Colorado Springs Retail Briefs: August 15, 2008 - Colorado Springs Business Journal

One might think that during the Olympic Games in Beijing,merchandise at Colorado Springs Olympic Training Center's retailstore would be flying off the shelves.

But, that's not so, said store manager Paul Duran.

The busy time will be when spectators, athletes and coachesreturn from China in a couple of weeks.

'During an Olympic year sales always go up,' Duran said. 'Butright now people are either in Beijing or consumed with watching thegames on TV, but when they're over, they'll be coming in.'

However, at that time, Duran said the store's challenge will beto get rid of all the sports wear that says 'Beijing,' becausepretty soon it'll be yesterday's fad.

'We might have to have a tent sale,' he said.

And, after the 'all-Beijing-merchandise-must-go sale,' Duran saidit'll be time to look to the future.

'It'll be Vancouver in 2010,' he said.

Dems open Denver store

The Democratic Party, seeking to meet all convention-goersapparel and accessory needs, will open its own retail shop in theDenver Pavilions shopping center later this month.

The store doesn't have a name or phone number yet, but will sellconvention necessities such as T-shirts, water bottles and bumperstickers.

Surely there will be plenty of Barack Obama donkey embossedmemorabilia as well.

The Democratic National Convention Committee hired merchandisevendor Financial Innovations of Rhode Island to design and sell theretail items.

Big box green energy

One good thing about big box retail stores is that they have bigrooftops.

Well, that's a good thing if companies are looking for largesurface areas for solar panels.

Retail chains such as Wal-Mart, Kohl's, Safeway and Whole FoodsMarket have installed solar panels on the roofs of their stores togenerate electricity.

During the coming months, 85 Kohl's stores will get solar panels.Forty-three already have them.

Macy's has solar panels atop 18 stores and plans to install themon another 40 by the end of the year.

Safeway has plans to put panels on 23 stores.

Wal-Mart, the nation's largest retailer, has 17 stores anddistribution centers with solar panels in operation or in thetesting phase.

Depending on location and weather, the solar panels can generatebetween 10 percent and 40 percent of the store's power needs.

Troop influx drives openings

Fountain is preparing for the arrival of 5,000 new troops at FortCarson during 2009 and retailers are booking locations.

Ent Federal Credit Union, Little Caesar's Pizza and Papa Murphy'sbroke ground this week in the Markets at Mesa Ridge shopping center,which is near the intersection of Mesa Ridge Parkway and FountainMesa Road, about a five-minute drive from Fort Carson's Gate 20.

'The Fountain Valley is a market unto its own trade area,'Fountain Economic Development Director Lisa Cochrun said. 'Peoplechose to live here because they want to avoid going north. The small-town atmosphere attracts them. Because we share two gates with FortCarson, we expect retail to boom as Fort Carson expands. It shouldbe a highlight in an otherwise gloomy economy.'

Commute-time analysis shows new troops are most likely to locatenear the post, Cochrun said.

New apartment buildings and housing developments are planned, andthe Interstate 25 interchange and bridge at Exit 132 is developingfaster than expected, Cochrun said.

'What our studies show is a sustainable demand for electronics,clothing, casual sit-down name brand restaurants, recreation andamusement centers, medical services, sporting goods, hobby stores, amovie theater ... all things families want close to home,' she said.

July chain-store sales up

Chain stores are still showing a slight increase in sales despitea supposed lack of American discretionary spending.

Sales increased 2.6 percent compared to July 2007, according tothe International Council of Shopping Centers.

June's sales increased at nearly double that rate, at 4.2percent, but July's performance was in line with the 2.5 percentaverage monthly year-over-year growth rate trend.

Goodwill opening 14th donation center in Colorado Springs - Colorado Springs Business Journal

Goodwill is opening a new drive-through donation center April 30at its administrative campus, 1460 Garden of the Gods Road.

The center will be open from 7 a.m to 5 p.m. Monday throughSaturday and from 9 a.m. to 5 p.m. Sunday.

Donations of clothing, shoes, housewares, furniture, appliances,sporting goods, computers and electronics, books and other items arewelcomed at the center. Items are tax deductible.

