Mass Merchant

Fake news. Or, at the very least, over-exaggerated news. That’s what I call the reports about the death of retail. Retail sales are up $121.5 billion (through the first seven months of the year) and the holiday forecasts look promising, with Deloitte predicting a healthy 4 to 4.5% increase over last season.

We have a tendency to take things that have been with us forever, reinvent them, and give them new names. Mixed-use centers, for instance, are essentially the 21st century version of downtowns. But whereas America’s towns grew up organically alongside harbors, rivers, and transportation crossroads, mixed-use centers aren’t always able to be so logically placed.

Though many types of theft deterrent equipment exist, one of the most effective and affordable approaches is preventing retail shoplifting is by avoiding “blind spots” in the store layout.   In this regard, one of the hardest places for supermarket or mass merchandise cashiers to control and easily view has been under the shopping basket, which is usually blocked by a basketful of other items above it.  Failing to ring up items under the basket before customers leave the store can be extremely costly to retailers.

As department stores continue to falter and Amazon continues to grow and the “Malls are Dead” headlines continue to proliferate in the general press, one glaring fact rears its head: We built way, way, way too many malls to begin with. Average retail square footage per person in America, by several accounts, is four times that of other industrialized nations like the United Kingdom and Japan.

Walmart is about to debut a new initiative to bolster its defenses against its biggest rival.   The discounter's Jet.com site is launching a higher-end private-label brand of household and grocery essentials. The new brand, called Uniquely J, will launch in the coming months with a curated selection of products that include such essentials as coffee, olive oil, laundry detergent, paper towels, and more. Additional items will be added.    

The nation's supermarket retailers are positioning themselves to capture a significant majority of online grocery sales over the next decade or so.   That's according to Joe McKeska, president of Elkhorn Real Estate Partners. He made his remarks during a panel discussion at Marquette University’s annual commercial real estate conference.  

With department stores being replaced by gyms and office space, retail tenants who signed on for the traffic generated by traditional anchors are of the opinion that the co-tenancy clauses in their leases need restructuring. At a forum staged by Jones Lang LaSalle at its New York office yesterday, two noted mall developers agreed.  

NewMark Merrill Mountain States this week issued a double-barreled press release: It closed on a $62 million refinancing of the Village at the Peaks and opened the Boulder-area center at close to 90% capacity.   The $100 million, 442,000-sq.-ft. had been under development for five years in a public/private partnership between NewMark Merrill and the city of Longmont. New financing was provided by Allianz Real Estate of America.