Finance & Capital Management

Keeping a store open during a remodel versus closing it until the work is completed was the theme of the SPECS session, “Open Store Remodels: Best Practices for Maintaining the Customer Experience and the Focus on Sales.” The session was part of the Ground-Up Construction and Remodeling workshop track.

Although the speakers had experience with both methodologies, they focused more on ways to keep the store open during the process.

Recovery is a relative term when applied to retail real estate. It’s taken a couple of years of determined optimism, but most in the industry have now reconciled themselves to the realities of the new world order. A world where capital is cautiously invested and most retailers, even those that are opening new stores, have flattened growth rates. Gone are the days of expansive, unrestrained development — replaced instead by measured, deliberate decisions and a renewed focus on redevelopment, relocation and re-evaluation of portfolios.

To be truly fashion-forward, a closet must be refreshed periodically. This is equally true for premiere, class “A” regional malls that pride themselves on offering the hottest apparel and most fashionable retail the industry has to offer. If wardrobe success depends on what’s hanging in your closet, shopping centers hang their success on merchandising savvy and tenant mix.

BENTONVILLE, Ark. — The Walmart board of directors is poised for an infusion of fresh, and young, talent when shareholders vote to approve a slate of directors that includes Google’s VP of local and maps.

DALLAS — Neiman Marcus has named Michael Kingston SVP, CIO of The Neiman Marcus Group. He succeeds Phillip Maxwell, who earlier this month announced his retirement.

Kingston joins The Neiman Marcus Group from Ann Inc., parent company of Ann Taylor, where he was the EVP enterprise transformation and technology. Prior to Ann Inc., Kingston was VP applications at Coach Inc. and international director information services at LVMH.

Atlanta -- Teavana Inc. on Monday said it will buy Canadian tea retail chain Teaopia Ltd. for $26.9 million in cash. It is Teavana's first major acquisition since it went public last year.

Teaopia operates 46 stores, primarily in high-end malls across Canada and online. Last year it generated net sales of approximately $17 million and opened 12 stores.

Teavana operates 200 company-owned stores in 39 states, including one store in Canada, and 18 franchised stores primarily in Mexico, as well as through its website.

Dallas -- Neiman Marcus announced that Michael R. Kingston would be joining the company, April 23, as senior VP, CIO of The Neiman Marcus Group. Kingston succeeds Phillip Maxwell, who earlier this month announced his retirement.

Kingston joins Neiman Marcus Group from Ann Inc., parent company of Ann Taylor, where he was the executive VP enterprise transformation and technology.
 

Washington, D.C.  -- The retail real estate sector posted positive net absorption, a stable vacancy, and a near-stabilization of rent for the first quarter of 2012, according to the latest research from CoStar Group.

Relocating a business and a family from Memphis, Tenn., to St. Petersburg, Fla., is a short distance in miles, but for The Sembler Co., which celebrates its 50th anniversary this year, the journey has been much longer.

“We have developed 350 projects, including 125 or 130 shopping centers,” said Mel Sembler, recently named chairman emeritus. “It’s been an interesting career.”

Editor’s Note: Chain Store Age’s 23rd annual survey of Fastest-Growing Managers measures new domestic and international third-party management and leasing contracts obtained during the preceding calendar year (2011).

Now more than ever, retail real estate is not a business to be conducted without forethought. The days of gut instincts and seat-of-the-pants decisions have been replaced by the need to plan far ahead to guarantee a company’s continued growth.