Business Pundit » retail

Simon Properties Offers to Buy Out General Growth

Drea — Tue, 16 Feb 2010 15:55:07 +0000

Mall owner Simon Properties has offered to buy out rival General Growth Properties for $10 billion. A buyout could create the largest high-end mall owner in the US:

The nation’s largest shopping mall owner, Simon Property Group, made a $10 billion hostile bid Tuesday to acquire its ailing rival, General Growth Properties.

The deal would allow General Growth, the No. 2 owner of shopping centers, to emerge from Chapter 11 bankruptcy protection. General Growth filed for bankruptcy last year after buckling under the weight of billions in debt it racked up during a massive expansion effort fueled by cheap credit. General Growth’s best known centers include the Glendale Galleria in Southern California and the South Street Seaport in Manhattan.

The offer would fully repay $7 billion to General Growth’s unsecured creditors and $3 billion to shareholders. Stockholders would get $6 a share in cash and $3 a share in other assets. The offer, however, might be amended so shareholders could receive Simon stock instead of cash.

Simon made the public offer after General Growth executives failed to make a “substantive response” Simon’s overtures.

The Wall Street Journal gives a bigger picture on what this means for mall ownership and retailers:

The deal, if accepted by General Growth’s board and approved by its creditors and U.S. Bankruptcy Judge Allan Gropper, would combine two of the largest and oldest mall owners in the U.S. into a colossus with 550 malls—at least a third of the entire U.S. market. Such heft would give Simon unrivaled clout in lease negotiations with retailers and in financing talks with its lenders.

The deal would put half of the highest quality malls in the U.S. under Simon’s ownership, according to Green Street Advisors Inc. Of the 307 U.S. malls rated “A quality”—generally meaning they generate sales per square foot of $400 or more each year—Simon owns 71 and General Growth owns 77. Some analysts say it is those high-quality malls that Simon most covets, and that Mr. Simon might opt to shed General Growth’s lower-quality properties if his bid succeeds.

Should General Growth choose to accept Simon’s bid, the combination will have ramifications for mall retailers such as Gap Inc., Footlocker Inc. and Limited Brands Inc. A mall owner with hundreds of locations can pressure retailers to open stores in struggling malls as a condition of getting space in its best-quality malls. In addition, a retailer is less likely to fight a giant landlord over the terms of a given store’s lease if the standoff might influence negotiations on its leases at other of that landlord’s properties.

15 Valentine’s Day Gifts for Women–For Less Than $50

Drea — Wed, 10 Feb 2010 15:49:22 +0000

Valentine’s Day doesn’t have to mean diamonds and designer lace–especially if you’re on a budget. The woman in your life will appreciate any number of well-chosen gifts, regardless of price tag. We compiled 15 of the best Valentine’s Day gifts for women below. All of them cost less than $50.

Hanky Pankies

Many women are currently crazy about hanky pankies, stretch lace thong underwear touted to be the world’s most comfortable. Bonus: They look sexy, too.

Appearance polishers

Some stores offer special V-Day makeup gift packages, like this one from Sephora.

While women prefer to buy some makeup themselves, most will appreciate gift sets. Go for lip glosses, eye shadow color samplers like this one, or prepackaged makeup sets.

Gourmet chocolate

Chocolove chocolates come with a poem inside. Plus, they’re ridiculously good. Image: Chocolove

If your woman likes chocolate–most do–indulge her with a high-end confection. Such treats include truffles, salted caramels, or even bacon chocolate. Most high-end grocers sell them.

Pampering tools

This sugar lover’s set from Sephora costs $45.

Provide her with the right tools to pamper herself. Many stores sell shower gel, scrubs, masks, and other tools of the trade in packs or gift baskets.

Lingerie

This Frederick’s of Hollywood chemise facilitates sexy sleep for a mere $34.

This traditional Valentine’s Day gift doesn’t have to set you back much. Try a chemise or babydoll if you want something more subtle; go for a teddy and garters to get wild.

Massage gift certificate

Image: Thomas Wanhoff/Flickr

Some masseuses, especially those located in retail shops, offer massages for less than $50. She’ll appreciate the gift–and the relaxation it helps her attain.

