REAL ESTATE

Best Buy to open hundreds of Best Buy Mobile stores, shrink footprint of big-box outlets

BY CSA STAFF

Minneapolis — Best Buy Co. said Thursday that it plans to open hundreds of wireless device stores, as well as expand online and in China in an effort to be more competitive as consumers up their online shopping. The chain is also scaling back the size of its signature namesake format.

In an analyst conference Thursday, the retailer unveiled plans to shrink square footage at big-box stores by 10% over the next three to five years, a move that Best Buy said will eventually save $70 million to $80 million annually.

The company said it expects to have 600 to 800 Best Buy Mobile freestanding stores in the United States within five years, with some 200 expected to be operating by July. The mobile stores, whose average footprint is less than 2,000 sq. ft., have proven more profitable than traditional Best Buy stores because of the popularity of smartphones and sales of add-ons like phone plans and accessories.

Best Buy said it also plans to expand its online-only selection and aims to double its $2 billion in online revenue in three to five years.

However, "Physical retailing still matters," Brian Dunn, CEO, said. "It is an important part of our strategy, because service matters."

Best Buy sees China as another growth area and it is expanding its Five Star brand in that country, adding 400 to 500 stores in the next five years with the goal of doubling revenue in China to $4 billion within five years.

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C.Floz says:
Nov-30-2012 11:11 am

Online shopping is a big hit nowadays. Even the giant Best Buy is cashing in with the new trend in shopping. It remains to be seen if the risk taken will be successful. - Markus Lattner

C.Floz says:
Nov-30-2012 11:11 am

Online shopping is a big hit nowadays. Even the giant Best Buy is cashing in with the new trend in shopping. It remains to be seen if the risk taken will be successful. - Markus Lattner

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REAL ESTATE

Bon-Ton to open new Carson’s in Markland Mall

BY CSA STAFF

Kokomo Ind. — The Bon-Ton Stores said Thursday that it has signed a letter of intent with Simon Property Group for a 60,000-sq.-ft. facility at Markland Mall, located in Kokomo, Ind.

According to the department store retailer, the existing building will be remodeled by November, at which time Bon-Ton will open a new store under the Carson’s nameplate, replacing its current Elder-Beerman store presently located in Kokomo Mall.

“We believe the move to Markland Mall will enhance the total shopping experience for our customers in this market,” said Bud Bergren, president and CEO, The Bon-Ton Stores.

Markland Mall is an enclosed regional mall anchored by Sears and Target.

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REAL ESTATE

Walmart to anchor power center on 13.5 acres on Chicago’s South Side

BY CSA STAFF

Chicago — Jones Lang LaSalle said Monday that, on behalf of Monroe Investment Partners LLC, it has closed the sale of a 13.5-acre parcel on Chicago’s South Side to Walmart, which purchased the shovel-ready pad in the Chatham Market shopping center to build a 155,000-sq.-ft. supercenter.

This will be the first of six new full-scale stores Walmart has announced it plans to build in the City of Chicago.

Walmart has also leased an existing 10,000-sq.-ft. building at Chatham Market for a Walmart Express store — a convenience grocery concept that will also be the first of its kind in Chicago.

Chatham Market is a 450,000-sq.-ft. shopping center currently tenanted by Lowe’s Home Improvement, Potbelly’s Sandwich Shop, and an Aldi grocery store that is under construction and slated to open June 1.

Construction of the supercenter is expected to get underway by late-April and the store is scheduled to open by the end of 2011 or early 2012.

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