarborough, Maine, in 1991, had spearheaded the conversion of Delhaize's Kash n' Karry chain in Florida to the Sweetbay format during the last four years.
DSW President Rejoins Limited Brands
Columbus, Ohio (May 29, 2008) Limited Brands said Thursday that Peter Horvath is rejoining the company as executive VP of business integration, effective at the end of June. He will report to Martyn Redgrave, executive VP and chief administrative officer for Limited Brands.
In this role, Horvath will spearhead a number of operational strategies and initiatives, according to the company.
Timberland Opens Franchised Store in Brazil
Stratham, N.H. (May 29, 2008) Outdoor apparel and footwear company Timberland has opened its first franchised store in Brazil. The unit is located at Guarulhos International Airport, in Sao Paulo.
The unit is being operated by local license partner, Sao Paulo Alpargatas.The company plans to open three more shops this year. Two of them will also be through franchising.
Coach to Acquire Asian Retail Businesses
New York City (May 29, 2008) Coach Inc. said Thursday that it will acquire its domestic retail businesses in Hong Kong, Macau and Mainland China from its current distributor, the ImagineX Group. Besides giving Coach control of its distribution in this region, the company said that the acquisition will enable it to directly manage a significant growth opportunity among Chinese consumers.
There will be a phased buyout of the current Coach retail businesses in Hong Kong, Macau and China over the next year. Thibault Villet, Coach's president, Greater China, will lead the operations of these businesses.
Finlay Losses Widen in 1Q
New York City (May 28, 2008) Jewelry chain Finlay Enterprises announced Wednesday that its losses widened in the first quarter as same-store sales fell and the company's recently acquired Bailey Banks & Biddle stores failed to meet expectations.
The loss for the period ended May 3 totaled $11 million, compared with $7.6 million a year ago. Finlay closed its Parisian stores in fiscal 2007. Excluding those discontinued operations, the loss for the prior-year period totaled $7.8 million.
Target to Carry New Hayek Line
Minneapolis (May 28, 2008) Target has teamed with designer Sami Hayek-brother to actress Selma Hayek-to carry a new line of home furnishings and accessories.
Target said on Tuesday that it would launch Sami Hayek for Target, a limited-edition collection including items such as bedding, furniture and stationery.
Sears' Lampert Ups AutoNation Stake
Ft. Lauderdale, Fla. (May 28, 2008) Sears Holdings Corp. chairman Edward Lampert has brought his stake in AutoNation to about 39%, according to an article in the South Florida Business Journal.
According to Securities and Exchange Commission filings on Tuesday, Lampert bought about 521,000 shares on May 22 for between $15.44 and $16 each. He now holds about 69.6 million shares.
Tennessee Withdraws From Wal-Mart Energy Partnership
Nashville, Tenn. (May 28, 2008) After having been selected as one of 19 states to partner with Wal-Mart Stores in an energy audit program for state capitols, Tennessee announced that it has changed its mind about participating.
The announcement came from the Tennessee governor's office. According to Wal-Mart spokesman Dennis Alpert, "The governor's office notified us that they were withdrawing from the program, and that's all we know."
Borders Group Loss Narrows in 1Q
Ann Arbor, Mich. (May 28, 2008) Borders Group Inc. said its losses narrowed in the first quarter although its same-store sales fell, and Wall Street greeted Tuesday's relaunch of the bookseller's retail Web site with a sell-off of its shares.
Borders Group said it lost $31.7 million in the three months ending May 3, compared with a loss of $35.9 million for the comparable period of 2007.
Senior VP Named for Macy's Regional HQ
St. Louis (May 28, 2008) Macy's Inc. has named Betsy Zeino as senior VP, regional director of stores for the Midwest region. She will be based in St. Louis, according to the St. Louis Post-Dispatch.
Zeino, who joined Macy's in 1998, most recently served as regional VP of stores based in Houston.
Chico's 1Q Profit Falls on Economic Conditions
Fort Myers, Fla. (May 28, 2008) Chico's FAS Inc. said Wednesday its first-quarter profit dropped 73% as sales of its core apparel brand dropped and expenses increased.
The women's apparel retailer reported earnings fell to $12.7 million compared with $47.2 million a year earlier.
