Staples to close 225 stores as sales move online
Staples will shut down more than 10 percent of its stores in North American by the end of next year, the second major chain to announce the mass closing of stores this week and the latest evidence of a retail landscape that is being altered drastically by the way Americans shop.
The nation’s largest office-supply company said Thursday that nearly half of its sales are now generated online and it is working aggressively to cut costs and become more efficient. It aims to close up to 225 North American stores as part of a plan to save about $500 million by the end of 2015.
It had already closed dozens of stores in the past year. Staples would not elaborate on the number of jobs that are being cut, nor the locations of stores that will close.
Staples has 1,846 stores in North America and Canada, the vast majority in the United States.
Staples, based in Framingham, Mass., reported adjusted earnings of $1.16 per share for 2013, well short of the $1.21 to $1.25 per share it said that it expected as recently as November.
Robert Edwards, president and CEO of Safeway, confirmed Wednesday that the grocer is in talks to sell the company. Safeway confirmed Wednesday that it’s in talks to sell the company, which has been the subject of persistent speculation.
Safeway has been in talks with private-equity firm Cerberus Capital Management for months, the Wall Street Journal reported Wednesday, citing people familiar with the matter. Cerberus also owns Albertsons.
Safeway is also seeking to cash out of its 49 percent stake in Mexican retailer Casa Ley. The moves follow the sale of Safeway’s Canadian operations and its Chicago unit, Dominick’s.
According to Edwards, Safeway recently generated its best volume growth year since 2006, and had its best identical-store sales growth in the last five years. Safeway is said to be on the shopping list of several potential buyers. (Bloomberg) READ MORE…
According to Wal-Mart CEO Douglas McMillon, Wal-Mart will open up to 300 of its smaller-format Neighborhood Market and Walmart Express stores this year, twice as many as originally planned. The retailer will also move forward with plans to open 115 new Wal-Mart supercenters, despite a weaker-than-expected outlook for the current quarter and year, and it will continue to invest aggressively in e-commerce. (ICSC SCT Newswire) READ MORE…
Nordstrom Inc. announced Wednesday that it will close its stores at Lloyd Center in Portland and the Vancouver Mall in Vancouver, Wash. Both stores will close early in 2015.
Lloyd Center is losing a high-profile anchor tenant just as the mall’s owner ramps up its rebranding campaign.The Portland shopping mall has had a Nordstrom location since 1960. The Vancouver Mall store has been open since 1977.
“These two locations just haven’t performed to the level we need them to and investing in remodels to possibly make them more successful doesn’t pencil out,” said Erik Nordstrom, president of stores for the Seattle-based company (NYSE: JWN). “We never like to close a store, but we came to the difficult conclusion that it doesn’t make good business sense to continue operating them after our agreements end.” (PSBJ) Read More…
Target may get a second store in Bellevue just east of Interstate 405 and downtown, property records show.
The store would be on a five-acre site at the southeast corner of 116th Avenue Northeast and Northeast Fourth St.
The three-story structure could have a ground-floor lobby, two levels of parking and a 150,000-square-foot Target store on the top level. The ground floor could also have another 15,000 square feet of retail space.
Northeast Fourth is a major arterial downtown, but after crossing Interstate 405, the road ends at 116th Avenue Northeast. The city is pursuing a plan to extend the street east to 120th Avenue Northeast, which would connect it to Best Buy and Home Depot stores.
Target currently has one location in the Factoria area of Bellevue. (DJC) Read More…
Retailers may be increasing their store opening plans, emboldened by a stronger economy, but that doesn’t mean that retail developers are following suit.
Data from commercial real estate services firm CBRE shows that in the fourth quarter of 2013, the number of retail projects in the final planning stages (meaning they were likely to start construction in a matter of months) was 61, totaling 5.9 million sq. ft. of space. READ MORE HERE…
In spite of its earlier protestations that things were looking up, struggling department store chain J.C. Penney announced this week that it would close 33 of its stores and let go of approximately 2,000 employees, according to Market Watch. The company also revealed that it would bring back sales commissions, according to Bloomberg, a practice that was killed by former CEO Ron Johnson because he wanted J.C. Penney salespeople to focus on customer service instead of closing sales. The latter news was met with mixed reactions.
Here is the list of the store closures: CLICK HERE…
Only one on the west coast…
The passing year marked several turning points in the history of the retail real estate universe, from Starbucks’ remarkably strong comeback to Barnes & Noble’s gradual fall from grace to the increasing popularity of class-B assets. To re-live the highlights and lowlights of 2013 via NREI, click through our NREI’s photo gallery HERE——–>
Sierra Construction last month started construction of a 14,900-square-foot Walgreens store at the Four Corner Square shopping center in Maple Valley that is being redeveloped by Indianapolis-based Kite Realty Group. It is at Maple Valley-Black Diamond Road Southeast and Southeast Kent-Kangley Road.
The first phase of the Four Corner Square redevelopment opened last spring, anchored by an 18,200-square-foot Grocery Outlet and a 35,000-square-foot Johnson’s Home & Garden. Yeti Yogurt, Taco Del Mar and Subway each took about 1,200 square feet of 11,000 square feet of new space between the two larger stores.
The development also has fast-food restaurants, dentist and chiropractor offices, and other small retailers. Gross leasable area in new and existing buildings is 108,200 square feet. (DJC) Read More…
In a development that shocked nobody, Walmart was the most-visited retailer on Thanksgiving, according to new rankings published by Placed, a Seattle-based location analytics company.
While stores opening on Thanksgiving is still something of a controversial subject, that certainly has not stopped shoppers from all over rushing to get deals after finishing their turkey. Walmart, which is having some trouble keeping up with the onslaught of requests to parts of its website, beat out all of its competition, which is hardly surprising, given all the work that the company puts into making this their biggest weekend of the year.
Other retailers saw big gains from yesterday’s shopping blitz, including Best Buy, which reached number four on the list, even though this was the electronics retailer’s first time being open on Thanksgiving. Kmart and Toys ‘R Us saw the biggest gains week-over week from their discount offerings, and low-cost retailers like Dollar General, Family Dollar and Big Lots also pulled in a ton of customers. (PLACED) READ MORE