Shots t >> SHOTS THERE OF BLACK FRIDAY. LET'S DIVE INTO THE LUXURY RETAIL SECTOR. JOINING US NOW IS MICHAEL ZACHARY.HE'S FIVE DIGITAL FOUNDERND THE AUTHOR OF THE BOOK THE NEW RETAIL. MICHAEL THANK YOU SO MUCH FOR JOINING US. GREAT TO SEE YOU.MORNING. SO I SEE THIS SPLIT NOW BETWEEN THE POPULAR NARRATIVE, WHICH IS WE HAVE THIS K-SHAPED ECONOMYTHE WEALTHY ARE DOING WELL FROM THE STOCK MARKET. THEY'RE SPENDING LUXURY IS TERRIFIC.EVERYTHING ELSE IS NOT DOING WELL BECAUSE THE CONSUMER IS UNDER PRESSURE FROM HIGH ...

Luxury is one of those categories where, based on our recent survey, we are planning on seeing some recovery during the Black Friday season. It was one of the categories that when we surveyed across, we saw an increase in spend. Black Friday used to be one hour in front of Walmart people and Tiffany says it's a season now.PAUL Yeah, and here's something that surprised me, Tom. In-store shopping is making a big comeback as fewer only shop online. Tiffany Talk to us about that.If I had never gone to a store a ...

Core Insights - Dick's Sporting Goods is expanding its retail footprint by opening larger "House of Sport" stores, which range from 120,000 to 150,000 square feet, significantly larger than traditional stores [3][4] - The company aims to create a unique shopping experience that can compete with other retailers, focusing on experiential offerings and a wide range of products [4][12] Expansion Strategy - The first House of Sport opened in 2021, with plans to have 35 locations by the end of the year and up to 100 by fiscal 2027, in addition to over 850 existing stores [9] - Each House of Sport store generates approximately $35 million in annual sales with an EBITDA margin of around 20% [6] Market Positioning - The company is targeting the youth sports market, which is valued at $40 billion annually, with parents spending an average of $1,016 per child for primary sports in 2024, a 46% increase from 2019 [22] - Dick's Sporting Goods has experienced 12 consecutive quarters of comparable sales growth, attributed to a strong replacement cycle and product innovation [23] Product Strategy - House of Sport stores feature a wider selection of footwear and exclusive merchandise, including Nike products not available elsewhere [5][13] - The retailer is also showcasing newer, premium brands and has a rotating co-lab space for testing products [14] Financial Performance - Despite initial skepticism from Wall Street regarding the expansion and a recent $2.4 billion acquisition of Foot Locker, Dick's shares have outperformed other athletic brands [20] - The company reported earnings before taxes of 14% in its most recent quarter, indicating strong financial health [6] Management Philosophy - The company's leadership emphasizes a culture of innovation and risk-taking, with a focus on continuous improvement and adaptability [24][25]

Core Insights - Dalton Park, the largest outlet shopping destination in the North East, achieved remarkable success with its recent Clinique Beauty Pop Up, significantly enhancing sales, customer engagement, and foot traffic [2][3]. Sales Performance - The Clinique Beauty Pop Up, held from October 7th to 12th, 2025, resulted in over 1,800 skincare consultations and 2,020 new database sign-ups, leading to a +282% increase in Clinique product sales [3]. - Overall sales for The Cosmetics Company Store surged by +342%, making it one of the top two performing sites nationally for the brand [4]. Customer Engagement - The activation achieved a 91% customer sign-up rate, expanding the brand's customer database for future marketing efforts [4]. - The event doubled Dalton Park's previous best sales week for The Cosmetics Company Store, surpassing the record set during the peak Christmas trading period in 2019 [4]. Foot Traffic and Category Growth - The pop-up had a positive impact on overall foot traffic, which increased by +15.8%, marking the highest footfall of the year [5]. - The Health & Beauty category experienced a significant growth of +116%, indicating rising consumer demand in this sector [5]. Industry Commentary - Nicky Lovell, head of outlets and retail business development at Global Mutual, highlighted the success of the Clinique Pop Up as a demonstration of the effectiveness of experiential retail, setting a new standard for future brand activations at Dalton Park [6].