Polo Ralph Lauren Profit Rises
New York City (May 28, 2008) Polo Ralph Lauren Corp. reported a higher quarterly profit on Wednesday, helped by strong sales, a lower tax rate and acquisitions. Net income rose to $103.5 million in the company's fiscal fourth quarter, ended March 29, from $73.2 million a year ago.
The company, whose brands include Polo, Chaps and Club Monaco, said net revenue increased to $1.24 billion from $1.03 billion a year ago, as higher wholesale and retail sales offset a decline in licensing revenue.
Dollar Tree 1Q Profit Rises 14%
Chesapeake, Va. (May 28, 2008) Strong sales and a lower tax rate led discount retailer Dollar Tree Inc. to report Wednesday that its fiscal first-quarter profit grew 14%.
For the quarter ended May 3, net income jumped to $43.6 million from $38.1 million in the prior year quarter.
Wegmans to Expand Headquarters
Chili, N.Y. (May 28, 2008) Wegmans Food Markets is expanding its corporate headquarters in Chili, N.Y. The company has made an application to be heard at the town's upcoming planning-board meeting.
The plan calls for creating a 400,000-sq.-ft. office building at their Fisher Road location. If approved, 600 to 800 current employees could relocate to the new facility, with plans to expand by 200 to 300 new positions in the coming years.
American Eagle Profit Falls
New York City (May 28, 2008) American Eagle Outfitters said on Wednesday quarterly net profit fell, hurt by greater markdowns resulting from lower-than-expected sales.
The company said net profit in the first quarter was $43.9 million compared with $78.8 million a year earlier. As previously disclosed, sales rose 5% to $640.3 million in the quarter, which ended on May 3, but same-store sales fell 6%.
Big Lots Names Exec
Columbus, Ohio (May 27, 2008) Big Lots announced on Tuesday the appointment of Christopher Chapin as senior VP of store operations, effective immediately. Chapin will report to CEO Steve Fishman and will oversee store standards, field operations, customer service, process development and program implementation for the company's 1,300+ closeout retail stores in 47 states.
Previously, Chapin was with Limited Brands as VP/store operations and YUM Brands as national director of operations.
Save Mart Names COO
Modesto, Calif. (May 27, 2008) Save Mart Supermarkets on Monday appointed Steve Junqueiro COO of the chain.
The company also named Mike Silveira chief administrative officer, and Steve Ackerman acting CFO.
Sears to Partner with LL Cool J
Hoffman Estates, Ill. (May 27, 2008) Sears Holdings said Tuesday it plans to launch in its Sears stores an exclusive apparel line by the rapper and film celebrity LL Cool J.
Irv Neger, senior VP, apparel, Sears Holdings Corp. said the move is part of "an ongoing commitment to increase our relevance in the apparel industry, and bring fashions to our customers that are both on-trend and affordable."
Gap Integrates Web Sites
San Francisco (May 27, 2008) The Gap Inc. announced Tuesday it would integrate its four Web sites-Gap, Banana Republic, Old Navy and Piperlime-in order to allow the company's customers to move more freely among the brands' sites.
As part of the integration, customers will fill one virtual shopping bag and pay just one shipping fee. Until now, shoppers had to visit the company's four concept sites separately to make purchases.
Mistrial Denied to Former CVS Execs
Woonsocket, R.I. (May 27, 2008) A judge has denied a mistrial for two former CVS executives, the company said on Tuesday. The judge, presiding in the federal corruption trial of Carlos Ortiz and John R. Kramer-former VPs who are accused of paying former state senator John Celona to advance CVS's legislative agenda-formally denied the mistrial but will allow defense lawyers to question the government's star witness again about what they believe were his lies under oath.
Lawyers for Ortiz and Kramer have argued that Celona offered false testimony last week that contradicted previous statements he made before a grand jury investigating the case and at an earlier corruption trial.
A&F in Anti-Counterfeiting Raids
New Albany, Ohio (May 27, 2008) Abercrombie & Fitch announced on Tuesday that the company has embarked on a series of search-and-seizure efforts throughout Ireland, as part of its global anti-counterfeiting initiative.
During the last few months, the company said numerous raids have been conducted, including several within Dublin. The retailer indicated that shops across the Irish capital will receive cease-and-desist letters notifying owners they are selling fakes illegally.
Cato Details Expansion
Charlotte, N.C. (May 27, 2008) The Cato Corp. will add 40 new Cato stores and 30 new It's Fashion units this year, company chairman, president, and CEO John Cato said during the company's annual shareholders' meeting.
