Monday, December 28th, 2009
In 2008 I made 10 trips to Dubai and worked on two projects. In doing so, I met many wonderful people and saw a good deal of projects that were beyond belief. A good deal of these projects were completed and many more will never be built. In general, I found the Emiratis to be gracious host and the hired help to be less than forth coming. Outlined below are my observations.
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Tags: development, Dubai, Dubailand, UAE, Wafi
Posted in Culture, Real Estate, Real Estate Development, Retail, Shopping Centers | No Comments »
Wednesday, December 16th, 2009
A few short years ago Women’s Wear Daily listed Bal Harbour Shops as the most productive shopping center in the United States with sales reportedly topping $1400 per square foot. Not far behind was the Forum Shops in Las Vegas with various reports of sales running on average in the $1300 to $1500 range.
Then in 2008, along came Aventura Mall, located a few miles north of Bal Harbour with a report that their sales were exceeding $1100 per square foot and they were closing in on Bal Harbour. But not to be out done, Bal Harbour came back with astounding sales projections that jumped to $2,139 per square foot in 2008. In nearby Orlando, upstart Mall at Millenia reported sales per square foot at a surprising $1000.
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Monday, December 14th, 2009
OVERVIEW
Six major trends over the past decade have changed the way we eat, what we eat and where we eat it. These trends are as follows:
- Required Healthy Diets – Consumers are increasingly becoming more concerned with eating healthy food, not so much as by choice but out of necessity.
- Food Network – The food network makes celebrity chefs out of all of us.
- Gourmet Kitchens – We are no longer content with kitchen gadgets and a new cook book, they want professional kitchens with multiple ovens, oversized refrigerators and other tools of the trade.
- Exotic Travel – Lower airfares, globalization, travel magazines and world travel books have all contributed to a desire for people to see the world and not just cosmopolitan cities. As people travel to places like Yerga Cheffe in Ethiopia they want to bring back authentic coffee beans to become the new trophy over the living room mantle.
- Gourmet Markets – Today, Whole Foods and a host of other specialty food purveyors are located in every city of any real size. These markets provide the inspiration and a plentiful supply of ingredients to compliment virtually every type culinary adventure.
- Celebrity Chefs – Finally, seemingly everyday people have become overnight celebrity chefs providing inspiration for every home chef.
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Monday, October 26th, 2009
Over the past few decades we have seen the evolution of many trends in the national restaurant scene. In the early to mid 1990s the rage in dining was the themed restaurant led by Hard Rock Café and Planet Hollywood. In these restaurants, the decor primarily consisting of rock & roll and film memorabilia became the attraction and not the food. Soon, it seemed like every celebrity wanted their name associated with the newest “you-name-it-café”. The pinnacle of this culinary bubble was the opening of Planet Hollywood in Downtown Disney where sales quickly realized an annual volume of $50,000,000 to become the highest producing restaurant in the world.
However, in recent years the American culinary marketplace experienced a momentous change in the way people eat, cook and dine. As such, five primary factors have changed food and the way we consume and experience it. (more…)
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Monday, October 26th, 2009
National economists have often stated that expenditures by U.S. consumers make up 70% of the national GDP (Gross Domestic Product). In brief, the GDP is the total market value of domestic goods and services produced and consumed in the U.S. within a 365 day period.
However, a recent headline in USA Today proclaimed that consumer spending had grown to 71% of the GDP in the second quarter of 2009. On the surface this could be viewed as another positive sign of an improving economy, but in reality it is not. The real fact is that consumption as a percentage of the economy typically increases during a recession because output in manufacturing, construction, and business expenditures almost always drop first and at a higher percentage than consumer purchases. The result is a smaller basket of economic variables with the consumer taking a higher percentage of the whole. (more…)
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Wednesday, October 14th, 2009
World Retail
Retailers are flocking to India thanks to an economy that is still growing and a young population increasingly becoming aware of major brands.
