Gallelli Gazette_August 9, 2023

THE GALLELLI GAZETTE Retail Roundup

QUOTE OF THE WEEK:

“Don’t aim at success. The more you aim at it and make it a target, the more you are going to miss it. For success, like happiness, cannot be pursued; it must ensue, and it only does so as the unintended side effect of one’s personal dedication to a cause greater than oneself or as the by-product of one’s surrender to a person other than oneself.”

– Viktor Frankl

THE PLAYBOOK FOR MALL SUCCESS…

I want to point out some things you’ve probably already noticed. We took a little summer break over the past two weeks and have made some changes and improvements to the Retail Roundup that I hope you will all enjoy. We are going bigger—you have probably noticed we have added more stories and some more categories that we are tracking. We are also exploring several things such as bringing in occasional guest writers and commentary and potential partnerships in the marketplace to further round things out. Stay tuned as we will be expanding and creating more opportunities for interesting editorial content going forward. Additionally, we’ve decided to move away from our previous weekly publication model to accommodate some of those changes. Going forward we will be publishing the Gallelli Gazette Retail Roundup every two weeks. I would love to hear your feedback on the changes and anything else. But now, let’s get into the news.

First, I need to rant a little. This past week, Globe Street published, “This is How Bad Retail and Office Valuation Drops Have Gotten.”

Let me preface this with the fact that all investment activity is currently challenged because of the rapid rise in the price of money (interest rates). That’s a fact. Some retail remains deeply challenged, but most are doing well or flourishing. That, too, is a fact. I am happy to debate this with anyone and provide real data to support my opinions. What I hate is when a lack of nuance in a complex story, intentional or not, becomes clickbait. The story in question quotes a company called CRED reporting that their review of 190 major properties across all asset classes determined that retail property valuations were down 57.0%, with office only slightly behind at 48.7%.

Retail down 57.0%? Is the sky falling? And all of this when I am literally tracking retail demand levels being at the highest that I can remember since the very, very early 2000s? And nearly every market is reporting the lowest levels of retail vacancies and availabilities they’ve had for years? However, before I could even put my researcher cap on to come up with my own analysis, one of my LinkedIn connections already beat me to it. Thanks to Neil Soskin who runs his own advisory firm out of Houston for this great summation, “Once again headlines and clickbait are painting retail real estate with a broad negative and provocative brush. Earlier today I notice an article on GlobeSt.com with that title. The article goes on to mention among other ‘facts’ that major retail assets were down 57%... I do not know about you but in my current real estate practice I have not seen anything like that for most shopping centers. Most are holding their value or seeing modest decreases.”

Mr. Soskin goes on to say, “So I dug in a bit. The GlobeSt.com article quoted a report from CRED. So, I went to their website and read the original summary of their study. While a complete report was not readily available, they showed a chart with 17 properties that had material drops in value. On that chart, 10 of the 17 were retail. However, 100% - ALL- of them were enclosed regional malls. So, what is the real story? Is it retail or shopping centers broadly or is the continuing story that began over a decade ago of the slow death of the bad and mediocre mall in America.”

Which leads me to our Top Ten Articles of the Week.

Usually, my process for picking the stories I feature is somewhat complicated.

First, I gather the stories I am going to feature in the Retail Roundup. This is an exercise that takes some time. Every day I have roughly 300 daily emails I dig through that are based on news searches for specific markets, retailers, retail categories and certain industry or economic buzzwords. I scroll through those emails, scanning the headlines to see if there are articles worth using. The primary purpose of this publication is to provide an accurate pulse on retailer demand (and all the business categories that use retail real estate) in ways that are actionable to our roughly 15,000 regular readers. So, for example, if I see an article like this recent one from Retail Dive; “Seizing Momentum, L.L. Bean Expands Store Fleet, Wholesale,” it’s going in. But, if I come across a one-off piece about a free yogurt giveaway at the grand opening of a small shop, it’s probably not (not unless it also details what the greater plans are for that chain). Basically, every week I scan thousands of articles, read hundreds of them, and then assemble them in the Retail Roundup according to the topics they cover.