"Our plans for this year are to accelerate It's Fashion store openings primarily through the development of our It's Fashion Metro concept," Cato said.
Macy's Expands CE Kiosks
New York City (May 27, 2008) Macy's announced the rollout of its consumer-electronics kiosk units to more than half of its full-line department stores around the country. The announcement comes on the heels of a two-year pilot with ZoomSystems.
Macy's new e-Spot automated shops offer the latest consumer electronics with touchscreen technology that processes the transaction and completes the sale. The machines will offer widely demanded brands including Apple, Sony, Canon and MyVu.
Vons Enters Small Store 'Market'
Long Beach, Calif. (May 27, 2008) Vons has launched a new concept store The Market in Southern California.
Vons said that it had been working on the format for more than a year, according to the OC Register. The Market opened a 15,000-sq.-ft. location in Belmont Shore and offers a scaled-down selection of groceries and a large variety of ready-to-eat meals.
Borders to Offer E-Commerce After Seven Years
Ann Arbor, Mich. (May 27, 2008) Borders Group is jumping back into online retailing with a Web site after a seven-year partnership with Amazon.com. The new site is designed to evoke the feeling of browsing at a neighborhood bookstore.
Tuesday's launch of Borders.com comes more than two months after Borders announced it might put itself up for sale. Just last week, Barnes & Noble Inc. confirmed it put together a team to study the feasibility of a deal. But Borders Group Inc. president and CEO George Jones told the Associated Press that pushing forward with Borders' return to Web retailing is key-regardless of whether a sale materializes.
Impairment Charge Hurts Foot Locker 1Q Results
New York City (May 23, 2008) Foot Locker Inc. on Thursday said fiscal first-quarter profit fell, hurt by an impairment charge and nearly flat sales. Profit for the quarter ended May 3 fell 82% to $3 million compared with $17 million a year ago. Sales were nearly flat at $1.31 billion.
The impairment charge is related to a note receivable due from the purchaser of the company's former Northern Group operation in Canada, which the company sold in 2001.
S&P Names CVS Drug Store of Choice
New York City (May 23, 2008) Standard & Poor's has named CVS the drug store of choice, citing the chain's growth opportunities in retail and pharmacy benefit management. As reported in BusinessWeek, S&P said that it believes CVS Caremark is "well positioned for market-share gains, following the acquisition of Caremark Rx in March 2007, and the continued turnaround of recent drug store acquisitions."
S&P also said that it has a positive outlook on the future of the U.S. drug store industry, as an aging population will mean an increase in demand for prescription medications.
Books-A-Million 1Q Profit Drops, Cuts Jobs
Birmingham, Ala. (May 23, 2008) Books-A-Million Inc. reported that its net income dropped by more than 57% in the first quarter of 2008.
Net income for the company's first quarter dropped to $900,000 compared to $2.1 million in its first quarter last year.
Giant Eagle Expands Generic Drug Program
Pittsburgh (May 23, 2008) Giant Eagle Inc. said Thursday that, effective immediately, it will begin offering a 90-day supply of more than 400 generic drugs for $10. The program is available at 205 Giant Eagle pharmacy locations in Pennsylvania, Ohio, West Virginia and Maryland.
The program expands on Giant Eagle's success in offering 30-day supplies of some 400 generic drugs for $4, launched in November 2006.
Kroger Extends Gas Discounts
Cincinnati (May 23, 2008) Kroger Co. has expanded its gas discount program across its regions.
Most of the regional fuel-discount programs in the Kroger Co.'s chain give regular shoppers 10? off per gallon at company gas stations for every $100 they spend in a Kroger store. But the programs previously weren't carried over between regions, so a vacationing shopper at a Kroger-owned Ralphs store in California, for instance, didn't get the spending credit for the discount back home in Cincinnati.
Report: Consumers View Economy in Worst Condition
Columbus, Ohio (May 23, 2008) About 3 in 5 Americans (62.3%) believe the economy is in the worst shape they have experienced in their lifetime, according to the May American Pulse Survey.
About 77.1% of Democrats and people between 18-34 years old (65.8%) are most likely to echo this sentiment, the report said.
Dillard's 1Q Profit Drops 94%
New York City (May 23, 2008) Dillard's Inc. said Thursday its fiscal first-quarter profit tumbled 94% on a sharp decline in same-store sales, fueled by a weak economic environment.
