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jerryking : landlords   12

A Website for Pop-Up Stores Attracts Funding - WSJ
By Peter Grant
Oct. 10, 2017

(For John Corless)

A venture-capital firm that focuses on real-estate technology is investing in a London startup that has created an online marketplace for pop-up stores.

Fifth Wall Ventures, which is backed by big names in the real-estate world like Hines, CBRE Group Inc. and Macerich Co. , has made a “significant” investment in Appear Here, according to Brendan Wallace, Fifth Wall’s managing partner. He declined to specify an amount or how much of an ownership stake Fifth Wall is taking.

Founded in 2013, Appear Here has hooked up thousands of retailers with landlords in London and other U.K. cities, and its website currently includes more than 100,000 brands looking for space. The company, which enables retailers to sign leases for days or months, also has expanded to Paris and, earlier this year, New York.....London retailers leasing space through Appear Here and its competitors, like Hire Space and We Are Pop Up, also have turned marginal neighborhoods into hubs for new and edgy retail concepts. That hip vibe sometimes has lured big name retailers to those areas as well.

“The idea that online retail is going to kill physical retail is a complete fabrication,” Mr. Bailey said. “Every online retailer I know is wanting to open up physical stores the same way that every traditional retailer is moving online.”
e-commerce  venture_capital  start_ups  Appear_Here  pop-ups  websites  funding  retailers  landlords  London  CBRE 
october 2017 by jerryking
Landlords Try Turning Strip Malls Into Winter Hangouts - WSJ
By Esther Fung
Sept. 19, 2017

Landlords of strip malls are trying to take the chill out of the air by adding outdoor entertainment programs (e.g. ice-skating rinks, fire pits and programmed entertainment such as tree-lightings), in hopes of attracting more shoppers in an era of declining foot traffic.....landlords are also overseeing residential property development in their out-parcels as well.......While shopping centers typically attract shoppers focused on transactions during the fall and holiday seasons, more landlords want to create destinations for the local community that may not be entirely focused on buying something........The moves come at a time when bigger shopping center landlords are investing more to cater to changing consumer lifestyles as shoppers handle more of their transactions online...........
shopping_malls  entertainment  commercial_real_estate  landlords  foot_traffic  shifting_tastes 
september 2017 by jerryking
European Mall Landlords Coping With Online Competition Better Than U.S. Owners - WSJ
Sept. 5, 2017 | WSJ | By Esther Fung.

Malls need to shift emphasis away from department stores and toward retailers that are less susceptible to competition from e-commerce........On average, department stores still occupy about 50% of the gross leasable area of shopping malls in the U.S., while similarly beleaguered apparel and accessory retailers take an additional 29%, said the CBRE report. Retail sectors that are growing, include restaurants, beauty and home furnishings, account for only a small percentage of the typical mall.

The traditional mall model, developed seven decades ago, is heavily dependent on categories that are no longer fast-growing or meeting today’s consumer demands,.....“Converting malls’ tenant bases to include more of the categories that in-person shoppers now favor won’t be an easy or quick fix,” ..... “But it is a necessary evolution for the mall industry to maintain its place as a cornerstone of American retail.”

One of potential obstacles is getting the buy-in of department stores, which usually hold contracts that hinder major changes to malls without their consent.

“Many department store chains gradually have become more accepting of change, but it isn’t a given. Those who reject change may do so at their own peril: There is a growing trend of mall owners buying out department store leases and redeveloping the space into restaurants and specialty stores,”
redevelopments  shopping_malls  landlords  Europe  restaurants  anchor_tenants  department_stores  CBRE 
september 2017 by jerryking
Mall Landlords Step Up Mobile Efforts to Woo Shoppers - WSJ
By Esther Fung
Aug. 22, 2017

Retailers are making progress incorporating the benefits of online shopping into the physical shopping experience, but consumers are still uncomfortable with location-based services that track their smartphones, according to a recent survey of 5,000 shoppers.

Faced with competition from online vendors, shopping-mall landlords and retailers have been trying to transform brick-and-mortar spaces with innovations such as click-and-collect services and other interactive shopping functions......“Retailers are figuring out click-and-collect over time and are making real progress toward omnichannel maturity,” said the report. Omnichannel retailing is a strategy of getting goods to customers seamlessly, whether online or in stores.

There has been a surge in the number of retailer bankruptcies and store closures this year, including many mall-based chains that are suffering from weaker mall traffic and competition from Amazon.com Inc.....According to the survey, a majority of shoppers aren’t comfortable allowing retailers to track their locations when they aren’t using the retailer’s apps or with changing messages on digital signs as shoppers pass by. Some 70% of the respondents said they weren’t likely to use retailer services that rely on location tracking via the phone when the app isn’t in use.
shopping_malls  landlords  retailers  BOPIS  omnichannel  bankruptcies  location_based_services 
august 2017 by jerryking
Mall Owners Flex Hidden Muscles Over Lenders - WSJ
increasing uncertainty over the fate of malls across the U.S., stemming from the rise of e-commerce and fickle consumer preferences, have led to more volatile valuations in recent years.