Worldwide sales declines among luxury retailers will likely continue through 2010 and into 2011.
JUST THE FACTS
1. The apparel industry is a $191 billion industry.
2. Back to school sales in the U.S. were expected to reach $38.3 billion, up .06% from 2008.
3. A recent study found that in locations with a strong independent retail culture, 45% of every dollar spent at an independent bookstore remained in the local market.
4. In the first half of 2009, the sale of luxury goods dropped 15%-20% over 2009.
5. American families account for 40% of all borrowing in the U.S.
6. Between 2003 and 2004 handbag sales grew by 26%.
7. Handbag sales reached a peak in 2007 of $9 billion, up 100% over 2001. (more…)
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Friday, October 9th, 2009
Lego
Lego has opened its first concept store in Concord Mills, located north of Charlotte, NC. The 4,520 square foot store has been designed to create an interaction between children with on-site master builders. The store has room for birthday parties and classes.
New World
A new world is likely to emerge in which designers rebel against long lead times and where they take their collections directly to the consumer through their own boutiques, trunk shows, and over the web.
Web Sales
Web sales are projected to reach $156 billion in 2009, representing 6% of the total U.S. retail pie
The Web Fashion Consumer
Consumers have come to expect new merchandise more frequently, thanks to the web and fast fashion retailers such as H & M. Many cannot understand why they have to wait 6 months to see the fashions seen on the runways. Buyers at department stores generally base their orders on the past, while fashion editors gravitate to the most photogenic and future looking styles, leaving the consumer stuck in the middle. This results in one facet of the fashion industry looking forward and the other looking backwards. The consequence: a consumer on one hand is told what to buy but on the other, not where to buy it.
In response, a new generation of fashion retailers is emerging on the web where news is freely given and fashion is sold. Net-a-porter with average sales of $820.00 per transaction and customers from 170 countries is one example of this new generation of merchants. The company has successfully merged its web retail site with a fashion news site catering to a new consumer who wants credible news over magazine advertisements and the most up to date fashion now.
Entertainment
Families spent 5.1% more on entertainment in 2008 than in 2009, something that has surprised many economists. As consumers tightened their pocket books and wallets one would expect entertainment to be one of the first categories to see significant decreases. But the 5.1% increase in spending equated to 16.5 billion more dollars spent in the category over 2007.
Household debt
The American family is trying to put money into savings and reduce their overall debt, but they are clearly not faring as well as one might expect in this recession. Household debt now amounts to about 125% of after tax income.
High Net Worth Individuals
Luxury retailers are faced with a significant decline in Americans with a high net worth defined as having $1,000,000 of assets available for investment. In 2008 the assets of these individuals dropped by as much as 22%. The result is a major decrease in sales at retailers such as Neiman Marcus where sales have decreased by over 20% in 2009 over 2008.
Tags: consumer, consumer spending, consumerism, entertainment, fashion, fashion trends, household income, japan, lego, luxury, online sales, online shopping, recession, Retail, versace, web sales
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Friday, October 9th, 2009
While the residential market may be showing some signs of recovery, vacancies in commercial properties continue to rise at an alarming rate. In short, non-enclosed shopping centers reached a 10.3% vacancy rate ending in the third quarter of 2009, and enclosed malls jumped to 8.6%.
And it certainly is not looking to get better for some time. As vacancies increased, average rents declined to $16.89 per square foot for non-enclosed centers and down to $39.18 for enclosed malls. Likewise, the Federal Reserve has reported 8,300 store closings including 1,500 large anchor stores in 2009 alone.
Nationwide, office vacancies and rents are faring worse. The vacancy rate, in office properties hit a five-year high at 16.5% in the third quarter of this year. The decline in occupancy came as 19.6 million square feet of office space was returned to landlords in the third quarter and 64.2 million for the year.
As bad as the current environment is for landlords, things will become bleaker as unemployment rises because office occupancy tends to trail employment by 18 to 24 months.