Finance & Capital Management

Los Angeles — Hong Kong is by far the world’s most expensive city for global retailers, but prime rents in New York City, London, Tokyo and Zurich are on the rise, according to research from CBRE Group, Inc.

CBRE’s second quarter 2013 ranking of the top 10 prime global retail markets saw little change relative to previous quarters; however, four of the top 10 markets — New York City, London, Zurich and Tokyo — saw quarterly increases in prime retail rents. Only one market saw a quarterly increase in the first quarter.

Minneapolis -- Target Corp. reported that its second quarter profit dropped 13% to $611 million in the quarter ended Aug. 3, down from $704 million a year earlier, amid start-up costs related to its entry into Canada. Total company profits, excluding start-up costs related to Canada, increased 6.1%. Similar to other retailers, the chain issued a muted annual profit forecast as it deals with a still uncertain economy and cautious consumers.

Greenwood Village, Colo. — Red Robin Gourmet Burgers will open its first location in Peoria, Ill., on Sept. 2. To help celebrate the grand opening, Red Robin will donate the new restaurant’s sales of Freckled Lemonade for the first week of operations to Alex’s Lemonade Stand Foundation, a non-profit organization dedicated to finding cures for all kids with cancer.

Cincinnati — Phillips Edison-ARC Shopping Center REIT has acquired Paradise Crossing, a 67,470-sq.-ft. shopping center anchored by a Publix grocery store.

Located in Lithia Springs, Ga., a suburb of Atlanta, Paradise Crossing is 93.7% occupied. When combined with the Publix lease, 64% of the rents for the center derive from national tenants.

The acquisition brings the REIT’s portfolio to 50 grocery-anchored properties, with an aggregate portfolio purchase price of approximately $729.6 million.

New York -- CBL & Associates Properties has announced the appointment of A. Larry Chapman to its board of directors.

Chapman is a retired 37-year veteran of Wells Fargo. He most recently served as group head of the bank’s commercial real estate lending business, responsible for the group’s 75 nationally located real estate loan production offices and 1,500 full time employees.

A 3% same store sales decline at Staples North American retail units contributed to weaker than expected second quarter results and prompted the company to reduce its full year financial forecast.

Total company sales for the quarter ended August 3, declined 2% to $5.3 billion with the closure of 103 stores in North America and Europe responsible for about half the decline. Profits for the period declined to $104 million, or 16 cents a share, two cents worse than analysts forecast, compared to $125 million, or 19 cents a share the prior year.

Target produced solid profits on tepid second quarter sales growth but joined the growing list of retailers to express reservations about the health of the consumer during the back half of the year.

Target said its U.S. stores produced a 1.2% same store sales increase during the second quarter ended August 3, and total sales increased 2.4% to $16.8 billion from $16.5 billion during second quarter last year. Operating profits grew at a meager 0.4% rate to $1.33 billion from $1.32 billion.

Signs of a rebounding housing market were evident in Lowe's sales for the second quarter ended Aug. 2, which were $15.7 billion, up 10.3% from $14.2 billion in the same quarter last year.

Comp-store sales for the world's second-largest home improvement retailer were up 9.6%, as net earnings jumped 16.2% to $1.48 billion.

PHOENIX — PetSmart’s total sales for the quarter ended Aug. were $1.7 billion, up 5.3% from $1.6 billion for the prior-year period, showing that people are still spending money on their pets despite lingering economic challenges and cautious shopping behavior trends evident in other sectors. 

Comparable-store sales, or sales in stores open at least a year, grew 3.4%, benefitting from comparable transactions growth of 1%. Services sales, which are included in total sales, grew 7.3% to $205 million.

Lowe's expects to complete its West Coast acquisition of 72 Orchard Supply Hardware stores by the end of August. When that happens, current CEO Mark Baker will be replaced at the helm of Orchard Supply by Lowe's executive Richard D. Maltsbarger.

Baker, a former Home Depot executive, took over the Orchard Supply job back in March of 2011. According to the press release announcing the move, Baker "informed Lowe's of his decision to accept a position as president and CEO of the Aircraft Owners and Pilots association following the closing."