Retail Trends That May Affect Central Florida

[spenser1058]

Estée Lauder is cutting 2000 jobs. This will include some counters at department stores. No word if Orlando branches will be affected.

https://www.businessinsider.com/estee-lauder-slashes-jobs-and-closes-stores-amid-pandemic-2020-8
 

From Business Insider 

I guess it’s a good thing I’ve gotten my Clinique for Men online from Nordstrom for a while now (free shipping!).

[TRENCH]

Welp the Bed Bath Beyond by the plaza next to the Florida Mall is closing 

[spenser1058]

An opportunity downtown leaders need to jump on:

https://www.fool.com/investing/2020/09/03/macys-plots-expansion-through-small-off-mall-store/
 

From The Motley Fool 

[spenser1058]

The havoc private equity funds are causing to retail:

https://www.forbes.com/sites/andriacheng/2019/07/26/the-high-cost-of-private-equity-firms-retail-buyout-13-mln-jobs-study-finds/
 

(Keep in mind that Forbes is about as far away as you can get from a radical liberal magazine - remember Republican presidential candidate Steve Forbes?)

[spenser1058]

A look at some of the surprising ways COVID is changing the grocery store, and some of the changes are likely to outlive the pandemic (apparently, one-way aisles won’t be one of those):

https://www.nytimes.com/2020/09/08/dining/grocery-shopping-coronavirus.html
 

From the New York Times 

Edited September 8, 2020 by spenser1058

[orlandoguy]

Mall operators Simon and Brookfield Property Partners picked up another distressed retail brand today with their purchase of JC Penney out of bankruptcy. To-date, JCP is the largest retailer to fail during the pandemic.

https://www.nytimes.com/2020/09/09/business/jc-penney-sale-simon-brookfield.html?referringSource=articleShare

[AmIReal]

3 hours ago, orlandoguy said:

Mall operators Simon and Brookfield Property Partners picked up another distressed retail brand today with their purchase of JC Penney out of bankruptcy. To-date, JCP is the largest retailer to fail during the pandemic.

https://www.nytimes.com/2020/09/09/business/jc-penney-sale-simon-brookfield.html?referringSource=articleShare

I'm not sure how Simon is capitalizing all of this and what their long play is, but it seems they plan to lease their space to themselves... Interesting and I hope it works for them.

[aent]

39 minutes ago, AmIReal said:

I'm not sure how Simon is capitalizing all of this and what their long play is, but it seems they plan to lease their space to themselves... Interesting and I hope it works for them.

It makes sense. With the efficiency of Amazon and Walmart, with both of them being just so vertically integrated, if Simon wants to live, they can no longer count on being the middle man.

[orlandoguy]

I'm not sure how Simon is capitalizing all of this and what their long play is, but it seems they plan to lease their space to themselves... Interesting and I hope it works for them.

The NY Times did a good analysis on why these acquisitions make sense for a seemingly odd pairing of companies like Simon & Brookfield, and is worth a read if such things interest you.

Essentially, Brookfield gains the licensing rights to popular and/or storied brands which brings the potential of added revenue. They also get super-favorable lease terms for the shops located in Simon-owned properties (i.e., rent as a % of sales) that give them an upper hand during slow times (like the last 6 months) that their competition doesn’t have.

Simon gets a guarantee their properties remain full, thus preventing others from leaving who have co-tenancy agreements in their leases. (Not to mention keeping foot traffic up which benefits all the retailers.) They also get a % of sales.

Here’s the link:
https://www.nytimes.com/2020/09/08/business/retail-bankruptcy-authentic-brands.html?referringSource=articleShare

[dcluley98]

For Simon, the properties themselves are a big piece of the puzzle. A lot of people do not realize that the "anchor" tenants in many malls such as Sears, Macy's, JCP, etc actually owned their own portion of the real estate in many cases. Simon can purchase these stores at discount prices and consolidate into their own existing portions of the property for redevelopment. This is a huge difference than the store remaining vacant.  I assume that Simon will eventually be changing some of these from their current department store uses to other uses including residential, entertainment, and even office spaces. 

