ICSC: Could be Better, Could be Worse

The retail real estate industry is far from its high-flying days of 2007 and before, but most executives we spoke with at ICSC’s RECon show weren’t about doom and gloom. Things are looking up…kind of.

“We’re seeing more demand for retail space,” said Scott Schroeder, vice president of marketing at Developers Diversified Realty. “It’s good. We’re not completely back, but we’re headed in the right direction.”

Does De-Boxing Work?

This Minneapolis Star Tribune article looks at the prospect of cutting up vacant big-box stores into multiple spaces for smaller tenants. Landlords certainly have room to get creative with the closures of Circuit City, Linens ‘n Things and others, while it seems like large-format retailers aren’t expanding like they used to.

But the prospect is also much more expensive than finding a replacement tenant, shopping center owners say.

Bed Bath Betters Best Buy

At least one major chain is taking advantage of the demise of its main competitor. Bed Bath and Beyond, helped by the demise last year of Linens ‘n Things, turned in a pretty good second quarter, posting a 14% profit increase, a 3% revenue jump and a same-store sales slide of less than 1%.

That’s a lot better than Best Buy has done since its main rival, Circuit City, went under. Same-store sales during the electronics chain’s second quarter fell 3.9% and earnings came in at $159 million, down from $202 million during the same year-ago period.

More Office Depot Closures Ahead?

Office Depot turned in its second-quarter results yesterday, and they weren’t pretty. Same-store sales fell 18% year over year, and the retailer posted an $82-million loss.

Now the office-supplies chain is coming up against what is promised to be a miserable back-to-school season. Many see this period as heavily promotional with major competition from rivals like Staples and discount chains.

Eddie Bauer Going Online-Only?

If some bidders for bankrupt retailer Eddie Bauer have their way, the apparel company will liquidate its 370 stores and live its future life as an e-tailer, the New York Post says.

The two hedge funds that control Eddie Bauer’s $200 million in debt, Monarch Alternative Capital and Anchorage Advisors, are considering teaming up with Hilco Consumer Capital and Gordon Brothers. Hilco, Gordon Brothers and Monarch together bought the Linens ‘n Things name, which now sells items online after its stores folded.

Linens is Back!

We’ve been getting a LOT of these emails lately from Linens ‘n Things. It’s funny how the stores don’t exist any more but the e-commerce site lives on. This article says that the same is the case for Circuit City and some other retailers that have closed. Do you see anyone actually buying stuff from these websites or is it just more wishful thinking?

Are Major Store Closures Over?

It’s been kind of quiet on the mass store-closure front, hasn’t it?

Sure, we’ve seen a lot of damage with the Circuit City/Linens closures, and it seems like there could be unsurprising news from Blockbuster some time soon. But didn’t you think that by this time in 2009 there would be more fallout from major chains?

Are You Hitting the Linens Liquidation Sale?

It’s a good time to be in the liquidation business.

Going-out-of-business sales are starting Friday at the remaining 371 Linens ‘n Things stores, according to reports. Were you waiting to find the right deal on that comforter or holding out for a good holiday-gift bargain? Hey, now’s you’re chance!

Linens Could Liquidate During Holidays

Even in today’s economy, a 32% same-store sales drop looks kind of bad.

That’s why, in part, private-equity firm Cerberus Capital Management has decided not to make a play for the beleaguered Linens ‘n Things, according to this New York Post article. This follows a May bankruptcy declaration and the closing of 120 stores, leaving it with about 475 units.