The donation center is the organization's 14th attended donationfacility in southern and western Colorado. There are eight locationsin Colorado Springs.

Colorado Springs Retail Briefs: November 21, 2008 - Colorado Springs Business Journal

Flavors on Tejon, a breakfast and lunch restaurant that opened at321 N. Tejon St. during May, will expand its operation to includedinner on Friday and Saturday nights beginning Dec 12.

The restaurant's owners also are hoping to obtain a liquorlicense during the coming months.

'We're six months in and doing real well,' said Joe Ierisi.'Given the current economy we're feeling grateful.'

A 35-year restaurant veteran, Ierisi owned a similar restaurantin Fort Collins for 20 years.

Flavors on Tejon is an upscale breakfast and lunch eatery, butIerisi said he anticipated opening the restaurant for dinner onFridays and Saturdays even upon the restaurant's May opening.

'There is a lot of activity going on downtown here on Friday andSaturday nights,' Ierisi said. 'We're going to run our regular menuand once we get our liquor license people will be able to buyeverything from eggs Benedict and a cup of coffee to a burger and abeer.'

Army orders mountain boots

Danner, a subsidiary of LaCrosse Footwear Inc., has received a $2million order from the Army for Combat Hiker boots for deliveryduring the first quarter of 2009.

The company has been working with the Army to develop and testfootwear for harsh mountain terrain.

The boot is a full-grain leather with a Vibram soul, created fortraveling over uneven terrain while carrying heavy loads. Itincludes a breathable Gore-Tex lining and rubber to protect againstabrasion and damage.

The boot is shorter than standard-issue military boots and isexpected to provide greater mobility during steep ascents anddescents.

Production will take place at the company's manufacturingfacility in Portland, Ore.

October slump confirmed

The Commerce Department reported that U.S. retail sales forOctober fell 2.8 percent compared to September and 4.1 percentcompared to October 2007.

Automobile dealers were hit hardest, as sales fell 6.2 percent.Furniture, electronics and appliance stores dropped more than 2percent, while sporting goods and clothing stores felt the pinch toa lesser extent.

In response, retailers, fearing a decline in sales for the all-important holiday shopping season, have adjusted the way they dobusiness. Some have responded by loosening return policies, whileothers have brought back layaway plans.

According to the National Retail Federation, more than half ofretailers say their holiday return policies will be more lenientthan their policy for the rest of the year. Common changes includeextending the amount of time for returns to be made and also beingmore flexible to customers without a receipt.

After seeing a strong response from customers at its Kmartlocations, Sears Holdings Corp. is bringing back the layaway optionat its Sears stores.

Nike pulls SportBand

Citing faulty displays, Nike Inc. is pulling one of its populartraining devices from the market just prior to the holiday shoppingseason.

The company is conducting a voluntary recall of its NikeSportBand, which uses sensors in an armband and shoe to trackrunner's workout progress.

It seems a faulty seal in the arm band is the culprit. Moistureseeps into the display and interferes with its ability to downloaddata from Nike's online training site.

Colorado Springs Retail Briefs: June 20, 2008 - Colorado Springs Business Journal

Retail shipping service owners have found that offering U.S.Postal Service products and services makes good business sense andpays dividends.

Since its inception two years ago, more than 2,000 retailshipping service operators have surpassed $40 million in sales byparticipating in the Postal Service's Approved Shipper program.

'The Approved Shipper Program enables the Postal Service tobecome more competitive in the retail package market while providingour customers with alternate access to postal products andservices,' said Kathy Ainsworth, USPS retail vice president.'Retailers have the option of adding a surcharge while continuing tosell competitor products and services.'

Other benefits include the program's no-fee license agreement,free signs and other materials.

To offer postal products and services, retail shippers must:

Currently use a postage meter or PC Postage account.

Ensure physical security of the mail.

Properly display Postal Service signs.

Comply with aviation security and hazmat requirements.

Follow the Postal Service product guide for approved shippers.

Accept Click-N-Ship and other prepaid packages.

Obtain approval of the Postal Service's local district manager.

May sales boost industry

With a little help from Uncle Sam, consumers headed back to thestores during May. According to the National Retail Federation,retail industry sales (which exclude automobiles, gas stations, andrestaurants) jumped 3.8 percent unadjusted compared to last year and0.9 percent seasonally adjusted month-to-month.

