Pennsylvania Mall Under New Ownership
Philadelphia, Pennsylvania Real Estate Investment Trust and Simon Property Group completed the previously announced acquisition of Springfield Mall in Springfield, Pa., for approximately $103.5 million. PREIT and an affiliate of Kravco Simon Investments, L.P., each have a 50% ownership interest in the property. Springfield Mall is a 590,000-sq.-ft. regional mall located approximately 10 miles southwest of Philadelphia. The mall is currently anchored by Macy’s and Strawbridge’s and has more than 70 in-line tenants, including Ann Taylor Loft, Build-A-Bear, Carrabba’s, Charlotte Russe, Gap/Gap Kids, Ruby Tuesday and Yankee Candle. Macy’s and Strawbridge’s own their own buildings and associated parking.
Federated Department Stores, Inc. has announced that it plans to close the Strawbridge’s store in this mall.
Consumer Survey Shows Fraud Concern
New York City, The statistics are beginning to show that American consumers are more than just a little worried about information security. One out of every seven Americans has had personal and or credit-card information stolen. More than 60% say they are concerned for the safety of their personal and/or credit and debit-card information during the holiday season. Two-thirds of creditcard holders are more concerned about credit-card fraud and identity theft than they were last year. These figures were the result of 1,000 telephone interviews conducted on behalf of Armonk, N.Y.-based IBM. If the problem escalates, the worst-case scenario for retailers is a chilling affect on spending. “Consumers buy from retailers they trust and those retailers who are making security a priority will have a competitive advantage,” said Joseph Gagnon, global retail leader, IBM. “Advanced technologies, from sophisticated encryption to biometric technologies, are being developed by researchers to help retailers increase security and build that all-important trust with shoppers.”
ShopKo Posts Q3 Loss
Green Bay, Wis., ShopKo Stores posted a quarterly loss, largely due to merger-related costs. The company posted a loss of $14.1 million in the third quarter ended Oct. 29, compared to a profit of $2 million in the same quarter last year. The merger cost $16.3 million—including a $13.5 million payout to Badger Retail Holding, which had agreed to buy Shopko before Sun Capital Partners stepped in with the winning bid.
Consolidated sales decreased 5.6% to $704.8 million in the third quarter of 2005 compared with $746.4 million for the comparable period last year. Consolidated comparable-store sales decreased 5.8%.