The last thing that I do each week is review each section of my gathered stories and then I choose my top ten for the week. Generally, I pick those that I think have the greatest level of importance to the overall market. Sometimes I will slip something in that I just think is super interesting and that I think our readers will also find worthy. Occasionally it might be news of one chain’s expansion or contraction, though I usually don’t choose those because ultimately the successes or the failures of any one given chain simply don’t add up to having impact across the marketplace usually. I tend to leave those in their respective sections of the Retail Roundup and usually the pieces I highlight in our Top Ten are the trend articles that I think everyone should be paying attention to.

This is specifically why I chose these ten property profiles compiled by Al Urbanski (kudos and great picks!) and featured in Chain Store Age this week. Every single one of the centers that is featured is an example of owners that have paid attention to the trends that are working—everything is here. The importance of focusing on and trading up food concepts and making that your new draw, if not anchor, to varying degrees every single center on this top ten has successfully done this. Adding mixed-use elements? Check. Creating entertainment synergies, if not complete districts? Check. The importance of experiential retail? Mall of America has been there, doing that for 20+ years, but virtually every other center on this list has followed this lead. Trading up indistinguishable mid-market brands for unique, authentic, quirky or luxury? Check. DTC brands? Check. Enhancing design elements and linger-ability? Check. Events? Check. Community engagement? Check. Influencers? Check.

So, back to the Globe Street article… Are there retail properties that are likely down 57% in valuations? Hell, I’m sure there are probably a few that are far worse. Is that number reliable as a representation of the market. Absolutely NOT. Malls only account for 7% of all retail properties to begin with. And nearly one third of our roughly 1,200 malls in the US (our Class A and trophies) are doing fine or are killing it.

The ones that are killing it have a playbook that is not hard to understand but a tough one to execute. Ten of them are featured in our Top Ten Retail Stories of the Week.

TOP TEN RETAIL STORIES OF THE WEEK

1 2023’s Top 10 Retail Center Experiences: #1 Triple Five Group’s Mall of America Chain Store Age 8/2

2 2023’s Top 10 Retail Center Experiences: #2 Trident Group’s Tuscan Village Chain Store Age 8/2

3 2023’s Top 10 Retail Center Experiences: #3 Hine’s Fenton Chain Store Age 8/2

4 2023’s Top 10 Retail Center Experiences: #4 Phillips Edison’s Naperville Crossings Chain Store Age 8/2

5 2023’s Top 10 Retail Center Experiences: #5 Stark Enterprises’ Crocker Park Chain Store Age 8/2

6 2023’s Top 10 Retail Center Experiences: #6 Macerich’s Scottsdale Fashion Square Chain Store Age 8/1

7 2023’s Top 10 Retail Center Experiences: #7 CBL’s Westmoreland Mall Chain Store Age 8/3

8

2023’s Top 10 Retail Center Experiences: #8 Centennial’s Pacific City Chain Store Age 8/3

9

2023’s Top 10 Retail Center Experiences: #9 Brookfield’s Ala Moana Chain Store Age 8/4

10

2023’s Top 10 Retail Center Experiences: #10 Westfield’s Topanga Chain Store Age 8/4

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.

THE GALLELLI GAZETTE Retail Roundup

Issue No. 9 | August 9th, 2023

TOP ECONOMIC STORIES

Soft Landing Vs Mild Recession: What Advisors are Telling Their Clients

CNBC 8/8

Back to School Shoppers to Spend More This Year

Costar 8/7

BofA Joins Fed in Reversing Recession Call Amid Growing Optimism

Bloomberg 8/2

“Imagine No Recession, It’s Easy if You Try…”

Fortune 8/2

The US Stock Market Just Had its Best Year—So Far—Since 1997

CNN 8/1

Number of Available Jobs in US Just Fell to Lowest Level in More Than 2 Years

CNN 8/1

Free Spending Americans Fuel Upbeat Consumer Earnings Surprises

Bloomberg 8/1

Wall Street Economists Are Looking at a September Rate Pause

Bloomberg 8/1

Restaurant Employment Levels Inch Back Up in June

Restaurant Hospitality 7/31

Key Fed Inflation Rate Falls to Lowest Annual Level in Nearly 2 Years

CNBC 7/28

The State of the US Consumer: July 2023

Deloitte 7/28

TOP RETAIL REAL ESTATE TREND NEWS

Bye Bye Flagships? Tiny Stores Boast Big Eco Gains

WWD 8/8

The Crucial Piece of Mixed-Use No One is Talking About: Logistics

Retail Touchpoints 8/8

Three Trends That Are Emerging in Retail

Globe Street 8/4

Open Air Center Demand Nearly Triples in Q2; Retail Space Availability Shrinks

Chain Store Age 8/4

US Store Openings Surpass Closings This Year, Despite High Profile Liquidations Costar 8/3