For the period ended May 3, the company reported income of $2.7 million compared with $42.9 million in the year-ago quarter.
Better late than never, I guess. Report: NexCen Hires Financial Advisor New York City (May 22, 2008) NexCen Brands has hired Rothschild as its investment advisor, according to a report in Women's Wear Daily. Rothschild is expected to help the company decide which of its assets it should sell, the report said. NexCen's holdings include the Bill Blass and Waverly brands along with the Marble Slab Creamery, MaggieMoos, Pretzel Time, Pretzelmaker, and Great American Cookies franchised brands. On Monday, NexCen raised questions about its survival and said it planned to explore strategic alternatives, including the sale of one or more of its businesses, to increase its liquidity. Borders Group CEO Denies Sales Discussion Dearborn, Mich. (May 22, 2008) Borders Group Inc. has not had substantial discussions regarding a possible sale of the bookseller and is moving forward on efforts to improve its business, CEO George Jones said Thursday. The CEO provided the update to investors during the Ann Arbor company's annual meeting of shareholders in Dearborn, according to the Associated Press. The meeting came a day after a report in The Wall Street Journal that rival bookseller Barnes & Noble Inc. had assembled a team to study the possibility of acquiring Borders. Hot Topic 1Q Loss Widens on Same-Store Sales Drop City of Industry, Calif. (May 22, 2008) Hot Topic Inc. said Wednesday its first-quarter loss widened on a drop in same-store sales. For the quarter ended May 3, Hot Topic posted a loss of $1.4 million, compared with a loss of $809,000 in the year-ago period. The Buckle Same-Store Sales Surge 1Q Results Kearney, Neb. (May 22, 2008) The Buckle Inc. on Thursday said fiscal first-quarter profit rose 54% on a surge in same-store sales. Earnings for the quarter ended May 3 rose to $18.7 million compared with $12.2 million. Revenue rose 32% to $160.3 million from $121.1 million last year, while same-store sales grew 25.6%. Dick's Sporting Goods 1Q Profit Slips Pittsburgh (May 22, 2008) Dick's Sporting Goods Inc. said Thursday its fiscal first-quarter earnings fell 4%, as declining sales at established stores overshadowed gains from newly opened ones. For the quarter ended May 3, the company earned $20.8 million compared with $21.7 million in the year-ago quarter. Casual Male 1Q Earnings Fall on Sales Weakness Canton, Mass. (May 22, 2008) Casual Male Retail Group Inc. said Thursday its first-quarter earnings fell as a pullback in consumer spending hurt sales of big-and-tall men's clothing. First-quarter earnings dipped to $96,000 from $1.1 million in the prior year. The 2007 results include a loss from the company's discontinued Jared M. custom-clothing business of $400,000. Children's Place Profit Rises New York City (May 22, 2008) Children's Place Retail Stores reported higher quarterly profit on Thursday, helped by its exit from the Disney Stores business and increased same-store sales. The company said net income rose to $19.5 million in the first quarter that ended on May 3, from $14.7 million a year earlier. Barnes & Noble Posts Loss New York City (May 22, 2008) Barnes & Noble Inc. reported a first-quarter loss on Thursday, hurt by a charge. The bookseller also lowered its second-quarter and full-year forecast for sales at existing stores, citing the difficult retail environment. The retailer reported a loss of $2.2 million for its fiscal first quarter ended May 3, compared with a loss of $1.67 million a year earlier. Starbucks to Buy 40 Stores from Canadian Licensee New York City (May 22, 2008) Starbucks Coffee Co. said Wednesday its Canadian subsidiary agreed to buy 40 stores from its licensee in Canada, Coffee Vision Inc. and Coffee Vision Atlantic Inc. The financial terms of the deal were not disclosed. The company said it will turn the stores into company-operated locations. GameStop Boasts Strong Profit in 1Q New York City (May 22, 2008) GameStop Corp. said Thursday its fiscal first-quarter profit more than doubled on strong sales of "Grand Theft Auto IV," "Super Smash Bros. Brawl" and other games. For the three months ended May 3, the company earned $62.1 million up from $24.7 million in the same period a year earlier. Limited Brands 1Q Earnings Up on Sale Columbus, Ohio (May 22, 2008) Limited Brands Inc. said Wednesday its first-quarter earnings nearly doubled on an asset sale. The operator of Victoria's Secret and Bath & Body Works said it made $97.8 million for the quarter ended May 3, compared with a profit of $52.9 million a year ago. Sales fell 17% to $1.9 billion from $2.3 billion, while same-store sales declined 8%. Zale's Losses