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November 2011 a Monthly Publication of Journal Publishing and the Community Development Foundation BusinessJournalBusinessTHE NONORTHEASTRTHEASTJournal MISSISSIPPI NOVEMBER 2011 A MONTHLY PUBLICATION OF JOURNAL PUBLISHING AND THE COMMUNITY DEVELOPMENT FOUNDATION Retailers ready for shoppers Inside Document: E001CDF110411.eps;Page: 1;Format:(254.00 x 295.27 mm);Plate: Composite;Date: Nov 03, 2011 16:23:30;JPC 72 DPI PAGE 2BUSINESS JOURNAL NOVEMBER 2011 Northeast MS’s retail forecast is partly sunny very year, the National Re- total retail | | spending. That obviously tail Federation, the Inter- industry U.S. HOLIDAY SALES GROWTH would help boost the economy. national Council of sales, ac- Consumers are spending – but EShopping Centers and cording to they still are wary. Expect many 2000 2.3 percent 2006 3.1 percent other retail industry groups the NRF. 2001 3.4 percent 2007 1.8 percent promotions and discounts to get predict how much we’ll be And the 2002 1.3 percent 2008 - 4.4 percent shoppers into stores. spending for the holidays. experts say 2003 4.7 percent 2009 -0.4 percent And retailers are pulling out the Not that it really matters to this holiday 2004 5.9 percent 2010 5.2 percent stops.Walmart recently said it most people. If you’re going to season 2005 5.4 percent Source: National Retail Federation would give gift cards to shoppers shop, you’re going to shop, no should be if they buy something there and matter what the experts say. DENNIS OK. The than 2 percent. didn’t help, either. find it somewhere else cheaper. But I suppose it provides SEID forecasts all The ICSC also projects a 3 But two retail giants – Belk and Staples and Bed Bath & Beyond some psychological boost to call for in- percent increase this year. JC Penney – that help anchor The said they would match the low hear that people will be spend- creases this In Northeast Mississippi, par- Mall at Barnes Crossing together prices of Amazon.com and other ing more money. In the U.S., year, albeit ticularly in Tupelo recently, re- spent $6.5 million to renovate big Internet retailers. Sears said it where consumers help power on the low tail continues hold its own. and expand their stores. Reed’s, would beat any competitor’s best two-thirds of the economy, it’s end of the scale. Despite the lingering impact the Tupelo-based department price by 10 percent. vitally important our wallets Compared to 2010, the NRF of the Great Recession, there’s store, spent a chunk of change As a potential setup for the up- and purses remain open. said holiday sales should track been a mini-boom of sorts. New expanding its mall store, too. coming holiday selling frenzy, And what better indicator about 2.8 percent higher, hit- restaurants, stores and hotels Other new businesses and the U.S. Commerce Department than holiday sales? ting $465.6 billion. Last year, have opened at a pace not seen restaurants have opened away said retail sales rose 1.1 percent “Holiday sales” include retail holiday sales climbed 5.2 per- in years. While many consumers from the busy Barnes Crossing in September, the largest in- sales logged in November and cent to $453 billion, much bet- – and developers – have been re- shopping district, too, which crease in seven months. December, the two busiest ter than the 0.4 percent decline luctant to pull the trigger on shows a desired diversity, al- So while the economy still has months of the year. logged in 2009. Over the past spending the past couple of ways a good thing. its problems, retail sales seem to With Christmas helping drive decade, holiday sales rose an years, it’s clear there’s some con- But there’s still the underlying be in a good spot for now. shoppers to their stores during average of 2.3 percent. fidence returning to the market. problem of unemployment. In I’m not retail expert, but my those critical two months, re- ShopperTrak expects holiday So what if Books-A-Million Northeast Mississippi, we’ve forecast says it’s partly sunny. tailers ring up 25 percent to 40 sales to pick up 3 percent, less pulled out of its lease here – the been dealing with double-digit 1 percent of their sales for the en- than the 4.1 percent increase it book chain has been suffering jobless rates for more than 2 ⁄2 Contact Business Journal editor tire year. Last year, holiday sales tracked last year. But it also said for years. Having a Barnes & years. Get more of them work- DENNIS SEID at (662) 678-1578 accounted for 19 percent of foot traffic would drop by more Noble a stone’s throw away ing, and you would see more or [email protected]. Document: E002CDF110411.eps;Page: 1;Format:(254.00 x 295.27 mm);Plate: Composite;Date: Nov 03, 2011 16:23:45;JPC 72 DPI NOVEMBER 2011 BUSINESS JOURNAL PAGE 3 Is Tupelo overbuilt? Despite being the retail center of the region, some say the city has too much commercial property BY DENNIS SEID About 6,000 BUSINESS JOURNAL square feet at The Shoppes TUPELO – The Shoppes at Barnes at Barnes Crossing is ideally situated. Crossing re- The retail center, built in 2004, sits in main unfin- the busy Barnes Crossing shopping dis- ished. The trict off North Gloster Street, where some 76,000- of the heaviest traffic crisscrosses daily. square-foot The plaza is anchored by Bed Bath & Be- retail center yond, Dollar Tree, David’s Bridal and was built in Margarita’s Grill. 