SEPTEMBER 2009 ☛ the Retail Roller Coaster!
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BusinessTHE NORTHEAST MISSISSIPPIJournal AMONTHLY PUBLICATION OF JOURNAL PUBLISHINGANDTHE COMMUNITY DEVELOPMENT FOUNDATION SEPTEMBER 2009 ☛ the retail roller coaster! PrsrtStd US Postage PAID Tupelo,MS Permit #353 PAGE 2 BUSINESS JOURNAL FRIDAY,SEPTEMBER 11, 2009 Retailers review operations to survive recession Economy tion. A year later she moved to the other deals blow One retailer said cuts will allow her to stay open, side of the shopping center and doubled while another plans to close by the end of the year her square footage. Last year, she started to retail spec looking at her overhead costs to see “what we needed to do to stay standing at the By Carlie Kollath Mother-daughter pair Lynn Palmertree building end of the day.” and Lori Hood moved about a year ago BUSINESS JOURNAL She chose to consolidate her space, cut- from a previous location on West Main. TUPELO – The recession is hitting re- ting the square footage in half and doing ■ Developers scale back The rent is more at the Industrial Road lo- tailers hard, forcing them to evaluate their away with her office and much of her cation, but they said sales doubled be- plans as lenders tighten businesses from every angle in order to storage space. make their stores survive longer. cause of the increased traffic to the retail- loan requirements. They are scrutinizing the lines they heavy center. carry, the inventory they keep and their Then the economy sagged, cutting into ➤ To vote for Sugarbump’s in the ShineA Light By Carlie Kollath fixed expenses, such as rent. their customers’ spending habits. Palmertree and Hood dropped lines and contest,go to shinealight.ivillage.com.The winning BUSINESS JOURNAL The Willow Bend Village shopping cen- TUPELO – The recession ter has two prime examples of retailers adjusted their inventory. It still hasn’t been enough to save the store, they say. business gets a $100,000 prize. has brought the days of that are trying to figure out how to make speculative building to an ends meet. They are pinning their hopes on win- ning a national competition called “Shine end, say three Northeast Jody Lehman, owner of A Cook’s Place, “We chose to go this way instead of lay- a Light,” which is sponsored by American Mississippi real estate veter- earlier this year consolidated from two ing off,” Lehman said. “Most customers Express and NBC Universal. The winner ans. spaces into one, calling the move a “right will go, ‘Oh, I’m so sorry.’ Honestly, I’ve receives a $50,000 grant and another Speculative buildings are sizing.” never felt sorry. Then people will go, ‘It’s $50,000 for marketing support. The final- constructed before they have She’s also cut back stock levels and so much cozier.’ People have been very ist will be announced Oct. 19. a buyer –with the idea of eliminated products that weren’t selling. positive about it. But it’s survival, pure “build it and they will come.” She believes those changes, combined and simple.” Tommy Morgan of Cold- with other smart money management ‘Survival, pure and simple’ For the last six months, she’s also scruti- well Banker Tommy Morgan practices, will be enough to get her busi- It’s a tough ride for two homegrown re- nized every line item, including utilities, Realtors said that a few years ness through the recession intact. tailers as they adjust to doing business phone services and advertising, to make ago, having spec buildings Two stores down, it’s a different story. during a recession in which consumers sure she is getting charged accurately and for commercial use was a The owners of Sugarbump’s, a children’s are watching their pocketbooks and that the expenses are necessary. common strategy. boutique and gift shop, said they expect pinching pennies. She’s also cut inventory and adjusted “With the way the market to close at the end of the year unless a Lehman opened A Cook’s place in April is now, lenders wouldn’t loan miracle happens. 2004 in the current Yummy Yogurt loca- Turn to OPERATIONS on Page 4 you the money unless you have it fully rented,” Morgan said. “The market predicts you just have to have the people before you build.” He represents FairparK at Main, the commercial devel- opment on Main Street that houses five tenants, includ- ing Park Heights and Fair- parK Grill. There are four va- cant spaces. “Two or three years ago, it would have leased up,” he said. “Right now, the supply is greater than the demand ... We’re pleased to have the FairparK at Main develop- ment. But all in all, we wouldn’t have done it now if we knew what we know now.” He also suspects the lender wouldn’t have written the loan. V. M. Cleveland owns Tupe- lo Commons, the shopping development anchored by Best Buy, Hancock