Retalix acquires Cornell Mayo Associates
Dallas — Retalix Ltd., a leading global provider of software and services for high-volume, high-complexity retailers, announced that it has acquired Cornell Mayo Associates, a leading provider of store systems serving top tier department stores and large specialty retailers.
Cornell Mayo, which is deployed in nearly 4,000 stores, primarily in North America, will become a Retalix business unit and Retalix’s center of excellence for the department store retail segment. Gene Cornell, its founder, will continue to lead the business, which will retain its name.
“This acquisition is yet another demonstration of Retalix’s strong focus on executing its strategy and is an additional milestone towards the realization of our long-term business goals,” says Shuky Sheffer, CEO of Retalix. “Retalix will benefit from Cornell Mayo’s deep domain expertise and long-standing relationships with top tier retailers, including such household names as Saks Fifth Avenue, Belk, Stage Stores and Barnes & Noble.”
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Hershey sweet on college hoops
The Hershey Company extended and expanded its NCAA Corporate Partner agreement through 2016.
The leading North American chocolate company said it extended its NCAA Corporate Partner agreement with CBS Sports and Turner Sports and signed a new sponsorship deal with IMG College that will give the company a larger presence within collegiate sports.
"This is an especially exciting time for Hershey as we not only extend our role as part of a prestigious group of NCAA partners, but also expand our presence within the collegiate realm through our partnership with IMG College," said Dan Vucovich, SVP and president, United States, The Hershey Company. "The devotion, loyalty and tremendous following fans have for their respective NCAA teams mirrors the passion and desire people have for our iconic Reese’s candy, making the NCAA, Turner Sports, CBS Sports and IMG ideal partners to collaborate with and successfully market our full line of products."
As part of the NCAA renewal with Turner Sports and CBS Sports, Hershey has access to marketing rights across all 89 NCAA championships, including continued title sponsorship for its Reese’s College All-Star Game during the NCAA Men’s Final Four Weekend, which will be broadcast on CBS and title sponsorship of Reese’s Final Four Friday. As the official candy partner of the NCAA, Hershey will also continue to designate its Reese’s Peanut Butter Cups as the NCAA’s Official Candy. Hershey will also support the partnership with integrated marketing programs, promotional campaigns, activation platforms, social and digital media and advertising across a variety of mediums at the national, regional and local levels.
Further expanding Hershey’s presence within the college sports landscape, the company’s new partner agreement with IMG College provides the Reese’s brand collective and individual rights at 49 universities across the country for all intercollegiate athletics, as well as designation as the "Official Candy" at each of the respective athletic programs. In addition, this new sponsorship grants the Reese’s brand with key media opportunities including radio advertising in school football radio broadcasts, promotional use of trademarks and logos and digital and social media rights.
"We are very excited to partner with Hershey over the next four years as it works to expand its presence in collegiate sports," said Roger VanDerSnick, chief sales and marketing officer with IMG College. "Tapping into IMG’s national collegiate platform, Hershey gains the flexibility to utilize each school’s intellectual property to create customized retail promotions in each market, which will help differentiate the brand and drive overall awareness."
With revenues of nearly $6 billion, Hershey offers confectionery products under more than 25 brand names, including Hershey’s, Reese’s, Hershey’s Kisses, Hershey’s Bliss, Hershey’s Special Dark, Kit Kat, Twizzlers, and Ice Breakers.
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Previewing a lease helps prevent headaches
“Who agreed to this language?”
How many times have each of us been handed leases containing terms which cause us to ask , “Where did these provisions come from?” or “This is the first time I’ve seen these stipulations, did the transactions group understand the costs of compliance?” The answer is: probably more times than we’d like to recall.
What are the results of not reviewing lease terms prior to execution? Certainly, a lot of headaches and difficulties result; but these headaches can come with pretty hefty price tags. In many instances, these problems can be dealt with at the “front end” during lease negotiations.
Our industry has a current process whereby lease administration typically receives leases only after the agreements have been executed. Some lease administrators advocate a new lease process – a proactive process – that has the potential to identify unfavorable lease clauses while, at the same time, allowing for inclusion of best-in-class lease language to be added prior to the lease being executed.
Following are the goals of a proactive review process:
1. Eliminate negative surprises which tenants may have not budgeted in a given lease year;
2. Provide clear definitions so there are no vague or gray areas in the lease which many times bring disputes into legal, costing more money.
How does this new process work? A proactive model encourages reviewing lease language by the lease administration department prior to the lease signing event. The first step in this process is to submit a letter of intent to review. Reviewing a lease just prior to the document signing is too late. As soon as the initial draft of the lease is prepared, submit a letter of intent to review.
Prior to the lease review, develop a checklist of best practice language and communicate it to the appropriate parties. You may also think about customizing the items to review depending on the retailer and the type of lease being reviewed. It is always a smart practice to adhere to GAAP: Reconciliations should be reimbursements to the landlord, not profit.
Benefits of migrating to proactive lease language review process:
However, if this language has not been discussed and agreed to prior to executing a lease, it’s going to be very difficult to challenge should problems arise. The benefits of migrating toward my suggested model of lease administration review most certainly outweigh the costs. The most important item you can do in order to get buy-in is to provide the internal and external transaction group with an understanding of the value of this process. Second, educate the deal makers that lease language directly affects the costs to the tenant over the lease term. Next, obtain a high level of support in the organization for the change management.
You may also want to break down the language into deal points and costs associated with “less than acceptable” language so that the transactions group can make informed decisions. Finally, developing a tracking tool to quantify the value the lease administration department is bringing to the negotiating table on a lease-by-lease basis is something you certainly want to consider.
In summary, migrating toward a proactive review of lease language by the lease administration group will drive cost savings throughout the portfolio. I recommend developing a tracking mechanism to document the value offered by your group in this endeavor. Although calculating the precise savings may not always be measurable, tracking and documenting the language changes will demonstrate the increased value provided by the lease administration department.
Al Stabile is managing director, Strategic Portfolio Solutions Group, Studley, and a member of the National Retail Tenants Association (NRTA). He can be reached at [email protected].