Independent Restaurant Rent Delinquency Rates Improve in July Restaurant Hospitality 7/31

CMBS Loans Give Insight into Ongoing Credit Crunch

Globe Street 7/28

Converting Office & Retail to Affordable Housing May Soon Be Easier

Globe Street 7/28

Retail Rents Rise in Q2 as Availability Tightens

Retail Dive 7/28

Retail Space Demand Drops as Consumers Burn Off Savings

Globe Street 7/26

Celebrity Retail a Growing Force

Globe Street 7/25

BUYERS AND SELLERS

This is How Bad Office and Retail Valuation Drops Have Gotten

Globe Street 8/7

Tanger Beats Expectations and Raises Outlook

WWD 8/4

Simon Property Considers Stepping Up Sales & Acquisitions Costar 8/3

David Simon on Luxury, Mixing up His Mall Portfolio

WWD 8/2

California Investor Buys Northeast Dallas Retail Center

Dallas Morning News 8/1

Net Lease Investment Sales Decline 54% in Q2 Globe Street 8/1

California Investor Buys Algiers LA Shopping Center for $35M; Plans Improvements NOLA 8/1

Wilder Acquires 429K SF Walpole Mall in Metro Boston REBusiness Online 7/31

German Investor Newport Pulls Plug on $800M Downtown Atlanta Project Costar 7/27

Unibail-Rodamco-Westfield Sells San Diego’s Mission Valley East Mall Commercial Search 7/24

RETAIL DEVELOPMENT HIGHLIGHTS

Sprouts Coming to Philadelphia’s Roosevelt Mall as Part of $50M Redevelopment

Philadelphia Inquirer 8/7

Downtown San Francisco’s New IKEA-Anchored Mall Plans for a Mini-Rebrand

San Francisco Business Times 8/7

Bay Ridge’s Old Century 21 Department Store to become massive ‘Urban Retail Landscape’ Timeout 8/3

Municipalities Are Now Buying into Big Mall Redevelopments Chain Store Age 8/2

Evolution of the Suburban Retail Environment: Three Cases from Different Settings The Field 8/1

Benderson Shares Plans for Reimagining Sarasota’s The Crossings at Siesta Key Your Observer 8/1

Pacific Elm Preps $350M Mixed-Use Project in Downtown Dallas Costar 7/31

Aurora IL’s Fox Valley Mall Getting More Apartments in Redevelopment Costar 7/27

Demolition to Begin on Phoenix’s Fiesta Mall to Make Way for Mixed-Use Redevelopment Chandler News 7/24

RedBird Developers Seek New Investors in Dallas Mall Redo Project Dallas Morning News 7/21

RETAIL AND CONSUMER TRENDS

Four Trends Shaping the Future of Convenience Stores

CS Daily News 8/7

Wendy’s Latest Fast-Food Company to Adopt AI Yahoo! Finance 8/3

THE GALLELLI GAZETTE Retail Roundup

The Latest Restaurant Trend? Darkroom-Core

New York Times 7/31

Why Retailers Should be Wary of the Immersive Shopping Trend Business of Home 7/27

Accenture: Rise of the ‘Resilient Consumer’ Requires More Nuanced Retail Strategies Retail Touchpoints 7/21

Celebrity Brands Surging in Popularity Axios 7/21

Secondhand Retail’s Future—Partnering with Luxury Brands

Apparel Resources 7/20

Luxury Briefing: US Luxury Spending Expected to Bottom Out Glossy 7/20

Amazon’s Prime Day Captured Young Shoppers and Wallets Morning Consult 7/20

Secondhand May be on its Way Out & Some Consumers Can’t Get Enough of BNPL Retail Brew 7/20