Core Insights - Majestic, the UK's largest specialist wine retailer, has opened its first new store in Cornwall in over 13 years, marking a significant step in its expansion plans across the UK [1][2] Store Details - The new store in Truro is Majestic's second in Cornwall, following the Falmouth location opened in August 2012 [2] - The store occupies a 5,100 sq ft space, previously an Iceland supermarket, and features over 1,200 wines, including a dedicated area for 72 Fine Wines, as well as beers, spirits, and snacks [3] Customer Experience - Majestic offers free wine tastings seven days a week at the in-store Tasting Counter, with staff trained through the Wine and Spirit Education Trust (WSET) providing expert advice [4] - Additional services include free glass hire, bespoke wedding tastings, and a 'No Quibble Guarantee' for wine returns [5] E-commerce and Local Services - Online shoppers can access Majestic's full range with free next-day delivery and a 'Shop Local' option for real-time stock availability at the Truro store [6] B2B Expansion - The new store will support Majestic's B2B division, Majestic Commercial, which supplies wines to over 3,300 hospitality venues across the UK, including notable clients like Manchester City Football Club [7] Strategic Growth - The Truro launch is part of a broader expansion strategy for Majestic Wine Group, which includes the recent acquisition of Vagabond and plans for new urban winery locations [8][9] - Since its acquisition by Fortress Investment Group in December 2019, Majestic has opened over 20 new stores and significantly increased sales in its commercial business [9] Management Perspective - The managing director expressed excitement about the Truro location, highlighting the opportunity to serve the local wine-loving community [10]

Core Insights - Brandart, an Italy-based firm, is transforming from a leader in premium packaging to a global one-stop platform for visual merchandising and retail event displays [1] Company Developments - Brandart has acquired Terotecna, a lighting scenography firm known for its work in fashion events, although financial details of the acquisition were not disclosed [2] - The acquisition of Terotecna is part of Brandart's growth strategy to lead in the retail installation experience sector, alongside visual merchandising and packaging [5] - Earlier in the year, Brandart also acquired Atelier Archiand and ABC Lab, enhancing its capabilities in beauty, tech, travel retail, and interior design [6] Technological Advancements - Terotecna's facility is highly technological, featuring advanced printers, robotics, and anthropomorphic robots for cutting, showcasing the Apulia region's expertise in lighting [3] Collaborative Projects - Brandart and Terotecna collaborated on notable retail displays, such as Loro Piana's "Workshop of Wonders" at Harrods, which featured an elaborate light display [4] Strategic Positioning - Previously, Brandart operated as a procurement entity with over 150 global partners and regional offices in Paris, New York, and Guangzhou, working closely with luxury brands like Loro Piana, Bulgari, Fendi, and Dior [6]

Commercial Real Estate Market Trends - Commercial real estate construction is slowing down, which is seen as a positive development for the sector [1] - Equity for development has been cautious and pulled out of the market for the last 2 and a half years, awaiting price stabilization and sustained demand before re-entering [2] - Multifamily unit production has seen a significant pullback after record production [3] - Industrial properties are correcting overbuilding due to a pullback in new development [4] - Retail real estate is experiencing a comeback due to repositioning and the integration of online and physical presences, driven by experiential factors [14] - Multifamily rentals are projected to remain strong due to the high affordability gap between renting and owning homes [16] Office Space Dynamics - Office space demand is unique due to post-pandemic issues, with daily attendance reaching 80% of pre-pandemic levels, up from less than 70% a year ago and less than 60% two years ago [7] - While the labor market is slowing, existing workers are being asked to return to the office, influencing lease renewals [8][9] - Demand for office space will not return to pre-pandemic levels due to new cost-cutting strategies [9] - Older Class B and C office properties face higher vacancy rates (30-40%) compared to newer, modern, and suburban office properties (11-115%) [10] Investment Opportunities - Campus housing, particularly near large and high-profile public universities, continues to see strong demand and stable revenues [12] - Experiential retail, such as malls with aquariums and zoos, presents potential investment opportunities [13]

Core Insights - IEM, a venture-backed retail innovation company, has partnered with Simon Property Group to create a new platform for high-growth brands to scale into brick-and-mortar retail quickly and flexibly [1][5]. Company Overview - IEM introduces 10x15-foot branded experiential "micro spaces" in high-traffic areas of malls, allowing brands to engage customers with physical products before purchase [3][6]. - The company offers a modular service menu, enabling brands to customize support in design, production, staffing, and operations, which reduces upfront investment and allows for rapid market entry [4][6]. - IEM has already partnered with six emerging brands, including OOFOS, Generation Tux, and Caddis Eyewear, with more brands set to launch in the near future [6][7]. Industry Trends - The initiative aims to bridge the gap between digital and physical retail, focusing on intelligent and flexible store openings that enhance customer experiences [5][7]. - IEM's model supports short-term leases and subsidized rents, allowing brands to test physical retail in a cost-efficient manner [7][8]. - The collaboration with Simon Property Group positions IEM within a network of top mall developers, enhancing its reach in high-performing retail environments [8][10].

