Issue 24 | March 2016

Perspectives

Strengthen Your Position

RCS Real Estate Advisors has been helping retailers and landlords find common ground since 1981. Companies like Disney Store, Aéropostale, David’s Bridal, Juicy Couture, QuikSilver, and Cost Plus World Market enjoy a better seat at the table because they have retained us to help them achieve their real estate goals.

Contact us today to see how we can strengthen your position.

We Create Value
In This Issue

Global Trends, Local Retail

RCS Announces New Clients

Active Year for Disney Store

Bracing for a Bumpy Transition


Eileen Mitchell

Eileen Mitchell
Executive Vice President
RCS Real Estate Advisors




Trend Watch
Global Trends, Local Retail

Retailers always seem to have valid reasons for depressed sales…bad weather keeps shoppers at home, good weather gives them an excuse to stay outside, etc. Well lately, it seems global trends that would initially seem beyond the reach of local retailers are indeed depressing sales.

We have noticed depressed sales in key North American markets. When we dig a little deeper, it seems exchange rates and the drop in oil prices are the causes. Tourism traffic nationally is down due to the strong US dollar. Two examples we have noted include: 1) Canadian traffic in US Malls is off 35% and 2) traffic is down in triple AA malls in Florida due to South American tourism being off by 60%. The drop in oil prices has severely impacted the Houston market and retail is seeing its fair share of that recession. Also, mall traffic in border areas like San Antonio, San Diego and others are off due to decline in Mexican Nationals shopping in US.

As these broader global trends start to show up at the local level, we hope these and other down market trends will highlight the need for landlords to be more cooperative with their retail partners. One thing is for sure – you know RCS will be working to help get their retail clients what they need to be successful in these trying times.

Back to top

________






RCS Logo







RCS Logo




RCS Logo

RCS Announces New Clients

We are Proud to Announce the Addition of Several
New Clients, Including:

Hancock Fabrics – This retailer of fashion and home decorating textiles, sewing accessories, needlecraft supplies, and sewing machines operated 250 retail stores in 37 states when it filed for Chapter 11 bankruptcy protection on February 2, 2016. RCS was retained to market leases and conduct a bankruptcy auction to create value for the estate. RCS is also seeking to reduce the occupancy costs at the remaining 180 locations that Hancock Fabrics plans to continue operating. This retention is an extension of RCS Real Estate Advisors’ existing relationship with Hancock Fabrics.

MovieStop – MovieStop, LLC is a leading value retailer of new and used movies. MovieStop currently operates 41 destination locations in 10 states, primarily along the East Coast. RCS was retained to help reposition their real estate portfolio through rent reductions, lease terminations, and other lease modifications.

Hastings Entertainment – Founded in 1968, Hastings is a leading multimedia entertainment retailer. They combine the sale of new and used books, videos, video games and CDs, and trends and consumer electronics merchandise, with the rental of videos and video games in a superstore format. They currently operate 126 superstores, averaging approximately 24,000 square feet, primarily in medium-sized markets throughout the US. RCS was retained to help optimize their real estate portfolio by reducing their occupancy costs.

Back to top

________





RCS Logo

Disney Store creates MAGIC for
“Brick and Mortar” in North America

RCS announces another active year for client Disney Store in 2015. Disney opened 9 new stores in regional malls throughout the US and Canada and 3 new outlet centers. In addition to the new centers, Disney invested in full remodels implementing refreshed Disney Store and Disney Outlet designs in 15 additional centers. Congratulations to our friends at Disney Store for their hard work in completing these 27 projects last year! On behalf of Disney, we would like to thank our landlord partners whom we look forward to working with in the near future. For more information please contact Eileen Mitchell, Executive Vice President, RCS Real Estate Advisors, 212-239-1159, emitchell@rcsrealestate.com

Back to top

________

Ivan Friedman

Ivan Friedman
President and CEO
RCS Real Estate Advisors

Retailers Pare Store Counts as Landlords Brace for Bumpy Transition

RCS President and CEO Ivan L. Friedman Speaks to NREI About the Current State of the Retail Real Estate Market:

As retailers rebalance their portfolios of physical locations, they are adapting to the realities of operating in an omni-channel business. As foot traffic at traditional malls and strip centers ebbs, and shoppers make an increasing amount of purchases on-line, retailers are providing services like in-store pickups and returns that complement online shopping. “Internet sales are increasing and are sustaining the companies," says Ivan Friedman, President and CEO of RCS Real Estate Advisors, a retail real estate advisory firm that specializes in build-outs, lease negotiations, and property dispositions. "Yet I don't know of even one healthy company that wouldn't love to close a bunch of stores." Click here to read more.

Back to top


Contact Us

To find out more about how RCS Real Estate Advisors can help you unlock more of the value within your retail real estate, contact Mitchel Friedman, Senior Vice President and Director of Business Development and Corporate Strategy at 212.300.5373 or info@rcsrealestate.com

Visit our website About us | What we offer News and events | Join our mailing list | Contact us Unsubscribe

Perspectives is a quarterly newsletter for current and prospective clients.
© Copyright RCS Real Estate Advisors, 2016
RCS Real Estate Advisors, 460 West 34th Street, Third Floor, New York, NY 10001, T 212 239 1100, F 212 268 5484