Landlords who owe millions of dollars on struggling shopping malls are finding they have serious bargaining power.

At a time when retailers are closing thousands of stores across the U.S., some lenders are deciding to renegotiate loans backing malls—and suffer guaranteed losses—rather than run the risk of being stuck owning or operating the malls themselves.

Shopping mall owner Washington Prime Group WPG -0.94% last June defaulted on an $87.3 million loan backing Mesa Mall in Grand Junction, Colo., and turned the keys over to creditors.
Rather than operate the mall, the creditors quickly sold the property—right back to Washington Prime—at a lower price. Late last month, Washington Prime told investors it had repurchased the mall and secured a discounted payoff of the original loan for $63 million.

While the creditors, a collection of bondholders such as insurers and other institutional investors, took a write-down of $24.3 million, they avoided having to own or operate the mall themselves.
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RESEARCH: MORE STORES NEED TO SHUT

In April 2016, real-estate research firm Green Street said roughly 800 stores should be closed to bring department-store retailers back to a level in which sales per square foot is in line with 2006 levels, a period considered normal.

Now the research firm is raising the tally.

“Just a year later, the 800 number looks much too light on a strict sales productivity standpoint and is much lower than what will ultimately be needed as the industry will likely need to massively rationalize its store count as it reinvents its business model,” Green Street said in a report.
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“There’s a secular change in how people are shopping at the mall, which is affecting short-term value-enhancement strategies,”
shopping_malls  creditors  landlords  commercial_real_estate  sales_per_square_foot  store_closings 
july 2017 by jerryking
As Retailers Race to Close Stores, a Web Startup Is Opening Them - WSJ
By Khadeeja Safdar
April 30, 2017

Online brands are treading more carefully into physical retail. Several brands, such as Everlane, Casper and Warby Parker, have opened temporary stores to test out foot traffic and experiment with new concepts. ....One challenge for online brands is to ensure that new locations increase sales, rather than cannibalize existing business.

“We have to see the interplay between our online and offline channels,” said Ms. Ulman. “A customer who shops online and offline is supposed to be very valuable, but we want to understand just how much more valuable.”....Online apparel brands are finding that they don’t need much to set up a store. The evolution of point-of-sales technology means that transactions can now be made on phones and tablets. Some newer retailers don’t even keep much inventory. Bonobos, which started out selling men’s clothing online, lets customers try on items at its more than two dozen “guideshops” and mails purchases to their doorsteps.

Greats sells eight core styles of shoes in different colors and materials, making its business more mobile than that of a traditional retailer. At its new locations, the company plans to bring its own interior elements such as shelving, greenery and lighting.

“You can do a lot within four walls,” said Ms. Ulman. “All we really need is some Wi-Fi.”
sneakers  pop-ups  e-commerce  retailers  physical_retail  store_closings  shopping_malls  landlords  bricks-and-mortar  foot_traffic  omnichannel  short-term  leasing  inventory-free  cannibalization  Bonobos  Everlane  Casper  Warby_Parker  point-of-sale  brands  Wi-Fi  mens'_clothing  apparel 
june 2017 by jerryking
Mall Landlords Roll the Dice With Tech Investments - WSJ
By Esther Fung
Updated June 20, 2017

Mall landlords are investing millions of dollars in technology to help protect them from the changes buffeting the retail sector as internet shopping gains a stronger foothold.

Some of the investments aren’t faring so well.

Macerich Co., one of the biggest U.S. mall owners, last quarter wrote off $10 million invested in a startup that purported to help online and European retailers expand their physical store presence in the U.S......landlords face growing pressure to remain relevant, and are investing more resources to understand the industry’s disrupters. Larger landlords with stronger balance sheets, such as Simon Property Group and Westfield Corp. , have been setting aside millions of dollars for incubators to take on risks similar to venture capitalists......“The real-estate technology industry is heating up, bringing along with it quite a bit of noise,” said Hongwei Liu, CEO of MappedIn, a six-year-old Canada-based firm that provides indoor mapping and search software for property owners.

The firm has developed digital maps for more than 300 U.S. malls, including for the top mall REITs.
shopping_malls  landlords  technology  MappedIn  mapping  risk-taking  retailers  indoors 
june 2017 by jerryking
The Mall of the Future Will Have No Stores - WSJ
By Esther Fung
June 12, 2017

As retailers close bricks-and-mortar stores at an accelerating pace, shopping-center landlords like Starwood Capital are facing a vexing question: What to do with all this empty space?

Their solutions are varied but all have a common element: reducing, or even eliminating, retail from the equation.