SUPPLY CHAIN/ECOMMERCE/OMNICHANNEL/TECH

BOPIS for Coffee: Target Begins Chainwide Expansion of Starbucks Drive-Up Option

Retail Touchpoints 8/8

Crocker Park Rolls Out Security Robot Chain Store Age 8/7

DoorDash’s Grocery Business Fuels Record Growth

Supermarket News 8/3

Smart Carts May be the Disruptive Technology Grocery Stores Need Now Forbes 8/3

White Castle to Roll Out Voice AI to Over 100 Drive-Thrus

Restaurant Dive 8/2

Top eCommerce Retailers 2023

Retail Leader 8/1

RIP Overstock.com, Sorta… Online Giant Rejuvenates Under BB&B Branding Deseret News 8/1

Amazon Will Double Same Day Delivery Facilities in ‘Coming years’ Fortune 7/31

How America’s Biggest Retailers Plan to Use Tech to Catch Organized Retail Theft CNBC 7/29

Retail Execs on How to Remain Agile & Innovative NRF 7/25

NORTH OF THE BORDER

Canada’s Inflation is Falling, Why Aren’t Grocery Prices? CTV News 8/7

Canada Goose Sees $85M Loss in Q1 as it Opens More International Stores NS News 8/3

New York Retailer Kith Coming to Toronto but Its Apparently a Secret Streets of Toronto 8/3

Hudson’s Bay in Burnaby Closing Its Doors After More than 50 Years Vancouver Sun 8/3 Toronto is Getting a New IKEA Store Blog Toronto 8/2

T&T Supermarkets to Open Mall-Anchored Store in Ottawa Area Retail Leader 8/2

Strike is on at 27 Metro Stores in Toronto Grocery Dive 7/31

LL Bean to Open First Stores in Montreal Area Costar 7/27

Sungiven Foods to Open New Burnaby Location This Week Dished 7/27

Vancouver Retail Seeing Lower Vacancies and Rising Rents Western Investor 7/27

Retail Roundup

CULTURE CORNER: PODCAST PICKS FOR WORKERS ABOUT TO RESUME COMMUTES

Something of major importance to the office market occurred this week that I just had to find a way to comment on. Sure, I could have just spoken about how two office related stories of the past week do have huge significance for urban retail—particularly for amenity retail on the ground floor of office buildings that in many places have been half empty of their workforce (or worse) for more than three years now. But I was going to do a piece about the history of podcasts and its precedents so I figured I would find some way to connect the dots while keeping within my word limit.

Zoom, the company whose name has become synonymous with remote work, told employees that worked within 50 miles of a company office that they will have to come back in at least two days per week. I am not sure I can understate the importance, even if mostly symbolic, of this. This story largely overshadowed the story that the President ordered all federal employees to return to the office by November though that impacts far more workers and office buildings.

I have never seen a commercial property type experience as sharp a reversal in fortunes in my way too long career as what befell the office market in the aftermath of the pandemic. What had been an office boom period (2017 through Q4 2019) turned on the dime that was CoVid-19. Suddenly, office buildings were the new malls—a comparison that makes some sense on its surface. After all, the challenges of the mall sector over the last decade plus were driven by digital disruption while it was the use of digital tools already at our collective disposal that allowed for remote work to work at all.

But there were always key differences. Retail had had since the late 1990s to prepare for its disruption. The reason why more chains were not prepared is complex (60% retailers that went bankrupt from 2000 to 2020 had previously been the victims of leveraged buyouts that left them saddled with the debt incurred by their new private equity owners that borrowed cash to buy them and then hung that debt on their balance sheets leaving scant resources for the kind of adaptations they needed to make if they wished to survive). But the office market had no time to adjust itself. Their disruption came all at once.

But there is another, more important difference here… which is that retail serves the consumer. If the convenience of eCommerce is what the consumer wants, you better find a way to deliver literally… or find a way to transform yourself so they want to show up. But the relationship between employer and employee has a radically different power balance, even in times of low unemployment—which is part of the reason why this has taken so long. If you’re interested in reading a much more detailed breakdown of what this all means, check out the latest office report I wrote for my home market of Sacramento

For most US office markets, the trends I describe in this report remain applicable and those are that the trend of fully remote work has already peaked. We’re not going back to 2019. Hybrid and remote working are going to be a greater part of the mix going forward… but it’s always darkest before the dawn and I would argue that markets will start to see positive occupancy growth no later than 2025.

