One chain that is on the watch list of many industry observers this year for mass store closings is Borders Group. It is second place to Barnes & Noble in a flailing retail sector with only two major national chains pressured by technology.
Plus, it consistently reports weak earnings, at least, until its fourth quarter results came out earlier this week. Borders earned just under $60 million, nearly doubling what it brought in during the same year-ago period, and its stock soared as a result.
Continue reading ‘Can We Trust the Borders Bump?’
Published January 26, 2010
Borders , NRF
The National Retail Federation predicts a better year in 2010. The trade group says retail sales will increase 2.5% this year over the 2.5% drop that took place in 2009.
What is the cause of the improvement? A perceived upswing in the job and housing markets.
Continue reading ‘Retail Sales Poised to Rise This Year?’
William Ackman, a 10% shareholder of the discounter, thinks so. The head of Pershing Square Capital Management is proposing that Target spin off its company-owned stores and land into an Inflation-Protected REIT.
Its real estate would then enter a 75-year triple-net-lease-deal for the stores. Ackman says TIP REIT, as he calls it, would be the largest of its kind, with its $27.5-billion market value eclipsing Simon Property Group’s $20.8 billion.
Continue reading ‘Should Target Have a REIT Spin Off?’
Published August 14, 2008
Barnes & Noble , Borders
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The Wall Street Journal has a report that Barnes & Noble’s management isn’t interested in acquiring Borders Group, which put itself up for sale in March.
The Journal article says that there are bound to be a bunch of bitter investors who bought up Borders stock in anticipation of such an acquisition. Apparently Barnes & Noble was considering such a deal until recently.
Continue reading ‘Barnes & Noble’s Borders Bid Sounds Finished’
Published March 21, 2008
Borders , Pershing Square
Yesterday Borders Group management announced that the bookseller is up for sale. A “difficult economic environment” has spurred executives to consider strategic alternatives, they said.
We find it interesting considering that the company had a pretty good quarter, at least compared to how some retailers are faring lately. Same-store sales at Borders stores rose 2.1% year over year during the fourth quarter, while even Waldenbooks, its quickly vanishing mall chain reported a 1.2% increase. Profits were only slightly down from a year ago, at $84.7 million compared to $87.7 million. Plus, the chain is even rolling out a new prototype.
Continue reading ‘Who Will Take Borders?’