Trading Partners

Hull Property Group plans to move slowly in remaking the Kingsport Town Center, delaying the recruitment of new tenants until it can re-establish the 40-year-old mall as a popular destination for shoppers.  

A recent Washington Post article pointed out that Anthropologie posted four straight quarters of flat or declining comparable sales and J. Crew saw comparable sales drop 10% in the last year. Banana Republic has seen a decline in comparable sales for the past 13 months, including a staggering 14% plunge in July. Weak sales numbers have also plagued Gap and Ann Taylor.  

Town administrators in Newnan, Georgia, have proposed offering incentives to owners of local shopping centers to re-invigorate them.   Municipal staff this week invited a group of community leaders to brainstorm about what could be done with the number of dilapidated centers in Newnan. Obstacles preventing owners from re-investing, the group said, included lack of cash flow, fear of selling due to capital gains taxes, and a reluctance to invest until neighboring properties improved.   

Dunkin’ Donuts is expanding its footprint in Texas.    The chain signed multi-unit store development agreements with four existing franchise groups to develop approximately 65 new restaurants in Dallas-Fort Worth and the surrounding area.     The new restaurants will include several multi-brand locations with sister brand Baskin-Robbins, the world's largest chain of ice cream specialty shops.     

For landlords and tenants alike, co-tenancy provisions are among the most important pieces of the retail-leasing puzzle. The right mix of tenants can create powerful synergies. For a retail tenant, the stakes are high: the right neighbors can mean the difference between success and failure. Consequently, understanding the different types of co-tenancy clauses, becoming familiar with the nuances and negotiations that accompany their inclusion in a standard lease, and appreciating the concerns and considerations that make them so important should be a priority for any retailer.

It’s official. Supervalu has finalized the sale of its discount supermarket business, Save-A-Lot, to an affiliate of Onex Corporation for $1.365 billion in cash.   In connection with the closing of the sale, Supervalu and Save-A-Lot have entered into a five-year professional services agreement whereby Supervalu will continue providing certain back office services to Save-A-Lot.  

Ascena Retail Group reported a profit in its first quarter on lower costs, but it missed Wall Street expectations.    The company, whose banners include Ann Taylor, Loft, Lane Bryant, Dress Barn and more, reported net income of $14 million, or $0.07 per diluted share, in the first quarter, compared to a net loss of $18 million last year, or $0.10 per diluted share. Ascena’s income for the first quarter reflected lower purchase accounting adjustments and acquisition and integration costs.   

A new billion dollar merger is reported about to rock the supermarket industry.   Albertsons Companies Inc. is in advanced talks to acquire Price Chopper, a privately held, New York-based regional grocery store operator, for around $1 billion, Reuters reported. Price Chopper operates some 130 stores in the Northeast, including New York, Connecticut and Massachusetts.