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Observations & Conversations
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Observations & Conversations Even with a disappointing holiday season,the U.S. economy is still revered as a pot of gold and foreign-born retail chains are entering the U.S. Happy New Year! The ICSC’s New York Dealmaking was an excellent way to wrap up 2006. Although Christmas sales were a mixed bag and sales rose almost 3%, which wasn’t what the market had hoped for, all in all it was a good year. Some of the players reporting stellar Christmas sales increases included American Eagle showing a 20% jump, Chico’s registering almost a 12% increase, Gymboree ramping up a 12% gain, Sak’s at a 13% rise, Children’s Place showing an 11% jump, 11% increases at T.J. Maxx, Costco saw a 14% rise, Dollar General registered a 12% increase, and Kohl’s and Stage Stores generated gains upwards of 11%. The big losers for the season were Dillard’s, Federated Department Stores, Cato, Deb Shops, The Gap, Pier 1 Imports and Sharper Image. Even with a disappointing holiday season, our economy is still revered as a pot of gold and foreign-born retail chains are entering the U.S. at rapid speed. I think in the next few years, we’ll be seeing quite a few retailers from Asia and Europe operating on our shores. Here’s a rundown on a few notable retailers that are expanding in the states: Napapijri, a company based in Switzerland that specializes in active sportswear and outerwear, plans to open 10 stores in the U.S. followed by its first state-side flagship store, a 2,000 sq.ft. location in New York, NY and its second store, a 1,200 sq.ft. location that opened during October in Miami, FL. The company generated sales in excess of $100 million in 2006 mostly through wholesaling, however it operates 17 company-owned stores in Europe and Japan. Faces Cosmetics, Inc. operates 54 locations in Canada, Mexico, Puerto Rico and Ireland. The company plans to open 65 cosmetic stores in the U.S. by 2008 and the Canadian company’s first U.S. locations opened in Texas. Robinson Webster Holdings Ltd. trades as Jigsaw at 47 locations in the U.K. A roll-out is planned on the East Coast and throughout the Midwestern states. The stores sell ladies fashions and accessories, as well as apparel lines for girls from the ages of two up to 13. The chain currently operates four units in California. Unze by Shalimar Shoes, a London-based chain with 18 units operating throughout the U.K., sells shoes for the family and ladies accessories. The company is growing through franchising and plans to open locations in New York and California this year. Evisu, a Japanese company, plans to open 10 units in the U.S. with its flagship store using 3,400 sq.ft. in New York, NY. The vertical retailer’s upscale casual apparel lines include $500 jeans for men, $150 for a denim mini skirt, $80 jeans for infants and accessories such as a $500 wool scarf. The company also sells its lines through 1,600 independent retailers worldwide. Tane, a 15-unit chain of jewelry stores based in Mexico has two locations operating in Houston, TX and a recently opened store in Tucson, AZ. The company plans to open future stores in Miami, FL and New York, NY. Price points of Tane’s merchandise run from $100 up to $31,000 for silver and gold jewelry, as well as objects of art. Uniqlo, based in Japan, operates 760 stores worldwide, with four locations operating in New Jersey and New York. A few months ago, it opened its flagship store in New York, NY using 36,000 sq.ft. The vertical retailer sells budget-priced casual apparel for the family similar to The Gap and Old Navy merchandise. Tesco PLC, a U.K.-based retailer, is rolling out its small supermarkets in southern California, Arizona and Nevada. The stores, using around 15,000 sq.ft., will open late summer 2007. The company operates more than 2,700 supermarkets, supercenters and convenience stores in the U.K., and in Ireland, central Europe and Asia. The company has budgeted $500 million in annual capital expenditures for its U.S. expansion. lululemon athletica, a Canadian-based company, plans to open at least 200 stores nationwide over the next several years. lululemon athletica is a yoga inspired athletic apparel concept. The company operates 40-plus stores throughout Canada, Japan, Australia and CA, CO, FL, MA, NY, OR, WA and Washington, DC. Openings are slated for more stores in California and an entry into Illinois, Texas and Virginia. Yogurberry USA, a Korean-based yogurt company, is expanding into the U.S. The company plans to open 30 units in southern CA by March and 100 by the end of this year. It currently operates 50 frozen yogurt shops throughout Asia and two locations at sites in Los Angeles, CA and Jericho, NY. Bakers Delight is planning to open its first U.S. location during March in Seattle, WA with expectations of having 10 units operating in WA by the end of the year. The bakeries carry a heavy assortment of bread and pastries. The Australian-based company currently operates 38 stores in Canada, where it trades as COBS Bread, 700 units in Australia and 35 locations in New Zealand. Plans call for 100 openings in North America in the coming two years. Inditex Group, based in Spain, plans to open eight to 12 Zara stores carrying apparel for the family during the next few years in the U.S. The retail conglomerate operates 24 Zara stores in the U.S. and 3,100 locations worldwide. Nespresso, a company based in Switzerland, plans to open boutique coffee bars in Los Angeles, CA and Toronto, Canada. The company recently opened its first state-side Nespresso Boutique Bar in New York, NY. The company manufactures pre-portioned coffee and espresso machines and operates 50 boutiques worldwide. The 2,700 sq.ft. New York location is one of four with an espresso bar. Sabon, an Israeli-based company, operates 20 stores in Israel, 18 stores in other countries and 12 units in New York, NY; Boston, Chicago, New Jersey and San Francisco. The stores carry skin care products and soaps made in Israel based on Dead Sea minerals. The company expects to open up to 70 stores in the U.S. Aroma Espresso Bar is another Israeli-based chain. The company operates 70 locations in Israel and one location in New York, NY with a store opening within a few months in Toronto. The sleekly designed coffee shops serve sandwiches, pastries and salads. The company expects to open more locations in the states. Now that I’ve given you a quick world tour from Australia to Switzerland, if you’re looking to bring unique retailers to your project... it’s time to think globally. I’m seeing more and more boutique retail brokerage companies using their bilingual and cross-cultural skills as a selling point to getting tenant rep accounts because of this new surge in retailers testing the waters in the U.S. A few reminders: make sure you send us press releases (you don’t need to be formal, a quick email to me at ann@dealmakers.net or a fax to 609-587-3511) about your latest lease signings, sales or exclusive listings, and your new shopping centers or existing space for lease, retail sites for sale or your acquisition needs. If you want a copy of our 2007 editorial calendar, you can drop me an email and I’ll send it to you so you can see the upcoming ICSC events. We’ll be at the shows during the next few months in Los Angeles, Chicago and Washington DC, be sure to stop and say hello. Again, a happy New Year to you |