Some landlords plug empty spaces with churches, for-profit schools and random enterprises while they figure out a long-term plan. Others see a future in mixed-use real estate, converting malls into streetscapes with restaurants, offices and housing. And some are razing properties altogether and turning them into entertainment or industrial parks......A construction binge in the 1980s and ’90s left the U.S. oversaturated with malls. Growth in online sales and declining demand for full-priced goods are causing retailers to shrink their store fleets and divert resources to e-commerce platforms.....Many mall owners are trying to liven up the experience, bringing more dining and entertainment tenants and eschewing the traditional mix of middling food courts, fashion retailers and department stores.

“The appetite for experimentation is there,...but Sometimes developers conclude that the only way to save a dying mall is to level it and start over.
shopping_malls  landlords  retailers  trends  future  randomness  experiential_marketing  e-commerce  store_closings  experimentation  property_development  physical_space  oversaturation 
june 2017 by jerryking
Sears Canada raises ‘significant doubt’ about its future - The Globe and Mail
MARINA STRAUSS - RETAILING REPORTER
The Globe and Mail
Published Tuesday, Jun. 13, 2017 .

a number of retailers stand to profit from Sears’s woes. One of them is archrival Hudson’s Bay Co., which announced last week it is letting go 2,000 employees in North America and revamping to generate $350-million in annual savings.

“When a competitor is out, more customers are looking for a substitute,” said Hugh Latif of Hugh Latif & Associates Management Consultants.

Other potential beneficiaries of Sears’s problems could be discount giant Wal-Mart Canada Corp., Quebec fashion specialist La Maison Simons and Canadian Tire Corp., all of which may look at buying some of the Sears leases, in some cases to nab a better location, Mr. Latif said. Simons is one of the few retailers in this country that is rapidly expanding.

“Probably landlords will sweeten the pie for them,” he said.

And retailers such as Canadian Tire and Wal-Mart have been interested in potentially picking up some parts of Sears, most notably its rights to prominent brand names such as Kenmore appliances, industry sources said......In its transformation efforts, Sears Canada has so far relaunched four stores under its more minimal redesign, with 10 more planned this summer. It has also installed new technology for its “Initium” digital strategy, although it has faced some setbacks in the rollout. And along with introducing off-price discounted designer lines in apparel and home goods – borrowing a page from retailer Winners’s playbook, it also has overhauled its private-label lines under the new Sears Label to offer more affordable, higher-margin fashions and home décor items.
Sears_Canada  retailers  shopping_malls  Marina_Strauss  landlords  rollouts  HBC  Target  digital_strategies  store_closings  department_stores  playbooks 
june 2017 by jerryking
The Internet Isn’t Killing Shopping Malls—Other Malls Are - WSJ
By Esther Fung
April 18, 2017

One common hallmark of a dead or dying mall is the closure of an anchor store. When that happened, fewer customers tended to visit, resulting in more store closures, which led to even fewer shoppers, and so on......Landlords have grappled with numerous threats over the years. Two decades ago, Blockbuster was eating into the revenue of movie chains, while big-box stores were battering smaller stand-alone retailers, noted Sandler O’Neill Partners analysts in a recent report.

This time, factors such as consumers being more thoughtful about their purchases after the recession, the overbuilding of retail centers and retailers’ focus on investing in more online shopping channels are pressuring mall landlords.

Property owners generally try to court trendier brands and avoid outdated retailers. In recent years, they have started shaking up their tenant mix more radically, moving away from full-price apparel brands and toward entertainment and food offerings.

That is resulting in a more dramatic separation of the strongest and weakest malls, with top-tier malls in cities with strong population and income growth receiving more investment and weaker malls suffering from neglect.
shopping_malls  competition  e-commerce  landlords  commercial_real_estate  retailers  anchor_tenants  top-tier 
april 2017 by jerryking
Mall makeover: A new retail fight heats up - The Globe and Mail
TARA PERKINS AND MARINA STRAUSS Jan. 28 2014,

"I said to him, 'Look, you're missing an amazing opportunity,' " Mr. Sullivan recalls. "'We have a mall [the Eaton Centre] that has 50 million people a year walk through it. We are going to announce that we've got a Nordstrom deal shortly. And you have a great store at the other end, the Bay, which you've done a terrific job re-engineering. Why don't you think about putting a Saks in as part of that?....Dramatic changes in the retail landscape are providing a wake-up call for mall landlords, prompting them to replace tired retailers with new ones and leading Cadillac Fairview to launch a makeover of its Eaton Centre. There has been an influx of savvy foreign retailers, and every mall wants to be the first to attract the next big brand that migrates to Canada....."The ultimate goal is to have the right mix of anchors and small shops such that you maximize traffic, you maximize sales, and everyone wins."
Cadillac_Fairview  shopping_malls  HBC  Saks  Nordstrom  Marina_Strauss  retailers  product_launches  makeovers  anchor_tenants  store_within_a_store  luxury  landlords 
january 2014 by jerryking

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