Vacancy at upscale malls rises in China as consumers hold back on luxury purchases

Chinese visitor spending on luxury goods has not only slowed down in Canada, the U.S. and Europe. It has affected malls in China as well.

High-end malls in Beijing and Shanghai have had to reduce rents and seek retail tenants that cater to middle income shoppers to fill vacancies and boost foot traffic. For example, Parkview Green Beijing, known for its unique architecture and art collection, is diversifying its tenant mix following the departure of prestigious brands like Ermanno Scervino and ROLEX. K11 Shanghai is experiencing less demand by local luxury shoppers.

Mall vacancy rates in Beijing has risen to 10.6% and 9.5% in Shanghai, respectively as of 2024, according to Cushman & Wakefield.

Read more: Luxury malls in Beijing, Shanghai slash rents, change tenant mix as consumer spending dips (South China Morning Post)

Baristas required to adhere to Starbucks' new dress code

A popular destination while attending the spring ICSC convention every May has been the Starbucks located in the Grand Lobby between the North and Central Halls at the Las Vegas Convention Center.

One change you’ll find at the 2025 convention is that most meetings will take place in the North Hall or South Hall because the Central Hall, which has been the dominant hall for years is undergoing renovations. So, the Starbucks location won’t be as centrally located but will likely be as busy as ever.

However insignificant, one thing you might notice while you’re there is a new dress code that Starbucks will initiate starting in mid May. Baristas will be required to wear a solid black top, whether it's a crewneck, collared or button-up shirt. For their bottoms, the company is requiring a shade of black, khaki or blue denim. The company will continue to require the green logo apron over the new standard dress. The green apron has been used by Starbucks since it launched in 1987.

The new dress code is part of a move by Starbucks to improve standards that were relaxed in the past few years. For example, in 2016, Starbucks began to allow baristas to embrace some more diversified personal styles from pink hair to fedoras. No more. It’s back to basics.

Among the reinstated practices Starbucks is bringing back are condiment bars, serving in-store coffee in ceramic mugs and having baristas write on paper cups with Sharpies. What do you think?

Read more: Starbucks' new dress code will require baristas to wear certain colors with green apron (USA Today)

At Home Group Inc. is renegotiating leases with retail landlords to reduce massive debt

At Home Group Inc. is negotiating with retail landlords and other creditors to restructure its massive $2 billion debt.

Private-equity firm Hellman & Friedman acquired the retailer in a 2021 take-private deal that valued the company at $2.8 billion.

If unable to restructure it’s debt, the home furnishings big-box retailer may have to resort to bankruptcy, according to published reports, and that could result in many store closures.

Home furnishings have experienced a slump since 2022 when mortgage rates soared causing home sales to decline.

At Home operates more than 250 stores across 40 states.

Read more: At Home Group, Stung by Trade War, Explores Bankruptcy (The Wall Street Journal)

GoTo Foods is rolling out Cinnabon Swirl, a new QSR concept that combines treats from Cinnabon and Carvel

GoTo Foods is rolling out a new fast food concept called Cinnabon Swirl®.

That’s important because GoTo Foods (formerly known as Focus Brands) is already a very large and proven privately-held company that owns and operates Auntie Anne's, Jamba, Moe's Southwest Grill, Schlotzsky's, Mcallisters Deli, Cinnabon and Carvel in more than 6,600 locations in all 50 states and over 65 countries and territories around the world.

The new QSR concept is a mashup of Cinnabon and Carvel that offers desserts, ice cream and warm cinnamon rolls. The key menu item is a Bonini, a treat that features a swirl of Carvel vanilla soft serve ice cream inside a freshly baked warm cinnamon bun, which will be baked on premises.

The first location will open in Hillsboro, Ore. (Portland) in May 2025. New locations will follow with stores this year in Peoria, Ariz. (Phoenix), Kennesaw, Ga. (Atlanta) and Pasadena, Calif. (Los Angeles).

GoTo Foods already has more than 30 Cinnabon Swirl locations in the pipeline, and Jim Holthouser, CEO of GoTo Foods wants to make this new concept into “the most irresistible dessert destination” in the industry.

While there are already some dual Cinnabon-Carvel restaurants that house both stores under the same roof, just as there are Dunkin'​ and Baskin Robbins combo locations, Cinnabon Swirl is the first to fully blend the two brands in one menu as a combined concept store.

Read more: Here’s How Cinnabon and Carvel Are Combining Warm Cinnamon Rolls and Ice Cream at Their New Restaurant (Food & Wine)

Sam's Club plans to double warehouse club membership within eight to 10 years

Sam's Club has a new goal: Double its membership within eight to 10 years, according to Chris Nicholas, president and CEO of the Walmart-owned warehouse club.

One way it intends to achieve that goal is to open about 15 warehouse clubs per year and remodel all 600 of its existing U.S. locations.

Sam’s Club rivals Costco Wholesale and BJ's Wholesale Club are also expanding. Costco expects to open 28 new clubs during its current fiscal year, including three planned relocations of current clubs. BJ’s had previously announced plans to open 25 to 30 new locations over the next two fiscal years.

