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Observations & Conversations
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Observations & Conversations Most of the new concepts are spin-offs,
The ICSC Pennsylvania/New Jersey/ Delaware Dealmaking was the best Philly show that I can remember. Attendance was at an all time high, lots of deals were being talked up and the party scene was fantastic. I made the party train starting at Metro’s fiesta, then bowling at the Taylor Zang-Marcus Millichap party, good vibes at Legend’s soiree and wrapped it up at Fameco’s party at the Hard Rock the night before Dealmaking. The only complaint I heard on the floor was that there weren’t enough retailers, but I hear that at every event. I met quite a few franchisees of food concepts and I did see major retail players on the floor that didn’t exhibit including Burlington Coat, Steve & Barry’s and Michael’s. I also met half a dozen banks at the show that were there with a dual mission to find new locations to set up shop as well as meet new borrowers. Almost every major supermarket chain in the tri-state region was at the show too. There were hundreds of brokers at the show repping both retailers and landlords. Once again, the ICSC did a great job. Also, a big congrats to Maria Aristone for her appointment as president of Legend Properties, which was announced at their annual party in Philly. This issue is being distributed at the ICSC Western States Dealmaking in Palm Springs and I’ll let you know how that show was next month. We’re also getting ready for the Southeastern States Dealmaking in Atlanta and then it’s on to San Antonio followed by the 2006 grand finale with the New York show. Make sure you send us info on your sites and expansion needs if you’re looking to get exposure at some of the upcoming Dealmakings; you can send me email at ann@dealmakers.net. I’m always looking for the lesser known, but growing chains at all of the shows I attend. Most of the new concepts are spin-offs, but the franchise arena is also sprouting quite a few new retailers. A few chains I’ve come across in the past few weeks include Marciano, a new concept of Guess?, Inc. The concept has nine units operating in the U.S. and the apparel is geared to the 25 to 35 year-old female with the mix running from $180 gold lame dresses for evening to $130 corsets in the lingerie department and $150 stiletto pumps. The stores use between 2,000 sq.ft. to 4,000 sq.ft. Its next store opening is scheduled for Coconut Point, a mixed-use project in the Naples, FL market followed by an opening at a Westfield project in Arcadia, CA. The Coconut Point, a 1.4 million sq.ft. Simon project has an interesting mix with Best Buy, PetSmart, Old Navy, OfficeMax, Bed, Bath & Beyond, DSW, T.J. Maxx and Sports Authority serving as anchors, while the satellite shops have a more upscale/lifestyle genre with its most recent commitments coming from J.Jill, Lucky Brand Jeans, Paiva, Finish Lines newest concept and Coach. Marciano’s site selection in the states so far has some interesting twists from its location at Caesar’s Forum Shops in Las Vegas, NV to the La Plaza Mall, a project in McAllen, TX with a huge Latino customer base. Marciano is expected to continue growing next year with new store locations. Another new concept is being rolled out by several former Land’s End execs using the trade name of Fair Indigo. The online concern is opening its first store next month at Hilldale Mall in Madison, WI. The apparel store’s merchandise is sourced from factories that pay fair wages and consist of casual clothes for men and women. The company plans to open four or five stores in cities with a significant portion of socially conscious residents. One more growing apparel concept is Metropark, a 19-unit chain that caters to the rock star wanna-be set with a DJ playing house music in the front of the stores, while customers can hang in a lounge area at the rear of the store decked with flat-screen TVs, magazines and energy drinks. The merchandise includes $300 jeans and $150 sweatshirts. The CA-based company sells clothing, music and cosmetics to the 20 to 30 year-old shopper and locates in malls. The company sees the growth potential of being a 300-unit national chain. Its most recent store commitments are for openings in CA, NV and TX, while existing stores operate in CA, GA, MN, NJ, NV, OH, OR and TX. On the specialty side, Swoozie’s, a 16-unit chain, just obtained $14 million in a second round of funding and plans national expansion with a focus on the southeast. The company was founded by a former president of Neiman Marcus. The stores specialize in paper products, housewares, gifts and novelty items. Plans call for opening up to 15 stores next year. Swoozie’s typically uses 5,000 sq.ft. Yakety Yak, a 72-unit chain specializing in wireless electronics, has commitments from franchisees to open 150 units in the near future. The company operates locations mainly in AZ, CA and NV, while new markets targeted for growth include CT, MI, MN, NC, NJ, OK, PA, SD and WI. A few growing food concepts include Entree Vous, a six-unit chain operating locations in KY, MI and OH. The concept is a kitchen setting where customers do weekly meal planning and take home the meals. The company is growing by franchising and uses 1,400 sq.ft. to 1,600 sq.ft. A few of the existing locations are anchored by Kroger and Discount Drug Mart. Its most recent lease was executed for a site in front of a Home Depot in Sugarcreek Township, OH. Melt Gelato & Crepe Cafe is also on an expansion roll. The concept sells gelato, sorbet, Italian coffee and 15 varieties of crepes while using kiosks as small as 150 sq.ft. up to 1,250 sq.ft. for inline space. The company operates three corporate-owned units and seven franchised locations. Plans call for 35 openings by next spring and up to 1,000 new units within five years. Its most recent lease was signed at the Brass Mill Center in Waterbury, CT. Plans for expansion include 22 locations throughout CT within the next five years. Another growing franchise is FireFresh BBQ, a seven-unit casual dining concept with existing units in KY. The restaurants use 3,000 sq.ft. with a drive-thru and immediate growth opportunities are sought in Louisville, Lexington, Radcliff, Elizabethtown, KY and southern IN. Future growth will take place from FL northward to OH. Squeeze Fresh Smoothies is also encountering franchise growth. The company plans to open 300 units nationally by 2010, while immediate growth is taking place in AZ and CA with 75 units slated to open within seven years. The concept sells no sugar-added fruit drinks and currently operates 10 locations in CO, OK, TX and VA. Well once again, I’m running out of room to give you ideas for tenants so on that note - just another reminder to stop Ann O’Neal, Publisher |