[AmIReal]

14 hours ago, orlandoguy said:

The NY Times did a good analysis on why these acquisitions make sense for a seemingly odd pairing of companies like Simon & Brookfield, and is worth a read if such things interest you.

Essentially, Brookfield gains the licensing rights to popular and/or storied brands which brings the potential of added revenue. They also get super-favorable lease terms for the shops located in Simon-owned properties (i.e., rent as a % of sales) that give them an upper hand during slow times (like the last 6 months) that their competition doesn’t have.

Simon gets a guarantee their properties remain full, thus preventing others from leaving who have co-tenancy agreements in their leases. (Not to mention keeping foot traffic up which benefits all the retailers.) They also get a % of sales.

Here’s the link:
https://www.nytimes.com/2020/09/08/business/retail-bankruptcy-authentic-brands.html?referringSource=articleShare

Thanks for the article... very informative. I heard a discussion re: this topic on NPR this evening and they included the note that most tenants in malls have clauses that allow their rent to reduce if anchors stores leave the mall. This may be another reason Simon would want those anchors to continue.

[spenser1058]

An interesting look at how Target is approaching their new store designs and remodels. There’s a vibrancy I’ve noticed lacking at say, the Eola Publix or, for that matter, the SoDo Super Target (which opened before the current store plans and hasn’t yet been remodeled):

https://corporate.target.com/article/2019/10/store-design

[spenser1058]

Bed Bath & Beyond announced last week it was closing 63 stores. So far, the only Orlando area casualty was in Casselberry:

https://www.bizjournals.com/orlando/news/2020/09/22/bed-bath-beyond-tarrant.html

From OBJ

They also closed a customer service center at West Oaks Mall earlier this summer.

I have to confess  BB&B never impressed me much so I’m not particularly distressed at the closure. If you are, there are apparently still eight more of their stores still in town.

 

[JFW657]

From my email inbox this morning....

Finally a reason to visit the Mall at Millenia.

[spenser1058]

An interesting little discovery - the Encore farmed salmon in the fresh case at Target was more tasty than Publix’ version at their seafood counter.

Publix had been selling it as a loss leader at $9.99/lb while the natural stores were competing but it has jumped back to $11.99/lb. 

The Target version is Norwegian while Publix’ tends to come from Chile. Target’s is also only $10.99/lb (plus my REDcard savings!)and acknowledges it was frozen at some point along the way (Publix goes back and forth on theirs between fresh and frozen).

Target’s frozen shrimp is also quite the bargain compared to Publix. Obviously it’s not as tasty as going to Canaveral but it’s a lot less of a trip. 

I bought bags for my bike so I can ride to Target instead of drive. I find myself less and less comfortable these days with Publix’ ways of doing business, so I’m keeping my values, saving money and getting exercise, too. Now if they’ll just build that trail to SoDo!

 

 

 

[spenser1058]

H&M will close 250 stores (about 5%). No word if it will affect our Central Florida stores - where would @dcluley98 go for his fast fashion!?!

https://www.wesh.com/article/h-m-is-closing-250-stores/34235603
 

From WESH 

[JFW657]

I was thinking recently about a girl I dated briefly while going to UCF in the early 80's. She worked at the former Burdines in Colonial Plaza, but prior to that she had worked at Gibbs-Louis downtown.

Out of curiosity, I did a Google/Google Images search for Gibbs-Louis and ran across this very interesting article about the Jewish history in downtown Orlando retail....

https://orlandojewishhistory.com/retail/

Couple of good Orange Ave pics I hadn't seen before.

This is pretty cool.

https://orlandojewishhistory.com/animated-merchant-map/

Animated merchant map and video.

 

.

