News Briefs

GameStop Corp. has issued preliminary first-quarter results that are below Street expectations.

The struggling video game retailer said it expects a first-quarter net loss of $27 million to $37 million for the quarter ended May 4, compared to a loss of $50.5 million in the year-ago period. Analysts had expected a loss of $28 million.

Net sales are expected to be in the range of $872 million to $892 million, down from $1.237 billion a year ago. Analysts expected sales of $1.045 billion. 

Selling, general and administrative expenses are expected to be in the range of $290 million to $300 million, compared to $345.7 million in the prior year fiscal quarter. Earlier this year, GameStop said it has cut a number of unspecified jobs in a cost-cutting move.

Cash, cash equivalents and marketable securities are expected to be in the range of $1.073 billion to $1.093 billion, compared to $1.310 billion at the close of the prior year fiscal quarter.

GameStop also filed a shelf registration to offer up to 1 billion new shares of Class A common stock and 5 million preferred shares.  It also announced that it had agreed to sell 45,000,000 shares of common stock with Jefferies acting as its sales agent.

Odd Burger is continuing to grow its footprint in the United States.

The Canadian vegan quick-serve chain has signed its second U.S. Area Representative Agreement for the development of 40 locations in Florida over the next eight years. The deal, signed with StarMatt Corporation, follows Odd Burger’s first agreement, which was signed last year to bring 20 locations to Washington state.

Odd Burger’s menu includes a wide variety of vegan burgers, sandwiches, wraps, salads, breakfast items, desserts and more.

"We couldn't be more excited to start the process of expanding into the Florida market," says James McInnes, CEO and co-founder of Odd Burger.  "We are very fortunate to have such a strong partnership with StarMatt, and we are confident that they will be successful expanding into the Florida market.”

The company now has a total of 60 locations under Franchise Development Agreements in the U.S., and has continued to expand in its home country as well. This summer, Odd Burger is also set to open four additional locations in Ontario in the Greater Toronto Area and one additional location in Vancouver, BC, which will bring the total number of operational locations up to 21. 

Odd Burger opened its first location in Edmonton, AB on May 11 and had one of the largest turnouts to date on its opening weekend. The planned opening of Victoria, BC on May 18 will be delayed until June due to unanticipated challenges. Odd Burger’s Ottawa, ON location is anticipated to open on or around June 1.

X Team Retail Advisors, a national organization of more than 350 retail real estate brokerages located in nearly 50 markets across the U.S. and Canada, has added a New Jersey affiliate.

The Phoenix-based company has added Pierson Commercial Real Estate, a leading retail real estate brokerage and advisory firm, to its national platform. Headquartered in Marlboro, N.J. with an additional location in New York City, Pierson Commercial’s client base includes approximately two dozen regional and national retailers with growth strategies targeting New Jersey.

“Pierson Commercial brings to our organization a best-in-class affiliate with skills in marketing and property consulting, retail leasing and sales, as well as tenant representation,” said Dave Cheatham, president of X Team Retail Advisors. “The firm will not only boost our East Coast presence for our platform and our clients but will be a well-suited complement to our newly created Retailer Services platform. This addition gives X Team an important gateway to serve the New Jersey market.”

Founded in 2011, Pierson Commercial’s retail leasing and property marketing assignments span over 6 million sq. ft. of retail space across downtown redevelopments, ground-up new construction, and existing retail shopping centers.

“We have an outstanding brokerage team and I’m confident the X Team platform will extend our relationships, resources and open up business development opportunities with other brokerage firms with similar values and cultures across North America,” said Jason Pierson, president of the firm. “It’s an exciting opportunity for us and we are looking forward to being a partner to our X Team counterparts and are delighted and grateful for the opportunity to serve as the X Team’s partner in Central and Northern New Jersey.”

(Photo: Jason Pierson, president of Pierson Commercial)

The nation’s biggest owner of neighborhood centers, Kimco Realty has expanded its roster of tenants in Oregon.

The company has added four new tenants at two shopping centers in the Beaver State. Milwaukie Marketplace, a 185,760-sq.-ft. center in Milwaukie, has added an Ace Hardware (16,389 sq. ft.) and a New Seasons Market (42,630 sq. ft.) to its tenant list.

At Tanasbourne Village, an open-air center in Hillsboro, Kimco has added western apparel retailer Ariat (3,100 sq. ft.) and Sunset Liquor (5,973 sq. ft.) to its tenant list. Each of the four new tenants is already open.

As of March 31, 2024, Jericho, N.Y.-based Kimco owned interests in 569 U.S. shopping centers and mixed-use assets comprising 101 million sq. ft. of gross leasable space.

Earlier this year, Kimco acquired RPT Realty in a $2 billion all-stock deal. In March, it announced the sale of 10 of those former RPT centers for $248 million. Located in Florida, Indiana, Missouri, Michigan, and Wisconsin, the properties total 2.1 million sq. ft. of gross leasable area.

Trust in a home improvement retailer is a major factor for wallet share.

Customers who have "complete" trust in their home improvement retailer make 80% of their purchases there, compared with 69% when the level of trust in the retailer is "good," according to the J.D. Power 2024 U.S. Home Improvement Retailer Satisfaction Study.

Family-owned, Wisconsin-based Menards ranks highest among home improvement retailers in customer satisfaction with a score of 678. Ace Hardware (676) ranks second, followed by Home Depot (665). Lowe’s came in just under the study average (665) at 660.

"Only 58% of customers indicated the store was very clean and 52% indicated product information was clear and helpful,” said Michael Taylor, senior managing director of retail intelligence practice at J.D. Power. “These two factors play a vital role in overall customer trust in the retailer and as customers are spending an average of $1,786 a year on home improvement products, these are areas in which the retailer can improve to increase share of wallet and overall customer satisfaction.”

The J.D. Power survey comes as retail sales rose slightly in April, led by building supply and garden supply stores, indicating the return of home project season for consumers.

The study is based on responses from 2,157 customers who purchased home improvement-related products from a home improvement retailer within the previous 12 months.

Restaurant Brands International Inc. has completed its acquisition of the largest Burger King franchisee in the United States.

In January, the company entered into a deal to acquire Carrols Restaurant Group for $9.55 per share in an all-cash transaction with a total enterprise value of approximately $1.0 billion. With the close of the deal, RBI has added the largest Burger King U.S. franchisee to its portfolio. Carrols operates 1,023 Burger King restaurants in 23 states as well as 59 Popeyes restaurants in six states. 

The transaction is part of Restaurant Brands’ multi-point rejuvenation effort, called “Reclaim the Flame,” to accelerate sales growth and drive franchisee profitability. Launched in September 2022, the plan includes a $250 million investment for a "Royal Reset" modernization program, which includes remodels of approximately 800 locations to a more modern image. (In April, the quick-serve hamburger chain announced an additional $300 million investment to accelerate the modernization of its U.S. restaurants.)

Restaurant Brands will invest a further $500 million to accelerate the reimaging of more than 600 Carrols restaurants before refranchising the majority of the acquired portfolio to new or existing smaller franchise operators over the next seven years.

Restaurant Brands International is one of the world's largest quick service restaurant companies with over $40 billion in annual system-wide sales and more than 30,000 restaurants in more than 120 countries and territories. In addition to Burger King, which has more than 19,000 restaurants, it owns Tim Hortons, Popeyes and Firehouse Subs.