JKG
THE GALLELLI GAZETTE Retail Roundup
Issue No. 14 | October 24th, 2023
QUOTE OF THE WEEK: “Little League baseball is a very good thing because it keeps the parents off the street.” –Yogi Berra
RETAIL CRE CONVENTIONS AND CONFERENCES BOUNCING BACK TO PRE-PANDEMIC NORMS We are entering the last week of October, which means that the World Series is coming up and that the fall convention season is coming to an end. Sure, there are still some big commercial real estate and/or retail shows still on the schedule… like me, many of you will be traveling to San Diego this week for the ICSC’s Annual Western Conference Show. Always one of the better attended trade shows with a lot of dealmaking, it is hard to not be enthused about what always ends up being a solid program in one of the coolest cities in the US to visit—my old hometown of San Diego. But I will be looking forward to it also because, after four straight weeks on the road, it’s the last show before the big end of year retail conventions ICSC Centerbuild (November 28 – December 1 at the Arizona Biltmore in Phoenix) and ICSC New York (from December 5th through the 7th at the Javitz Center). That said, while I may need a break… what I’ve seen on the road the last few weeks has been overwhelmingly positive. Last week in Atlanta, the ICSC Southeast show was packed—final attendance ended up being just below pre-pandemic levels—but that would probably come as a surprise to most of the attendees. In working the show in between hosting a couple of learning sessions, I heard almost universally positive feedback about everything from crowd size to the number of deals that were getting done at the show. I heard much the same the previous week in Chicago from the retail facilities crowd that gathered at ConnexFM’s Midyear conference—where crowd sizes were up, and attendees came to do business. The same thing played out in Atlanta the previous week for the 2023 CREW Network Convention.
Gallelli Real Estate - www.gallellire.com
Across the board, convention and conference attendance is reverting to norms established before the pandemic. And, at least at the shows focused on retail real estate, deals are getting done. The biggest challenge I continue to hear in speaking to market participants is the challenge of a lack of quality space and the difficulty of being able to build any new product at price points that pencil. Even with retail bankruptcies coming back into play after what was essentially a two-year hiatus and with leasing demand expected to cool somewhat heading into 2024, retail leasing is starting to show signs of being the victim of its own success with dozens of markets now reporting record low vacancy or availability rates and rental rates increasingly skyrocketing at levels that are not sustainable in the long-term. The challenge is that elevated construction costs mean that ground up new development increasingly doesn’t pencil—at least not with asking rents that developers are entirely confident they can command or that future tenants would be able to truly afford. This unique set of circumstances could benefit savvy owners of Class B and C shopping centers—particularly those in decent locations where projects could benefit from renovations and upgrading tenant mixes… or, as one Florida broker told me at the ICSC Southeast Show; “Things are so tight in my market that with some basic upgrades, Class B and C landlords should be able to trade up and land some better quality tenants. A few years ago, properties that were desperate enough would rely on vape shops or tattoo parlors. Now, in my market, that’s just a sign of lazy leasing.”
TOP TEN RETAIL STORIES OF THE WEEK 1
America’s Downtowns are Empty. Fixing Them Will be Expensive. Wall Street Journal 10/21
2
Z Gallerie Files for Bankruptcy; Pins Hopes on Finding Buyer Chain Store Age 10/20
3
Retail Holiday Spending to Surpass Pre-Pandemic Levels: Deloitte Retail Dive 10/18
4
Retail Sales Rise Solid 0.7% in September, Reflecting Consumer Resilience Despite Inflation DC News Now 10/17
5
Rite Aid Files for Chapter 11 Bankruptcy, Names New CEO Grocery Dive 10/16
Incidentally, having been on the road most of the past month we skipped last week’s issue of the Gallelli Gazette… but we didn’t want to overlook any of the pertinent news stories of the last three weeks. For any given issue of our Retail Roundup, it can be a challenge editing down the hundreds of articles we gather weekly on the comings and goings of major chains across every category of retail space usage. There was just too much overflow news in this issue to leave some of it out…
6
Store Closing Announcements Up, Along with Retail Bankruptcies National Retail Federation 10/14
7
The Top 100 Tenant Expansions and Closings Globe Street 10/12
While we are sharing an abbreviated Culture Corner in this issue (in honor of the baseball playoffs, we explore the life of arguably the strangest person to ever play pro ball, much less have a pitching record that rivalled contemporary Cy Young… Rube Waddell), check out page four for additional retail and restaurant growth plans that were released over the last couple of weeks.
