2004 Corporate Sponsors Adolfson & Peterson Construction The Avalon Group Benson-Orth Associates, Inc. Bremer Bank, N.A. Brookfield Properties (US) LLC news The Business Journal Cambridge Commercial Realty CB Richard Ellis Volume 18, Number 10 October 2004 The Collyard Group Commercial Partners Title, LLC Construction 70, Inc. CSM Corporation FeatureWal-Mart: Turning Its Surplus Cuningham Group Architecture, P.A. Dalbec Roofing Exeter Realty Company Real Estate Into A Profit Center Faegre & Benson LLP General Growth Properties, Inc. by Lisa Diehl, McDonald’s Corporation Glimcher Properties/Northtown Mall Gray Plant Mooty or the last 15 years, the Wal-Mart Realty older discount stores sit on 10 to 12 acres. Great Clips, Inc. Company division of Wal-Mart Stores, Wal-Mart often buys more land than necessary H.J. Development, LLP FInc. has quietly become a major player and sells off the surplus pads to retailers or Heitman Financial Services LLC in the retail real estate industry, both by selling developers. Today, much of the excess real J.L. Sullivan Construction, Inc. off excess retail pads next to its newly estate is being created due to the aggressive Jones Lang LaSalle developed stores and by disposing of older growth of Wal-Mart’s Supercenter concept. KKE Architects, Inc. stores vacated when Supercenters are built. The Bentonville, Arkansas retailer has built an Kraus-Anderson Companies Wal-Mart, not only the largest retailer, but also aggressive, in-house real estate division that LandAmerica Commonwealth one of the largest owners of real estate, has handles their excess property dispositions. Landform made it clear that they want to be in control of And, by integrating the process, it keeps Larkin, Hoffman, Daly & Lindgren, Ltd. their surrounding competitors in the marketplace. greater control of the expenses and the profits. LaSalle Bank M & I Bank A typical Wal-Mart site for a Supercenter Currently, on the Wal-Mart website there are Madison Marquette requires 20 acres of land, while most of their Wal-Mart continued on page 2 m The Marshall Group Messerli & Kramer, P.A. Midwest Maintenance & Mechanical, Inc. Minnesota Roadways North American Properties, Inc. Snapshot NorthMarq Capital, Inc. Andover Clocktower Commons Oppidan, Inc. Opus Northwest LLC Location: NE corner of Hanson Road and Park Midwest Commercial Real Estate Crosstown Boulevard in Andover, Minnesota Paster Enterprises, LLC Opening: Spring/Summer 2005 Reliance Development Company, LLP RLK-Kuusisto Ltd. Owner/Developer: Andover Clocktower Robert Muir Company Commons LLC Robins, Kaplan, Miller & Ciresi LLP Ridgedale Center Leasing Agent: Tedd Schuster, Madison RSM McGladrey, Inc. Marquette Realty Services (952) 852-5154 RSP Architects Architect: Landform Additional Facts: Andover Clocktower Ryan Companies US, Inc. Commons will be located directly across SuperValu Inc. GLA: 62,780 sf (39,280 sf retail/restaurant, Hanson Boulevard from the new Andover Target Corporation 18,000 sf office, 5,500 sf gas/convenience) Civic Center, City Hall, YMCA Community TCF National Bank Minnesota Number of Stores: 9 - 13 Center, featuring an ice arena, fieldhouse, Towle Financial Services business center and aquatics park, and within United Properties Anchor Tenants: Conoco Gas/Convenience, one mile of the Andover High School. Traffic U.S. Bank National Fast Food Restaurant counts combined at Hanson Boulevard and Venture Mortgage Corporation Construction Style: Two types of brick, Crosstown are 20,000+ cars per day and Weis Builders, Inc. natural stone veneer, EIFS and standing seam continues to increase significantly. Current Wells Fargo Bank, N.A. metal roofing population is estimated at 30,000 with an Welsh Companies, LLC average household income of $91,519 within Westwood Professional Services 3 miles. Witcher Construction Company WAL-MART continued leaves behind more space than other big- box users. Wal-Mart is very upfront about Join A 2005 MSCA 375 buildings for lease or sale and about not wanting anyone in their former Committee! 350 parcels of land. Last year, the division buildings with a competing use. They will The greatest benefit of MSCA sold 240 outparcels and 70 buildings. sit with a vacant building rather than budge membership is the opportunity to Earlier this year, Sears, Roebuck & on letting a competitor in it, continuing to participate on a committee. All MSCA Company bought seven Wal-Mart stores pay real estate taxes and expenses until the Committees are recruiting new made obsolete by nearby Supercenters. properties are sold. Some creative uses for former Wal-Mart facilities have included a committee members for 2005. If you It is not uncommon for big-box retailers to Mercedes-Benz dealership, bingo hall, have never been on a committee, or if wind up with more land than needed for a church, pharmaceutical lab, call center, you have not been active for the past new site. Retailers will self-develop, but office-furniture manufacturer and health few years, please consider joining one work closely with developers