Content about Jeff Green Column

Last August in this space, I discussed the troubling sales trends and tumbling earnings from iconic retailer J.C. Penney, mentioning that the growing pains associated with implementing CEO Ron Johnson’s ambitious brand overhaul might have been a case of “too much too soon.” Given that Ron Johnson is now ex-CEO, it’s clear that those growing pains were too much to overcome.

Whether you are a retail analyst or a casual observer, it can be all too easy to get lost in the negativity of recent store closings and retail bankruptcies.

I have to admit, the recent announcement of the merger between Office Depot and OfficeMax took me by surprise. It’s not as though it doesn’t make sense — it’s logical both logistically and financially — but, while there had been a few rumblings and rumors, this is a dramatic move that took place with relatively little forewarning.

In case you missed it, one of America’s biggest and most iconic brands was in the news recently for something other than the latest sales figures: Wal-Mart announced an ambitious plan to hire approximately 100,000 veterans over the next five years.

With all of the pre-holiday buzz and widely optimistic sales projections, anything other than a blockbuster 2012 holiday shopping season was bound to be a letdown. Few expected the numbers that came out just before Christmas: Both MasterCard and the International Council of Shopping Centers (ICSC) reported that sales for the holiday season at that point were up just 0.7%. This was far below the robust predictions that many analysts and observers made before the shopping season was underway (most often between 3%-6%).

Whatever your political views may be, it’s hard not to think about the impact of the recent presidential election on the consumer psyche, and ultimately our industry. Whether President Obama or Mitt Romney would have been better for the economy in the long run is an issue I’ll gladly leave to the political experts and historians. But I do think that, in the near term, we are less likely to see the big holiday spending numbers that some analysts were predicting.

As we continue to witness the battle of brick-and-mortar versus online shopping, it’s interesting to see Walmart’s latest ploy to “one-up” their online competition. Their new Walmart To Go service is offering customers same-day delivery of online orders for just $10. While the initial test period is expected to last only through the holidays, the possibility that this could stick makes me think that Walmart To Go might ultimately have some huge implications for brick-and-mortar retail. The big question, of course, is will it work? Can Walmart pull it off?

Each year, since the “big recession,” retailers have been putting out their holiday decorations and starting their promotional sales as early as mid-October. It used to be that Black Friday was the kick-off that got everyone out to the stores in search of that must-have discounted gift for their loved ones. This year, however, the calendar barely hit September and I saw Christmas trees on display at my local Costco and retailers announcing their layaway program incentives.

The retail industry, yours truly included, has had a watchful eye on J.C. Penney ever since CEO Ron Johnson took over and announced his plans to revamp the iconic retailer. Many experts have shared their concerns over the new direction and, as the second quarter numbers would indicate, cause for concern is clearly warranted. With overall sales plummeting nearly $1 billion dollars, and earnings plunging from an expected $41 million profit to an $81 million loss, the company is down $1.7 billion in sales and $260 million in earnings in the first half of the year, compared to 2011.

If you’ve spent any time in Nordstrom over the past few years, you’ve probably noticed their efforts to integrate some younger, edgier product lines into their more conservative upscale fashion selections. It seems they’re taking these efforts one giant step forward with the announcement of their new partnership with Topshop.

I mentioned briefly in my last column that I’ve been a little puzzled by what seems to be an industry-wide reluctance to design and develop, and in many cases redevelop centers into, true mixed-use venues. It’s not that our industry doesn’t get excited about mixed-use spaces — they clearly do. But, something is getting lost between the glamorous articles and design concepts, and the real-world execution.

I’ve read a few thought-provoking articles recently about the state of the retail real estate marketplace that make the observation that A malls are generally doing better while B malls are continuing to tread water—or even beginning to fade away. Once again, I have to disagree on the B malls.