Strategy

New Albany, Ohio -- Abercrombie & Fitch reported Wednesday that net income in the second quarter slid 52% to $15.5 million, compared with $32 million in the year-ago period.

Total sales rose 4% to $951.4 million, missing Wall Street’s forecast of $954.9 million, and U.S. sales fell 5%. The retailer said Wednesday it is cutting its 2012 earnings guidance and will open fewer international Hollister stores in fiscal 2012 than initially planned.
 

FRAMINGHAM, Mass. — If Staples is a proxy for the health of the U.S. economy don’t look for conditions to improve any time soon.

I’ve written before about the ongoing trend of some of the biggest names in retail downsizing. Now I’m seeing how brands like Target, Wal-Mart and Office Depot are rolling out smaller new store formats in urban environments, and it has me thinking about how this downsizing phenomenon might be even more important than many people realize.

GLENWILLOW, Ohio — Fashion retailer Dots has named former Walmart SVP, Lisa Rhodes as its new CEO.
  
Rhodes, who led Walmart's U.S. apparel merchandising division, has been charged with leading Dots’ march toward 1,000 stores.
   
Prior to her role at Walmart, Rhodes was EVP and chief merchandising officer for Maurice’s.
  

North Plainfield, N.J. -- Levin Management Corp. said that it has secured five new shopping center property assignments in recent weeks, reflecting continued demand for third-party retail real estate services in the New York/New Jersey and Pennsylvania markets.

The new assignments include leasing- and/or management-specific roles. They include: Olde Lafayette Village in Lafayette, N.J.; Whiting Town Center in Whiting, N.J.; Pathmark Plaza in Staten Island, N.Y.; Central Ave. in Scarsdale, N.Y.; and Atlantic Plaza in Pleasantville, N.J.
 

Michaels Stores is taking its energy conservation efforts to the next level. The arts and crafts retailer has rolled out several advanced extensions to its energy management system. The extensions are expected to bring Michaels’ total EMS-related savings to more than 30%.

Dallas -- SRS Real Estate Partners announced that FreeBirds World Burrito has selected seven new locations slated to open in Central California later this year.
 
The seven sites in California are located in Sacramento, Tracy, Fresno, Clovis, Turlock, and two sites in Modesto, and all were acquired from Qdoba franchisee 4G Management. All locations will be converted to company owned and operated units and range from 2,000 sq. ft. to 4,000 sq. ft.
 

Don’t let the grocery sector shake-ups fool you.

While there are individual failures, the category as a whole continues to find favor among developers that place a premium on having a traffic magnet in their shopping centers.