and brokers. service facility. of the committees listed below. Retailers are working with a proto-type building, which may result in having excess Communities are getting more aggressive As a committee member, you will property. Wal-Mart also purchases excess about trying to discourage big box retailers meet key members of the association, land to protect the development around the from leaving older sites empty as they expand your networking circle, you store from establishments such as bars, move to newer or larger sites. Some cities will help shape how the association pawnshops or competitors. If they need 20 have passed ordinances that limit the size affects the overall membership and the acres and the potential site is larger, the size of new stores, thus making it less attractive retail real estate industry as a whole. does not dissuade them. Wal-Mart, with a to build a new store and abandon the old Time commitment varies by lower cost of capital than most developers, one. Certain towns prohibit building committee, with monthly, bi-monthly has found this excess to be very lucrative. owners from closing stores before the space or quarterly meetings. Some require has attracted a new tenant or plans are in By incorporating a big part of its real year-round participation, while others place for the structure to be demolished. estate operations, Wal-Mart is able to are partial year obligations leading up control both its environment and costs, Generally, other big box retailers have not to an annual event. entered the excess real estate business in squeeze added profit from its deals, and Awards, Community Enhancement, order to make it a profit like Wal-Mart has carefully select their neighbors. Much of Golf, Legislative, Marketing, done. Other retailers may purchase additional the excess property ends up in the hands of Membership, Newsletter, Program, fast-food franchises, which are high-traffic land in order to enter a market, a way to get Research, Sponsorship, and generators. Outparcels do not come cheap the size of property they require, or the seller Technology for these buyers, and Wal-Mart has been requires the entire area to be purchased. meeting or exceeding the market rates. For example, Target is using outside Call (952) 888-3491 to get involved! representatives from CB Richard Ellis and Wal-Mart places a special emphasis on Staubach to handle their excess land. their website, which has helped move 2004 Retail Report Releases excess property. Once a deal is closed and From all indications, Wal-Mart’s rapid the excess determined, it is listed on the growth is not going to slow, and their on November 6 web page. According to Wal-Mart, many formula for buying larger parcels with The annual 2004 Retail Real Estate dispositions are handled in-house, but excess property “for profit” will continue. report will be released at the MSCA about 70% are listed with brokers. The company will find challenges along November 3rd afternoon program. Consistent with the way Wal-Mart handles the way with some communities trying to everything, they want to do as much of the avoid vacant big box eyesores left behind The 2004 report includes information transaction as possible in-house, and pay until the real estate is sold, redeveloped or on the Twin Cities retail market as little as possible. Their transaction re-tenanted. With Wal-Mart’s in-house universe for centers greater than volume enables them to cap the broker fees. aggressive real estate division, they will 30,000 square feet, which is comprised surely devise creative solutions to these of 402 properties totaling 57,004,100 Around the world, estimates show that arising challenges. Watch Wal-Mart to see square feet. Wal-Mart plans to add approximately 50 how they tackle these issues. million square feet of retail space this year. The report covers industry In Minnesota currently, Wal-Mart has nine www.wal-martrealty.com opportunities and challenges, current pieces of land available in Albert Lea, market trends, vacancy rates, rental Marshall, Inver Grove Heights and rates, CAM expenses and real estate Woodbury and six buildings throughout Search Me taxes, as well as a thorough description Minnesota. There are a total of 82 land Exercise your civic rights by registering of the major developments, expansions sites available in the Midwest area. to vote at www.declareyourself.com or and updates that have occurred in the www.yourvotematters.org. Both sites past year. The report is accompanied Retailers including Target Corporation, also let you update your address or Kmart Holding Corporation and Home party affiliation, get an absentee ballot by an appendix of data from over Depot, Inc. all have vacated big-box and find your polling place. You can 450 properties throughout the state locations across the country. Wal-Mart, also read candidates’ bios to cast an of Minnesota. informed vote. because of its fast expansion, generally msca news 2004 2 www.msca-online.com MarketDuluth Update by Terry R. Smith, TRS Commercial Real Estate, Inc.