May figures released by the U.S. Commerce Department show totalretail sales (which include non-general merchandise categories suchas autos, gasoline stations and restaurants) increased 1 percentseasonally adjusted from the previous month and 3 percent unadjustedyear-over-year.

'Thanks to the tax rebate checks consumers received last month,the economy got a nice shot in the arm,' said NRF Chief EconomistRosalind Wells. 'It's evident consumers are feeling a bit moreconfident about their expenditures, especially with both April andMay sales seeing positive increases in many sectors.'

As predicted in NRF's tax rebate consumer spending surveys, mostshoppers hit discounters and grocery stores, stocking up onnecessity items.

Sales at grocery stores increased 0.6 percent seasonally adjustedfrom April and 8.5 percent unadjusted year-over-year. Generalmerchandise stores sales increased 1.2 percent seasonally adjustedmonth-to-month and 7.4 percent unadjusted compared to last year.

While many consumers focused on groceries and other necessaryitems, some did splurge. Sales at electronic and appliance storesincreased 0.7 percent seasonally adjusted month-to-month and a solid4.4 percent unadjusted year-over-year. Clothing and clothingaccessory stores sales increased 0.5 percent seasonally adjustedfrom April and 2.4 percent unadjusted compared to last May.

Sporting goods, book and hobby merchandise also benefited, withsales last month increasing 0.7 percent seasonally adjusted month-to-month and 4.4 percent unadjusted year-over-year.

Health and personal care stores sales also were a bright spot,with sales increasing 0.8 percent seasonally adjusted from lastmonth and 4.9 percent unadjusted year-over-year.

2nd Whole Foods location

Whole Foods Market has opened a second location in ColoradoSprings, at First & Main Town Center in the former site of WildOats.

'We've made mammoth changes to the store ... shoppers will seejust how much more than just the name has changed,' said LeonardChabiel, store team leader at 3180 New Center Point on PowersBoulevard. 'The difference is tangible.'

Gas prices affecting Fourth

With the rise in gas prices, consumers are thinking twice abouttheir July 4th plans.

According to the National Retail Federation's 2008 IndependenceDay Consumer Intentions and Actions survey, conducted byBIGresearch, 59.4 percent of consumers say increased gas prices willimpact their spending for the holiday, up from 42.1 percent ofconsumers last year.

Additionally, almost 200 million Americans (87.8 percent) believethat gas will cost more by the Fourth of July than it does now.Consumers expect that the average price of gas nationwide will be$4.39 per gallon on July 4.

Colorado Springs Retail Briefs: September 12, 2008 - Colorado Springs Business Journal

Steve and Barry's, which operates a two-level 60,000-square-footstore in The Citadel mall, was recently purchased out of bankruptcyby B.H. S&B Holdings, a newly formed affiliate of investment firmsBay Harbour Management and York Capital Management.

Upon the purchase, B.H. S&B Holdings announced it would close 106of the 276 Steve and Barry's stores nationwide.

The Colorado Springs location at The Citadel and a store inWestminster will remain open, while stores in Pueblo, Littleton andLongmont will be closed.

Steve and Barry's would not comment about how it decided whichstores to close.

Work from home networking

Running a business or working from home can be an isolatingexperience.

So, two people have created a worldwide network called 'Jelly,'which hopes to offer some of the advantages that stay-at-homeworkers miss.

Launched by Amit Gupta and Luke Crawford during 2006 in New YorkCity, Jelly allows at-home workers to meet at coffee shops orrestaurants for brainstorming, collaboration and coworkercamaraderie.

Locally, a Jelly group meets at Summit House Coffee, 12225Voyager Parkway, Suite 3. The Summit House offers tables, chairs,sofas and wireless Internet. Participants meet from 11 a.m. to 2p.m. the second and fourth Monday of each month.

To find other Jelly meetings, visit wiki.workatjelly.com

Foot Locker most recognized

The Foot Locker retail brand is the most recognizable of allsports or outdoor retail brands in the United States, according to aSportsOneSource survey.

The survey, 'How America Shops,' found that 89 percent of allrespondents were aware of the Foot Locker brand name.

