Report: Luxury retail rents may bounce back
New York City Real estate brokerage Colliers International reported Wednesday that luxury retail rents may soon bounce back after two years of decline. Colliers cited newly fueled demand for designer handbags, watches and clothes as reasons for the impending recovery.
According to a report by Bloomberg, rents fell in most of the world’s costliest shopping streets in the first quarter from a year earlier. The average annual rent on Manhattan’s Fifth Avenue, previously the world’s most expensive shopping street in which to lease space, fell about 11% to $1,250 per square foot. That pushed it into second place behind Avenue des Champs-Elysees in Paris.
However, with the global economy set to grow 4.2% this year, according to the International Monetary Fund, the outlook in the luxury sector is decidedly rosier.
“With many of the world’s rich feeling more secure and comfortable with luxury purchases, demand for high-end retail premises is expected to increase over the coming year,” Ross Moore, executive VP and director of market and economic research at Colliers, wrote in the report.
Luxury goods retailers are also attracting “aspirational” consumers from the growing middle classes of Asia, the Middle East and central and Eastern Europe, Moore said.
Macy’s celebrates Pride month
NEW YORK (Jun. 2) Macy’s announced that it has celebrating Pride month with a multitude of in-store fashion events, advertising support, special tribute windows in select stores, gift registry booths for same-sex couples in key cities, as well as sponsorship and employee participation in Pride parades across the country.
"We are proud to support our LGBTQ employees and consumers through initiatives that recognize and honor our commitment to diversity and inclusion," said Corliss Fong, Macy’s vice president of diversity strategies. "Macy’s remains a steadfast supporter of inclusiveness in all aspects of our business and we join in celebration with millions across the nation who live with pride and joy this June."
Borders announces exec changes
ANN ARBOR , Mich. (Jun. 4) Borders Group announced that Mike Edwards has been appointed president of Borders Group and president and CEO of Borders Inc., the principle subsidiary of Borders Group. Bennett LeBow, who recently became chairman of the Borders Group board of directors, will serve as CEO of Borders Group. Edwards will report to LeBow.
Edwards has been interim CEO of Borders since January. He joined the company in September 2009 as EVP and chief merchandising officer. Before joining Borders, he most recently served as president and CEO of Ellington Leather, a Portland, Ore.-based leather handbags and accessories wholesaler. From 2004 through 2007, Edwards was president and CEO for lucy Activewear, a division of VF Corp. He has also held executive management positions in merchandising and operations with Jo-Ann Stores, West Marine Inc., Golfsmith and CompUSA, as well as buying and merchandising posts with Target and the May Department Store Company.
LeBow, who recently made an equity investment of $25 million in Borders through an entity he controls, is chairman of the board of Vector Group, a company he’s been affiliated with since 1986. In March of 1996, under his leadership, Liggett Company, owned by Vector Group, became the first tobacco company to settle smoking-related litigation. Before devoting himself completely to private business in 1968, LeBow served in the Pentagon initially as a First Lieutenant and subsequently as a civilian, serving as assistant to the assistant vice chief of staff of the U.S. Army.