April Retail Sales Increase is Smallest Since November

U.S. retailers reported the smallest increase in monthly sales since November, with teen-clothing retailers Abercrombie & Fitch Co. and Aeropostale Inc. dragging down results.

April sales at 30 chains rose 0.8 percent, less than the 2 percent projected gain, researcher Retail Metrics Inc. said. Abercrombie’s sales at stores open at least year dropped 7 percent, more than the 1.8 percent decline projected by analysts. Aeropostale’s sales fell 5 percent, also trailing the average of analysts’ estimates compiled by Retail Metrics.

An earlier Easter this year pushed more holiday-related shopping into the previous month, tempering April spending. Sales growth should improve in May and accelerate with back-to- school purchases later this year as consumers emerge from the worst economic slump since the Great Depression, according to Howard Tubin, an analyst at RBC Capital Markets in New York.

“I don’t think it’s a sign of what’s to come,” said Tubin, referring to the April figures reported by retailers today. “There’s been a renewed interest in fashion by the consumer.”

By Allison Abell Schwartz and Matt Townsend Bloomberg.com

General Growth Properties rejects Simon Property Group's latest overture

According to a New York Times report, General Growth’s attorneys have asked the U.S. Bankruptcy Court to give Brookfield “stalking horse” status, which would set a baseline for competing bids. It also wants to issue warrants to the Brookfield plan’s sponsors, according to the story.

Indianapolis-based Simon Property Group said it would withdraw its offer if the warrants were issued, the Times said.

Simon’s latest plan would offer $18.25 a share, and cash to eliminate General Growth’s $7 billion of unsecured debt. Simon would then take over $20 billion in mortgages for which General Growth’s malls are promised as collateral properties.

Read more: General Growth Properties rejects Simon Property Group's latest overture - Pacific Business News (Honolulu):

General Growth Wants Simon to Raise Bid

General Growth's board is set to meet later on Thursday to weigh whether to postpone a bankruptcy court hearing in light of competing offers from Simon and investors led by Brookfield Asset Management Inc. The source added that nothing had been decided and talks continue with both parties.

Simon has offered to pay $18.25 per share for General Growth. It would also pay holders of $7 billion in General Growth unsecured debt in cash and assume about $18 billion in mortgages and other property-level debt. General Growth has asked Simon to come up with a higher price, which remains a 'big issue', the source said, adding that could be part of the board's deliberations if Simon did so.

The two sides have also had a meeting on antitrust issues, where Simon came up with a proposal to allay concerns around merging the two largest U.S. mall owners, the source said.

Simon rejected a counter proposal, but General Growth may now come back with a new counteroffer on antitrust issues, the source said.

The two sides have also been working on putting together merger documents so that they are ready to go should they reach a deal, the source said.

General Growth and Simon representatives were not immediately available for comment. The source is not named because the discussions are not public.



Source: Reuters

Retailing in the 21st Century

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Saks OFF 5th Continues Its Growth

New OFF 5TH stores will open in metropolitan Pittsburgh, Pennsylvania; Portland, Oregon; Houston, Texas; and Raleigh/Greensboro, North Carolina, and the OFF 5TH store in Riverhead, New York is undergoing renovation. The new OFF 5TH stores will range between approximately 23,500 and 29,000 square feet.

Robert Wallstrom, President of OFF 5TH, noted, "We are very pleased to continue the growth underway at OFF 5TH." The new and renovated stores will mirror the Company's innovative prototype store which opened with much success in 2008 in Orlando, Florida. Since then, the Company has opened ten new-formatted OFF 5TH stores across the country. The new OFF 5TH store design features a "luxury in a loft environment" that is modern and easy to shop including open floor plans, moveable fixtures, and brighter lighting. These new stores also feature enhanced merchandise offerings in several categories including jewelry, shoes, sunglasses and skincare.

Wallstrom continued, "Not only does our new format better showcase our merchandise selections and create a wonderful shopping environment, but we also have enhanced customer service through increased staffing."

For the full story you can visit MarketWatch

Sears opens first Fashion Outlet

Hoffman Estates , Ill. (Apr. 30) Sears Holdings opened its first store under the Sears Fashion Outlet banner on Friday, at Discovery Mills, in Lawrenceville, Ga.