Edited October 2, 2020 by JFW657

[AmIReal]

2 hours ago, JFW657 said:

I was thinking recently about a girl I dated briefly while going to UCF in the early 80's. She worked at the former Burdines in Colonial Plaza, but prior to that she had worked at Gibbs-Louis downtown.

Out of curiosity, I did a Google/Google Images search for Gibbs-Louis and ran across this very interesting article about the Jewish history in downtown Orlando retail....

https://orlandojewishhistory.com/retail/

Couple of good Orange Ave pics I hadn't seen before.

This is pretty cool.

https://orlandojewishhistory.com/animated-merchant-map/

Animated merchant map and video.

 

.

Wow, that is a really nice find. A lot of familiar names and faces. This link list all the businesses mentioned in the animated link- https://orlandojewishhistory.com/jewish-family-retail-businesses-1900s-1960s/

I wish they included addresses. 

I saw Herman's Loan Office, but not Hanson Shoe Company. Two local bars that have played off naming based on previous tenants.

Edited October 3, 2020 by AmIReal

[spenser1058]

There’s a gaping hole in Target coverage locally between FL 436 and SoDo along the US17-92/FL 527 (Orange Ave)/CR424 (Edgewater Drive)corridors. Given the demographics that would seem to lend themselves to “cheap chic”, it seems an odd oversight.

What might be required to attract Target to Maitland/Winter Park/Lee Rd, College Park/the Packing District and/or NORA- UCF/VD?

Edited October 4, 2020 by spenser1058

[AmIReal]

7 hours ago, spenser1058 said:

There’s a gaping hole in Target coverage locally between FL 436 and SoDo along the US17-92/FL 527 (Orange Ave)/CR424 (Edgewater Drive)corridors. Given the demographics that would seem to lend themselves to “cheap chic”, it seems an odd oversight.

What might be required to attract Target to Maitland/Winter Park/Lee Rd, College Park/the Packing District and/or NORA- UCF/VD?

The block you mentioned recently at Lee Rd and 17/92 would work.

[spenser1058]

Just what Orlando needs - an upscale suburban Dollar General for the soccer moms:

https://www.cbsnews.com/news/dollar-general-popshelf-new-stores/

It’s called “Popshelf”

Feom CBS News

Rhe first two stores will be in Nashville 

 

Edited October 8, 2020 by spenser1058

[spenser1058]

An excruciatingly in-depth look at last year’s remodel of the Maguire Target and a nod to its original history as a Gold Triangle store:

http://myfloridaretail.blogspot.com/2019/09/a-tale-of-two-targets-part-2-targets.html?m=1
 

From My Florida Retail

[spenser1058]

The success of Target’s logo:

https://www.logaster.com/blog/target-logo/
 

From Logaster

Today, they often don’t bother with spelling out the name as redundant (this has also worked well with logos like Shell Oil) and using a lower-case font when the name is included. That tends to come across a more warm and fuzzy than all caps (competitor Walmart also figured that out).

Along with the company’s canine mascot “Bullseye”, the logo is not only well-recognized but also well-regarded by shoppers.

[spenser1058]

Miami-based Presidente Supermarket is taking over the former Publix on OBT near Florida Mall (Skyview Plaza?).

Also, the 47000sf Publix on Chickasaw Trail  is closing but expected to be filled by another grocer shortly. @HankStrong will keep ‘em busy!

https://www.bizjournals.com/orlando/news/2020/10/21/presidente-supermarket-orlando-publix-florida-mall.html
 

From OBJ

[spenser1058]

Be prepared for a SPAM shortage this fall. Hormel reports their supply on hand for the fall is 24% below last year.

This also applies to soft drinks in aluminum cans, snack items (is there life without Goldfish? Pepperidge Farm remembers...), canned soup and more. Egad!

From The Takeout 

https://thetakeout.com/food-shortages-are-coming-back-1845438071

Edited October 21, 2020 by spenser1058