Fabrics and Ashley Furniture Home- Stores. He said usually when he develops a shopping strip center, he wants to have “at least one or two pretty good COMMERCIAL REAL ESTATE size big box retailers” sign a ☎ (662) 842-8283 (662) 842-4117 lease before he builds the www.trirealestate.net Turn to SPEC on Page 7 ©Journal Publishing ‘09 Member of Family Serving Northeast Mississippi for 27 Years 367 NORTH GLOSTER STREET,TUPELO,MISSISSIPPI 662-844-4530 Pharmacy Dept. e-mail [email protected] FAX: 662-844-4537 Mon. -Fri. 9:00 -6:00 •Sat. 9:00 -1:00 •Glucose Meters &Test Strips: Freestyle Freedom Embrace Freestyle Flash Ascensia Breeze2 Freestyle Lite Ascensia Contour One Touch Ultra Companion Diabetic Shoes &Tennis Shoes •ADiabetissignmentcShoes Accepted&Tennis on Shoes Medicare, Medicaid & •AMostssignment Private Accepted Insurances on •Inhalation MedicationMedicare, Medicaid & •Drive-In WindowMost Private Insurances •I•Dnhalationelivery Av Medicationailable •D•Mrive-Inost Insurance Window Cards Accepted Jim Bain, RPh •Delivery Available •Most Insurance Cards Accepted Cathy Hudson, RPh WE HONOR ALL $4, $8, AND $10 PRESCRIPTION PLANS •Customized Hormone Replacement Therapy •ZRT Saliva Testing COMPOUNDING •Veterinary Compounds PHARMACY •Transdermals, Creams &Lotions [email protected] •Pain Management Medication Nataly Wigginton, PharmD Mon. -Fri. 9:00 -5:00 Compounding Pharmacist PAGE 4 BUSINESS JOURNAL FRIDAY,SEPTEMBER 11, 2009 the part. Customers notice that.” Palmertree and Hood are hoping Lehman said she is doing everything Operations Palmertree and Hood also reevaluat- that if they win the Shine A Light com- possible to avoid the route Sugar- ed their inventory to see how they petition, it might provide the capital bump’s has had to travel. She offered Continued from Page 2 could better adjust to customer de- they need to stay afloat. The business the following advice to other retailers mands. They cut back on clothing lines needs at least 50 votes to get to the who are looking at ways to make it her stock levels. and added more gifts. judging round. At the beginning of this through the recession: “It’s gotten to the point where there’s But Hood said customers are still month, Sugarbump’s had 94 votes. “Take a look at every aspect of your no more room at the inn,” she said. “If watching their dollars and sales are not The top 150 businesses then are nar- business. It’s not necessarily what can it doesn’t turn, it doesn’t stay. You can’t where they need to be to keep the rowed down to three finalists by judges you do cheaper but what can you do just keep it if one person wants it.” business open. They plan to close the Diane Von Furstenberg, JJ Ramberg better. You can’t be afraid to try some- She’s also cut the in-stock items of shop and continue the business via and Ellen Degeneres. Visitors to the thing. You can’t just sit there and not some of her higher priced lines, such their Web site, sugarbumps.com. Web site then vote for the winner. try something and wait for the econo- as Le Creuset and Viking, but she “It’s hard to compete with Walmart, “It’s a long shot, but that can be the my to come back overnight like it was keeps the top colors and models on Penneys,” Palmertree said. answer,” Palmertree said. five years ago because you’re going to display. Hood said, “They say the recession is Hood also said with a grin that she be gone.” “Retail’s hard because you don’t ever heading up.” would be open to someone offering want to look thin,” Lehman said. “You “But it might not head up quick her a pile of money to buy the busi- Contact Carlie Kollath at (662) 678-1598 still have to spend the money to look enough,” Palmertree finished. ness. or [email protected]. FRIDAY,SEPTEMBER 11, 2009 BUSINESS JOURNAL PAGE 5 Mall at Barnes Crossing keeps evolving ■ The super-regional right here.” adding a “lifestyle center” ele- Phillip Purdom, senior vice ment to the mall. shopping center has opened president of development and Jeff Snyder, the mall’s general five new stores in a mall leasing for David Hocker manager, said two more new & Associates, the mall’s devel- retailers will open soon.. little more than a year. oper, certainly thinks so. “We’ve also had several “I will say that in the 22 years stores renovate, move, expand, By Dennis Seid I’ve been in the business, that and just as important, renew BUSINESS JOURNAL mall has evolved as much as their leases,” he said. “The $13 TUPELO – When The Mall at any,” he said. million isn’t just a lump sum to Barnes Crossing opened in URAISE MONEY 1990 in a former cow pasture, LET US HELP YO few people thought it would Mississippi State Tax Commission figures show that for the become the retail magnet it fiscal year ending in June, gross retail sales in Lee County FOR YOUR SCHOOL OR ORGANIZATION.