8
Global Institutional Investors Cite Looming Risks Affecting Real Estate Costar 10/12
9
Retailers Challenged by Lack of Space, Cost of Construction Globe Street 10/9
If this was shared with you and you would like to receive the Gallelli Gazette Retail Roundup weekly in your email, email me directly at gbrown@gallellire.com and get on my mailing list. -Garrick Brown, Gallelli Real Estate gbrown@gallellire.com
Toys R Us Plans to Open 24 Stores in 2024, Plus
& Cruise Ship Shops 10 Airport ABC Action News 10/6
JKG
THE GALLELLI GAZETTE Retail Roundup
TOP ECONOMIC STORIES Fresh Growth Numbers Are Set to Show US Remains Economic Powerhouse Bloomberg 10/22 Retail Sales Down 0.1% at $66.1 Billion in August, Statistics Canada Says Toronto City News 10/20 What to Expect from the Next Bank of Canada Interest Rate Announcement Daily Hive 10/20 Canadians are Planning to Spend 11% Less This Holiday Season: Deloitte Toronto CTV News 10/18 What Holiday Hiring Efforts Look Like in 2023 Retail Dive 10/17 Consumer Confidence Falls Amid Inflation Concerns Costar 10/15 Will The Fed Let Higher Treasury Yields Finish Monetary Tightening Globe Street 10/12 Inflation Levels Off in September Costar 10/12 Adobe Forecasts 4.8% Bump in US Holiday Sales Globe Street 10/10 Stronger Than Expected Job Market Complicates Picture for Retail WWD 10/6
TOP RETAIL REAL ESTATE TREND NEWS Distressed CRE Reaches Ten Year High, Driven by Office Globe Street 10/19 M Commerce Takes Sales from Struggling Tourism Retail Retail Wire 10/19 The Unstoppable Rise of the Outlet Mall RE Business Online 10/19 2023 Q3 Saw Problems for Retail, Especially with Low Construction Globe Street 10/16 Why There Could Be More Retail Bankruptcies Coming: Expert Yahoo! Finance 10/16 Seattle Area Shopping Centers and Malls Give Retail-Tainment a Shot Puget Sound Business Journal 10/15 Crime Isn’t the Only Story; What Else is Affecting Urban Retail in 4 Charts WENY News 10/12 The Investment Outlook of Brick-and-Mortar Retail Retail Insight Network 10/6 Reimagining Hard to Lease Ground Floor Retail MHN 10/6 Here’s Why Experiential Retail May Not Always be That Great for Landlords Costar 10/6 11 Retailers Most Likely to File Bankruptcy This Year Entrepreneur 10/5
BUYERS AND SELLERS Bowlero Completes 38 Sale-Leasebacks w/Vici for $433 Million Costar 10/20
Gallelli Real Estate - www.gallellire.com
Issue No. 14 | October 24th, 2023
Fashion Outlets USA Loan in Trouble Buffalo News 10/19 Brookfield Wins 30 Days to Repay $180M Loan for SF’s Stonestown Galleria The Real Deal 10/19 TA Realty Closes $1.8B Fund to Target Multifamily, Industrial and Retail Bisnow 10/19 REITs Get a Boost from Flight to Safety Globe Street 10/18 LA County Abandoned Mall Goes Up for Sale Costar 10/16 Top Five Floors of Chicago’s Water Tower Place Up for Sale in Conversion Costar 10/13 Federal Realty Renaming NJ Mall to Mercer on One Retail & Leisure International 10/11 Sterling Pays $38.5M for Kroger Anchored Trophy Asset in Atlanta Costar 10/9 Kansas City’s Country Club Plaza to be Purchased by Dallas Company w/Ties to the Hunt Family The Derrick 10/5
RETAIL DEVELOPMENT HIGHLIGHTS Miami Worldcenter Rise Coincides w/Surge of Development, Tourism & Population Globe Street 10/18 Climate Issues Becoming More Critical for Real Estate Development Globe Street 10/16 Atlanta’s West End Mall Redevelopment Stalls for a Third Time Axios Atlanta 10/16 Houstonians Transform Plano Mall Realty News Report 10/15 NewQuest’s $90M Retail Center to Transform 249 Corridor Greater Houston Partnership 10/13 A&W Restaurant Drive-Thru Inside Six Story Building Proposed for Port Moody, BC Daily Hive 10/13 Henrico’s Willow Lawn Shopping Center Plans Major Redevelopment Richmond.com 10/13 Terra Completes New Retail Center in Growing Northwest Miami-Dade City Costar 10/11 Chicagoland Mall Old Orchard Gets Overhaul; Lands Arhaus, Zara & Others in Redevelopment Costar 10/10 Area15 Expansion Plans Include Hotel and Nightclub Las Vegas Review Journal 10/5 Here’s Another US Mall Makeover That Includes Uses Beyond Shopping Costar 10/5
RETAIL AND CONSUMER TRENDS Consumer Sentiment Turns Negative in Canada as High Rates Bite Bloomberg 10/23 The Impact of Soaring Bond Yields on US Consumers in 4 Charts Business Insider 10/23 Welcome to the Age of the Hermit Consumer Yahoo! Finance/The Economist 10/22
JKG
THE GALLELLI GAZETTE Retail Roundup
