Apparel

International architects, developers and municipalities have been pushing the commercial real estate envelope for generations, and International design ideals are increasingly taking root in the U.S. From unique communal environments that encourage social engagement to innovative entertainment concepts and extreme sports, domestic developers are slowly but surely integrating formerly international elements into centers. In many ways, this is driven by consumer demand for an experience — coupled with increasingly dense markets that require more creative thinking. 

Everything you know about the battle between online and physical retail is probably wrong, according to a report issued this week by CBRE.   As business analysts and retail pundits focus on store closings, they miss the fact that 58% of retail warehouse space was leased by brick-and-mortar retailers last. Only a third of such space was leased by pure-play internet sellers.  

Victoria's Secret loss is American Eagle Outfitters’ gain as the teen apparel retailer posted better-than-expected second quarter results, fueled by strong demand for its Aerie lingerie brand.   Net income fell to $21.2 million, or 12 cents per share, in the quarter ended July 29, from $41.6 million, or 23 cents per share, in the year-ago period. Excluding restructuring and related charges of $0.07 per diluted share, the company’s adjusted EPS was $0.19 for the quarter, above analysts' estimates.  

Discount footwear retailer DSW topped analysts’ predictions for the second quarter fueled by an unexpected increase in same-store sales.   Net income was $28.6 million, or 35 cents a share, in the quarter that ended July 29, compared with $25 million, or 30 cents a share, in second quarter 2016.   Sales rose 3.3% to $680.4 million. Same-store sales edged up 0.6%, the first positive comp quarter since 2015. Analysts had expected same-store sales to fall 2%.   

Presidential candidate John F. Kennedy delivered a stump speech there not long after it opened in 1960. Legions of thriving General Motors employees kept it thriving for decades. But Tech Plaza in Warren, Michigan, suffered a crushing blow when Walmart left in 2008, and the center was nearly vacant when Detroit-based Petzold Enterprises acquired it in 2014.  

Overall, this is a solid set of results from DSW which shows the company is moving in the right direction. The 0.6% rise in comparable sales may not be spectacular, but given it is the first time in over two years that the measure has been positive, we see it as an encouraging sign.  

Retailers still have time to capitalize on their second biggest selling season of the year.   Only 45% of households with children in grades K-12 had completed of their shopping as of early August, according to the National Retail Federation’s annual survey conducted by Prosper Insights & Analytics. That’s down from 52% at the same time in 2013 and 48% last year.     

Simon Property Group has agreed to a settlement with the office of New York State Attorney General Eric T. Schneiderman that will have it loosening its stranglehold on the outlet business in Metropolitan New York.   Schneiderman maintained that Simon’s Woodbury Common outlet center in the Hudson River Valley owned a virtual monopoly in the region — including New York City — by virtue of a clause in tenant leases that forbid the opening other outlet stores within a 60-mile radius.