Framed couples picture

This happy couple from The Onion shares antidepressants.

Find a nice picture of the two of you, then have it framed. Simple, budget-friendly, and she’ll love it.

Dance lesson

You may cringe at the thought of ballroom or salsa dancing, but this bullet is worth biting. By buying a class for the two of you, you’re showing her that you value her feminine fantasy more than your own mortal embarrassment. She’ll appreciate you for it.

Potted plant

Image: US Candle Co.

While cut flowers die after a week, potted ones can keep blooming for months. Tulips, orchids, and daffodils should be available at your local grocery store. If you don’t know what her favorites are, defaulting to small potted roses is usually a safe bet.

Comfortable sleepwear

These Victoria’s Secret pajamas look sweet and sexy for under $40.

Pajamas can be sexy, too. And women love a good pair of comfortable, cute PJs. Victoria’s Secret usually has a good selection.

Cute carrying case

This bag from Barefoot Yoga keeps her yoga mat fashionably cloaked.

Your woman likes to look good. Help her make her stuff look nice, too, by finding a cute carrying bag. Any bag applies, from diaper bags to gym bags to yoga mat bags like the one above.

Accessories

Scarves and stacked bracelets are among the “it” accessories to have right now–and blissfully cheap to get your hands on. ShySiren has lots of bejeweled purse hangers like the ones above (also trendy); look for other accessories in department stores.

Candles

This Juicy Couture candle combines scent with style (found at Sephora).

A high-quality scented candle (or votive set) can do a lot to lift a woman’s mood. Ask her what scents she likes best, then find good candles to give her.

Crystal

Swarovski crystals are a happy thing.

It’s not a precious gem, but crystal can still make women ooh and aah. You can find crystal pendants, keychains, and bracelets for less than $50. Swarovski has one of the best selections.

Roses

Tried-and-true. A dozen red roses will probably cost more than $50 at the florist, so scour your local grocery store or farmer’s market.

15 Valentine’s Day Gifts for Men–For Less Than $50

Drea — Tue, 09 Feb 2010 22:52:18 +0000

If your Valentine’s Day involves romancing someone of the male persuasion, finding a gift can be perplexing. We tried to make the task easier by listing 15 Valentine’s Day gifts for men. All of them cost less than $50. Although we didn’t include a diamond-encrusted Rolex, for obvious reasons, the gifts below should suit most guys’ desires.

Signage for his Man Cave

Nab a sign like this one from Retroplanet for $20.

If your man’s garage is his second home, help him decorate it with a vintage garage sign. Most won’t set you back more than $20.

A Flash Drive that Fits

ThinkGeek offers this nostalgic mixtape USB for $16.

Flash drives are the new mixtapes. As in, they’re customizable, slick, and very giftable. A perfect addition to your techie man’s hardware set.

A Gamer Gem

For around $30 or less, you can pass along the gift of the game. The hot new game he doesn’t have yet, that is.

Gadget Protection

This leather iTouch case with your man’s initials costs $30 at Guyville.

If he lacks a good iPhone case, laptop bag, sunglasses case, or other mode of stuff protection, consider finding him something he’ll like. Leather is good; so are customizable cases like the ones found at Guyville.

A Universal Command Center

If you think your guy will like an all-in-one remote control, you might want to package it nicely to make it look more romantic. The good thing is that he’ll appreciate and use a good remote, and you can find one for under $30.

Head Decor

This hat from Lids.com costs $30.

Show your team spirit by handing your guy a new baseball cap emblazoned with his favorite name (besides yours, of course). If team sports aren’t his thing, he might appreciate a beanie, vintage trucker cap, or new helmet.

Drinking Accessories

This complete Martha Stewart 7-piece cocktail set costs less than $40.

If your man is of the drink-mixing persuasion, he’ll appreciate a good cocktail set. If he’s more of a beer guy, swap in a couple of nice mugs; if he’s into wine, a pump and stopper set might be the ticket.

A Money Holder

Image: Ducti

If black leather isn’t his thing, try something novel, like the Ducti duct tape wallet featured above.

Duds

Vintage T-shirts cover the gamut of genres and messages. You can go band, general old-school (check out Teenormous), funny, or athletic like the Fan’s Edge tee above.

