Recently we read about some new, and unusual, retail activity. It seems retailers have gotten into selling real estate in addition to their regular store assortments. Macy’s is selling some store properties (including part of their Chicago store space, a San Francisco store for $275 Million, and a Portland store for $54 Million). Similarly, Hudson’s Bay is selling the Lord & Taylor flagship store to investors for $850 Million. Then, there’s Sears Holding selling properties in the hope of realizing some value as well. Iconic stores located in the center of such vibrant cities as Chicago, Portland, New York and San Francisco will soon be occupied by new solid tenants. Sometimes they will be co-tenants with the store, sometimes they will occupy …show more content…
I wanted to know that their offerings were selling well over the counter, that customers had a loyalty to their store…that there was excitement in their merchandise motivating customers to buy what they were selling. I always looked at the way stores displayed their merchandise, whether there was a theme to their offerings (“We believe in the color red”) or that there was a theatrical approach to what was happening. Now, with the insistence of speed demanded by Millennials and Gen Z customers, I also look for clarity in their offering and for an engaging approach that will make customers “shop” or “browse”. That way they will pick-up additional accessories or other goods that they had not planned to buy. In the past, I valued companies for their merchandise prowess. My estimates have always considered the ability of a company to attract customers because of their offerings. But today, with declining merchandise sales and lack of much product excitement to drive traffic, retail investors have downgraded major retail chains like J.C.Penney, Macy’s and other