The Shops at Riverhead, located on Route 58 in Riverhead, N.Y., at the end of the Long Island Expressway, neighbors The Tanger Outlet Center, Target, The Home Depot, Best Buy, Borders Books, Linens ’n Things and many other top-flight retailers. At approximately 538,000 sq. ft., The Shops at Riverhead’s proposed anchors consist of Kohl’s, Costco, Circuit City and PetsMart. The developer also is in negotiations with an array of junior anchors. The two restaurant pads are already under agreement with Chili’s and Olive Garden.
The Shops at Riverhead
Location: Riverhead (Long Island), N.Y. (Route 58)Size: 538,000 sq. ft.Developers: Developers Realty Corp. in a joint venture with CentrowattsMajor tenants: In negotiations with Costco, Kohl’s, Circuit City, PetSmartStatus: Fall 2008 completion
The Shops at Riverhead is a unique project, because—short of Tanger Outlet Center—it is the largest development n the area. The outlet center brings in an excess of 12 million people each year and is one of the highest-producing outlet centers in the nation. Its location across the street from The Shops at Riverhead provides an excellent site for a new and exciting shopping center development.
The lifestyle center is the consumer’s “new mall,” but there’s a place for each in the life of today’s shopper. The expansion of The Promenade Temecula, which opened in 1999 in Temecula, Calif., combines the success and convenience of an undercover mall with the need for new retail in this growing community. It adds the novelty and luxury of an open-air, lushly landscaped, walkable outdoor shopping destination featuring today’s best restaurants; a Village Square for entertainment; pocket parks and refreshing fountain features. The Main Street/mall combination will enrich and expand shopper options, bring in a number of exciting tenants new to the area, and fulfill the promise of The Promenade as Temecula’s Town Center for tomorrow.
The Promenade Temecula
Location: Temecula, Calif. (at Interstate 15 and Winchester Road)Size: 1,013,000 sq. ft. (current existing mall portion); 200,000 sq. ft. (outdoor lifestyle addition)Developer: Forest City Commercial Development, a unit of Forest City Enterprises, Inc.Major tenants: Current existing mall portion—Macy’s, Sears, J.C. Penney, Brighton Collectibles, Abercrombie & Fitch, California Pizza Kitchen, Red Robin Gourmet Burgers & Spirits, Jurney’s Edwards Cinema, Build-A-Bear, Gymboree, Hollister Co.; lifestyle addition—Talbots, Ann Taylor, J. JillStatus: Spring 2009 completion
Home Depot Projects Lower Profit in 2007
Atlanta, The Home Depot Inc. said Wednesday it will pump $2.2 billion into improving its business this year even as it expects lower earnings and slim sales growth. Home Depot said that for fiscal 2007 it expects sales growth in the range of flat to an increase of 2%, a decline in comp-store sales in the middle single digit percentages and an earnings per share decline of 4% to 9%.
Including the effect of a 53rd week in its fiscal year, consolidated sales are expected to increase by 1% to 2%, and earnings per share are expected to decline by 3% to 8%, Home Depot said.
CEO Frank Blake told investors at Wednesday’s conference that like last year, “2007 also will be a difficult year.” But he said it will be a year of focus on Home Depot’s priorities and a year with “hopefully less noise.”
The “noise” was apparently a reference to the investor furor over former CEO Bob Nardelli’s hefty compensation in light of the company’s lagging stock price. Nardelli resigned in early January after six years at the helm of the company. He took with him a severance package valued at $210 million.
To improve its business, Home Depot said it will invest $2.2 billion this fiscal year in key priorities, including the opening of 115 stores. The investment includes $1.6 billion in capital spending and $600 million in expense.
Home Depot said it will recruit master trade specialists, simplify its staffing model, use more technology to aid customer service, and redesign employee compensation and reward plans. It also will invest in new merchandise and review its pricing strategies. Additionally, the chain will spend money on customer loyalty programs, direct-ship programs, credit programs and other specialty sales initiatives.
Federated Plans Name Change
New York City, Federated Department Stores on Tuesday said it would ask shareholders to approve changing the company’s corporate name to Macy’s Group Inc. A vote to amend the corporation’s charter to accommodate the new name will be held in conjunction with Federated’s annual meeting on May 18. If approved, the company will be known as Macy’s Group Inc., effective June 1. The move comes on the heels of the company changing most of its store nameplates to Macy’s.
“Macy’s Group is the appropriate name for our company, given that about 90% of our sales involve the Macy’s brand. That said, Bloomingdale’s is—and will remain—a very important part of our company,” said Terry J. Lundgren, Federated’s chief executive. Federated Department Stores also said stronger sales at established stores and lower costs drove a 5% rise in fourth-quarter earnings. For the quarter ended Feb. 3, net income rose to $733 million from $699 million the prior-year period. Sales fell 4% to $9.16 billion from $9.57 billion, as the company shuttered 80 “duplicative” store locations. Comp-store sales rose 6.1% in the quarter.
During the quarter, Federated lowered its selling, general and administrative costs 11% to $2.31 billion.
The company also announced a $4 billion increase to its stock buyback program and said it will immediately repurchase 45 million shares for $2 billion under the plan.