Bruzzone Strategics

Dollar General Finally Coming to California

2012-01-12T09:19:46-08:00

Just a matter of time when one of the dollar giants would set its eyes on the Golden State. Should be a success especially with the glut of retail space throughout the state. From Chain Store Age:

Goodlettsville, Tenn. -- Dollar General plans to open 625 stores and add more than 6,000 new jobs in 2012. The locations will be spread among Dollar General’s 38-state operating area, and include the new markets of California, where it will open 50 stores and a distribution center, and Massachusetts. The discounter will also open a distribution center in the Golden State this year.

via chainstoreage.com

More somber forecast from Grubb & Ellis: Continued sluggish real estate recovery in 2012

2012-01-04T09:52:34-08:00

SAN FRANCISCO, CA. --- I remember last year about this time, Grubb & Ellis, and most of the major investment brokerage firms predicted a fairly strong recovery in 2011. I questioned their optimism. Certainly for tier one, institutional grade, cash only deals, it was a robust market. Not so for the investor/operator or smaller equity groups. Glad to see a more sober forecast this year.

"Santa Ana, Calif. -- The struggling housing market, weak job growth and ongoing consumer deleveraging caused the retail market to lag other property sectors in 2011, according to Grubb & Ellis Co.’s 2012 National Real Estate Forecast, which predicts a year of slow but continued growth for all commercial real estate property sectors."

READ Full Report at ChainStore Age

Bed Bath & Beyond's to Open 45 Stores, Q4 profit up 25%

2011-12-27T08:18:51-08:00

SAN FRANCISCO, CA --- Bed Bath & Beyond ranks high on my top 10 U.S. retailers list,and has for some time. This big box retailer was an regular inhabitant of "power centers," then discount centers, and now thrives in the post-2008 consumer environment. In other words, they're retail survivors --- which is the highest accolade in today's market.

FROM Chain Store Age:

By jmosscrop

Bed Bath & Beyond reported Wednesday that profit for the fourth quarter ended Feb. 26 rose 25% to $283.5 million, compared with $226 million a year earlier.

The company, which forecast earnings growth for the current year that would beat Wall Street estimates, also said it expects to open 45 new stores this year across its banners , which also include Christmas Tree Shops and buybuy Baby, and expects to continue renovating and relocating existing stores.

Revenue for the quarter surged 12% to $2.5 billion. Same-store sales rose 8.5%. Analysts expected $2.39 billion in revenue.

For the full year, the company earned $791.3 million, up from $600 million in the prior year. Sales rose 12% to $8.76 billion from $7.83 billion.

via www.chainstoreage.com

Retailing Misfire: Best Buy cancels some Black Friday orders days before Christmas

2011-12-22T08:45:44-08:00

A retailer's worst nightmare. Hungry shoppers fighting to order your products, but you can't deliver. For Best Buy, this could be their "Netflix" experience. In a fragile economic recovery, this is the last event you want to happen. Read on, especially some of the customer comments on forums

FROM SAN FRANCISCO CHRONICLE: Best Buy might make the naughty list this Christmas.

Some customers are still waiting to receive electronics purchased online in December and November, including some Black Friday specials, according to various media reports.

The company released a statement this week to FOX 9 in Minneapolis apologizing for the untimely issue.

“Due to overwhelming demand of hot product offerings on BestBuy.com during the November and December time period, we have encountered a situation that has affected redemption of some of our customers’ online orders,” Best Buy said in an emailed statement to FOX 9. “We are very sorry for the inconvenience this has caused and we have notified the affected customers.”

Customers have taken to the company’s forum to blast the electronics retailer for failing to deliver the items ahead of Christmas or Hanukkah.

One disgruntled customer, writing under the handle “JNH,” said on the forum that an order of a BlackBerry Playbook Tablet before Thanksgiving. Three days later, they received an email from Best Buy saying the order had been canceled.

Scott Mitchell of Ridgefield, Conn., told TheStreet.com that he experienced the same thing days after purchasing an item from BestBuy.com.

“We had ordered and received confirmation for a Holiday Bundle from Best Buy’s Web site. We received a confirmation on the purchase and an expected shipping date,” Mitchell said. “On Thursday of this past week we received an e-mail informing us that the order was being canceled.”

The company’s forum was littered with threads from unhappy customers who had their orders canceled after purchasing items online.

Many who wrote in said Best Buy ruined their Christmas.

