Showing 254 posts

Retail Revolution – Disrupt or Be Disrupted – The Tenant of the Future (ULI)

Many stores are now part of the last-mile solution. In the US, some older malls are being repurposed as warehousing and delivery depots.
• Stores are leveraging sharing-economy technology to serve
as fulfillment centers for local deliveries.
• Malls are being used innovatively as warehouses, delivery
depots and pickup locations for customers.
• In North Randall, Ohio, outside Cleveland, a former mall is
becoming a new Amazon warehouse.

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Retail Revolution – Disrupt or Be Disrupted (XSPECS)

Retail Traffic Is Down
• Retail traffic has continued to struggle, although it has been
showing slight improvement
• According to RetailNext, retail store traffic in July declined by
just 5.5%, its smallest drop since January 2016
• The conversion rate, which represents how many shoppers
became buyers, rose by 0.5% in both June and July, the highest
rate increase in almost a year

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Background on Amazon and Retail

US Retail Bankruptcies Are at Post-recession Peak
• Year to date, 14 retailers have filed for bankruptcy
• That is more than the number of filings over the entire year
in 2016
• Retail bankruptcies are on track to reach their highest level
since 2009, when 18 retailers filed for bankruptcy
• And there are likely more to come

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Global Retail Revolution Brings Threats as well as Opportunities

M&A chatter:
• Nordstrom announced it is exploring a “going private” transaction
(June 8, company press release)
• American Eagle Outfitters is reported to be bidding for
Abercrombie & Fitch with private equity firm Cerberus Capital
Management
(May 25, Reuters.com)
• Deckers Brands announced that it is reviewing strategic alternatives
(April 25, company press release)
• The parent company of Jimmy Choo announced that it is reviewing
strategic alternatives for the shoe brand
(April 25, Bloomberg.com)
• BJ’s Wholesale Club put itself up for sale in April
(April 14, New York Post)

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Latest Trends and Developments in O2O Retailing

JD.com plans to open 1 million brick-and-mortar convenience
stores through franchising within five years. It invested in Yonghui
Superstores, a supermarket chain in China.
• This follows JD.com’s announcement to open 10,000 home
appliance stores across China.
• The stores will use JD.com’s data analytics and logistics system
to better target consumers and fulfil orders.
• The stores can set up virtual stores on JD.com.

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1Q2017 Recap and Spring Retail Update (Planalytics)

Spring Retail Update
• Recent sales and earnings results indicate a continuing
struggle in retail.
• Store closures, bankruptcies and management changes
are shaking up the industry.
• The media barrage of the retail industry doesn’t help
perception.
• Uncertainty exists in terms of the forward picture;
things probably get worse before they get better.

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