Weekly Perl: A Commercial Real Estate News Recap
Discount grocer tops list of nation's fastest-growing grocers in 2023
In 2023, the fastest-growing grocers opened 253 stores and added 8.4 million square feet of new space, with one company’s expansion outdistancing all others. Discount grocer Aldi further solidified its position as the nation’s most aggressive grocer in terms of store expansion, opening 109 locations in 2023, according to JLL’s "2024 Grocery Report."
Chipotle Doubles Venture Fund to $100 Million
Chipotle announced Wednesday that it’s doubling its Cultivate Next venture fund to $100 million, boosting its ability to invest in companies that will help accelerate plans to reach 7,000 restaurants in North America.
Grocery Outlet plans to open up to 60 stores in 2024
Grocery Outlet Holding Corp. experienced year-over-year net sales growth of 6.3% to $989.8 million for the fourth quarter of 2023, the company reported Tuesday in its Q4 earnings report.
Flynn Group Isn’t up for Sale
Flynn Group—the world’s largest franchisee company—is not up for sale, contradictory to previous reports. Greg Flynn denied the rumors at the annual International Franchise Association Convention in Phoenix on February 19, according to an IFA representative. He spoke during a general session entitled, “Disciplined Execution and a Visionary Mindset Paved the Way for Multi-Unit Franchisee Greatness.”
Macy’s to close 150 nameplate stores; expand off-mall and luxury formats
Macy’s Inc. unveiled a new strategy that includes a much smaller footprint and a big bet on its luxury and beauty brands. The department store giant said it is “focusing resources” by closing approximately 150 underproductive Macy’s locations, including some 50 by the end of 2024, and prioritizing investment in approximately 350 “go-forward” nameplate locations and the continued expansion of small-format stores. In October, Macy’s said it would open up to 30 small-format, off-mall stores through fall 2025, starting in fall 2024.
Lowe’s net sales fall 17% in Q4
Dive Brief:
Lowe’s on Tuesday reported fourth-quarter net sales fell about 17% to $18.6 billion from $22.4 billion a year earlier. The home improvement retailer’s prior year Q4 sales included about $1.4 billion from a 53rd week on the calendar and $958 million from the sale of the company’s Canadian retail business during Q1 of last year.
Franchisors Revamp Restaurants to Meet Drive-thru Demand
After accelerating during the COVID-19 pandemic, the heavy use of restaurant drive-thrus and third-party delivery apps hasn’t waned.As a result of the continued growth, restaurant brands are reassessing the look and function of their buildings. In the last couple of years, franchisors large and small have rolled out new prototypes to meet consumer demand.
FTC sues to block Kroger-Albertsons $24.6 billion merger
The Federal Trade Commission has sued to block the largest proposed supermarket merger in U.S. history.The FTC has issued an administrative complaint and authorized a lawsuit in federal court to block the proposed acquisition between The Kroger Company and Albertsons Companies, which was first announced in October 2022 and has been met with increasing regulatory scrutiny.