Issue No. 14 | October 24th, 2023
After a Summer of Barbenheimer and Beyonce, Can US Consumers Still Afford the Holiday Season? CNN 10/21 When Brands Fall Short, Gen Z is Fulfilling Their Own Needs WWD 10/19
Robots Are Now Making Your Fast Food Giant Freakin Robot 10/6 Online Discount Grocer Martie Expands Nationwide Supermarket News 10/5
CGP Predicts Anemic Holiday Growth; Strongest/Weakest Categories Will Be… Chain Store Age 10/18
NORTH OF THE BORDER
Consumers are Still Spending at Restaurants QSR Magazine 10/18
Toronto Eaton Centre Just Transformed Abandoned Nordstrom Store to Immersive Exhibit Blog TO 10/19
Why 6 PM is the New 8 PM for Restaurants—Americans are Eating Earlier FSR Magazine 10/17
French Sporting Goods Chain Decathlon Opens Store in Scarborough Town Centre Toronto.com 10/18
Retail’s Most Underrated Theft Problem is Employees Theft—How to Stop Them Footwear News 10/6
15 Unit Knix Looking to Add 18 Canadian Stores Over Next Few Years + More American Stores Costar 10/18
More Than 2/3rds of Shoppers Will Pay a Premium for Fresh Food: Deloitte Grocery Dive 10/4
12-Unit Columbus Café & Co. to Open 11 Stores w/Canadian Bookseller Indigo World Coffee Portal 10/18
SUPPLY CHAIN/ECOMMERCE/OMNICHANNEL/TECH
18-Unit Discounter Krazy Binz Offers Shoppers a ‘Real-Life Treasure Hunt’ Toronto CTV News 10/17
Is Livestream Shopping Taking Over or is it in Decline? Retail Wire 10/23
Holiday Spending Plans Hit New Low Point in Deloitte Retail Study Financial Post 10/17
How C Suite Leaders Plan to Use Generative AI Chain Store Age 10/20
Vancouver’s New Value Village Store Set to Open DH News 10/16
How in-store Shoppers Us Their Smartphones Chain Store Age 10/20
52-Unit Pretzelmaker Signs Deal to Open 25 More Stores in Canada QSR Magazine 10/13
Amazon’s New Warehouse Robots Include Human Like ‘Digit’ Chain Store Age 10/20
Decathlon Opening 38,000 SF Flagship at Burnaby’s Metrotown Mall Urbanized 10/12
By the Numbers: How Retailers Stack Up on Inventory Retail Dive 10/19
New Winners Store Opens in North Vancouver North Shore Daily Post 10/8
Walmart Opens Latest Next-Gen Fulfillment Center in Dallas Area Retail & Leisure International 10/17
50-Unit Good Earth Coffeehouse to Close Year w/10 New Stores and New Smaller Format World Coffee Portal 10/5
IS AI at the Drive Thru Inevitable for Restaurants? QSR Magazine 10/17 Gamification is Badly Overhyped, but it Really Can Work in Retail Logistics Viewpoints 10/16
See you at ICSC! JKG
Gallelli Real Estate - www.gallellire.com
JKG
THE GALLELLI GAZETTE Retail Roundup
Issue No. 14 | October 24th, 2023
MORE RETAIL GROWTH NEWS! In this issue, there was just too much going on to include all the new store opening news… So here is some of the overflow from the past couple of weeks… Hobby Lobby opened a new store in Midland Mall in Midland, Michigan. They also sealed the deal for a large San Jose, California store in former Bed Bath space. Scheel’s opened a mammoth 250,000 SF store at Macerich’s Chandler Fashion Center in Phoenix, complete with a giant Ferris Wheel, saltwater aquarium and wildlife mountain dioramas. The chain now has 32 stores, but has units under construction in Meridian, Idaho and Tulsa, Oklahoma, in addition to a planned store in Cedar Park, Texas that is slated to open in fall 2026. Legacy Toys, a regional chain with units in Minnesota and North Dakota, opened its eighth location in Rochester, Minnesota. Home improvement giant Lowe’s is opening an outlet store in the Houston suburbs. Dick’s Sporting Goods is taking the former Nordstrom department store space at the Miami-Dade Mall for its gargantuan, experientially focused House of Sport concept. Incidentally, Dick’s is also planning on opening a House of Sport location in Downtown Boston. As well as at Tampa’s International Plaza Shopping Center. Though news of its recent urban store closures are still dominating headlines and discussions, Target continues to quietly open suburban stores—including this one in Teays Valley, West Virginia. Rivian rolled out a new electric vehicle showroom in Atlanta’s Ponce City Market. Meanwhile, Tesla was in the process of converting a vacant Kmart store in the Los Angeles area into a new showroom. Which leads us to one of the more intriguing bits of news over the past three weeks, Sears—YES, SEARS—is reportedly planning on re-launching one of their long shuttered department