uluth, located 150 miles north of the According to John Johannson of Welsh Twin Cities, has a city population of Companies, LLC, a usable 4 - 5 acre vacant land 86,044 and serves a retail population parcel is working its way through Duluth’s D 2004 LEADERSHIP area of more than 250,000. The northwest end rezoning process. Located on the SE corner of OFFICERS of Duluth abutting Hermantown is considered Highway 194 (Central Entrance) and Highway President the retail focal point of northern Minnesota. 53 (Trinity Road), the property is planned for Michael Sims, United Properties additional retail development adjacent to the 1st Vice President Miller Hill Mall, the enclosed regional mall built in Peter Austin, Welsh Companies, LLC opened, freestanding Home Depot. 1973 and renovated in 1987, continues to anchor 2nd Vice President a large retail area that has prospered because of Downtown Duluth continues to be the service, Paul Sevenich, CCIM, Kraus-Anderson Co. Treasurer strong sales. Additional retail growth has been tourist, government, medical, entertainment and Kenneth Vinje, SCSM, Kraus-Anderson Co. hampered due to the area’s rocky topography, a educational venue and has recently completed a Secretary lack of undeveloped, zoned buildable land, and a revitalization of the area along the shore of Lake Sara Stafford, KKE Architects, Inc. congested street and highway system. Superior. At the West End of Duluth the Big K DIRECTORS retail center is adding a Dollar Tree store. Wendy Aaserud, Madison Marquette New tenants to open in the Miller Hill Mall in Brett Christofferson, Weis Builders, Inc. 2004 include Caribou Coffee, Zumiez, Twig Superior, Wisconsin, located directly southeast Lisa Diehl, McDonald’s Corporation Gary Jackson Bakery, Motherhood Maternity and Great of Duluth across Lake Superior, has Wal-Mart Kevin Krolczyk, Dalbec Roofing, Inc. American Grill. Departing tenants include relocating to a Supercenter, which is under Bob Lucius, RSP Architects Ltd. Fanny Farmer and KB Toys. Soon to arrive are construction adjacent to the existing Wal-Mart. Mary Wawro, Ryan Companies US, Inc. the St. Louis County DMV Office and Qwest. The Dollar Store has opened in a former COMMITTEE CO-CHAIRS OfficeMax and Mariner Mall has been temporarily Awards In the surrounding area, Burning Tree Shopping Brett Christofferson, Weis Builders, Inc. negatively affected by major road construction. Ronn Thomas, United Properties Center is expanding to add a David’s Bridal. Community Enhancement Wendy Aaserud, Madison Marquette Elizabeth Lee, The Wall Companies Golf Matt Alexander, Contractor Property Developers Co. Chris Hussman, Aspen Waste Systems, Inc. Press releases are printed based upon availability October Legislative of space and relevance to the local market. Member News Howard Paster, Paster Enterprises Todd Johnson, Steiner Development, Inc. Griffin Reps Beauty First was recently sold by North American Properties Marketing Peter Austin, Welsh Companies, LLC Beauty First, a unique beauty and spa products to Inland Hastings Marketplace, LLC. Kelly Slawson, RSM McGladrey, Inc. store, has selected Griffin Companies to Kat Bramhall Membership represent them in their expansion in the Kevin Krolczyk, Dalbec Roofing, Inc. Kathleen “Kat” Pemble Bramhall, one of the Nick Reynolds, Welsh Companies, LLC Minneapolis and St. Paul metro area. Beauty partners of Base Real Estate Services, Inc., Newsletter First currently operates one store at Tamarack Lisa Diehl, McDonald’s Corporation passed away on September 18, 2004. Kat made Betty Ewens, Kraus-Anderson Co. Village in Woodbury and is seeking an a name for herself in the industry and was additional six locations in the Twin Cities over Program respected by those that worked with her. Kat’s Tony Pasko, Bremer Bank the next two years. father was Clyde Pemble, a successful real Peter Berrie, Faegre & Benson LLP estate professional. Research Itasca Funding Finances Pine Cone Janet Goossens, Kraus-Anderson Co. Itasca Funding Group, Inc. arranged non- Holly Rome, Jones Lang LaSalle Hallquist Named V.P. Sponsorship recourse permanent financing in the amount of Witcher Construction Company has hired Ned Rukavina, United Properties $8.2 million for a ten-year term and a 30-year Harlan Hallquist as Vice President of Marketing Bill McCrum, RSP Architects Ltd. amortization on the Pine Cone Marketplace Technology and Business Development. Additionally, he Paul Sevenich, CCIM, Kraus-Anderson Co. Shopping Center in Sartell, MN, a rapidly will assist with the company’s national Centers Cindy MacDonald, Kraus-Anderson Co. expanding community just to the north of of Excellence for healthcare, residential, MSCA STAFF St. Cloud, MN. Pine Cone Marketplace is an Executive Director - Karla Keller Torp education, gaming and retail markets. (P) 952-888-3490 (C) 952-292-2414 87,000 sf retail center anchored by a 62,000 sf [email protected] Coborn’s grocery store. Gander Mountain On The Move Associate Director - Stephanie Salo Gander Mountain recently announced that it (P) 952-888-3491 (C) 952-292-2416 NAP Sells Hastings Marketplace [email protected] will vacate the space across from Miller Hill 8120 Penn Avenue South, Suite 555 Hastings Marketplace in Hastings, Minnesota Mall and move to Hermantown. Bloomington, MN 55431 (F) 952-888-0000 msca news 2004 3 www.msca-online.com RetailerRegis Corporation Profile by Anita D. Johnson, AJ Commercial Real Estate, Inc.