And so, it seems like a good time for me to share my favorite podcast listening picks… I fell in with the medium when I had a difficult super commute that had me in my car a minimum of three hours per day, usually four. First off, I will be utterly biased and suggest you check out my podcast series, The Retail Grind. But here is my top ten list for some great ones with a retail or business focus that you might want to put in your podcast rotation. Cautionary Tales (economics meets history meets great analysis of disasters and why things go wrong)

Planet Money: The Economy Explained (creative and entertaining unwinding of complex issues)

Remarkable Retail: (A great one for hearing about what is working in retail and why w/Great guests)

More or Less: Behind the Stats (how to make sense of the statistics that surround us)

The Modern Retail Podcast: excellent for hearing of new entrepreneurs and brands in the retail space

Revisionist History (re-examinations of the overlooked and the misunderstood)

Pivot w/Scott Galloway & Kara Swisher (great one for tech news)

Where We Buy (a great retail real estate focused podcast from an old colleague of mine)

Retail Gets Real (NRF-produced podcast w/interesting guests and insights)

Issue

No. 9 |

THE GALLELLI GAZETTE Retail Roundup

Issue No. 9 | August 9th, 2023

EXPERIENTIAL RETAIL REVIEW

Virsona Teases Experiential Gaming Concept w/NYC Popup

Retail Touchpoints 8/4

Tee It Up Golf USA to Open in Louisville KY

WLKY 8/1

Axeshack Bringing Pizza, Cocktails, Axe Throwing to Northeast San Antonio San Antonio Current 7/31

Bat Box to Bring Ultimate Virtual Baseball Experience to USA

FSR Magazine 7/28

Pickleball Concepts Gobbling Up Big-Box Stores Left Vacant by Retailers Bisnow 7/24

What is Meow Wolf? New DFW Immersive Art Experience Blends Fantasy with Reality Fort Worth Star-Telegram 7/22

Birdie Club, Indoor Immersive Golfing Experience & Lounge, Coming to Tampa

That’s so Tampa 7/21

40-Unit (Globally) Museum of Illusions to Open Largest Location in Las Vegas Next Month Blooloop 7/20

Drive Shack Opening in Minneapolis’ Hip North End Neighborhood REBusiness Online 7/19

Valhalla Indoor Axe Throwing Company Coming to Mt. Pleasant NY Morning Sun 7/19

HIGH STREET HAPPENINGS

Mango Opens First Texas Store—Ramping Up US Growth Business of Fashion 8/7

Balmain Opens in Atlanta’s Phipps Plaza Mall

WWD 8/6

LA Designer Jonathan Simkhai Has Retail Expansion in Mind WWD 8/3

Loewe Opens Permanent Store in East Hampton WWD 8/3

Jo Malone to Open in Houston’s Market Street in The Woodlands This Fall Community Impact 8/2

Dior Opens in Orlando

WWD 8/1

Canadian Denim Brand Duer Opens in LA Fashion Network 7/28

Hermes Opens 35th US Store in Former Sears at LA’s Westfield Topanga Mall WWD 7/28

Womenswear Lifestyle Brand L’Agence Opens Third US Unit (in Beverly Hills)

Retail & Leisure International 7/26

Emporio Armani Returns to SoHo

Retail & Leisure International 7/26

L’Agence Opens Beverly Hills Flagship Fashion Network 7/26

5-Unit Luxury Women’s Fashion Brand Kirna Zabete Relocates SoHo Store to Mercer Street WWD 7/25

Backcountry to Open California Flagship and First Store at LA’s The Grove

Retail & Leisure International 7/24

Luxury Watch Boutique Avi & Co Opens Boutique in Miami’s Design District

JCKonline.com 7/21

Givenchy Opens LA Flagship at Last WWD 7/21

Sporty & Rich Opens SoHo Flagship

Retail & Leisure International 7/21

ESSX is the Retail Store That Downtown NYC Needs Complex 7/20

RETAIL CHAIN STORE OPENINGS AND GROWTH

LL Bean Expands Store Fleet Retail Dive 8/7

Nordstrom Rack Adds New Phoenix Store to Pipeline Retail and Leisure International 8/7

