March 3 , 2020
Shopping Center
& Owner News
Young Circle Shopping Center in Hollywood Sold for $15.75M ($239) Regency Centers sold the 65,834 square-foot center to BTI Partners on January 24 th for $15,750,000. The new owner plans to build a major mixed-use development that would combine retail, restaurant, office, and residential space. The center was previously anchored by a Publix store, which relocated across the street in 2018. Cushman & Wakefield was the broker on the deal. (The Real Deal 1/27) [Read]

Coral Sky Plaza in Royal Palm Beach Sold for $39.5M ($166) Clarion Partners sold the 237,241 square-foot center to an LLC managed by Kenneth Silverman on January 17 th for $39,500,000. The center is anchored by Bed Bath & Beyond, BJ’s Wholesale Club, and Ross Dress for Less. Coral Sky Plaza last sold for $41.25 million in 2006. JLL was the broker on the deal. (Business Journal 1/23) [Read]

Publix at Eagle Landing in North Fort Myers Sold for $8.3M ($144) VAL Eagle Landing LLC sold the 57,840 square-foot center to a private investor based in Alabama on January 7 th for $8,325,000. SRS Real Estate Partners was the broker on the deal. (Shopping Center Business 2/18) [Read]

Simon to Buy Taubman Centers in All-Cash Mega-Deal The nation’s largest mall operator is getting bigger. Simon Property Group has entered into an agreement to acquire Taubman Centers in a deal valued at approximately $3.6 billion. Simon will acquire all Taubman’s common stock for $52.50 a share in cash. Taubman owns, manages or leases 26 premium shopping malls in the U.S. and Asia. (Chain Store Age 2/18) [Read]

Proposed Target Anchored Mixed-Use Center in Miami Target could be among the retailers opening at a mixed-use project planned in Miami’s Overtown, Sawyer’s Walk. The project would rise 19 stories, with 556 apartments, and 353,470 square feet of commercial space. Target has signed a lease at the project, and other tenants in talks to sign for space include YouFit and Aldi. Swerdlow plans to break ground by the end of 2020. (Business Journal 2/18) [Read]

DeSoto Square Mall Planned Redevelopment The redevelopment, would include demolishing most of the existing buildings, and replacing with 128,514 square-feet of retail- space, a 40,000 square-foot grocery, 90,000-square-feet of office space, and nearly 900 residences. Not included in those plans are the former Sears store area, plans include a ministorage facility. (Bradenton Herald 1/30) [Read]

Market News

US Economy Posted 2.3% GDP Growth in 2019 The U.S. economy grew 2.3% last year, that's a slowdown from the previous year, when the economy grew 2.9%. In the fourth quarter, the economy grew at an annual rate of 2.1%, matching the pace of the previous three months. The Congressional Budget Office is projecting GDP growth of 2.2% in 2020. A strong job market has drawn more people off the sidelines into the workforce. (NPR 1/30) [ Read ]

Brick and Mortar Is Not Dead: Retail Real Estate Persists The retail landscape is changing, but brick-and-mortar storefronts aren’t going anywhere. Driven retailers are finding innovative ways to “internet-proof” their operations, such as: Adding an online component to their retail operation, being flexible and accepting all type of payments, building community goodwill and loyalty through charity, and utilizing AI technologies, just to name a few. Retail continues to grow and find new life by integrating technologies and strategies that yield the same and superior benefits and incentives for local customers. (Forbes 1/21) [ Read ]
Retail News
Costco Strong in January Costco reported net sales of $11.57 billion for the four weeks ended February 2, 2020, up 8% from $10.71 billion in the year-ago period. Total same-store sales (excluding the impact of gasoline and foreign exchange) rose 5.3%, with a 5.6% increase in the U.S. E-commerce comparable sales surged 17.2%. (Chain Store Age 2/6) [Read]

Whole Foods Opens New Delray Beach Store Whole Foods market in Delray opened its doors Jan 29 th , 2020. The 41,000 square-foot store is Located at 680 Linton Blvd. The store is within a mile of a Publix, Fresh Market, and a trader Joe’s. (Winsight Grocery 1/29) [Read]