stores in the Los Angeles region. Though banking continues to consolidate retail locations as more consumers depend on electronic banking, there are some exceptions—Wells Fargo has plans to add 23 new bank branches in the Chicago metro over the next few years. Meanwhile, Uniqlo is opening two stores in Long Island this month, at Walt Whitman Shops in South Huntington and at Green Acres in Valley Stream. Furniture retailer Aaron’s announced the opening of a new BrandsMart USA store in Augusta, Georgia—the first unit the chain has opened since Aaron’s acquired them in April 2022. At the luxury end of the furniture and furnishings spectrum, RH (Restoration Hardware) is planning on opening a 42,000 SF three-story store with a luxury fine dining restaurant in Palo Alto near Stanford University. On the grocery store front, Whole Foods announced the opening of a new store in Jersey City, New Jersey. Whole Foods will also anchor a new shopping center that is being built in the rapidly growing Las Vegas suburb of Summerlin. Trader Joe’s is opening its 10th Florida store in the Sarasota metro at Lakewood Ranch’s University Town Center this week. The Vitamin Shoppe opened its newest store in New Braunfels, Texas. Meanwhile, Grocery Outlet opened its newest California unit in the Los Angeles suburb of Fontana. Sprouts Farmers Market opened in Mueller, Texas, another in Austin, Texas (as well as a new Southern California distribution center, and they also detailed plans to open six additional Philadelphia area stores to add to their existing presence of five local units. In Slidell, Louisiana, the 63-unit grocery chain Rouses is planning on closing an existing store but they will be replacing that unit with a new location that will open in 2025 (in addition to new units planned for Biloxi and Picayune< Mississippi next year).
Gallelli Real Estate - www.gallellire.com
Nordstrom opened a new Rack store in El Paso. As did Burlington, ULTA, Honest Lash, Walgreen’s and Firestone. As well as Hooters… Speaking of restaurants, iconic Portland donut shop, Voodoo Doughnut announced it was opening its 21st unit in Chicago and 22nd in Seattle. Meanwhile, Freddy’s opened their 500th restaurant, while Scooter’s Coffee reached 700 units as they continue to aggressively grow with a target of 1,000 stores nationally by the end of next year. Other milestones reached recently include MOOYAH opening its 90th restaurant in St. Charles, Missouri and Huey Magoo’s opening its 51st unit in Brookhaven, Mississippi. The 58-unit Pret A Mager announced plans last week to hit the 300 unit mark by 2029, or roughly a growth rate of about 40 new stores annually until then. Lastly, the Chicago-based 12-unit chain Protein Bar & Kitchen, announced that it wants to hit the 100-unit mark within five years, or grow by an average of about 18 new restaurants annually. The Culture Corner will be back in its full glory next issue. In the meantime, in honor of the soon-to-be-played World Series, this week I am sharing a link to a story about the likely the strangest player to have ever played professional baseball… Rube Waddell. Waddell inspired the first extended Major League Baseball contract negotiations on record, when an exasperated teammate threatened to quit baseball completely unless his bunkmate Rube had a “no eating crackers in bed clause” added to his contract (in those days players didn’t just share hotel rooms on road trips, but usually beds). Described by legendary manager Connie Mack as having, “a two-million-dollar body and a two-cent head,” Waddell was known for his bizarre antics like leaving games mid-play to chase fire engines that happened to drive by or frequently not dressing until he was on the pitcher’s mound. In 1908, St. Louis Browns owner Robert Hedges, thinking Rube would benefit from settling down offered him a bonus if he both married and won 30 games that year. Rube placed an ad in the Scranton Republican for a wife, that read, “When not under the influence of sinister forces, is docile and affectionate… maids with wooden legs will be frozen out… Rats in the hair, like rats in the belfry, are not desirable.” Rube would later claim he had lost track of how many women he had married, much less divorced—as he was “not very good at paperwork.” Regardless, here is the bizarre but true story of Rube Waddell: Pitching Giant, Mental Midget.