Posted By: dan.mcgraw@chron.com (Dan X. McGraw) ( Email ) | Dec 22 at 5:57 am

Bellweather: Best Buy Q3 profit down 29%

2011-12-14T07:57:09-08:00

Performance of mega retailer Best Buy can serve as a proxy for consumer sentiment -- which has been rising slowly. This report makes clear that increased revenues (sales) as we saw on Black Friday doesn't always translate into increased profit. As in this case:

Minneapolis -- Best Buy says its third-quarter net income fell 29% $154 million, from $217 million in the year-ago period, worse than analysts had expected. The retailer’s profits were hurt by declining sales in some categories, plus a $150 million one-time charge associated with the planned closing of 11 big-box stores in the United Kingdom.

Total company revenue rose 1.7% to $12.1. Same store sales rose 0.3%.

Best Buy had 20% growth in online sales and 9% growth in mobile phone revenue in the United States, along with brisk sales in tablets, appliances, e-readers and movies. But it suffered declines in TVs, digital imaging and gaming. [Chain Store Age, December 14, 2011]

Politically charged. but retail realities: Working Americans get smaller slice of pie

2011-12-09T08:17:51-08:00

[FROM CNBC:] Working Americans are now getting the smallest slice of the income pie on record — which, combined with high unemployment, could be behind the slow speed of the economic recovery.

The decline is not a new trend, but it shows up again in last week's release of third-quarter productivity and costs. The labor share — the amount paid to workers instead of businesses and other income-earning entities — was reported to have fallen to 57.1 cents on the dollar for the business sector, its lowest level since it was first reported by the Bureau of Labor Statistics in 1947.
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What a difference a recession makes: Dollar store boom good for retail landlords

2011-12-06T08:16:09-08:00

SAN FRANCISCO, CA -- There was a time when a dollar store was a stigma for a shopping center. They were thought to lower the center's appeal, draw 'undesirable' consumers, and upset the other center tenants.
Not now as this report from Chain Store Age reveals:

Seattle -- The combined store count of the four national dollar store (or extreme value) chains — Dollar General, Dollar Tree, Family Dollar and 99 Cents Only — has now surpassed that of the three biggest national drugstore chains (Walgreens, CVS, and Rite Aid), according to a new report by Colliers International, the third-largest commercial real estate services company in the world.

READ MORE...via chainstoreage.com

Report: U.S. consumer confidence rises most since 2003

2011-11-30T08:11:31-08:00

Washington, D.C. -- A report released Tuesday by the Conference Board showed that consumer confidence experienced its biggest gain in more than eight years, jumping to 56 in November from a revised 40.9 reading in the month prior. The leap was the biggest since April 2003 and exceeded the most optimistic forecast by Bloomberg News.

via chainstoreage.com

So, the $52 billion Black Friday spending spree was not an aberation. Add online sales on Cyber Monday were up 33% over 2010. But over the next months, we'll learn if economists, the markets or consumers have the best take on the U.S. economy..

Diary of a Black Friday Shopper ($52 Billlion Weekend)

2011-11-28T07:44:29-08:00

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via www.cnbc.com

SAN FRANCISCO, CA -- A retail consultant takes the family to a local WalMart to see for himself Black Friday madness. Turns out the retail giant had the choas under control --- Even provided lined up shoppers with store maps to each of the mega-sales. A record retail weekend but as suggested what did the retailers give away in return.

99 Cents Only in $1.6 billion buyout

2011-10-12T08:47:50-07:00

News about one of the country's top Post-2008 discount retailers..

From Chain Store Age:

99 Cents Only in $1.6 billion buyout October 11, 2011 | By Katherine Field Boccaccio Commerce, Calif. -- Discounter 99 Cents Only Stores said Tuesday it has agreed to be acquired by a group of investors including its founding family, Ares Management and Canadian Pension Plan Investment Board for $1.6 billion in cash.

The announcement ends a months-long sales process, which started with a takeover offer from Leonard Green & Partners in March. The Gold/Schiffer family, which founded the company almost 30 years ago, will roll over its 33% stake into the newly private company. The family members and other existing management will stay on to run the company, which operates 298 stores. “We have come to know and respect Ares Management and C.P.P.I.B. through this process, and we believe they will be excellent partners and help us achieve our long-term goals as a company,” Eric Schiffer, CEO, 99 Cents, said in a statement.