Dick's Sporting goods was second with 72 percent and SportsAuthority third with 70 percent.

Foot Locker was dominant across all genders, economic groups,ages and regions.

Sector hemorrhaging jobs

Retail employment shrunk by more than 19,000 jobs nationwideduring August, according to the U.S. Bureau of Labor Statistics.

Motor vehicle and parts dealers shed the highest numbers,followed by food and beverage stores.

The report comes on the heels of recent bankruptcy filings bySteve and Barry's, Mervyns, Sharper Image and Linens 'N Things.

Anti-drinking campaign

Pocket Shot, the maker of single-serve, flexible-flask alcoholproducts, has launched an aggressive anti-drinking campaign targetedat young people.

The company has come under scrutiny from Mothers Against DrunkDriving, which contends the product is meant to conceal alcohol andonly serves to worsen the under-age drinking problem.

The Pocket Shot was created by Jarrold Bachman of Denver, whodeveloped the idea of the flexible flask, a 50 milliliter, three-layer clear pouch, which is intended to combine the appeal of atraditional airplane, shot-sized bottle with the benefits offlexible packaging.

Renovation gives second life to Mission Trace Center in south Colorado Springs - Colorado Springs Business Journal

Academy Boulevard got a welcome boost in the 1980s when theMission Trace Shopping Center opened.

For the first 15 years or so, the 289,000-square-foot retailcenter, featuring the area's first bank, Kentucky Fried Chicken, DosHombres Restaurant and busy King Soopers, attracted thousands ofshoppers daily.

It soon became the place to shop in south Colorado Springs.

Then, in 2003, the supermarket, which had been the center'sanchor, moved to a competing center across the street. Shoppertraffic immediately declined. The center's smaller mom-and-pops,ethnic restaurants and services like dry cleaners and shoe repairbusinesses saw customers move on to trendier or busier centers tothe north and east.

The situation wasn't helped by deteriorating conditions along theentire Academy Boulevard corridor. Mission Trace was left behind,forgotten. Vacancies rose to more than 70 percent and, in 2006, theproperty fell into foreclosure.

The situation was so bad that in 2009 Mayor Lionel Riveraidentified the center as a target for the city's Academy Boulevardredevelopment efforts. The city's planning department today is inthe midst of a Great Streets Academy Boulevard transportation studydesigned to identify the need for federal funding to revitalize thearea.

But Mission Trace Shopping Center's owners didn't have time towait.

Over the past two years, they've spruced up the place and filledit with tenants. Shoppers are once again returning to Mission Trace,offering one of the few examples of a retail turnaround at a timewhen the economy is only beginning to recover.

The center's rebirth has been led Matt Craddock of CraddockCommercial Real Estate.

Craddock acquired a note on 180,000 square feet of the center'sreal estate in 2006 for $4 million.

He gave the retail hub a million-dollar facelift in 2008 and2009. Today it is home to 32 businesses and nonprofit organizations.

Occupancy is better than 95 percent.

Regulars frequent its dozen or so bars and restaurants, use itspack-and-ship store or chiropractic services, shop its ethnicboutiques or do their banking at the center's Key Bank branch.

Hundreds of cars fill parking spaces near the Gloria de Scion andAll Peoples Praise Center each Sunday -- or drop off students at theHope Online K-12 charter school.

The Alternative Source, an auto accessory, stereo and electronicsstore that moved its operation to another shopping center just amile away, has returned.

One of Craddock's proudest achievements was working with the cityto sign USA Discounters -- a large national military-focused retailchain -- to a 50,000-square-foot lease in 2009.

'We were in competition with at least four other sites,' he said.

So far the store's business is not only meeting, but is exceedingprojections, said store manager Homer Haley.

'We're happy to be near our best customers,' he said of thestore's growing Fort Carson population.

Re-inventing and revitalizing

Craddock attributes the center's transformation to finding themarket's sweet spot and to collaborative partners.

Mission Trace's rents are among the most affordable in town.

Two spaces currently advertised on the company's website quotelease rates of $6 to $7 per square foot. That's well under the$10.63-per-square-foot average rent quoted by Turner Commercial RealEstate for comparable space in southeast Colorado Springs.