JKG
THE GALLELLI GAZETTE Retail Roundup
EXPERIENTIAL RETAIL REVIEW Ping Pong Social Club Spin Opens Second NYC Location Retail & Leisure International 10/19 Former Mortuary to be Reborn as Immersive Escape Room and Restaurant, The Lodge of Lazarus Crowe Twin Cities Pioneer Press Pickleball Kingdom Comes to Texas w/Largest Facility of its Kind Costar 10/19 Australian High Tech Miniature Golf Brand Holey Moley Opens in Denver Costar 10/17 Immersive Netflix House Concepts to Open in US by 2025 KWQC 10/15 ARTE MUSEUM to Open a 30K SF Immersive Art Exhibit on the Las Vegas Strip KTNV Las Vegas 10/14 Picklemall Leases 46K SF in Chicago Suburb Vernon Hills RE Business Online 10/11 Pinstripes Opens 14th Unit at Westfield Topanga Mall in Canoga Park, CA FSR Magazine 10/10 Pickleball Kingdom Plans to Open 20 Centers Across New Jersey Costar 10/10 Fun City Adventure Park to Open at Carriage Place in Columbus, OH Costar 10/6
Issue No. 14 | October 24th, 2023
Women’s Apparel Brand Cartolina Opens Flagship at 966 Madison Avenue in NYC WWD 10/10 Eleventy to Make Mark in Beverly Hills Retail & Leisure International 10/6
RETAIL CHAIN STORE OPENINGS AND GROWTH Can Alo Yoga Persuade Consumers to Pay Couture Prices? PYMNTS 10/20 Kohl’s to Test Smaller, Urban Concept in Downtown Milwaukee Costar 10/20 Spa Concept Bathhouse Signs 40K SF BTS Lease in Chicago RE Business Online 10/20 Dillard’s to Open in Sioux Falls, South Dakota in March 2024 Sioux Falls Business 10/19 Moosejaw’s First Utah Store Opens as Dick’s Closes All but Two Other Units KSL 10/19 H&M Plans New Downtown DC Store After Closing Longtime Flagship Washington Business Journal 10/19 PGA Superstore Opens 39K SF Shop at Mayfair Shopping Center on Long Island RE Business Online 10/19 Google Opens Store and Café at new Center in California Retail & Leisure International 10/16
HIGH STREET HAPPENINGS
Ann Taylor Factory Shops Opens at Outlets of Des Moines RE Business Online 10/16
Ulla Johnson Celebrates Opening LA Flagship with Celeb Bash WWD 10/20
Boot Barn Expands to Hilliard, OH Costar 10/16
Fendi Opens New Atlanta Store Retail & Leisure International 10/19
Banana Republic Opens San Francisco Flagship Retail Dive 10/12
Palm Angels Opens New Boutique in NYC Retail & Leisure International 10/19
Primark Continues US Expansion w/New Stores in New York and North Carolina The Retail Bulletin 10/12
King Kennedy Opens Retail Flagship in LA WWD 10/19
Planet Fitness to Open 20K SF Gym in Lewisville, TX RE Business Online 10/12
5-Unit Outerknown to Open Four Additional Stores Retail & Leisure International 10/18
Buc-ee’s to Start Construction on Amarillo TX Mega Convenience Store Costar 10/12
Gen Z Brand Cider Testing Waters w/NYC Pop UP WWD 10/18 Premium Fashion Brand Paris Laundry Opens NYC Flagship Retail & Leisure International 10/17 You’ve Never Heard of This Richemont-Owned Luxury Brand, Serapian—That’s the Point Glossy 10/15 Experience the Glamour and Luxury of Hermes at Glittering Reopening of Rodeo Drive Store Vigour Times 10/15 Quiet Luxury Brand Serapian Expands to the US Retail & Leisure International 10/13 La PERE Opens Flagship in NYC Retail & Leisure International 10/12 Ron Dorff Opens Second US Store in West Hollywood Retail & Leisure International 10/10 Luxe Western Wear Retailer Kemo Sabe Opens 5th Store in Round Top Texas WWD 10/10
Gallelli Real Estate - www.gallellire.com
JKG
THE GALLELLI GAZETTE Retail Roundup
Issue No. 14 | October 24th, 2023
Batteries Plus Finalizes 6-Unit Franchise Agreement for Charlotte Expansion Retail Wire 10/12
H-E-B Adds Fourth DFW Metroplex Store in Allen, TX Shelby Report 10/5
Ross Dress for Less Grows Presence w/97 New Locations in 2023 Footwear News 10/11
Natural Grocers to Open in Twin Falls, ID Shelby Report 10/4