Widen as Inventory is Reduced Dallas (May 22, 2008) Zale Corp. said Thursday its losses widened in the third quarter, as expected, after the company began its initiative to permanently reduce inventory levels. Third-quarter losses totaled $16.8 million compared with $4 million in the prior year. Excluding income from discontinued operations, quarterly losses totaled $17.4 million compared with a loss of $5 million. AnnTaylor Posts Lower Profit, Details Expansion New York City (May 22, 2008) AnnTaylor Stores Corp. reported lower quarterly profit on Thursday, hurt by restructuring costs. Net income fell to $25.9 million in the first quarter that ended on May 3 from $31.5 million a year earlier. Report: Barnes & Noble Eyeing Borders New York City (May 21, 2008) Barnes & Noble is looking into a possible bid for competitor Borders Group, according to a Wall Street Journal report. Barnes & Noble has put together a team of executives and advisers to look into the possible acquisition, the report said. Gap to Expand in Russia San Francisco (May 21, 2008) Gap Inc. said it will open Gap and Banana Republic stores in Russia through a franchising agreement with Fiba Holding A.S. Financial terms were undisclosed. Nordstrom Launches 'Buy Online, Pick Up In-Store' Service Seattle (May 21, 2008) Nordstrom has introduced a "Buy Online, Pick Up In-Store" option for online shoppers. Customers can now pick up select merchandise purchased through Nordstrom.com at a Nordstrom location of their choice. In response to customers asking for "Buy Online, Pick Up In-Store," the company is testing the service with items from its women's apparel, men's apparel, women's shoes and cosmetics departments. Nordstrom plans to offer this service for all merchandise categories by September. West Marine Opens Store in Turkey Watsonville, Calif. (May 21, 2008) Boating supplies and accessories retailer West Marine on Wednesday announced an agreement with East Marine Denizcilik & Turizm A.S. to open its first franchise store in Istanbul, Turkey. Industrialist and ardent sailor Rahmi M. Koc is the chairman and controlling shareholder of East Marine. The new West Marine store in Turkey is set to open in July. It's part of a multi-store development agreement for Turkey. Other locations are being identified along Turkey's Aegean and Mediterranean coasts. BJ's Profit Up 26% Natick, Mass. (May 21, 2008) BJ's Wholesale Club Inc. on Wednesday reported a 26% jump in quarterly profit, beating Wall Street expectations, as shoppers headed to its stores for discounts on food and fuel. The retailer also boosted its full-year earnings forecast. BJ's said profit for its fiscal first-quarter ended May 3 rose to $17.2 million from $13.7 million a year earlier. Movie Gallery Names New CEO, Exits Bankruptcy Dothan, Ala. (May 21, 2008) Movie Gallery Inc. named C.J. Gabriel Jr. as president and chief executive. He succeeds founder Joe Malugen. Gabriel was previously executive VP of marketing, merchandising and supply chain management at grocery chain Albertsons Inc. Corporate Express Thwarts Staples' Bid Amsterdam, Netherlands (May 21, 2008) Office-supplies distributor Corporate Express NV showed its determination to fend off a hostile takeover by Staples Inc. on Wednesday, announcing plans to instead buy French peer Lyreco SAS for about $2.7 billion in cash and shares. If approved by shareholder and regulators, a Corporate Express-Lyreco combination would create a sizable international competitor to Massachusetts-based Staples. Corporate Express-Lyreco would be larger than Staples in business-to-business sales in the United States, Europe and Asia. Sears to Open Direct Delivery Center Hoffman Estates, Ill. (May 21, 2008) Sears Holdings Corp. said Wednesday it will open a new direct delivery center in Jacksonville, Fla. The company said the 811,672-sq.-ft. center will distribute home appliances, TVs and other big-ticket items to local warehouses at 112 Sears and Kmart store locations in Florida, Georgia, South Carolina, the Virgin Islands and Puerto Rico. Talbots Operating Profit Tops View, Net Income Tumbles Hingham, Mass. (May 21, 2008) The Talbots Inc. posted higher-than-expected quarterly operating profit on Wednesday and affirmed its full-year forecast. The retailer said better inventory management, expense controls and monthly markdowns contributed to a "dramatic improvement" in its merchandising gross margin. Talbot's net income for the period ended May 3, dropped 69%. Earnings slipped to $1.6 million, compared with $5.2 million in the prior year. Office Depot First to Achieve Volume LEED Pre-Certification Delray Beach, Fla. (May 20, 2008) Office Depot Tuesday announced that it has achieved volume pre-certification under