Core Insights - The article highlights the remarkable performance of Build-A-Bear Workshop as a superior investment compared to major tech companies driven by artificial intelligence (AI) [1][6] - Despite the AI boom, Build-A-Bear has achieved a staggering 2,390% gain over the last five years, outperforming many big tech stocks [6][18] Company Performance - Build-A-Bear has successfully transformed its business model by shifting from traditional retail to experiential retail, offering immersive experiences for families [13][15] - The company has formed strategic licensing partnerships with major brands like Walt Disney and Pokémon, expanding its intellectual property and attracting new customer demographics [14][15] - Build-A-Bear's operational turnaround has resulted in accelerating revenue, widening gross profit margins, and robust earnings growth, all nearing five-year highs [16][19] Valuation and Market Position - Despite its impressive performance, Build-A-Bear's stock is trading at a modest price-to-earnings (P/E) ratio of 15 and a forward P/E of 18, significantly lower than the S&P 500 averages of 26 and 23 [18][19] - The valuation gap indicates that investors may be overlooking Build-A-Bear's potential for further upside compared to the broader market, which is heavily influenced by big tech stocks [19][20] - The company is positioned for continued growth, suggesting that its stock remains an attractive investment opportunity [20]

Core Insights - The Zacks REIT and Equity Trust - Retail industry is well-positioned to leverage favorable market conditions, with strong consumer spending and limited new development supporting healthy fundamentals [1] - The industry is experiencing a rebound driven by renewed consumer interest in in-store shopping, despite facing challenges from e-commerce expansion and macroeconomic pressures [2][5] Industry Overview - The industry comprises REITs that own, develop, manage, and lease various retail properties, including regional malls and grocery-anchored shopping venues [2] - Key demand drivers include geographic location and demographics, with a positive shift in the retail landscape noted [2] Future Trends - Experiential retail and omnichannel integration are revitalizing the sector, with physical stores transforming into immersive destinations that enhance customer engagement [3] - Solid leasing demand from consumer service providers and cross-border entrants is diversifying the tenant base and driving long-term occupancy stability [3] Supply and Demand Dynamics - Retail REITs benefit from a constrained supply pipeline, with limited new construction due to high building costs and labor shortages, leading to historically tight national vacancy rates [4] - Many REITs are redeveloping underperforming assets and adding non-traditional tenants, enhancing portfolio durability [4] Macroeconomic Challenges - High interest rates, inflation, and tariff changes are pressuring retailers, leading to delayed leasing decisions and increased store closures [5] - E-commerce penetration is dampening demand for traditional retail space, particularly in commodity-driven segments [5] Industry Performance - The Zacks REIT and Equity Trust - Retail industry has underperformed the broader Zacks Finance sector and the S&P 500 over the past year, declining 5.5% compared to the S&P 500's rise of 19.4% [10] - The industry is currently trading at a forward 12-month price-to-FFO of 14.62X, below the S&P 500's forward P/E of 22.54X [13] Stock Recommendations - **Brixmor Property Group Inc. (BRX)** focuses on open-air shopping centers with a balanced tenant base, currently has a Zacks Rank 2, and its FFO per share estimate has been revised upward to $2.23, indicating a 4.7% year-over-year increase [17][19] - **Phillips Edison & Company, Inc. (PECO)** specializes in grocery-anchored shopping centers, managing 327 centers with a Zacks Rank 2, and its FFO per share estimate for 2025 has been revised to $2.58, reflecting a bullish outlook [21][24] - **Urban Edge Properties (UE)** operates in densely populated regions with a focus on essential retailers, holding a Zacks Rank 2, and its FFO per share estimate has been raised to $1.40, indicating a 3.7% year-over-year increase [26][28]