Department Store

As a number of traditional chains across the industry continue to struggle, TJX Cos. is being called one of the country’s fastest growing retailers.   Traditional retailers industry-wide are blaming shifting consumer tastes, digital options and new competitors for not only stealing their wallet share, but for declining foot traffic and related sales. However, this could not be farther from the truth for TJX Cos.  

The first enclosed mall on Massachusetts South Shore will undergo a $40 million conversion to an open-air center under the ownership of a spun-off unit of Phillips Edison & Company.   The 732,000-sq.-ft. Hanover Mall in Pembroke Massachusetts — anchored by Macy’s, Sears, and Walmart — was purchased last fall by PECO Real Estate Partners, which operates under the name PREP. Built in 1971 and last renovated in 2004, the center has direct access to Route 3, the major thoroughfare joining towns south of Boston.

Will public spaces be the new anchor tenants in the shopping centers and mixed-use facilities of the 21st Century?   That’s the opinion of J. Wickham Zimmerman, whose construction company Outside the Lines is unveiling a Bellagio-esque fountain that will present choreographed water shows at Legacy West in Plano, Texas.   “Retailers recognize the importance of integrating thoughtfully designed gathering spaces and artful show fountains to drive foot traffic,” Zimmerman said.

Apparel is at a tipping point. E-commerce currently accounts for 17%-20% of total apparel sales in the U.S. Historically, when e-commerce surpasses the 20% threshold of a retail category Amazon comes in and makes a big wave, because Amazon is the main beneficiary of e-commerce capturing half of all growth in online retail. We’ve witnessed it time and time again in both media and electronics, and now it’s happening in apparel.  

The Bebe brand is undergoing a transformation — thanks to a new parent company.   Global Brands Group Holding Limited, a leading branded apparel, footwear, and fashion accessories company — and a spin-off of global exporter Li & Fung Ltd., is partnering with the Bebe brand to relaunch a new e-commerce platform. In addition, the company will redesign the brand’s international brick-and-mortar stores to better meet the heightened shopping expectations of Bebe’s consumers.  

In a sobering statistic, one out of every 27 employees was apprehended for theft from their employer in 2016.   That's according to “The 29th Annual Retail Theft Survey,” conducted by Jack L. Hayes International, a loss prevention and inventory shrinkage control consulting firm. The survey is based on reports on over 380,000 shoplifting apprehensions that took place in 23 large retail companies, representing 16,038 stores with combined 2016 annual sales in excess of $370 billion.   

In the Mohave Valley of Arizona, a town has punched a hole through a hill to unite a challenged shopping center with the local mall to improve traffic.   Kmart will close its store in the City Square shopping center in Bullhead City, across the Colorado River from Laughlin, Nevada, leaving it without the anchor that was its prime draw. In fact, few locals even knew the name of the center, referring to it just as Kmart, according to the Mohave Valley Daily News.  

E-commerce has generated significant volumes of sales in the electronics and clothing industries, but has yet to gain traction in other retail sectors.