the pilot Leadership in Energy and Environmental Design (LEED) Portfolio Program for its store prototype design from the United States Green Building Council (USGBC). "Office Depot is to be commended for this achievement," said USGBC's market development VP, Doug Gatlin. "And we are also grateful for their leadership participation in this initiative. The Portfolio Program pilot is breaking new ground for LEED and adding to our ability to scale green building's immediate and measurable results at a much faster level." Talbots Appoints Senior VP Hingham, Mass. (May 20, 2008) Talbots Inc. appointed Chris Jackson, senior VP of apparel, design and development of the Talbots brand. Jackson brings more than 18 years of design experience to his new position, where he will be responsible for the concept and design of all apparel under the Talbot's line. He will be based in Talbots' New York creative studio. Previously, Jackson, 40, was the senior VP of design for the Calvin Klein Bridge and Better Sportswear collections. Staples Profit Inches Up Framingham, Mass. (May 20, 2008) Staples Inc. posted a 1.5% increase in quarterly profit on Tuesday, and stood by its outlook for the full year. The increase matched Wall Street's expectations. The retailer, which has launched a hostile bid to buy smaller Dutch rival Corporate Express NV, warned it expects weak economic conditions to persist through 2008. Earnings were $212 million in the first quarter that ended May 3, compared with $209 million in the year-earlier period. Quarterly sales rose 6% to $4.9 billion. International same-store sales rose 4% in the quarter, but North American retail same-store sales fell 6%. Brooks Brothers Announces California Flagship La Jolla, Calif. (May 20, 2008) Madison Marquette, a Washington, DC-based developer, announced that Brooks Brothers has leased a 14,000-sq.-ft. space in the Village of La Jolla, in La Jolla, Calif. The new flagship location, due to open in fall 2008, will be the retailer's first in the region. Additionally, Madison Marquette also has a commitment from Brooks Brothers to open its new Country Club format at Garden Walk in Anaheim, Calif. Home Depot Profit Falls on Housing Weakness Atlanta (May 20, 2008) The Home Depot said on Tuesday that quarterly profit fell 66% as the U.S. housing meltdown hurt sales and it took a charge to close stores and curb expansion plans. Net income fell to $356 million in the first quarter ended May 4, from $1.05 billion a year earlier. Results included a charge of $543 million to close 15 underperforming U.S. stores and scrap plans to open 50 stores that had been in the company's pipeline. Saks Profit Jumps 66% New York City (May 20, 2008) Saks Inc. reported Tuesday a 66% increase in first-quarter earnings compared with weak year-ago results. The results, however, were below analysts' expectations. Saks said increased discounting hurt profit margins as even wealthy customers were feeling squeezed. Saks earned $18.27 million for the three months ended May 3, compared with $11.04 million in the year-ago period. Netflix Markets TV Direct Los Gatos, Calif. (May 20, 2008) Netflix is coming to TV land. The company joined with Roku, Saratoga, Calif., to offer The Netflix Player, a device that will allow Netflix subscribers to view movies and media directly on their televisions. The device sells for $99.99 and streams video direct from Netflix to the consumer. Pennsylvania Lures Amazon DC Harrisburg, Pa. (May 20, 2008) Associated Press reported that Amazon.com will open a distribution center in Hazleton, Pa. An estimated $1.75 million in economic incentives provided by the state sweetened the deal for Amazon. The planned 600,000-sq.-ft. DC is expected to create 1,100 permanent jobs as well as 800 seasonal jobs. The report stated that Amazon will spend approximately $20 million on the project and the state has tossed in a $1.25 million "opportunity grant" as well as $500,000 for training. Tween Brands Names CFO New Albany (May 20, 2008) Tween Brands appointed Rolando de Aguiar executive VP and CFO, effective June 2. Aguiar, 59, replaces Paul C. Carbone, who resigned in February after more than a year with the company. Most recently, Aguiar served as a managing director with Abacus Advisors LLC, a New York management advisory company. Prior to that, he was a senior officer of Rocky Hill, Conn.