Functional Art

This screwdriver holder from Speedcult adds flavor to his garage.

Buy him something that he can use and enjoy everyday. It could be a carved metal toolholders like the ones Speedcult sells. Or it could be a functional, attractive razor holder like this one from Manufactum. Artisans and high-end stores sell items like these everyday; keep an eye out.

Man Books

If you’re not sure what kind of book to get him, check out Esquire Magazine’s list of 75 books every man should read.

A DVD Box Set

Help him savor his favorite flicks with a multi-pack. Many Blu-Ray trilogies run just under $50, or you can grab a DVD trilogy for less.

The Sound of Silence

High-end noise-canceling headphones cost more than $50, but you can find reasonable ones for less. The headphones featured above currently cost $45 on Amazon.

Beer of the Month Club

Image: Burnblue/Flickr

Few men can argue with fresh brewski delivered to their doorstep. If you’re low on funds, you can order a delivery every other month, or every third month, and pay on a monthly basis.

A Portable Grill

Nothing says I love you like a portable grill, right? Well…maybe. But he will think of you every time he fires up his new meat-cooking companion. Consider it a constant reminder that you care.

Luxury Shoppers are Back

Drea — Mon, 08 Feb 2010 15:23:22 +0000

$2 million cognac. Source: Most-expensive.net.

While some people scramble for free khakis, others are indulging in high-end indulgences like designer perfumes and $5,000 coats. The Financial Times has more:

More prosperous American shoppers seem to be defying continuing high unemployment levels and economic uncertainty to renew their spending on luxuries such as jewellery, fashion and cosmetics. That is the picture emerging from the current round of US earnings and sales reports.

Tracey Travis, chief financial officer of Polo Ralph Lauren, said last week that the fashion brand and retail company had “slowly begun to see the gradual return of our core luxury customer”, including buyers of couture dresses that sell for more than $4,000.

Fabrizio Freda, chief executive of Estée Lauder, has said that sales of its beauty products at “prestige” stores – such as traditional department stores – had grown faster than at “mass” drugstores and discounters during November and December, reversing the trend seen earlier in the year.

“We view this as a return of the aspirational consumer,” he said.

The evidence of greater readiness to spend comes in spite of continuing high unemployment, with about 20 per cent of the US population unemployed or working casually or part time. Richard Hastings, retail strategist at Global Hunter Securities, said that roughly half of the 80 per cent of Americans fully employed were not affected by the depressed housing market and were now more ready to spend as they had become less concerned about their own jobs.

I’d like to know what industries and businesses those 40% of Americans work in.

10 Companies Beloved Enough for a Fansite

Drea — Wed, 03 Feb 2010 18:56:18 +0000

I like to shop at IKEA. When I found out that they’re finally building a location in Colorado, where I live, I immediately consulted Google for more details. One of the first results was a website called Colorado IKEA Fans. Somebody was so devoted to the store’s new Colorado location that he took the time and energy to construct a website shrine.

IKEA is lucky to have that kind of fan base. Besides selling furniture, it inspires people enough to make them work (build fansites) for free. Talk about an ironclad brand.

I grew curious. What other companies provoke this kind of reverence? I put together a list of ten major ones.

Coming up tomorrow: 10 companies that inspired hate websites.

IKEA

IKEA may be the world’s biggest furniture retailer, but few call it evil. Instead, customers spend hours there, browsing foldable furniture, eating $2 meatball meals, and exploring endless halls of home accouterments. No wonder the company has serious fans. Not bad for an organization called Ingvar Kamprad Elmtaryd Agunnaryd.

Apple

Master Jobs’ organization more closely resembles a cathedral than a company. It has dozens of fan sites, the most prominent of which include the Apple Blog and Macrumors. If aliens landed in Cupertino and gauged what was going on with Apple and its fans, they may well call it religion.

Nintendo

Back in the 1980s, Nintendo enjoyed something like cult status. If you grew up playing Super Mario Bros., you know what I mean. Two decades later, Nintendo is back in the mainstream spotlight, thanks mostly to the Wii. If you adore Nintendo as much as the people in the forum above, you’re in good company.

