Department Store

Irvine Retail Properties’ flagship shopping destination, The Irvine Spectrum Center, has demolished the 140,000-sq.-ft. Macy’s that opened there in 2002 and is erecting a new building in its place to accommodate up to 20 shops, according to a report in the Orange County Register.  

As 20th Century malls give way to 21st Century mixed use centers, retail tenants need to arm themselves against giving away too much away during lease negotiations.   That’s the caution of National Retail Tenants Association director Paul Kinney, who strongly advises retailers to consider both long and the short-term implications of the leases they sign.  

Kitchenware retailer Sur La Table has tapped a veteran retailer as its new CEO.    Sur La Table has appointed Billy May as CEO. May, who will also join the board of directors, succeeds Diane Neal who retired earlier this year.   May joins the kitchenware retailer from Abercrombie & Fitch, where he most recently served as senior VP and member of the executive leadership team. At Abercrombie, May was responsible for marketing, e-commerce, omnichannel and geographies. 

Liquidation efforts took a toll on J.C. Penney in its second quarter, which reported earnings and same-store sales below estimates.    Penney's net loss widened to $62 million in the quarter ended July 29, or 20 cents per share, from $56 million, or 18 cents per share, in the year-ago period.   

Ground has been broken on Kimco’s 102-acre Dania Pointe project in the Dania Beach section of Fort Lauderdale.   Phase one of the mixed-use development will include 300,000 sq. ft. of retail, 80% of which is already leased, according to the company. Along with the requisite food and beverage establishments, TJ Maxx, Hobby Lobby, BrandsMart, and Ulta Beauty have signed on as tenants.  

It was 25 years ago today the Ghermezian family taught American shoppers to play.   The Ghermezians and their Triple Five development company had already set a new standard for enclosed shopping centers with their West Edmonton Mall. But on August 11, 1992, on the former site of Metropolitan Stadium in Bloomington, Minnesota, they and managing agent Simon created a whole new ball game.  

Although J.C. Penney's numbers are not a disaster and represent a significant sequential improvement over the prior quarter, they are nevertheless underwhelming. While we maintain the company is moving in the right direction, the lack of progress on profit and same-store sales both highlight that the turnaround program is a long-term endeavor that will take some time to deliver.  

Nordstrom on Thursday reported positive results for its second quarter amid ongoing discussions of a possible buyout.   The upscale department store retailer reported that total net sales increased 3.5% to $3.79 billion in the quarter ended July 29, compared to a forecast for $3.75 billion. Total company same-store sales rose 1.7%, also better than expected.