he original salon was named Kunin signing leases with corporate guarantees Beauty Salon and was opened in on several hundred new real estate T1922 by Paul and Florence Kunin. locations. Their success can be attributed The salon quickly expanded into a value- to a solid real estate strategy, which priced chain; in 1958 their son Myron includes choosing ideal locations, national bought the chain and changed it to Regis. tenant status, a reputation as a credit- As of June 30, 2004, Regis Corporation worthy, dependable tenant, and a strong operates or franchises 10,162 salons, and predictable cash flow. They have which can be found worldwide under the excellent stylist education and training names of Regis Salons, MasterCuts, Trade programs and distinct salon concepts that Secret, Supercuts and Cost Cutters. Not appeal to the large and stable middle market. once in their 82-year history has there been Depending on the concept, the sites are a same-store sales decrease. between 800 and 2,000 square feet. Regis The variety of salon concepts provides hair Corporation seeks easy-access sites with care for value-conscious families, upbeat high visibility and traffic, typically in salons for the cool classic looks and neighborhood, community, and power appeals to the younger trendier crowds centers, preferably with grocery or discount with the “street chic” styles. They know mass merchant anchors (i.e. Target, how to deliver high sales per square foot Wal-Mart). Lease terms are five to ten and bring back loyal customers to Regis plans to continue its growth, adding years with one or two 5-year options. shopping center locations. approximately 1,000 salons annually and www.regiscorp.com