Australian Furniture Concept King Living Set for US Debut in Orange County, CA Retail & Leisure International 10/10
FOOD HALL NEWS
Tractor Supply Takes 19K SF Building in Lubbock, TX RE Business Online 10/10
Uptown Charlotte Food Hall Monarch Market Shares Final Offerings Ahead of Debut Charlotte Business Journal 10/19
7-Unit Mizzen+Main to Open 3 Additional Stores by November Retail Dive 10/9
LA’s Newest Food Hall (LA Chef’s Kitchens) is Hidden Away in an Apartment Complex Eater Los Angeles 10/18
Pandora Wants to Net 500 New Store Openings Through 2026—Most in North America Fashion Dive 10/9
Asian Themed Baoshi Food Hall to Open in Pembroke Pines (FL) Next Month Miami New Times 10/17
Hibbett Sports Opening 2 Milwaukee Area Stores Urban Milwaukee 10/8
Pittsburgh to Get New Asian Food Hall, Novo Asian Food Hall Patch 10/17
Discounter Cardinal Bin Store Inks Deal for Store in Dayton OH Metro Costar 10/6
Wegman’s Opening in Store Food Hall as Supermarkets Expand Beyond Groceries PYMNTS 10/16
Buc-ee’s Buys Land for Developing Second Virginia Super Center Costar 10/5
WBG Hosts Grand Opening of Food Hall at Ontario’s Cornwall Square Mall The Seeker Canada 10/14
House of Gainz Fitness Concept Inks 41K SF Deal in Northeast Austin Costar 10/5
Portland Agency to Loan $3M for Flock Food Hall in Ritz Carlton Tower Oregon Live 10/13
New Balance Opening Austin Store on South Congress Austin Business Journal 10/4
Outdoor Food Hall Water Park Debuts in Arlington Axios DC 10/6
THE GROCERY AISLE
New Food Hall Coming to Dunedin (Dunedin Mix), Complete w/Carousel Bar & Shops Tampa Bay Times 10/4
ShopRite Supermarket w/Hardware Store Set to Open in New Jersey Grocery Dive 10/20
XMarket, Billed as Largest Vegan Food Hall in Midwest, Opens in Uptown Chicago Block Club Chicago 10/4
Aldi Opens 4th Store in the Bronx Winsight Grocery Business 10/19
FOOD & BEVERAGE
Foxtrot Opens 6th DC Store/32nd Unit Nationally CSP Daily News 10/19
58-Unit Pret a Manger Signs Joint Venture to Triple US Footprint in Five Years World Coffee Portal 10/20
New Manhattan Wegman’s Opens its Doors Supermarket News 10/19
Haven Hot Chicken Announces 7th Unit as Ramps Up Connecticut Growth QSR Magazine 10/20
Inside Grocery Outlet’s Growth Trajectory on Quest to Hit 1,100 Stores Globe Street 10/18
Big Madre Tacos y Tortas Opens 37th Unit in Houston QSR Magazine 10/20
New Seasons Brings Groceries Back to Downtown Vancouver, WA The Columbian 10/18
Fuzzy’s Taco Shop Signs 20-Unit Deal for Nevada Growth QSR Magazine 10/19
Balls Food Stores Opens Price Chopper in Kansas City Shelby Report 10/16
224-Unit L&L Hawaiian Barbecue Opens First Boulder, CO Store QSR Magazine 10/19
Look Inside Hannaford’s New Scarborough, Maine Store (its 187th) Supermarket News 10/12
JINYA Ramen Bar Opening 61st Unit in Preston Hollow (Dallas) FSR Magazine 10/19
Piggly Wiggly Could See Big Growth Again in Texas Supermarket News 10/10
Golden Corral’s Fast Casual Concept Homeward Kitchen to Launch in North Carolina in December FSR Magazine 10/19
Schnucks to Open Second ‘Fresh’ Concept Store in STL Area St. Louis Business Journal 10/6
Big Whiskey’s Expanding into Columbia, MO FSR Magazine 10/18
Festival Foods Opening in Chippewa Falls, WI Shelby Report 10/5
Eggs Up Grill Signs Five Unit Franchise Deal for Houston FSR Magazine 10/18
H Mart Opens in Former BB&B Store in Redmond, WA Costar 10/5
Dillas Quesadillas Opens 9th Unit in Frisco TX QSR Magazine 10/18
Grocery Outlet, Aldi Lead September’s New Grocery Openings Winsight Grocery Business 10/5
7-Unit Bruxie to Open 8th Restaurant in Long Beach, CA Debut QSR Magazine 10/18
Gallelli Real Estate - www.gallellire.com
JKG
THE GALLELLI GAZETTE Retail Roundup
