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Shopping Centers Today -> November 2007
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Publix goes organic
Publix Supermarkets has jumped onto the organic bandwagon. In September the chain launched GreenWise Market, which aims to compete directly with Whole Foods and others that promote gourmet organics. GreenWise offers gourmet prepared foods and organic produce, much of which is not available in the traditional Publix stores. The new stores include an in-house café serving coffee and smoothies.
The first GreenWise unit, measuring 39,000 square feet, opened in Palm Beach Gardens, Fla. For now, stores are planned only for Florida — in Boca Raton, Coral Springs, Tampa and Vero Beach. The company says it hopes these prepared foods will appeal to consumers seeking alternatives to upscale dining. Publix will try to build environmentally friendly stores that qualify for LEED (Leadership in Energy and Environmental Design) certification. “Publix GreenWise Market was created to meet the needs of our customers who are seeking a healthier lifestyle for their families without sacrificing the occasional indulgence,” said Maria Brous, director of media and community relations, in a news release. “We recognize that our customers have become more food- and environmentally savvy and want to explore these options in one convenient location.”
Movie Gallery to close 520 stores
Dothan, Ala.-based video rental chain Movie Gallery says it plans to close 520 underperforming Movie Gallery and Hollywood Video units. The chain retained Great American Group to help sell excess inventory and close stores. The units tapped for closure represent 12 percent of the chain’s roughly 4,500 stores.
Movie Gallery has struggled under some $1.1 billion in debt from its 2005 acquisition of Hollywood Video. Since then, revenue has declined in the face of online competition from Blockbuster and Netflix. Creditors have given the retailer three extensions on payments, but the company announced in July that it was in default.
Considering Cusp
Neiman Marcus will be reviewing its Cusp concept in January to determine whether it has the legs for a broader rollout, said CEO Burton Tansky on an earnings call. “We are not going to open additional units, but rather evaluate what works and what doesn’t from every aspect — size of store, merchandise assortment, fixturing and so forth.”
Fast Retailing still after acquisitions
Fast Retailing, the Japanese apparel seller that lost its bid in August to acquire Barneys New York, says it still seeks an acquisition for expansion outside its own country. “I want you to know that we aim to launch M&As with companies or brands around the world,” said Tadashi Yanai, Fast Retailing’s chairman, president and CEO, at a press conference in September.
Yanai said the company, which operates the Uniqlo chain and owns the Theory brand, is willing to spend between ¥300 billion ($2.6 billion) and ¥400 billion on an acquisition in Europe or the U.S. The company plans to open a 2,600-square-foot Uniqlo store in Paris in December and another flagship there by next August. In London Fast Retailing says it will open two units on Oxford Street in November, one of which will be a 25,000-square-foot flagship. The company says it aims to double its annual sales to ¥1 trillion by 2010.
Out of Ireland
Borders Group will sell its U.K. and Ireland subsidiaries to Risk Capital Partners, a London-based private equity investment firm, for about $20 million in cash plus an additional, performance-based payment that could be about equal. The transaction includes all 41 Borders superstores and the 28 Books Etc. stores in the U.K. as well as the single Borders superstore in Ireland.
 | Current Issue November 2008 |