Consumers Not Easily Spooked by Economy

It’s time to start looking ahead towards that ghoulish holiday celebration known as Halloween. With nearly $7 billion in sales, Halloween is the second largest retail holiday in America. :HRIIHUOHDNUHSDLUVHYHQ Although never easy to predict, there are some solid factors that ZKHQLW¶VUDLQLQJ2XUKRXUO\UDWH seem to reliably determine and influence the success of the LVSHUPDQKRXUDQGIRU October holiday. The market for Halloween products is expanding \RXUWRXJKHVWOHDNVZHRIIHU and becoming more mainstream. Retailers such as Target and LQIUDUHGVFDQQLQJ&DOOXVWRGD\ Wal-Mart make it easier for consumers to get the products they IRUPRUHLQIRUPDWLRQ want through these standard non-specialized retailers. One trend that seems to be spurring the growth of the Halloween market is the growing adult involvement in the holiday. Many 2YHU6T)W,QVWDOOHG merchants feel this primarily through a rise in demand and sales of adult sized and themed costumes, such as satiric political figures, ,Q%XVLQHVV6LQFH especially since 2004 is a presidential election year. Last year the average household was anticipated to spend about $ZDUGV:RQIRU2XU:RUNPDQVKLS $42.00 on Halloween candy, costumes, and decorations. This :DUUDQWLHVXSWR

Candy Consumption Per capita consumption of candy by Americans is believed to be 24 pounds and a large portion of that is consumed by kids on and during the days immediately following Halloween.

msca news 2004 4 www.msca-online.com ProgramRetail Real Estate Recap Forum by Elizabeth (Betty) Ewens, Kraus-Anderson Companies

he joint MSCA/ICSC Minnesota to retire with a major hiccup in the and North Central States Retail Real economy on the last years of his watch. TEstate Forum started out with a real For more information, visit “bang” from the shotgun start of the golf www.drsohn.com. tournament! The mild temperatures, balmy The day continued with two sets of round- breezes and oh-so green fairways added up table discussion opportunities. Topics ranged to a great day, followed by a networking from “Active Retailers and Restaurants” to reception at Edina Country Club. “Security Emergency Preparedness,” with Wednesday morning we assembled to hear another twelve in between. keynote speaker, Dr. Sung Won Sohn, John D. Griffith, Senior Vice President of Executive Vice President and Chief Speaker Mike Wright featured with 2004 MSCA Property Development for Target President, Mike Sims Economic Officer for Wells Fargo Bank. Corporation, showed us how at Wal-Mart Dr. Sohn doesn’t disappoint, starting out we can save money, but at Target we can Worthy of note is the effect on many with his description of a “soft patch,” a save money and be cool! With their varied retail industries when supercenters period of softening we are currently in. “design democracy” we can have expand. The initial impact on the existing Jobs are critical he says, the most affordable goods with good design. Their retailers is to adapt or find themselves out important variable as to whether we spend goal? 2010 stores by the year 2010. of business. They must learn how to money. Also worthy of note, is the compete in the long run, Wright says. declining buying power in lower-end jobs. Mike Wright, Retired Chairman and Chief SUPERVALU considers itself well- Executive Officer of SUPERVALU, Inc., On his worry list are interest rates (how positioned for present and future brought us through the supermarket rapidly they will go up?), oil prices, stock competition as the seventh largest grocery industry’s amazing changes over the past headwinds and shrinking manufacturing company in the United States and the tenth twelve years. He explained the advent of jobs (as they are generally higher paying). largest food retailer. Wright left us with the supercenter phenomenon and the What keeps him up nights? Topics like some glimpses of the technology advances resulting major acquisitions the grocery potential dollar depreciation in other that the grocery industry plans to industry experienced in response. So far countries and the borrowing our country is implement in the future. the acquisitions haven’t necessarily doing daily. The good news? Things are improved the acquiring companies Kudos to the event planners for the best- likely to stay fairly stable for the next few positions measurably, he observed. ever Idea Exchange, in my opinion! years, considering Greenspan will not want

Strides in Snow Removal

It’s hard to believe that less than 100 years ago, snowplows were 2004 Shopping Center carts with a plow attached and pulled by a team of horses. It wasn’t until 1913 that operating motorized dump trucks and plows Tribute Awards for became the common practice. Retail Real Estate Snow removal equipment has been significantly impacted by SM advances in technological innovation, allowing for more precise, Year End Ceremonies * STARR Awards * Holiday Party efficient and cost-effective machinery that can be tailored to Tuesday, December 7th from 4 – 7 p.m. specific environments and situations. From pavement temperature Midland Hills Country Club sensors to Global Positioning Systems (GPS) and real-time video installations, machinery is now equipped to operate more quickly, Corporate Tables of 8 (limited number): $400 effectively and safely. Current technology has combined on-board Corporate Tables of 4 (limited number): $200 computer systems with vehicle hydraulic systems, making break- throughs for the spreading of de-icing agents in recent years. Individual Tickets: $60 in advance/$75 at door Ergonomic factors have proven especially relevant regarding the Watch for your invite in the mail! number of worker’s compensation injuries claimed within the industry each year. msca news 2004 5 www.msca-online.com CommitteeMembership Committee Profile