2004. But no smaller stores help fill the 76,000-square-foot center. A long row of glass and metal are filled with “space available” signs. A stone’s throw away, King’s Crossing is a 200,000-square-foot retail center an- chored by Kohl’s and Ross Dress for Less. Several smaller stores, including Kirk- land’s and Dress Barn, have helped fill some of the remaining space, which is spread over several buildings. Restau- DESTE LEE | DAILY JOURNAL rants, a tanning salon and an eyecare store are among several other tenants at overbuilt three or four years ago, espe- there’s “plenty of commercial space” The higher leases in the Barnes Cross- the center built in 2007. cially with all the small shops,” he said. available across the city. But he said it ing shopping district also can be prob- But there’s plenty of space available “There aren’t enough stores to absorb it.” only seems overbuilt now because at the lematic. here, too. Norman is representing the undis- time King’s Crossing and The Shoppes at But Norman said developers are more To the east and behind King’s Crossing closed Atlanta-based owners of the Barnes Crossing were built, there ap- willing to back off their rates in order to is Barnes Crossing Plaza, a 157,000- Shoppes at Barnes Crossing, which was peared to be a strong demand. help fill empty spaces – and have done so. square foot center anchored by big retail- auctioned off in September. The good news, he said, is interest ap- “For the most part, rates aren’t a prob- ers like Hobby Lobby, Toys R Us, “We’ve got 4,000 to 6,000 square feet pears to be picking up again. lem,” he said. OfficeMax and TJ Maxx. The story is the that were never finished out.” “There are several regional and na- And just to show that interest is picking same here: More than 12,000 square feet Norman, who is based in Jackson, said tional players looking around” he said. up in Tupelo again, a Tennessee devel- of space is available for lease, as is the for- commercial retail activity has picked up But looking doesn’t necessarily trans- oper recently proposed a new shopping mer Books-A-Million location, which across the state, which could help solve late into leases. center at the Barnes Crossing Road- closed in September. his problem of finding tenants. Just ask V. M. Cleveland, the owner of North Gloster Street intersection. Nearby, the 21-year-old Mall at Barnes “There are a number of new compa- the Tupelo Furniture Market. He bought Called Tupelo Crossing, it would sit at Crossing is faring better. With an occu- nies coming to Mississippi, not necessar- most of the Tupelo Commons develop- the southwest corner of the intersection, pancy rate of more than 90 percent, the ily to Tupelo,” he said. “But there also are ment in 2007, shortly before the recession where the northern loop is being built to 900,000-square foot center has managed a number of retailers looking to add sec- began. The development is home to Best connect the area to Coley Road in west to add several stores in recent years. An- ond locations. They’re looking at West Buy, Ashley Home Furnishings, Hancock Tupelo. chors Belk and JCPenney recently com- Main Street and in some other parts of Fabrics and several popular chain restau- GBT Realty is the company proposing pleted renovations totaling $6.5 million. the city. I’m hoping it will be a good 2012.” rants, but finding additional tenants the nearly 135,000-square-foot center The mall ownership has spent more than Clay Short, of TRI Commercial Realty proved elusive for about three years. that could possibly be anchored by Tar- $13 million to renovate and add stores. in Tupelo, said he’s seen more interest “The bottom pretty much fell out after get. With retail sales hovering around $1.7 south of Highway 78 – which also hap- I bought it and there were times I It’s strictly an idea for now, but having a billion annually, Tupelo and Lee County pens to be south of the Barnes Crossing thought, ‘what was I thinking?’” he said.
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