Gibsons Restaurant Group Inks 15K Sf Lease in Chicago’s Fulton Market RE Business Online 10/17 STK Steakhouse Opens in Charlotte NC FSR Magazine 10/16 Starbird Opening 13th Unit in Los Angeles w/5 More Across CA Opening Through 2024 QSR Magazine 10/13 Black Bear Diner Opens 157th Restaurant in Yucca Valley, CA FSR Magazine 10/11 Ruby Slipper Opening in Metairie FSR Magazine 10/11 17-Unit Southern Classic Chicken to Launch New Prototype Ahead of Growth QSR Magazine 10/11 JARS by Fabio Viviani Signs 7-Unit Deal in Kansas City QSR Magazine 10/11 6-Unit Chick N Max Opens in Sioux Falls; Plans 5 New Units Annually in Each of Next Few Years QSR Magazine 10/10 Salt & Straw Coming to Waterfront Vancouver, WA The Columbian 10/9 Shake Shack to Open Third Oregon Location Near Portland Costar 10/5 20-Unit Toastique Inks 3-Unit Deal in Minnesota QSR Magazine 10/5 Big Bad Breakfast Expanding to Little Rock w/19th Unit FSR Magazine 10/4 Jan’s Health Bar Opens 6th Location in SoCal QSR Magazine 10/4 340+ Unit Shipley Do-Nuts Signs Deal to Debut in North Carolina QSR Magazine 10/4
LOCAL MARKET NEWS Downtown Montreal is Canada’s Coolest Neighborhood According to Time Out Montreal Gazette 10/17 D2C Brands Increasingly Take Over NYC Retail w/Brick and Mortar Shops PYMNTS 10/13 Is Target Pulling Out of Planned Store a Bad Sign for San Diego Downtown Development? San Diego Union-Tribune 10/13 Soho Shines in Manhattan’s Retail Road to Recovery The Real Deal 10/12 Retailer Growth, Expansion in Metro Omaha Lead to Optimistic Outlook RE Business Online 10/12 Retailers & Restaurant Groups Zero in on Louisville to Meet City’s Robust Demand RE Business Online 10/11 Times Square Post Pandemic Openings Outstrip Closings The Real Deal 10/10 Ala Moana Mall Welcomes Alo Yoga, Lagree Oahu, Marni & Texas de Brazil Retail & Leisure International 10/6 Houston Adds Most New Retail Space Over Past Year Costar 10/6 Miami Beach’s Lincoln Road Adding Slew of New Stores Miami Herald 10/5
Gallelli Real Estate - www.gallellire.com
Issue No. 14 | October 24th, 2023
RETAIL CHAIN STORE CLOSINGS AND CONTRACTION Rite Aid Identifies Initial 154 Stores for Closure Under Bankruptcy Plan Winsight Grocery Business 10/18 More Than 2,800 Stores Are Closing Across the US in 2023. Here is the List Business Insider 10/18 Upscale Mini Golf Bar Concept Swingers Closes 7 Months After Opening in DC’s Navy Yard Bisnow 10/18 Bank of America, Wells, Chase to Close Dozens of Branches Costar 10/18 Houston Whole Foods to Close The US Sun 10/13 Express Closes in SF’s Union Square as Banana Republic Opens The Real Deal 10/12 Showfields Files for Bankruptcy Retail Dive 10/9 JOANN and Other Stores Facing Bankruptcy BestLife 10/5 Starbucks Closing Seven of its 59 San Francisco Stores Today 10/4 Atmos Shutting Down Operations in North America; Closing 3 US Stores Complex 10/4
M&A MANIA Rite Aid Gets Court OK for Nearly $3.5B in BK Financing Retail Dive 10/18 Furniture Retailer Z Gallerie Files Bankruptcy Again and May Go Out of Business Dallas Morning News 10/18 What’s Ahead in Grocery M&A Grocery Dive 10/18 The Fashion IPO Market is Heating Up but Challenges to Going Public Remain Glossy 10/13 C-Store Chain SQRL Acquires 210 Stores Across 14 States—Now at 350+ Units Retail & Leisure International 10/13 Birkenstock Scores $8.6B Valuation in IPO WWD 10/10 Birkenstock’s Blockbuster IPO: The Brand’s 250-Year History Footwear News 10/9 Circle K Parent Puts 68 C-Stores Up for Sale in Latest Divestiture Move Costar 10/6 Krispy Kreme Exploring Sale of Insomnia Cookies Retail & Leisure International 10/5 From Warby Parker to On, here is How Disruptors are Doing Post IPO Retail Dive 10/3
Gary Gallelli
CEO - Partner gary@gallellire.com
Pat Ronan
Vice President pat@gallellire.com