Warby Parker Retail Rolls On, Losses Narrow WWD 8/7

QuikTrip Expands to New Mexico CS News 8/7

Scheel’s Readies to Open Mammoth 240,000 SF Store in Meridian, Idaho Yahoo! News 8/7

9-Unit Hat Club to Open LA Flagship LA Business First 8/7

Rally House Opens 7 Units in One Weekend Retail Dive 8/7

Spirit Halloween Returns to Haunt Retail w/1,500 Holiday Popups

Costar 8/7

Container Store Expanding Small-Format Concept Chain Store Age 8/4

Woof Gang Bakery Adds Three More Cities to Store Roster

Pet Food Processing 8/3

Total Wine & More to Open Suburban Detroit Store Crains Detroit News 8/3

REI to go Big in Oregon

THE GALLELLI GAZETTE Retail Roundup

Chain Store Age 8/3

Happy Socks Refreshes Brand Retail Dive 8/3

Thornton’s Opens New Chicago Location NACS 8/3

Lazy Acres Opens 31,000 SF Store in LA Shopping Center Business 8/3

TXB (C-Store Formerly Known as Kwik Chek) Opens 68th Unit in Home State of TX Community Impact 8/2

21-Unit Primark Expanding in the US; Wants 60 Units by 2026 Apparel Resources 8/2

Warby Parker Coming to Corpus Christi San Antonio Business Journal 8/2

Specs Signs 30,000 SF Lease in Pflugerville TX RE Business Online 8/2

Lovisa Expands on Oahu Pacific Business News 8/1

Lids to Open Paris Saint Germain Store at Caesars Palace in Las Vegas WWD 7/31

Primark to Open Soon at Charlotte’s Concord Mills Mall WSOC—TV 7/31

Tesla Opening More Showrooms on Tribal Lands & Casinos to Avoid State Laws Barring Direct Sales CBS 7/29

Wilson Sporting Goods Opens on Santa Monica’s Third Street Promenade Retail & Leisure International 7/28

Tractor Supply Increases Long-Term Growth Target to 3,000 Stores: 90 New Annually Retail Touchpoints 7/28

80-Unit Miniso on Track to Open 30 Stores This Year Retail & Leisure International 7/27

THE GROCERY AISLE

Whole Foods Store in San Francisco’s Western Addition Ready to Open Supermarket News 8/8

Amazon’s Grocery Business Needs a Massive Makeover Washington Post 8/7

Aldi is Planning a New Kansas City Store—Here is Where Kansas City Star 8/7

Save A Lot Sells Remaining Stores to Cap Off Transition to Wholesaler Winsight Grocery News 8/7

Grocery Outlet to Open 2 New California Locations

Winsight Grocery News 8/7

Amazon Makes Biggest Grocery Pivot Since Whole Foods Supermarket News 8/4

Look Inside the Latest Revamp to a Chicago Amazon Fresh Store Supermarket News 8/3

Fresh Market Eyeing Former While Foods Site in Pittsburgh Metro Pittsburgh Gazette 8/3

Fry’s Food and Drug to Anchor New Shopping Center in Gilbert AZ Phoenix Business Journal 8/2

California Specialty Grocer Lazy Acres Plots Expansion; Opens 6th LA Store

Gallelli Real Estate - www.gallellire.com

Costar 8/1

Wegman’s to Make Manhattan Debut in October Retail & Leisure International 8/1

Could a Zombie Amazon Fresh Become a Whole Foods?

