Mass Merchant

Nordstrom Rack is going to set up shop in a rapidly expanding area of Los Angles.    The retailer will open an approximately 27,000-sq.-st. store in fall 2017 at FIGat7th, an open-air center in the heart of downtown Los Angeles (DTLA) owned and operated by Brookfield Property Partners L.P.   The new Nordstrom Rack will join Target, H&M, Victoria's Secret, MAC and other retailers and restaurants at the center, which located at 7th & Figueroa Street.  

On the heels of a less than stellar holiday, Target Corp. is scaling back on some parts of its innovation agenda in order to concentrate on its core business.    The Minneapolis Star Tribune reported that Target has scrapped its highly secretive e-commerce startup called Goldfish, and also has shelved a prototype for a store of the future, complete with robots, that was due to be built soon.

Retailers, trade organizations and business leaders are teaming up and taking steps to stop the border adjustable tax proposal.   The Retail Industry Leaders Association (RILA) joined more than 120 other trade associations and businesses to launch “Americans for Affordable Products,” a national campaign aimed at ending the border adjustable tax. The tariff, which is a component of the tax reform proposal under consideration in the U.S. House of Representatives, would impose a 20% tax on all imported goods.  

Kristin Grove, most recently director of leasing for GGP, has joined JLL as VP of National Retail Leasing. Grove will be based in Los Angeles and oversee leasing efforts and merchandising strategy for retail space on the West Coast.  

Chain Store Age has launched our annual search for 10 individuals in retail real estate we call “retail stars;” all will be featured in the May 2017 issue of CSA with bonus distribution at the International Council of Shopping Centers’ RECon event in Las Vegas!     The award recognizes people under the age of 40 who are making an impact in retail real estate – whether from the tenant (retail) or the landlord (shopping center company) side.  

The labor market for workers appears to be improving.   Walmart confirmed to media outlets it will speed up the time it takes for new employees to complete a training program and subsequently increase their pay.   The retail two years ago implemented a $9 per-hour minimum wage and last year unveiled a six-month training program called Pathways. Once this program was completed, pay was increased to $10 per hour.  

An Evercore ISI analyst maintained his “buy” rating on Walgreens Boots Alliance stock, stating that although its proposed deadline for a deal with Rite Aid has been delayed, “there is still a chance of a reasonable outcome for both parties.”   The companies pushed back the deadline for merger from Jan. 27 to July 31 and trimmed the purchase price paid to Rite Aid to $6.50 to $7 per share — based upon the number of store divestitures the FTC requires — from $9 per share.  

Walmart just upped the ante in the home shipping war against its rival, Amazon.    The chain is ending its ShippingPass program, a fee-based, two-day delivery service, in favor of a free two-day shipping program. Shoppers can now order from more than two million items, and have merchandise shipped to their homes or stores without a membership fee.