JKG
GALLELLI TEAM BROKER CONTACTS
Aman Bains
Adam Rainey
Associate Vice President abains@gallellire.com
Associate Vice President arainey@gallellire.com
Kevin Soares
Bob Berndt
Jeff Hagan
Phillip Kyle
Matt Goldstein
Kurt Conley
Robb Osborne
Brandon Sessions
Executive Vice President | Partner ksoares@gallellire.com
Executive Vice President | Partner bberndt@gallellire.com
Senior Associate kconley@gallellire.com
Kannon Kuhn
Kristopher Krise
Associate kkuhn@gallellire.com
Capital Markets Advisor kkrise@gallellire.com
Senior Vice President pkyle@gallellire.com
Partner rosborne@gallellire.com
Senior Vice President bsessions@gallellire.com
JKG
Vice President mgoldstein@gallellire.com
Senior Vice President | Partner jhagan@gallellire.com
3005 Douglas Blvd., Suite 200 Roseville, CA 95661 916-772-1700
Garrick also produces a regular podcast, The Retail Grind, with Bill Yanek, the CEO of ConnexFM (North America’s largest facilities management trade group), where he explores the latest economic, retail and real estate news.
Garrick H. Brown Gallelli Real Estate gbrown@gallellire.com (916) 789-3324
ABOUT THE WRITER Garrick Brown is one of the leading real estate analysts in the United States; he is a 25-year industry veteran analyst and thought leader in the space, as well as an experienced manager of large, national teams of researchers. He has a strong background in all the commercial real estate product types, though for the last 15 years he has primarily been known for his work in the retail space. Garrick is regularly quoted on real estate, retail and economic matters by the Wall Street Journal, the CBS Evening News, NBC News, CNBC, National Public Radio, Women’s Wear Daily and dozens of Business Journals and other industry publications. Mr. Brown is a major business influencer; he has over 21,000 followers on LinkedIn, where he regularly posts economic and commercial real estate commentary to an audience consisting primarily of brokers, retailers, developers, site selection professionals, appraisers, lenders, investors, private equity, economic development professionals and business media.
Mr. Brown is frequently asked to contribute to major industry publications. He authored the retail real estate portion of the 2023 edition of the Urban Land Institute and PriceWaterhouseCoopers’ trademark industry publication, Emerging Trends in Real Estate. Garrick is a renown public speaker on economic, real estate and retail matters. He is known for his dynamic and entertaining speaking style and for his ability to tell the stories behind the data, synthesizing trends and connecting dots beyond the obvious. He regularly speaks to private and academic groups (Baruch College, Florida State University, Harvard Graduate School of Design, UCLA Ziman Center for Real Estate, etc.), and all the major, national commercial real estate-focused trade groups (BOMA, California Bankers Association, CCIM, ConnexFM, CREW, ICSC, NAIOP, Urban Land Institute, etc.). Mr. Brown currently works as a freelance writer and consultant for a number of private clients. In addition to his public speaking engagements, Garrick frequently advises corporate real estate teams regarding economic conditions, market forecasting, business and brokerage strategies. His previous experience includes managing Cushman & Wakefield’s retail research for the Americas, as well as managing commercial real estate research functions (all property types) for the Western United States for Cassidy Turley and Newmark. He began his career as a research associate with Grubb & Ellis in Kansas City, Missouri and later managed research operations for Colliers International for the Indianapolis, Indiana and Sacramento, California markets.