Google

Love it or hate it, Google is an Internet mainstay. Some people love it enough to build a fansite. Others hate it enough to build a different kind of shrine. I put it on our love list (there’s a hate list coming soon) for a naughtily subjective reason: I like Google.

Berkshire Hathaway/Warren Buffett

Image: Warrenbuffet.co.za

People around the world revere the Oracle of Omaha. After all, not every stone-cold businessman is also a folksy preacher. He’s so popular that fansites as far away as South Africa follow him closely.

Costco

Ah, Costco. Where the modern-day suburbanite can hunt and gather product like a primitive. Combine that with friendly employees, bulk Mountain Dew, and free samples, and you have a fundamentally satisfying experience. Just ask the folks at I Love Costco and other fansites.

Disney

If you’ve lost your childhood to things like work and mortgages, don’t fret. Disney, which you probably grew up with, can take you right back to five-year-old heaven. If you have five-year-olds of your own, all the better. It’s no wonder this big company has more than one fansite.

Target

Image: Herald Sun

Back in the 1980s, Target was a lowly K-Mart competitor. Then, somebody at corporate got smart. The retailer added designer fashion, groceries, and an excellent selection of home furnishings–for prices a college student can afford. The result? A loyal fan base and steady customers. They’ve even cultivated an online colony of slaves.

Trader Joe’s

Image: Evalu8.org

I never knew how much I liked TJ’s until I moved to Colorado. Sadly, Trader Joe’s doesn’t exist here. That means I can’t get fresh, reasonably-priced produce, a wild selection of coffee and tea, tubs of gourmet snacks, and wine in the same place–for a decent price (sorry, Whole Foods). I miss Trader Joe’s. I bet fans like this one would, too.

Canon

As a Nikon shooter, I kind of don’t get why only Canon has a love page, but hey…there are good reasons to use Canon products. If you must.

GM Sells Discontinued Saturns, Pontiacs for Almost 50% Off

Drea — Tue, 29 Dec 2009 14:57:41 +0000

If you have always wanted a new Saturn, Pontiac, or Saab, this could be your week. Until January 4, GM will be liquidating its discontinued brands, some for almost 50% off. StreetInsider has more:

General Motors Co. needs to move large inventories of discontinued Saturn and Pontiac vehicles and plans to offer dealers large incentives to do so, according to a report in the Wall Street Journal. The move to liquidate these products could inflate the company’s December sales and offer a cost cut of up to 46 percent off of the sticker price for buyers.

In what is being billed as a year-end fire sale, GM has informed dealers that it will pay the $7,000 for every new Pontiac or Saturn that is moved to rental or service fleets that are operated by the dealers. This will allow the vehicles to be sold at a more attractive price as a used automobile as technically the dealership would be the first owner.

This move will speed up the restructuring process of GM, but will increase the cost of deleting the two brands. The cost of this move has not yet been disclosed publicly.

GM has an estimated two to three months of inventory of Pontiac and Saturn vehicles on the lots totaling 14,500 new automobiles according to Ward’s Auto Reports. Another car-data service, Edmunds estimates that the incentives will allow the company to sell 10,300 cars to reduce inventory to 4,200.

Kiplinger’s Finance (via Time) reports on some of the better fire-sale deals:

GM is offering the biggest discounts on its dying Pontiac, Saturn and Saab brands. You can get up to $3,500 back or 0% financing on a Pontiac Vibe small wagon (the Toyota Matrix’s twin). The 2009 Saturn Aura, a midsize sedan built on the same platform as the Chevy Malibu, has a hefty $4,000 rebate. And Saab 9-3 and 9-5 models come with up to $7,000 cash back to customers, as dealers try to unload inventory in the wake of uncertainty about Saab’s future.

Time adds:

Would-be car buyers are understandably concerned about the prospects of buying a car that won’t be made in the near future. Will warranties be valid even after the brand is discontinued? Will parts be available when repairs are necessary? Will it be easy to find a mechanic who knows how to fix the car? Will the resale or trade-in value of the car hold up?

The answers to those questions, respectively, are yes, probably yes, probably yes, and probably no.

GM’s liquidation could be a killer deal for the right person.