-based Ames Department Stores, which went out of business in 2002. Retailers Go Live With Google Health New York City (May 20, 2008) Google Health launched a beta site on Monday that allows individuals to upload and store personal health, medical and prescription info to be shared across the Web portal with their doctors. A number of organizations announced plans to partner with Google Health including retailers CVS, Longs Drug Stores and Walgreens, as well as Quest Diagnostics and the American Heart Association. Mervyns to Open Five Stores in 2009 Hayward, Calif. (May 20, 2008) Mervyns will launch an e-commerce site in the fourth quarter of 2008 and open five stores in the company's core markets across California and the Southwest in 2009. The retailer also plans to sell an estimated five to 10 underperforming locations, and has retained DJM Realty to manage disposition of this real estate. Target 1Q Profit Falls Minneapolis (May 20, 2008) First-quarter profits at Target Corp. dropped almost 8% on softer-than-expected sales and higher costs, but the retailer still beat Wall Street earnings estimates for its first quarter. The retailer on Tuesday reported a profit of $602 million in the three months ended May 3, down from $651 million during the same period last year. Revenue rose 5% to $14.8 billion from $14 billion. Same-store sales fell 0.7%. Room & Board to Enter L.A. Market Santa Ana, Calif. (May 19, 2008) Furniture retailer Room & Board has leased 40,000 sq. ft. of retail space for its first location into the Los Angeles marketplace. Room & Board's new store will be located in the Plaza at Culver Studios, an 118,500-sq.-ft., three-story mixed-use building scheduled to commence construction this summer. Report: Consumer Anxiety Up in 2008 Charleston, S.C. (May 19, 2008) About 24.5% of American consumers postponed a major purchase this April, up from 22.9% last year, citing different concerns from those noted in the previous year period, according to a Consumer Mind Reader survey conducted by America's Research Group (ARG). The report cited major ticket items as those above $500. About 23.5% of those who postponed major purchases in April 2008 said they just didn't want to spend the money, while only 31.4% cited the same reason in 2007. Only 17% said high gas prices deterred spending money on big-ticket items in 2007, while 26.5% cited high gas prices in 2008. Hastings Entertainment Net Income Up Amarillo, Texas (May 19, 2008) Hastings Entertainment on Monday reported results for the three months ended April 30. Net income was approximately $3.0 million for the first quarter of fiscal 2008 compared to net income of $2.5 million in the same period last year. It was the fifth consecutive quarter of growth. Total revenues for the first quarter increased to $131.9 million from $128.0 million in the year-ago period. Survey: Consumers to Spend Tax Rebate Money on Debt Las Vegas (May 19, 2008) With over a third of the federal tax rebate money already distributed, consumers mostly intend to use the money to pay down debt, according to the findings from a special International Council of Shopping Centers (ICSC) tax rebate survey that was conducted by Opinion Research Corp. The survey found that 51% of consumers receiving a rebate intended to use it to pay off debt, which was up considerably from consumer intentions earlier in the year. Staples Launches Hostile Bid for Corporate Express Amsterdam, Netherlands (May 19, 2008) Staples Inc. on Monday launched a hostile 1.5 billion euro ($2.34 billion) bid for Corporate Express NV because the Dutch office supplier was unwilling to negotiate. Staples said in a statement that Corporate Express shareholders could tender their shares as of Tuesday until June 27, subject to a possible extension. Nordstrom Lays Off 30 Workers Honolulu (May 19, 2008) About 30 employees have been laid off from jobs at Honolulu's new Nordstrom store, according to the Honolulu Star Bulletin. Nordstrom spokeswoman Brooke White said the move was due to softening sales. Dillard's to Close More Stores Little Rock, Ark. (May 19, 2008) Dillard's Inc. said Monday it will continue to focus on closing underperforming stores, reducing expenses and improving its merchandise in 2008. At the company's annual shareholder meeting Saturday, CEO William Dillard II said the company will close another six underperforming stores this year. The company has already closed three underperforming locations in 2008. Sears.com Embraces Virtual Showroom Hoffman Estates, Ill. (May 16, 2008) Sears.com has expanded its online shopping experience with a virtual showroom of art, books, movies, software and music. The addition nearly quadruples the number of products available on the site. The first step toward creating this expanded online inventory came in December 2007 when Sears.com partnered with Alliance Entertainment Corp. (AEC) to offer movies and music to its online shoppers. Sears.com now houses more than 250,000 titles searchable by format, genre, artist and release date. Visitors also can sample previews of the hottest music and