Publix Opens New Store in Tampa Market Publix will debut its first Westshore store, which will officially open February 27 th , 2020. The Publix store will be free standing at 35,966 square-feet. A former Sports Authority building was demolished in 2018 to make way for the Publix. (Biz Journals 2/7) [Read]

At Home Group Continues Store Expansion The home décor superstore is celebrating the opening of six stores this month, growing its national footprint to 218 locations across 39 states by the end of February. At Home currently has 9 locations in Florida. (Chain Store Age 2/14) [Read]

Sephora to Open 100 Stores in 2020, Focus Outside of the Mall Sephora will open 100 stores in 2020, focusing on expanding outside of shopping malls. This marks its largest expansion to date, more than doubling its 2019 store growth. Sephora’s growth strategy will seemingly pit it in more direct competition against rival Ulta Beauty. Ulta’s stores are typically found in suburban strip centers, not inside of malls anchored by department store chains. (CNBC 2/4) [Read]

Why Strip Malls are Becoming More Popular Among Retailers Strip malls are starting to get a second look from retailers who have historically ignored them. Both Macy’s and Sephora announced that they would seek to open more stores in strip malls in the coming years. GNC announced plans to close 700 of its mall-based stores, and instead focus on its stores in strip malls. The benefits of strip malls are becoming increasingly important as more shopping is done online, and fewer shoppers visit malls. The rent at strip malls is typically cheaper, and the anchor tenants are often grocery stores or gyms, which means that retailers have the benefit of being in a place where shoppers have been conditioned to visit multiple times a week. (Modern Retail 2/10) [Read]

Amazon Keeps Pace with Walmart in Grocery Fulfillment Amazon’s new grocery store format will reportedly include technology to streamline in-store fulfillment of online orders. Amazon’s grocery store will include a “microfulfillment” section, which is a small, warehouse-style spaces located within stores that use robotic technology to automatically pick and retrieve products. Automation allows a much greater density of products than can normally be stored in a contained space. (Chain Store Age 2/21) [ Read ]

Organic Grocers Landing in Bankruptcy Court Reckless expansion and heightened competition for natural and organic foods were factors behind the recent bankruptcies of Fairway, Earth Fare and Lucky’s Market. Aggressive expansion strategies into Florida overlooked the competition of Publix, and the increasing competition the retailers placed among each other. The filings come as Sprouts is slowing growth to focus on profitability. Whole Foods, meanwhile, has reduced produce prices since being acquired by to spur growth. (Retail Wire 2/10) [Read]

Earth Fare Closing All Stores Earth Fare has been done in by debt and ongoing disruption in the retail grocery marketplace. The natural and organic foods grocery chain announced that it is beginning liquidation sales as it prepares to close its stores and corporate office. Earth Fare has implemented numerous initiatives in recent years aimed at growth and expansion and enhancing the customer experience. But the grocer, which operates approximately 50 stores in 10 states, said its efforts were not enough. (Chain Store Age 2/3) [Read]

Save A Lot Stores Continue to Close in Florida Discount grocery chain Save A Lot has closed three northeast Florida stores since December. Two of the stores were in Jacksonville, with another in Orange Park. A fourth Save A Lot store, also in Jacksonville, is slated to close Feb. 22. The banner has at least nine stores still operating in the region. Save A Lot currently has 102 Florida locations. (Progressive Grocer 2/7) [Read]

Macy’s Will Close 125 Stores Macy’s plans to close approximately 125 of its least productive stores during the next three years, including approximately 30 locations that are already in the process of being closed. Macy’s said the 125 stores currently account for approximately $1.4 billion in annual sales. Macy’s said the decision to shutter the stores followed a “rigorous evaluation” of its store portfolio. (Chain Store Age 2/4) [Read]

Ailing Pier 1 Imports Declares Bankruptcy Pier 1 Imports declared bankruptcy in a move aimed at facilitating a sale of the struggling home furnishings company. The publicly listed retailer is in talks with multiple potential buyers, none of which have been disclosed. Pier one plans to cut about 40% of headquarters staff and close as many as 450 stores, or about half of the chain's locations. (CBS 2/17) [Read]
Until Next Time!