The 30,000-sq.-ft. store carries end-of-season, discontinued, and overstock apparel, accessories and home fashions such as bedding from both Sears and Kmart stores. Items are priced 60% to 80% off the retail price. The Discovery Mills store is Sears first outlet format devoted to soft goods. Currently, Sears operates 99 Sears Outlet stores, which are mainly devoted to appliances, fitness equipment and hard goods.

"Sears' first Fashion Outlet provides a great format for shoppers to buy many of our name brands like Lands' End, Dockers, Apostrophe, Country Living and Cannon at bargain hunter prices," said Jamie Brooks, VP and president, Sears Outlet. “We wanted to bring great customer service and even bigger bargains to our apparel customers with an outlet dedicated entirely to fashion and home and thought the Discovery Mills was the perfect location."

The store will hold its official grand opening on May 15.

Original story from http://www.retailingtoday.com/

Simon again offers to buy all of General Growth

(Reuters) - Simon Property Group Inc (SPG.N) offered on Sunday to buy all of General Growth Properties Inc (GGP.N) in cash and stock along with a recapitalization bid as a backup plan in case there was a regulatory issue with a complete deal, according to a court filing and a source on Monday.

Simon, teamed up with Blackstone Group (BX.N), offered to pay $3.25 per share in cash and $10 per share in stock for core General Growth, the source said. Additionally, it also offered to pay for General Growth Opportunities, a new entity that would house certain General Growth assets, the source said.

Follow this link for the full story.

Alligator stops traffic near Tanger Outlet

An injured alligator stopped traffic in south Fort Myers Monday morning. A Lee County deputy spotted the eight-foot gator in the middle of Summerlin Road, just east of the Tanger Outlets. The deputy said it appeared that a car struck the alligator.

Tracy Hansen, a Florida Fish and Wildlife trapper, said it's common to come across gators because it's mating season. "The main time is during the night - that's their main activity time," he said.

The gator was seriously injured when trappers arrived on scene, and had to be put down.

source: www.naplesnews.com

Tanger Earnings Call Transcript

Steven Tangers comments on the call:

Thank you, Mona, and good morning, everyone. Our first quarter results came in strong with funds from operation increasing by 17.4%. The retail sector is growing as we had anticipated when compared to last year. Benefiting from strong March results and aided by the early Easter holiday shift, our tenant comparable sales for the rolling 12 months ended March 31, 2010 increased 3.1% to $342 per square foot. Sales for the first quarter increased 10.3% compared to the first quarter of 2009.

We are pleased to announce on April 8th that our Board of Directors approved an increase in our annual cash dividend rate from $1.53 to $1.55 per share. Our budget for 2010 currently anticipates yearend funds available for distribution ratio in the mid 60% range. That means our existing cash dividend is over 150% covered from operating cash flow and that we do not use our lines of credit to fund our cash dividend. We are very product of the fact that we have raised our cash dividend in each of the 17 years since becoming a public company in 1993.


If you would like to view the entire earnings call transcript from Tanger Factory Outlet Centers, Inc. Q1 2010 follow this link.

Cincinnati Premium Outlets profits fall

Simon Property Group Inc., which owns the Cincinnati Premium Outlets mall in Monroe, reported a drop in earnings for the first quarter as the company recorded a charge to pay off debt.

Simon, which owns Cincinnati Premium Outlets operators Chelsea Property Group, said Friday, April 30, that its funds from operations dropped to $325.6 million, or 94 cents a share, from $476.8 million, or $1.61, in the first quarter 2009. The debt cost came to $165.6 million, or 47 cents a share. Revenue increased 0.7 percent to $925.1 million.

As of March 31, about 92 percent of the company’s retail spaces were occupied, slightly lower than the fourth quarter. Comparable sales per square foot remained on par with last year’s results at $467.

Some improvement in revenue among Simon’s tenants prompted the company to raise the low end of its full-year profit forecast to $5.77 from $5.72 per diluted share. The highest it is projected to gain in 2010 is $5.87 per diluted share, according to the earnings report.

For the full article by Jessica Heffner, Staff Writer Dayton Daily News.

Simon Property: Federal Trade Commission Reviewing Prime Outlets Acquisition

Simon Property Group Inc.'s (SPG) chief executive said Friday the Federal Trade Commission is reviewing the company's $700 million acquisition of Prime Outlets Inc. announced in December.


"We have met with the FTC, and are fully cooperating in that review," said David Simon in a conference call with analysts and investors.

For the full article by A.D. Pruitt, Of DOW JONES NEWSWIRES