Winsight Grocery News 7/31

Spartan Nash Converts No Frills, Sun Mart & Dan’s Banners to Family Fare Retail Leader 7/27

Lidl Opens New Unit in Brooklyn’s Crown Heights Neighborhood Retail & Leisure International 7/27

FoxTrot’s Newest Store Opens in Austin City Hall Retail Dive 7/26

FOOD HALL NEWS

As They Mature, Food Halls Go to College and Move Out to the Burbs Costar 8/6

Bye Bye Buffets: Food Halls Are Taking Over Las Vegas Thrillist 8/4

Food Hall Part of $90M Renovation Envisioned at CNY Regional Market Syracuse 8/4

The Market Food Hall Underway at Atlanta Suburb Snellville

Atlanta Business Chronicle 8/2

Food Hall Planned for Downtown Chandler AZ

Fronteras 8/1

DoorDash Opens Virtual Food Hall in San Jose Restaurant Dive 7/31

Margarita Hill Food Hall Project in Rio Rancho (NM) Put on Hold

Rio Rancho Observer 7/29

Upcoming San Antonio Food Hall Make Ready Market Sets Fall Opening Date

San Antonio Current 7/28

Food Hall, Carver Station, Planned in Richmond VA Near VCU Campus

Richmond Times-Dispatch 7/28

Ruben Garcia, Richie Brandenburg Bringing Massive New Food Hall ‘The Square’ to DC Fox 5 Washington DC 7/26

Liberty Collective Food Hall Coming to Liberty Township Next Spring

Cincinnati Business Courier 7/21

The Heights Food Hall Set to Open in Chevy Chase MD Next Month

Moco 360 7/20

FOOD & BEVERAGE

Bobby’s Burgers by Bobby Flay Heads to Colorado

QSR Magazine 8/8

Taco Bell Sets Goal of 10,000 US Restaurants

Chain Store Age 8/8

PizzaForno Plans to Open 28 Units Next Year

QSR Web 8/8

Del Taco Opens in Circus Circus Las Vegas

QSR Web 8/8

Crisp & Green Lands in IL; Ready to Grow

QSR Magazine 8/8

Super Chix to Open 10 Units This Year; Opens in WA State

THE GALLELLI GAZETTE Retail Roundup

QSR Magazine 8/8

Johnny Rockets Bringing Another 20 Units to Texas

QSR Magazine 8/7

Savvy Sliders Wants to Get to 400 – 500 Units in 5 Years

QSR Web 8/7

Portillo’s is Mastering the Art of Opening Restaurants

QSR Magazine 8/7

Smoothie King Bringing 15 Additional Units to DFW; Will Open 100 This Year

Cision PR Newswire 8/7

Smalls Sliders Inks Mississippi Franchise Deal

QSR Magazine 8/7

How Pollo Campero Plans to Grow From 90 Units to 250 in Five Years

Restaurant Dive 8/4

Saudi Arabia’s Coffee Chain Leader, Barn, Coming to the USA

World Coffee Portal 8/4

Mr. Gatti’s Pizza Expands in Alabama

Pizza Marketplace 8/4

Dave’s Hot Chicken Plots First Buffalo Area Unit

Buffalo Business First 8/3

Elianos Coffee to Expand in Orlando

Orlando Business Journal 8/3

Graze Craze Reports Record Development in 1H 2023

QSR Magazine 8/3

Capital Tacos Heading to Tulsa Following Latest Franchise Deal

Yahoo! Finance 8/3

Original ChopShop Expands to Georgia

QSR Magazine 8/2

Salad and Go Continues Expansion in Western US and Midwest

Chain Store Age 8/2

Great American Cookie Opens 400th Unit

QSR Web 8/2

OAKBERRY Ramps Up Growth with New Execs

QSR Magazine 8/1

Omaha-Based Copps Pizza Company Expands into KC Market w/Fourth Store

Kansas City Business Journal 8/1

Kora Sushi Expands in the Bay Area

FSR Magazine 8/1

The 30 Top Full-Service Restaurant Chains in America

FSR Magazine 8/1

The FSR 30: Unveiling the Full-Service Titans

FSR Magazine 8/1

800-Unit Bojangles Inks Deal to Expand in Las Vegas and at Travel Centers

QSR Web 8/1

54-Unit Russo’s New York Pizzeria Expands in Texas

Pizza Marketplace 7/31

Texas Roadhouse to Open 28 Namesake and Bubba’s 33 Units This Year Plus 3 Jaggers

FSR Magazine 7/31

173-Unit Donato’s Looks to Expand in Arkansas

Nation’s Restaurant News 7/31

100-Unit Twin Peaks Set to Reach 111 Units by End of Year

FSR Magazine 7/30

What We Know About McDonald’s New Small Format Brand, CosMc Restaurant Dive 7/28

Chick Fil-A to Open Elevated Drive-Thru, Pickup Only Prototypes in 2024 Restaurant Dive 7/27