Another key factor in the center's progress came right beforeCraddock purchased the property in 2006.

At that time Key Bank Community Development banker Andrew Romerohad just been assigned the job of finding a developer to work withon redeveloping the struggling shopping center. At that point, thecenter was 50 percent vacant.

Key Bank branch manager Lisa Baird mentioned that the Craddockswere interested in buying the property to Romero.

Five years later, not only has Key Bank financed much of the $1million or more needed to remodel the center's facades andlandscaping, but has partnered with Craddock on other projects.

'I think our partnership gave Matt confidence that he had alender who would stay with him. Five years later and look what he'sbeen able to accomplish,' Romero said.

'Their mission fit with ours. It's worked out very well.'

Tenant mix thrives on diverse stores, shoppers

But even a well-financed retail center won't make it withoutsuccessful tenants.

While Mission Trace has not yet attracted key 'junior anchors' --5,000- to- 20,000-square-foot national retail operators like Ross,Dick's Sporting Goods or Payless Shoes -- it is home to some locallyowned shops that are doing alright.

2 Dog Tavern owner Bonnie Allen opened her business in 2007, justas the recession took hold.

Allen credits Craddock with providing the support necessary forher start-up neighborhood bar to grow.

'He's worked with us on the rent and on fixing this place up.Another tenant referred us. He's been great,' she said.

Two doors down, 'It's All Good Soul Food' is preparing to openOct. 1. The cafe, which wil serve collard greens, fried catfish,ribs, black-eyed peas and other Southern favorites, had closed acouple of years before. Owners Gregory and Cheryl Barnes moved on,starting a church, Spoken Word International Ministries, nearby.

The re-opening of the soul food restaurant is designed togenerate cash flow, not only for the entrepreneurs but for theirministry.

Craddock said he has used 'every bit of creativity I have' tocome up with ways to fill Mission Trace.

One of his brainstorms was to create a 'church mall.' Not onlyhave three churches so far leased space in a once-vacant 50,000-square-foot building, but all seem to be thriving.

That's where Gloria de Scion, a Spanish-speaking ministry and theAll Peoples Praise Center are located. Gloria de Scion serves as afood bank on Mondays, providing food boxes for up to 50 families aweek and counts a congregation of about 400.

On another side of the center, Ace Morrison is the generalmanager of Creative Design of New York. The boutique shop carriesdesigner handbags and shoes, athletic shoes, artwork and portraitsof well-known performers and sells a few electronics and CDs. In theback of the store is a single-chair barber shop.

Fort Carson soldier Tony Periman stopped by for a haircut lastweek.

'A lot of guys from Fort Carson come here. Some shop for theirgirlfriends. It's a cool place,' he said.

Where from here

While it might be tempting to fill up the center's remainingspaces with tattoo parlors and a marijuana dispensary, Craddock'snot interested.

'I've got to look out for my tenants and they want a safe, family-friendly environment,' he said.

There's one big challenge remaining for him: an empty spaceamounting to 52,000 square feet once occupied by that King Soopers.

The building's Denver-based owner also owns a competing shoppingcenter across the street that attracted Kings Soopers away.

'The (owner) just hasn't been motivated,' Craddock said. 'I'vetried to talk to him, but got nowhere -- but I've heard he'sstarting to get serious about selling.'

Craddock believes that the empty building would make an idealbowling alley or sporting goods store.

That's now a more realistic hope than it would have been fiveyears ago.

80916 demographics

Population: 60,000-64,000 residents

Average 2008 household income: $49,328

Average 2008 household income citywide: $56, 993

Households below the poverty level: 15.6 percent

Colorado households below the poverty level: 11.4 percent

Median 2008 house or condo value: $158,375

Median 2008 house or condo value statewide: $242,000

Colorado Springs Retail Briefs: March 30, 2007 - Colorado Springs Business Journal

After a long, cold winter, consumers are eager to shop thisEaster, according to the National Retail Federation's 2007 EasterConsumer Intentions and Actions Survey.

This year, shoppers who plan to celebrate Easter (79.5 percent)are expected to spend an average of $135.07, up 11 percent from lastyear's $121.72 per person. Total holiday spending is expected toreach $14.37 billion.