The Story Behind the Space Jam Jordans Hype

Drea — Wed, 23 Dec 2009 14:43:43 +0000

Image: Sneakerfiles

Nike released a limited number of Space Jam Jordans to stores last night. The sneakers, formally named Air Jordan XI (11) Retro Space Jams, are so highly coveted that shoppers crowded malls at midnight or camped out to get a pair.

I recall Air Jordans being the must-have sneaker in the 1990s, but what’s going on with the Space Jams now? The LA Times breaks down what makes the $175 shoe so desirable:

So what goes into making the clump of patent leather, plastic and fabric known as “Style Code:136046-041″ so hotly anticipated and covet-worthy? The story starts in 1985, with the original Nike Air Jordan 1, Michael Jordan’s red-and-black, high-top basketball shoe whose color scheme earned them an NBA ban for violating the league’s uniform policy regulating colors. The NBA levied a fine against Jordan — who played on nonetheless– and a sneaker craze was born, with new, Roman-numeral-designated versions of the Air Jordan (AJ) shoe following just about every year.

NiceKicks.com’s (Matt) Halfhill points out that the Air Jordan XI that was released in 1995 had sneaker collectors salivating not just for the way it looked — riffing on a tuxedo with a shiny, black patent leather strip undulating around the base of the white nylon upper, a white midsole and a clear outsole — but for what happened in those shoes.

“It’s the first shoe Jordan won a championship in after coming back from his first retirement,” Halfhill explained. “So that was a big deal. Also the Bulls went 72 and 10 [an NBA record] when he wore that shoe.” Jordan also notched his eighth scoring title and earned his fourth championship ring in the XIs.

In 1996, Michael Jordan appeared in the movie “Space Jam” alongside Bugs Bunny and a cadre of animated Looney Tunes. Footwear aficionados noticed that the AJ XIs Jordan wore in the film were a different color combination — black on black with a pop of purple in the “Jumpman” logo on the heel. Adding to the desirability was the fact that what came to be known as the Space Jam color-way didn’t exist outside of the movie set, since only a handful of size 13s were made for the personal use of His Airness during filming. It was four more years before the shoes would be available to the general public (with a blue Jumpman logo instead of purple), and when they were released in late 2000, they were a hot seller.

(Boutique owner Tak) Kato points out that the delay to market helped stoke demand. “And they haven’t been reissued since that time. So that’s nine more years of demand there. That’s probably going to make it the biggest release of the whole year.”

Nine years of pent-up demand? No wonder sneaker aficionados are going crazy.

Good move by Nike.

High Unemployment Means Stiff Competition for Seasonal Retail Jobs

Drea — Mon, 07 Dec 2009 17:36:45 +0000

When you holiday shop this year, a highly educated professional might help you wrap your order. So many people are out of work that demand for holiday season retail jobs has spiked. From Yahoo News:

(A) record 5.9 million Americans…have been jobless for at least six months. Now…out-of-work professionals and managers, engineers and teachers who have turned, in desperation, to holiday-season jobs as sales clerks. Retailers report a surge in applications this year from professionals who had never applied for such jobs before.

In a bleak labor market, holiday-season hiring has meant at least a respite for many long-term unemployed. Not that it’s easy to land even these jobs. Most retailers have cut back. And overall in the economy, six applicants, on average, are competing for each opening — compared with just 1.7 workers per opening when the recession began in December 2007.

The trend illustrates the despair of unemployed people with professional backgrounds who face a pitiless job market, said John Lonski, chief economist of Moody’s Capital Markets Research Group. Even though the economy has begun growing again, employers aren’t confident enough in the recovery or their own businesses to step up hiring.

That helps explain why shoppers who phone customer service at online retailer Moosejaw Mountaineering get Scott Beebe, a trained engineer with two postgraduate degrees and eight years of experience in product development for General Motors.

This story highlights two facets of the recession. One, although it may be a stretch to call it a white-collar recession, many white-collar workers and service professionals are hitting the unemployment lines. Secondly, as Jody Greenstone Miller noted in this WSJ article, temp jobs may become the new norm. Most holiday retail jobs are by nature temporary, but the fact that qualified white-collar professionals are willing to take them suggests that in times of scarcity, even a temp job is a good job. Combine that attitude with the fact that more and more companies want to beef up the amount of temps they hire, and you have a future where long-term becomes as rare as temp was in the past.

