New York City’s Fifth Avenue has world’s highest retail rent rates
New York City — New York City remains the world’s most expensive retail destination as retailers focus on the major fashion capitals pushing global rents in prime locations even higher, according to the latest CB Richard Ellis (CBRE) Global Retail MarketView.
The average rent for space along Fifth Avenue from 49th Street up to 59th Street hit $1,900 per square foot in the first quarter. Hong Kong and Sydney came in second and third place in the rankings, with average per-square-foot rents of $1,697 and $1,301, respectively.
Nationwide the survey found that the price of retail space increased on the strength of increased consumer confidence and spending. The second-ranked U.S. retail market was Los Angeles, which placed twelfth worldwide with rents of $520 per square foot. Chicago slipped to fifteenth worldwide, with rents of $480 per square foot.
The fastest growing U.S. market was Dallas/Fort Worth. There, rents jumped by more than 30% in the last year to $150 per square foot — less than one-tenth New York’s level.
Report: Wal-Mart executives discuss South Africa acquisition
Bentonville, Ark. — A report Thursday by the Associated Press said that Wal-Mart Stores executives met Thursday to discuss the proposed Massmart acquisition, which is expected to close in June.
According to the report, as Wal-Mart expands its international business, the company wants to bring ideas it gains from the South African chain to other markets.
The $2.4 billion purchase of a majority interest in Massmart, which operates 263 stores in South Africa, will put Wal-Mart in the building supply business, one of a variety of Massmart store formats.
J.P. Suarez, senior VP of international business development, told AP that Wal-Mart intends to expand Massmart’s footprint in southern Africa, and that a priority will be to offer more refrigerated food, a category lacking among Massmart and its competitors, Suarez said.
Massmart’s home building supply stores will be a new venture for Wal-Mart, which Suarez said may have potential for further development.
"We do want to take that capability and learn and apply it to any other market it might be relevant to," Suarez said.
Wal-Mart had to make concessions for the Massmart deal to go through, including promising to honor existing labor agreements for three years and not lay off any workers for two years.
Suarez noted South Africa’s Competition Commission’s approval of the deal could be appealed, but he expects it to close as scheduled.
Fresh Market profit edges up in Q1, to open 12-14 stores
Greensboro, N.C. — The Fresh Market reported Thursday that net income for the quarter ended May 1 rose to $13.5 million, compared with $12.2 million in the year-ago quarter.
Sales increased 10% to $264.5 million and same-store sales increased 4.1%.
During the first quarter, the retailer opened one new store in Peachtree City, Ga., bringing the current store count to 101. Fresh Market said it expects to open 12 to 14 new stores during fiscal 2011.