Spending is likely to increase across the board, with the averageshopper planning to invest the most for a spring outfit ($26.03) andfood for an Easter meal ($37.56). Other popular Easter purchasesinclude candy ($18.53), gifts ($20.61), flowers ($9.63) anddecorations ($7.63).

'Easter is a critical time for apparel retailers,' said NRFPresident and CEO Tracy Mullin. 'Retailers will be looking to thewarmer weather to help stimulate the sale of spring apparel.'

Department stores will be a popular shopping destination, with 22percent more consumers planning to shop there this year than lastyear (36.8 percent vs. 30 percent). Other popular shopping optionsfor Easter include specialty clothing stores (26.7 percent),specialty stores (23.7 percent), online (12.7 percent) and catalog(5.6 percent). Although discount stores will see the most traffic,they won't see as much as last year (57.2 vs. 59.6 percent).

Shoppers between the ages of 25 and 34 will spend the most perperson this year ($147.47). Coming in second is the 45 to 54 agegroup ($144.13), followed by 35- to 44-year-olds ($139.36) and 18- to24-year-olds ($137.30).

Borders changes focus

For the past six years, Borders Group has made it a priority toexpand its brick and mortar stores, ignoring the increasing trendtoward online book and music sales, according to the InternationalCouncil of Shopping Centers.

The retailer is now changing course, having announced it willcreate a Web site and will halt store expansion plans. It also saidit plans to close up to half its 564 Waldenbooks stores and sell orfranchise its 73 overseas stores by the end of 2008.

The book retailer operates 499 Borders stores in the UnitedStates.

The company also plans to unveil a revamped design for its coreBorders stores, which will include 'digital centers' that provideinformation and products for digital entertainment such as e-booksand MP3 players.

The company is forming an e-commerce division after pulling out ofa deal it made in 2001 to sell its merchandise through Amazon.com.

Borders recorded a net loss of $151.3 million in 2006, compared toa net profit of $101 million in 2005. For 2006, total sales increased1.5 percent to $2.75 billion. For the fourth quarter, same-storesales decreased 2.8 percent. For the year, they decreased 2.2percent.

Souper Salad buys Grandy's

Souper Salad Inc., the 87-unit buffet restaurant chain, hasacquired most of the assets of 72-unit Grandy's Inc. from SpectrumRestaurant Group.

Terms of the deal, which was part of a bankruptcy court auction,were not disclosed. However, Souper Salad said it was acquiring onecompany-owned restaurant, four units managed by Grandy's andfranchise agreements to 67 stores.

Souper Salad has units in 12 states, including Arizona, Coloradoand Texas.

In August, Spectrum Restaurant Group of Irvine, Calif., filed itssecond Chapter 11 bankruptcy reorganization in three years.

In 2005, Grandy's reported systemwide sales of $60.1 million.

International retailer sold

Claire's Stores Inc., a specialty retailer offering costumejewelry and accessories, has entered into a definitive agreement tobe acquired by an affiliate of Apollo Management L.P., a New York-based private equity firm.

Under the terms of the agreement, Claire's Stores Inc.shareholders will receive $33 for each share of common stock or ClassA common stock that they hold, which represents a transaction valueof about $3.1 billion.

Claire's co-chairwomen and co-CEO's Bonnie Schaefer and MarlaSchaefer, who own a significant percentage of the voting power of theequity of Claire's Stores Inc., entered into a separate agreement tovote their shares in favor of the merger.

Completion of the transaction is subject to customary closingconditions, including regulatory review and the approval of thetransaction by Claire's Stores Inc.'s shareholders.

Dick's, Zumiez going strong

According to Forbes, Dick's Sporting Goods and Zumiez have provento be contenders in the sports apparel and equipment retail business.

The Everett, Wash.-based Zumiez, a sports apparel and equipmentretailer, said that it expects to post a fiscal 2007 profit abovecurrent Wall Street predictions.

Zumiez expects to post a profit of 94 cents to 96 cents per sharefor the year. Analysts polled by Thomson Financial predicted a profitof 92 cents per share. The company earned 73 cents per share in 2006.

Dick's said it expects earnings and same-store sales growth duringthe first quarter and full year.