Black Friday 2009: More Shoppers Spent Less Money

Drea — Mon, 30 Nov 2009 16:24:10 +0000

The Wall Street Journal reports that while 23 million more shoppers hit stores this Black Friday compared to last year, they spent less money:

Roughly 195 million consumers shopped in stores and online over the Black Friday weekend, up from 172 million last year, according to the National Retail Federation. But average spending dropped to $343.31 per person from $372.57 a year ago.

Overall sales for the four-day weekend totaled $41.2 billion, up marginally from $41 billion last year, the NRF estimated. The trade group bases its figures on a survey, conducted Thursday through Saturday, of roughly 5,000 consumers and includes a projection for Sunday.

“The appetite among consumers this year seems to trend toward the lower-price items, the items they could literally afford with the money they already have in their wallet,” said Ellen Davis, vice president of the Washington-based retail group, which has predicted a 1% decrease in November and December sales this year over last.

The holiday season—when many retailers make the bulk of their sales and profits for the year—is being closely watched by economists and others as an indicator of whether consumers are still deeply worried about the economy and unemployment, and are hampered by tight credit. After a disastrous season last year, retailers have ratcheted down sales expectations while slimming their stocks and filling the shelves with cheaper goods.

Online shoppers, meanwhile, have increased their purchases both on Black Friday and over the past weekend. Comscore, a e-commerce research firm, reported that online Black Friday sales were up 11% compared to 2008. Thanksgiving Day online shopping was up 10% this year.

Cyber Monday results will be reported as early as tomorrow afternoon.

Experts Predict Shoppers Will Go Online Prior To Cyber Monday

Drea — Tue, 17 Nov 2009 16:48:06 +0000

Image: BlogCDN

This is a guest post by Resource Nation’s Shannon Suetos.

Most of us know the best shopping of the holiday season happens on the day after Thanksgiving, also known as Black Friday. Online shopping is now a norm, so people refer to the Monday after Thanksgiving as Cyber Monday. The theory: After Black Friday jump starts the holiday shopping season, people go online at work on Monday to continue shopping.

Like last year, Thanksgiving this year will fall later in the month. November 26th, to be exact–making Cyber Monday November 30th. Experts have found that when Thanksgiving comes later in the month, people tend to start shopping weeks before Cyber Monday.

If you own an e-commerce site, the signal is clear. Take advantage of that early online shopping. Start marketing for holiday shopping now.

Start by asking your web designer to make your site more festive. Change the color scheme to fun holiday colors. Get your shoppers in the holiday spirit early. If your site looks and feels like it’s time to holiday shop, your viewers are more likely to jump on board and start shopping.

Start promoting now. If people are online anyway, grab their attention. One way to do this is to offer something for free. Offers like free shipping or a small holiday gift will entice shoppers to buy. Hopefully, they will pay off your efforts when they do.

Investing in more online marketing strategies this time of year can benefit you as well. Many e-commerce and offline stores earn their bread and butter during the holiday season. If this applies to you, invest your money to get the most out of your holiday shoppers. Look over your site’s October-December shopping trends to help you target exactly how early to start marketing holiday sales.

Cybermonday.com is another tool you might want to utilize. This site makes deals with many online merchants to save shoppers money. Merchants, in turn, gain more exposure. To stand out on this site you need to offer shoppers a great deal. Gift package bundles are an example. You bundle together items that a shopper would naturally get–i.e. running shoes and a runner’s jacket–and make the price cheaper than if they buy each item separately.

Get creative! And have fun. The holiday season is supposed to be about giving. Think of how your site can help shoppers give the perfect gift.

Resource Nation provides free tools, tips, and purchasing advice for business owners and entrepreneurs in over 100Resource Nation provides free tools, tips, and purchasing advice for business owners and entrepreneurs in over 100 business categories ranging from phone systems to credit card processing. Whether it’s connecting businesses with local and national pre-screened vendors, or offering easy service comparisons on a VoIP service, Resource Nation empowers business decision makers by providing the information they need to make smart choices.