Apparel

Eight new tenants have opened their doors at Silicon Valley’s Santana Row, a 1.7 million sq.-ft. multi-use property that includes a hotel and office and residential space.    Suitsupply, a European import, assumes the highest profile of the newcomers with a 4,425 sq.-ft. space. Jewelry retailer Kendra Scott and body and hair care specialist Aesop will inhabit spaces of just over 1,000 sq. ft.  

Retail store expansion could get a boost from lower rents in the next 12 months as real estate investment trusts react to volatility in global financial markets, according to Pacific Investment Management Co.   In a report titled, “U.S. Real Estate: A Storm Is Brewing,” PIMCO portfolio managers John Murray and Anthony Clarke forecasted a drop of as much as 5% in commercial real estate prices due to a confluence of factors including public market volatility, tightened regulations, and uncertain foreign capital flows.

Men’s apparel retailer Destination XL Group Inc. (DXL) is trying to make sure customers are satisfied at the very beginning of the fulfillment process.   DXL is utilizing the EZ-Ship Scan/Pack solution from supply chain management technology provider NGC Software. DXL will use EZ-Ship to reduce chargebacks and packing errors by validating the contents of each carton and shipment sent from its factories.  

If you want to ferret out the hottest new concepts in retailing, head to the coolest streets in the city, not the suburban mall. So states a new report from Cushman and Wakefield, which rated the 100 hippest and edgiest neighborhoods in America based on assessments from its brokers, appraisers, and property managers nationwide.  

Japanese specialty apparel retailer Uniqlo is expanding its U.S. presence into the Southeast, and is also expanding its relationship with Disney.    The company will open a two-level, 25,000-sq.-ft. store on July 15 in Disney Springs at Walt Disney World Resort in Lake Buena Vista, Florida. It will be Uniqlo’s first location in the Southeast.   

Nordstrom  plans to shutter its location at Horton Plaza, in downtown San Diego.  The store, which opened in 1985, will remain open through August 26, 2016.   "These are always tough decisions to make, but in taking a look at the store's performance and our business needs into the future, we believe this is the best direction to take," said Jamie Nordstrom, president of stores for Nordstrom. "We look forward to serving our loyal Horton Plaza customers at our other San Diego stores.”  

Sports apparel retailer The Finish Line topped Street estimates for its first quarter, turning in a solid performance in a challenging retail environment.    The company reported net income of $9.63 million for the period ended May 28, down 29.9% from $13.73 million in the year-ago quarter, amid higher costs.     Net sales rose 2.28% to $453.52 million, higher than expected,  from $443.39 million in the same quarter last year. Same-store sales increased 1.5%.  

Determining if an online clothing purchase will fit properly is a challenge for many women.    Launched in May 2016, e-commerce site Fovo curates apparel selections that are tailored to female shoppers’ specific body shapes.   “The way forward is personalization,” said Fovo cofounder Kiana Anvaripour in a Chain Store Age interview. We want to help women optimize the experience of shopping online for apparel so the ‘endless scroll’ doesn’t exist.”

Ralph Lauren Corp. made headlines with its June 7th announcement that it planned to close 50 stores and lay off 1,000 employees as part of a restructuring in response to lower sales.     The announcement  didn't go into specifics about the luxury brand’s plans to correct its course. But some industry insiders speculate that the background of Ralph Lauren CEO  Stefan Larsson, who took the reins of the company in September,  holds the key.   

Retail tenants are not only reporting a strong performance for  the year so far, but are also optimistic about the next six months.