CONTENTS

February 2008

• FEATURES
• Countries throw a party for retail
• More countries, especially in Asia, are creating retail-themed national holidays to boost their economies and attract tourists.
• The almighty (Canadian) dollar
• Canada's strong dollar has brought droves of shoppers south of the border, along with headaches for Canadian retailers.
• The Buddy System
• In Asia, developers and retailers work together to build shopping centers.
• The big refinancing squeeze
• For sure, it is harder for landlords to get their shopping centers refinanced — but not impossible, say industry players.
• Credit where credit is due: India
• In Future Group, Kishore Biyani created India's largest retailing empire. Now his Future Money store credit program is creating shoppers.
• Sarkozy's retail reforms
• France's President Nicholas Sarkozy is attempting to dismantle a tangle of laws that retailers say are choking them. But he has his work cut out.




• DEPARTMENTS
• Center Stage
• Westfield returns to New York City's WTC



• The Common Area
• Malls are lit up with LEDs and darkened by a state court ruling that allows protests.



• Retailing Today - The section where landlords shop for stores


• School in the mall
• The University of Arizona has opened two training stores at General Growth Properties malls.
• Tiffany's new box
• The storied jewelry chain's latest growth strategy includes smaller, lower-priced stores.
• New Threads
• This Hong Kong retailer wants to dominate the world of apparel, no less.
• Under Armour enters a new game
• The sportswear manufacturer has gotten into the retail business.
• Cold wars
• Competition among frozen-yogurt chains is rising sharply as consumers show a new interest in healthy desserts.
• Corner Bakery is rising
• The Dallas-based fast-casual chain wants to add about 200 stores by 2011.
• Pinto Ranch's city slickers
• This Texas retailer of expensive boots caters to affluent urban cowboys and cowgirls.




• On the Ground
• Like the city around it, Berlin's Hauptbahnhof is enjoying a renaissance.





• News Makers
• Ross Glickman and Len Tobiaski return Urban Retail to the deal table.
• ICSC taps Fiala to be 2008-2009 chairman.



• The Bottom Line
• Balance-sheet lenders, such as life insurers, step in where Wall Street fears to tread.

REITS OPTIMISTIC FOR 2008

Despite concerns about the U.S. economy on the part of some, retail REIT executives anticipate a steady business climate for 2008, with few store closings. "Retail sales have never declined, despite several recessions," said Daniel B. Hurwitz, president and COO of Developers Diversified Realty Corp., at an investor conference in January. Simon Property Group CFO Stephen Sterrett said Simon's small-shop tenants are healthier financially than they have been in 15 years. The top 20 mall retailers' overall performance is uniformly positive, says Robert A. Michaels, president and COO of General Growth Properties. "The overall tenor for demand is still very good," he said.

And as for the risk of tenant bankruptcies, the outlook is downright rosy, according to Macerich CFO Thomas O'Hern. "Macerich saw $20 million in lease termination revenue in 2006, largely from Retail Brand Alliance store closings, $12 million in 2007 - a normal level, and it will likely be on the light side this year," O'Hern said. Simon is acting cautiously on new mall developments while forging ahead with new outlet center developments, said Sterrett. "For malls," he said, "we'll take a little risk out of the financing and won't mind delaying them for six months, a year or even 18 months before putting steel in the ground."