Pictured: Royanne Carper, Paster Enterprises Kevin Krolczyk, Dalbec Roofing Bill McCrum, RSP Architects Nick Reynolds, Welsh Companies, LLC Sam Smolley, The Business Journal

CARPER KROLCZYK MCCRUM REYNOLDS SMOLLEY Not Pictured: Bobby Jensen, Outdoor Environments, Inc. he Membership Committee, chaired exceeding the Membership Committee’s Jay Moore, Oppidan, Inc. by Kevin Krolczyk and Nick goal of 65 new members for 2004. TReynolds, is responsible for Membership benefits include valuable overseeing, promoting and expanding networking, continuing education credits, member (General Member) and $130 for membership for the organization. The legislative representation and access to each additional member (Affiliate Members) current membership is 630 members, information on what’s happening in the and $130 for Greater Minnesota/Outstate reflecting an 88% retention rate. In 2004, retail industry. MSCA’s 2005 membership memberships. 2005 Membership renewal MSCA welcomed 101 new members, rates will stay the same, $295 for the first forms and invoices will be mailed soon!

2004 Schedule of Events Our monthly program meeting date Member Profile is the first Wednesday of the month Bruce Carlson (with the exception December). All meetings will be held at 8:00 a.m. at Occupation: Hobbies: Touch football, NASCAR, and the Sheraton Bloomington Hotel unless Commercial campfires with friends and family otherwise noted or publicized before Developer the program. Program topics and Job History: 1983 Associate Producer, location are subject to change. Primary Career Channel 5 KSTP Good Company: Focus: Grocery- 1984-1999 Vice President, Real Estate November 3 (Afternoon) – Annual Anchored Retail for Video Update: Retail Real Estate Report Development 1999-present United Properties December 7 (Tuesday Evening) – Company: United Very First Job: Ticket taker at Year End Ceremonies/STARRSM Properties Metropolitan Stadium for Sims Security Awards/Holiday Party Title: Vice President, Retail Development Dream Job: NASCAR Driver 2005 Schedule of Events Hometown(s): Lakeville, MN Secret Talent: Catching a football January 5 – Finance & Investment Education: University of Minnesota – Favorite Food: Grilled Salmon Speech/Communication February 2 – Technology MSCA Involvement: Past Co-Chair of Family: Wife, Mary and Daughters, Program and Legislative Committees, March 2 – Legislative & Business Calista (14) and Makenzie (11) 2003 MSCA Board of Directors, Frequent Day at the Capitol Program Moderator Election Stats Bookmark In 1996, the percentage of eligible voters at the polls were 58%. In The Call of the Mall by retail anthropologist Paco Underhill. A follow-up to his 2000, the percentage increased to best-selling Why We Buy: The Science of Shopping. The book is an amusing and 60%, and for 2004 the figure is insightful portrait of contemporary mall retailing. expected to be just as strong. 111 million people voted in the 2000 Winning at Retail: Developing a Sustained Model for Retail Success by Willard presidential election. Latinos are Ander and Neil Stern. The well-respected retail consultants provide candid, projected to turn out in record practical advice for retailers on how to succeed in today’s competitive marketplace. numbers this year.

msca news 2004 6 www.msca-online.com AroundRetail Tidbits the Marketplace compiled by Tim Hilger, Diversified Acquisitions, Inc.