Jeremiah’s Italian Ice Should Close 2023 w/as Many as 46 New Units for the Year Nation’s Restaurant News 7/27

LOCAL MARKET NEWS

Six Trends to Watch for Central Florida’s Growing, Evolving Retail Market RE Business Online 8/7

Pace of Growth Slows Throughout Boston Retail Market RE Business Online 8/2

On Madison Avenue It’s Year Two of Recovery WWD 8/1

Chicago’s Oak Street Lands Another Luxury Retail Relocation from Magnificent Mile Costar 8/1

How Portland’s Slabtown Transformed from Vacant Lots to Hot Spots

Portland Business Journal 7/27

Salt Lake City Retail Leasing Decelerates in Q2—No Rish of Oversupply Costar 7/27

Pittsburgh: A New Downtown—More Residential, retail a Must as Concerns Grow Over Office Pittsburgh Post-Gazette 7/24

THE GALLELLI GAZETTE Retail Roundup

Downtown Seattle is Showing a Turnaround. If Only it Can Last. Seattle Times 7/21

Henderson NV is the Place to Be Las Vegas Review-Journal 7/20

Santa Monica’s Third Street Promenade Works to Get its Mojo Back WWD 7/20

RETAIL CHAIN STORE CLOSINGS AND CONTRACTION

Al’s Formal Wear Abruptly Closes All Locations

KBTX 8/8

Kmart Down to Last Two Stores

Costar 8/3

Cineworld Exits BK While Still Negotiating Smaller US Real Estate Portfolio

Costar 8/1

34-Unit Back Yard Burgers Files for BK

Nation’s Restaurant News 7/31

Final Hours for 482 BB&B Stores…

The US Sun 7/29

24-Unit Wild Wing Café Declares BK

FSR Magazine 7/28

A Few Harmon Stores May Survive BB&B Bankruptcy

Wall Street Journal 7/25

Fields Foods Abruptly Closes St. Louis Area Grocery Store

St. Louis Business Journal 7/20

Kansas City Losing Two Save-A-Lot Grocery Stores “Due to Theft” Yahoo! Life 7/19

Lidl Closes 11 Stores as it Struggles in US. See Full List Business Insider 7/19

M&A MANIA

Rooms To Go Acquires Memphis Retailer the Great American Home Store

Memphis Business Journal 8/7

Fiesta Restaurant Group (Pollo Tropical) Sells to Authentic Restaurant Brands Restaurant Dive 8/7

Birkenstock Owner Plans September IPO Valued at $8 Billion Fashion Network 8/1

Kering Agrees to Buy 30% Stake in Valentino for $1.87 Billion

Retail Insight Network 7/31

Richemont Buys Majority Stake in Italian Shoemaker Gianvito Rossi

Retail Insight Network 7/31

Authentic Brands Buys Footwear Brand Rockport

Retail Touchpoints 7/27

Albertson’s and Kroger CEOs Give Details on Controversial Merger Denver Post 7/22

Antitrust Review May Get Tougher for Kroger-Albertson’s Merger

Winsight Grocery Business 7/20

Skims Reaches $4B Valuation

Retail Dive 7/19

Bankrupt Hardee’s Operator Sells 81 Units to High Bluff Capital Restaurant Dive 7/18

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.

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.

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.

Gary Gallelli CEO - Partner gary@gallellire.com

Brandon Sessions Senior Vice President bsessions@gallellire.com

Phillip Kyle Senior Vice President pkyle@gallellire.com

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Kannon Kuhn Associate kkuhn@gallellire.com

Kevin Soares Executive Vice President | Partner ksoares@gallellire.com

Matt Goldstein Vice President mgoldstein@gallellire.com

Aman Bains Associate Vice President abains@gallellire.com

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Bob Berndt Executive Vice President | Partner bberndt@gallellire.com

Kurt Conley Senior Associate kconley@gallellire.com

Adam Rainey Associate Vice President arainey@gallellire.com

Jeff Hagan Senior Vice President | Partner jhagan@gallellire.com

Robb Osborne Partner rosborne@gallellire.com