Finance & Capital Management

Retail sales fell more than expected in August after a strong June and a relatively flat July.   The National Retail Federation said that retail sales, excluding automobiles, gasoline stations and restaurants, were down 0.3% over July. On a year-over-year basis, however, NRF calculates that retail sales increased 4.1%.    The slowdown in August was broad-based and, notably, there was a drop-off in non-store sales, NRF noted. Clothing sales increased 0.7% in August, driven by back-to-school shopping.

Ikea is installing the largest solar rooftop array in the state of Tennessee atop its location in Memphis.

The store’s 250,675-sq.-ft. solar array consists of a 1.46 MW system, built with 4,424 panels that will produce approximately 2,000,000 kWh of electricity annually for the store, the equivalent of reducing 1,406 tons of carbon dioxide (CO2)).

For the development, design and installation of the Memphis customized solar power system, Ikea selected Hannah Solar, an Atlanta-based full service, certified solar integrator.

I’ve been thinking quite a bit lately about an article I read earlier this summer, a piece by Krystina Gustafson that appeared on cnbc.com entitled, “For retailers, closing stores isn't as easy as it once was.”  

Chain Store Age magazine is accepting nominations for its 12th annual “Top Redevelopers” listing, which recognizes shopping center owners and developers’ retail redevelopment efforts over the last 12 months. Selections will be based on square footage redeveloped between June 30, 2015 and June 30, 2016, financial investment, and project significance.

Things are looking up for Toys “R” Us.   The nation’s largest specialty toy retailer posted a 20% increase in operating profit and reduced its net loss for the second-quarter amid reduced costs, including the expense of running its now-shuttered Times Square flagship.    In addition, the retailer announced it successfully reached an agreement to refinance all of its 2017 notes and a portion of its 2018 maturities.  

The waning popularity of golf has taken its toll on the nation’s largest specialty golf retailer.

Golfsmith International Holdings Inc. on Wednesday filed for Chapter 11 bankruptcy protection, amid increasing debt and citing a strategy that it launched several years back to open bigger, most costly stores at a time when golf was beginning to decline in popularity. (Just last month, Nike last month announced it was leaving the golf hardware business, its worst-performing division. Adidas is selling its golf equipment business. )

North American real estate owners and developers ratcheted up their green profiles markedly this year, though they still lag global trendsetters, according to the latest results of an annual sustainability study.   In GRESB’s annual environmental assessment of real estate developers and investment trusts, North American companies averaged a score of 59 out of a possible hundred, a five-point rise from last year and just shy of the global average of 60.  

Retailers can learn how to develop a strategic process for reducing one of their major facility operating expenses — energy — at Chain Store Age’s upcoming webinar, Understanding and Controlling Energy Costs in Retail.