Trading Partners

Westwood Financial hired away DDR’s finance chief, hailing the move as central to its evolution from a “real estate sponsor into a sophisticated real estate institution,” according to Co-CEO Randy Banchik.   New Executive VP Matt Lougee will facilitate financing for Westwood’s retail investments, oversee capital formation and investor relations, and negotiate joint ventures. Lougee spent the entirety of his career to date at DDR, departing the company as senior VP of finance.  

Costco Wholesale Club has tapped its longtime director as its new chairman.   The company announced the election of Hamilton “Tony” James to the position of chairman. He replaces Jeff Brotman, who co-founded Costco with James Sinegal in 1982. Brotman passed away unexpectedly on Aug. 2.  

Sprouts Farmers Market doesn't plan on backing out of its partnership with Amazon any time soon.   Despite Amazon’s recent announcement to purchase of Whole Foods Market, Sprouts Farmers Market plans to continue its role as an Amazon Prime Now delivery partner. More so, the grocer expects the program to extend to more than half of its store network, according to Food Navigator-USA.   

The retail industry is actually in better shape than some of today's headlines may lead folks to believe.    "Distressed [retail] names are growing, but still a small part of our rated universe," Moody's analyst Christina Boni told CNBC. "The broader industry remains fundamentally healthy."   Dollar stores, home-improvement chains, convenience stores and auto-parts retailers are among the leaders of the pack, according to the report.   

Target Corp. and Best Buy didn't just talk the talk when it came to killing a border adjustment tax on imports that was the centerpiece of House Republicans tax reform plan.    In the first six months of 2017, Best Buy spent $1.71 million in lobbying efforts, twice as much as it spent the entire year in 2016, the Star Tribune reported. Target Corp. spent $1.48 million lobbying from January through June 2017, which was slightly less than it spent all of last year.  

The arrival of German discount grocer Lidl and Amazon's purchase of Whole Foods Markets have ratcheted up the already intense grocery wars and put new pressure on existing players, including Walmart. But one analyst thinks the discounter is well-positioned for the battle.  

In May, United States Trade Representative (USTR) Robert Lighthizer began the formal process for renegotiating the North American Free Trade Agreement (NAFTA), which establishes the rules of trade among Canada, Mexico and the United States. The retail sector has urged USTR to preserve NAFTA’s basic structure, while advocating changes that could help retailers begin sourcing more items from NAFTA countries rather than Asia. As explained below, the outcome of NAFTA renegotiation also will signal the future direction of U.S. trade law and policy.  

Macy's and Sears are by no means the only department store companies with valuable real estate.    Activist investor Snow Capital Partners has built a position in Dillard's Inc. and is planning to push for changes at the retailer, including unlocking the value of its real estate portfolio, Bloomberg reported.