● General Growth Properties plans to ● Smith and Hawken has agreed to a deal ● Have you heard about iSold It? It is a purchase The Rouse Co. for $12.6 billion. that will turn the high-end garden tool consignment store that sells the consigned The firm expects to take over the retailer over to The Scotts Co., the maker goods over the Internet on eBay. They, management of the 37 regional Rouse of consumer lawn and gardencare and others like them, are in California, malls, totaling over 40 million square feet, products. Scotts will pay approximately Michigan, New York, Texas and are as well as mixed-use projects and $72 million for the privately held Novato, looking at sites in Minnesota. community centers in its portfolio. Rouse California company. The sale is expected ● The highly successful Chico’s chain is owns some of the industry’s most highly to close October 1, 2004. now going after the “mature market regarded centers such as Fashion Show ● CNL Restaurant Properties has reached segment” of Victoria’s Secret world. Mall, Las Vegas; Park Meadows Mall, an agreement to acquire U.S. Restaurant Chico’s new concept called Soma by Denver; New York City’s South Street Properties, subject to shareholder and Chico’s is selling bra’s, panties, camisoles Seaport, and Water Tower Place and regulatory approval. The proposed merger and sleepwear for the 35+ age group. Oakbrook Center, both in Chicago. would incorporate such brands as Arby’s, This age group is sometimes identified as Rouse’s local presence in the Twin Cities Applebee’s and Burger King. Victoria’s Secret “graduates.” The Greek includes Ridgedale Mall in Minnetonka. word “soma” means “body.” The sale is anticipated to close in the ● Payless Shoes announced they will fourth quarter. close and/or sell 700+ of their 5,000 stores ● The Children’s Place has signed a in an effort to improve profitability. nonbinding letter of intent to acquire the ● It was reported that Canada’s oldest Walt Disney Company’s retail division, the company, Hudson’s Bay, which owns ● Kmart Holding says it will sell 45 of its Disney Store chain. The Bay and Zeller department stores is stores to Sears, Roebuck and Co. in a in negotiations to be purchased by Target. deal worth $524 million. The sale is part If Target completes the transaction, it will of a plan announced this summer by Kmart The Caring Tree Honored mark the first international expansion for to sell up to 54 stores to Sears for a the Minneapolis-based retailer. significant expansion of its “non-mall” On Saturday, September 18, 2004, freestanding Sears and Sears Grand format. Chiropractic offices worldwide ● IBM announced they are closing their participated in the tenth annual “Kids 154,000 square foot plant Rochester. ● Abercrombie & Fitch Co. announced Day America/InternationalTM”, an event that they are adding a new clothing ● Simon Property Group recently that brings chiropractors and kids concept targeting the “30 something” completed the court-ordered sale of its together to promote health, safety and male/female market. The name of the new interest in Mall of America. Simon sold its environmental awareness. Skyline store is Concept Four and they will have 27.5 percent interest to the mall’s developer Chiropractic, the local sponsor, 4 stores open by fall. A number of teen Triple Five of Minnesota, which was in presented The Caring Tree with the retailers are seeking new concepts because TM line with a September 2003 federal district Kids Day America/International the teen market is so saturated. court decision. Simon Property continues Children’s Empowerment Award, to manage Mall of America through its ● Polo Ralph Lauren is launching a retail which recognizes organizations for their management company. concept called Rugby that will target outstanding commitment and dedication college students. to the children in their community. ● Frank’s Nursery filed for Chapter 11 Bankruptcy protection. They have 17 ● Toys “R” Us announced it is separating The Caring Tree is also proud to report Minnesota locations. Babies “R” Us from its other global toy that the 2004 Annual Back-to-School operations in an effort to restructure and Campaign has served 12,456 students ● Canadian based Joey’s Only Seafood improve its profitability. Knowledgeable to date. The number of students served Restaurants has partnered with Twin City experts are speculating that Toys “R” Us increases daily through continued based Embers to expand the chain of may be forced to exit the toy retail business school supply drives and incoming seafood restaurants in the U.S. The chain due primarily to competition with large financial donations. For more has approximately 100 restaurants in Canada discount stores. information, visit www.caringtree.org and 12 franchised locations in the U.S., including three locations in Minnesota and ● Borders Group signed a licensing opening one soon in Apple Valley. agreement with Seattle’s Best Coffee and will convert all of Borders’ in-store café’s ● GNC Corporation recently filed to go to the Seattles Best format starting in 2005. public. msca news 2004 7 www.msca-online.com Minnesota Shopping Center Association 8120 Penn Avenue South, Suite 555 Bloomington, MN 55431

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