Chicago hospital opens retail and dining development
Chicago — Northwestern Memorial Hospital has completed the first phase of “Shop & Dine Northwestern,” a 70,000-sq.-ft. retail and restaurant development. The new facilities feature Chicago-based healthy quick service, fine dining and specialty retailers throughout the medical campus, which stands just one block east of Michigan Avenue’s Magnificent Mile shopping district. Ranked sixth on U.S. News & World Report’s honor roll of “America’s Best Hospitals,” Northwestern plans to begin a second phase of redevelopment in 2014.
An estimated 25,000 people work at Northwestern’s medical campus, and an estimated 13 million tourists, patients, workers, guests and residents walk across the campus during the year, said Kathy Lin, managing partner of KHL Retail, which advised the hospital on the retail redevelopment.
“Urban hospitals are a largely untapped growth area for retailers,” continued Lin. “Northwestern Memorial Hospital is particularly attractive because of its huge daytime population of staff, visitors, patients and volunteers as well as its location in a fast-growing residential neighborhood near one of the world’s most popular retail destinations.”
Phase One Project highlights include:
- Creation of new street-facing retail spaces including Chicago-based Italian fast casual Sopraffina Marketcaffe and Cicchetti, a new full-service restaurant from The Rosenthal Group, which will feature one of the largest outdoor dining spaces in Chicago (opening December 2013).
- Redesign of the main second floor concourse to include new retail storefronts and updated common areas.
- Addition of several new Chicago-based dining concepts including Saigon Sisters, Protein Bar and Greek Kitchen.
- Relocation and storefront redesign of existing tenants including Pulse Gift Shop, Barbara’s Bookstore and Au Bon Pain.
- Redevelopment and expansion of Walgreens to become one of their new retail flagship prototype stores with greater emphasis on consultation and health (opening August 2014).
Many of the new retail spaces are open and operating. Phase II leasing is underway and encompasses an additional 17,000 sq. ft. of retail in the new one-million-sq.-ft., 24-story Outpatient Care Pavilion adjacent to the hospital. Slated to open in the fall of 2014, ground floor leases have already been signed with several concepts including LYFE Kitchen from chefs Art Smith and Tal Ronnen; Stan’s Doughnuts, a popular California destination debuting in Chicago in partnership with artisan baker Rich Labriola; and Cosi.
Additional phases are planned for the years ahead.
New console buzz not enough for GameStop’s Q3 results
Last week’s PS4 launch and the highly anticipated Xbox One launch bolstered GameStop’s third-quarter results, but not as much as some investors expected, according to other reports.
The company posted total global sales for the quarter of $2.11 billion, an 18.8% increase from $1.77 billion in the prior-year quarter. Consolidated comparable store sales surged 20.5%, significantly above the forecasted range — but, according to a Reuters report, not enough to keep shares from slipping 6%.
During the quarter, sales of new software increased by 43.1%, driven by the strong performance of recently released new titles, such as Rockstar Games’ Grand Theft Auto V. New hardware sales grew 15.3%, led by strong sell-through of Nintendo 2DS and 3DS. Each of these categories outperformed the overall market, leading to 675 basis points of market share gain during the quarter. Pre-owned sales decreased 2%. The company’s new businesses, mobile and digital, had sales and receipts growth of 14.4% to $49.9 million and 8.6% to $137.9 million, respectively.
GameStop’s net earnings for the quarter were $68.6 million, a 45.3% increase compared to adjusted net income of $47.2 million in the prior year quarter.
“Our strong third quarter sales results give us great momentum as we enter the new console cycle,” said CEO Paul Raines. “Consumer appetite for the new consoles is very strong judging by last week’s successful PS4 launch and the excitement for tonight’s Xbox One launch event. Globally, we are executing our unique playbook to maximize our position of strength.”
Target sales deteriorate faster than expected
Add Target to the list of retailers whose weak third quarter sales performance highlighted troubling spending behaviors that threaten to undermine its holiday sales performance.
The company reported disappointing third quarter sales and profits Thursday morning and then stated the obvious that shoppers will price sensitive during an intensely competitive holiday season. The company said same store sales increased 0.9%, slightly less than the company’s forecast provided on August 21 which called for an increase of 1% to 2%.
At the time CFO John Mulligan provided that guidance he also warned that consumer spending was under pressure and the company’s full year comp increase would likely be 1%, rather than the 2% to 2.5% gain forecast earlier in the year. Similar concerns over consumer spending were expressed earlier this month when Mulligan spoke to investors in Canada and warned that Target’s longer range sales projection likely would not be realized in the time frame originally envisioned.
Then came Thursday’s bombshell that sales were even weaker than expected and the entry into Canada with 124 store caused a 29 cents a share drain on profits. Third quarter earnings declined nearly 47% to $341 million, or 54 cents a share, compared to $637 million, or 96 cents a share. As a result, the company lowered its full year profit forecast to a range of $4.59 to $4.69 per share, down from earlier guidance of $4.70 to $4.90.
“Target’s third quarter financial results reflect continued strong execution in our U.S. segment in an environment where consumer spending remains constrained,” said Gregg Steinhafel, chairman, president and CEO. “As our focus shifts to the fourth quarter, we are intently focused on delivering outstanding merchandise, an easy, fun shopping experience and an unbeatable combination of everyday low prices, weekly ad discounts, 5% REDcard Rewards and price match policies throughout the U.S. and Canada. And, in our Canadian Segment, we are also focused on improving performance as we transition from opening to operating our 124 stores.”