Forever 21, Staples, Safeway and Amazon?
The blog that brings you Southern California’s most informed Commercial Real Estate happenings.
It appears that Forever 21 is back in the news with its recent Oracle partnership, and it has designs on increasing its stores by 600 over the next three years. Call me daffy, but was it not Forever 21 that just downsized a bunch of stores over the past couple of years? I hope this double-mindedness does not last very long, because this could actually be the beginning of the end for them in my opinion.
After shuttering stores in their failed Canadian entry, Target has decided to open more stores stateside in the form of urban express locations. Good or bad? I have no idea, but we will see. What I do know is, I really do appreciate its urban-ite store in Downtown Los Angeles, and shop there pretty frequently. I could stand some more of that in SoCal.
Mergers & Acquisitions
Last month’s major headline, “Staples to buy Office Depot.” Why do we care? Office Depot just finished its purchase of Office Max, and now Staples is purchasing them so who will we have to go to for Big Box office supply purchases? Walmart? Target? I think not. Their product lines do not have enough diversity to suit business needs. I think it is time that we pull out our popcorn again, and watch to see how this all plays out. What this means for the High Desert though, is one of those retailers are closing up shop. It is either going to be Staples in the center off of Mariposa Road or the OfficeMax located on Armagosa Road. Either way, one of those stores will need to go because that just makes more business sense.
In other news, Albertsons and Safeway has finally completed their merger, so we should see some new vigor in the dominant brand. Norm’s Restaurants was recently purchased by Trinity Capital out of Los Angeles, and I am willing to wager a burgeoning brand refresh on the horizon. Also, let us keep our eyes and ears open regarding Del Taco. It appears as though they are being courted for acquisition and the feelings are mutual.
Do you know what happens to a retailer when they see the end in sight? They start selling off bits and pieces of themselves, and it looks like that is was happening to RadioShack. Apparently, it is rumored that Amazon may be purchasing some of RadioShacks’ locations in the future and they are considering selling half of its stores to Sprint. Bits and pieces, I say, bits and pieces.
Unfortunately, one the most elite retailers of the 70s and 80s is seeing its end unfold right before their very eyes. Caché has filed for Chapter 11, and is on the hunt for a company who can efficiently liquidate all of its assets. Sad to see you go.
Upcoming Openings: J’s Family Auto (3/7) in Moreno Valley; Jaxx Children’s Boutique (3/8) in Manhattan Beach; Steelhead Lodge (3/6) in Klamath Glen; SoCal Mattress (3/1) in Lake Elsinore; Gaia Gelato (3/21) in Carlsbad; The Flower Cart (3/7) in Fullerton; Toxic Hawaii Beauty Studio (3/13) in Los Angeles; Green Tree Recycling (4/3) in Irvine; Forever 21 (3/7) at the Desert Hills Premium Outlets; Sin City Barbershop (4/1) in Palmdale; Knowrealitypie (3/14) in Eagle Rock; Good News Health Solutions (3/29) in Calimesa; Beverly Hills Center for Plastic & Laser Surgery (3/11) in Beverly Hills; Bellamore Fashion Boutique (3/6) in Tarzan.
As always, I’ll keep my ear to the ground, and my eyes wide open as I head on out to industry events like ICSC RECon in May or RealShare LA to keep bringing you the latest moves in Southern California.
See you at the Show, tahtah…Shar
Blog written by Shar Toler of Toler & Associates, LLC. Toler & Associates have been successfully servicing the commercial real estate needs of Southern California for a decade with factual and functional information that you can trust.