movie titles. Supervalu CEO Makes $9.3M in 2008 Minneapolis (May 16, 2008) Supervalu Inc. CEO Jeff Noddle took in $9.3 million in total compensation for 2008, down from $11.9 million in 2007. In a proxy statement filed with the SEC on Friday, Supervalu reported that Noddle made $1.1 million in salary for 2008, down slightly from $1 million in 2007. Safeway Opens New Format Long Beach, Calif. (May 16, 2008) Safeway has opened its first new small-format location, The Market, in Long Beach, Calif. The new model will be used as an option to renovate older stores and potentially expand into new locations, according to Supermarket News. The Market made its debut in a former Von's store that closed in January, the report said. Macy's to Open In-Store FAO Schwarz Boutiques New York City (May 16, 2008) Macy's Inc. has reached an agreement with FAO Schwarz to open branded specialty toy shops in about 685 Macy's locations during the next two years. Up to 275 Macy's stores will have FAO Schwarz-operated toy stores in fall 2008, the companies said, in time for the key holiday shopping season. Report: Wal-Mart to Serve Food in Small-Format Stores New York City (May 16, 2008) Wal-Mart Stores intends to prepare and serve food in its upcoming small-format stores, the Financial Times said on Friday, as it competes with Tesco's Fresh & Easy markets. The smaller-format stores, which will operate under the Marketside banner, will include a kitchen, food counters and seating, the report said. Abercrombie Profit Edges Up New Albany, Ohio (May 16, 2008) Abercrombie & Fitch said Friday that its first-quarter earnings rose 3% from a year ago on stronger sales. The company said it earned $62.1 million in the three months ended May 3 compared with profits of $60.1 million a year ago. Nordstrom 1Q Profit Sinks 24% Seattle (May 16, 2008) Nordstrom Inc. said Thursday its profit fell 24% in the first quarter. Meanwhile, earnings fell to $119 million from $157 million in the same three months last year. Revenue slipped 4% to $1.88 billion from $1.95 billion a year ago. Same-store sales fell 6.5% for the quarter, below the expected 3% to 5% drop. Posted by: Richard
I like these updates from CBRE Capital Markets:
Bloomberg reports, The Federal Reserve is supplying the U.S. financial system with more than $150 billion in cash, providing a liquidity cushion that has kept credit flowing and the economy expanding. The Fed has come under fire for extending loans to major securities firms rather than just to banks; and for accepting collateral other than securities either issued or guaranteed at least indirectly by the U.S. government. Fed Chairman Ben Bernanke counters that supplying liquidity during a banking crisis is what central banking is all about, adding that the central bank had to step up and provide the liquidity that was no longer available in the market. Otherwise, he asserted, even creditworthy households and businesses would not have been able to borrow. Over the past 12 months ending April 30, commercial and industrial loans rose 20.9 percent at banks, while home-equity loans increased 9.9 percent and consumer loans rose 9.3 percent.
According to the Commercial Real Estate Direct, CMBS spreads rallied the end of last week, regaining what they lost the previous week and now stand at levels inside of where they were three weeks earlier. The latest rally, coupled with a more generally optimistic tone in the market, has prompted portfolio lenders to tighten their loan spreads somewhat. And conduit lenders, which for the most part had been on the sidelines in recent months, have started offering loan spreads that are approaching competitive levels. That's not to say they're aggressively courting borrowers, but they are now quoting loan spreads that are perhaps 150 basis-points tighter than they were three months ago.
Only 2.8 percent of the fixed-rate CMBS loans that reached their final maturity in the first quarter defaulted, according to Standard & Poor's, indicating that property owners continue to find financing for their holdings. Its analysis of the $591.2 billion of securitized mortgages in deals it rates found that $16.5 billion of mortgages had or have final maturities this year. A total of $14.2 billion of that is comprised of fixed-rate loans, with the remainder having floating rates.
From: http://capitalmarkets.cbre.com/
Posted By: Richard
Just got back from ReCON, the ICSC conference in Las Vegas. First off, the convention felt almost as busy as last year, which surprises me. Second, many brokers commented to me that more people were interested in doing deals this year. Maybe it's just positive thinking. The cab lines were just as long as last year, so my feet hurt.
Posted by: Rich