Corporate Governance

On the heels of announcing its ambitious expansion strategy, Starbucks is putting another project on its plate.  

(Ed. note: Neil Saunders, CEO of Conlumino, comments on Sears Holdings’ third-quarter results.)   In the movie Titanic there is a line where, realizing chaos is about to en-sue, one character helpfully notes “it’s starting to fall apart; we don’t have much time”. Such a sentiment could well be applied to Sears. The analogy with Titanic is also apt; not least because while Sears was once a titan of US retail, it now looks set to sink.  

The National Retail Federation and a coalition representing retailers, manufacturers, truckers, transportation intermediaries and other business groups have asked the Federal Maritime Commission to set new policy preventing terminal operators and ocean carriers from charging unfair fees when uncontrollable incidents such as storms and strikes keep cargo from being picked up from ports on time.  

Starbucks Corp. unveiled an ambitious five-year strategy that calls for major expansion, includes two new store formats, including freestanding bakeries.      The coffee giant said it plans to plans to open approximately 12,000 new stores globally by 2021, including 5,000 cafes in China. The new round of expansion would bring Starbucks’s total store portfolio to approximately 37,000 locations.   

Retail real estate developers and management companies are coming away from this week’s New York Deal Making show more optimistic than they’ve been in years.   “There’s some uncertainty following the election, but the stock market is up, the holiday’s been strong, and consumer confidence is high,” said CBL CEO Stephen Lebovitz at the International Council of Shopping Centers show, whose aisles were crammed with some 10,000 attendees.  

Heidenberg Properties has received planning board approval to build a new 54,000-sq.-ft. Stop & Shop prototype at its Lake Plaza Shopping Center in Mahopac, New York. The store will replace a Key Food supermarket and increase total square footage at the center to 165,000 sq. ft.   “This was a complicated process involving multiple municipal agencies,” said Heidenberg VP of Operations Jason Lazar.” We are excited to deliver the new prototype for Stop & Shop."  

Staples will sell a controlling stake in its European operations to private equity firm Cerberus Capital Management for an estimated $53.65 million as the retailer continues to focus on North America following its failed take-over of Office Depot.  

At analyst and investor conference, the retailer says it will expand its home improvement reach.   Lowe’s CEO Robert Niblock kicked off his presentation at the chain’s analyst and investor conference with the phrase: “To help people love where they live.”