Strategy

▲Construction and construction costs are not an exact science: Information derived from data may be predicable; people are not.

▲ The process takes time: Construction encompasses more that just the time it takes to physically build a store. It also involves the lease-negotiating phase, drawing phases, permit phase and bidding phase.

▲ Smaller spaces don’t always translate into big cost reductions: It’s often assumed that as store square footage gets smaller, the overall costs go down.

Rebates for lighting upgrades are alive and well, with rebate organizations having updated their rebate and incentive programs for 2014. Currently, 71% of the country is covered by an active commercial lighting rebate, according to BriteSwitch, Princeton, New Jersey, which helps large national companies take advantage of rebate and incentive programs that exist across the United States and Canada.

Here is a review of major rebate trends from BriteSwitch: 

▲ Customer experience: Poorly maintained stores cost sales and dilute the brand and customer experience. Not giving facilities the funding required to keep stores clean and in good condition will impact the bottom line in that customers will shop elsewhere. Today, more than ever, shoppers have high expectations regarding the look and feel of a store, and they also have many more options from which to choose.

Sporting goods and apparel retailer Academy Sports + Outdoors has renewed multi-year contracts with Auburn University and the University of Alabama. The renewal means that it will continue to sell the universities’ licensed products in its 13 Alabama stores.
 
The retailer is currently an official sponsor of University of Alabama’s Crimson Tide and official sporting goods retailer for Auburn University’s Tigers, and has been working with the two universities for several years.
 

Minneapolis – Target Corp. reportedly experienced difficulties in areas including product mix and corporate creativity under ousted CEO Gregg Steinhafel. According to the Wall Street Journal, these difficulties preceded any problems relating to Target’s fall 2013 data breach or expansion into Canada and helped lead to Steinhafel’s essentially forced resignation.

Deerfield Park, Ill. – A 16% year-over-year jump in third quarter profit still missed Wall Street estimates, causing Walgreen Co. to withdraw previously issued fiscal 2016 guidance. During the third quarter of fiscal 2015, Walgreen reported net earnings of $722 million, up 16% from $624 million in the same period the previous fiscal year.

The commerce technology and marketing arm of eBay has a new president. Craig Hayman, a 15-year veteran of IBM, has been named the head of eBay enterprise.

“Technology continues to have a significant impact on the overall commerce landscape,” eBay’s President and CEO John Donahoe said. “Craig’s experience will enhance our ability to serve retailers and brands in this online to offine world.”

Philadelphia — Pennsylvania Real Estate Investment Trust has executed leases with Retail Group of America to bring three international brands F&F, Flormar and SuiteBlanco to the Patrick Henry Mall in Newport News, Virginia. The transactions illustrate PREIT’s strategy for improving portfolio performance by seeking out emerging, first-to-market options.