Read more: As warehouse clubs boom, Walmart-owned Sam’s Club plans to open 15 stores per year (CNBC)

Ulta Beauty to pause shop-in-shop expansion inside Target stores

Shop-in-shop concepts have been flourishing throughout this decade. Some examples include Toys"R"Us at Macy's, CVS Pharmacy at Target, INDOCHINO shop inside Nordstrom, SEPHORA at Kohl's, Nike House of Hoops within Foot Locker locations and many more. So, what's behind Ulta Beauty's decision to pause opening shop-in-shops inside Target?

Ulta Beauty CEO Kecia Steelman said at the J.P. Morgan 11th Annual Retail Round Up Conference held in New York from April 2-3, 2025, that Ulta and Target had jointly decided they need to improve the “shopper experience” in current Target shops. As a result, Ulta, after starting to open shops inside Target since 2021 and planning to open 800 of those shops has all of a sudden decided to pause the expansion. Ulta already operates more than 600 such shops.

The Ulta-Target model involves a royalty structure. Target buys and sells the Ulta inventory and staffs the shops. Ulta Beauty’s income from Target’s royalties is reported as other revenue.

Read more: Ulta Beauty pauses expansion of Target locations (The Minnesota Star Tribune)

Khloé Kardashian's Good American opens fourth brick-and-mortar location

GOOD AMERICAN, the digitally native denim brand founded in 2016 by Khloé Kardashian and Emma Grede, has opened its fourth Good American branded brick-and-mortar location at Lenox Square in Atlanta.

Its first physical store opened in 2023 at Westfield Century City in Los Angeles. Stores at The Forum Shops in Las Vegas and Fashion Island in Newport Beach, Calif. followed.

Good American brands itself as size-inclusive because the store carries women’s sizes from 00 to 32 plus. It started selling denim jeans online but it now also carries other apparel and swimwear lines. Besides selling from its branded boutiques, Good American apparel is also available at Amazon, Anthropologie, Bloomingdale's, Macy's, Nordstrom, Saks Fifth Avenue, ThredUp and Walmart.

Read more: Kardashian-founded denim brand Good American opens first eastern US store (Austin Business Journal)

Is Rite Aid pursuing another Chapter 11 filing?

Things looked pretty stable for RITE AID after emerging from an October 2023 bankruptcy that lowered its store count from 2,000 to 1,300. Until it didn’t. And Rite Aid is just one of the top three chains in the troubled drugstore industry facing an existential crisis.

Recent reports indicate that Rite Aid is pursuing a sale of some or all of its business as a potential alternative to another chapter 11 filing, after the previous bankruptcy restructuring failed to put the drugstore chain on a sustainable path.

Unfortunately, the entire drugstore industry is ailing and no prescription is available to alleviate symptoms of financial distress.

CVS Pharmacy, Walgreens and many independent drugstores are also closing thousands of stores due to factors like increased competition from Amazon, Walmart and Costco Wholesale, declining profits from lower reimbursement rates for prescription drugs, and a steep sales decline from overpriced front-end merchandise.

Read more: Rite Aid Weighs Repeat Bankruptcy Filing (The Wall Street Journal)

Retailers should try reducing litigation by settling claims early

Retailers face a triple whammy when dealing with insurance-related claims:

1. The number of claims resulting in litigation has risen between 20% and 40% over the past decade.

2. The cost of the losses suffered by claimants are up between 130% and 160%.

3. The average time to resolve a case that goes to litigation has reached 400 days.

This is according to Luke Harrison, managing director and U.S. national practice leader for claims consulting at Marsh & McLennan Companies Services B.V., who spoke at the recent National Retail Federation Retail Law Summit.

Harrison suggested that retailers should try reducing litigation propensity by settling claims early rather than waiting for the matter to be settled in court. This advice should be considered by property managers as well, not only retailers.

Retailers should seek to reduce the number of claims open at any given time to reduce reserves that must be set aside to cover them, Harrison said. They should also develop a strategy to reduce the amount spent defending claims, including avoiding costly litigation when possible.

Read more: Attorney says retailers should settle more claims before they turn into lawsuits (National Retail Federation)

Harry & David is opening brick-and-mortar locations again

Harry and David Stores closed 38 stores during the pandemic, which was all its locations at the time, except for its flagship in Medford, Oregon and took its retail business online. However, that hasn't gone well.

The gourmet food brand opened six pop-ups during the holiday season inside Macy’s stores in New York City and Los Angeles, and is again ramping up its physical retail presence as standalone shops.

The holiday pilot “got the juices flowing” for Harry & David to focus more on brick-and-mortar retail, according to Greg Sarley, Harry & David’s SVP of merchandise revenue.

The result is a new Harry & David brick-and-mortar store, which just opened on Long Island. The new store has a tasting area and event space for demonstrations to enhance the experiential retail experience. That new store and the Macy’s pop-ups were recent “learning opportunities for us to dip our toe back in the water,” Sarley told Modern Retail.

Research is proving Harry & David right about reopening stores. Recent data show that most consumers would rather shop for food products in-store than online, according to Kassi Socha, senior director analyst at Gartner. A 2023 consumer survey by Gartner found that 78% of respondents prefer to buy food and nonalcoholic beverages in person, compared to 5% online using their desktop computers and 12% online using their mobile phones.

Harry & David is owned by 1-800-Flowers.com, which also owns other brands that are planned to be carried at Harry & David stores.

The goal is to further expand retail concepts heading into this year's holiday season, according to Sarley. Long term, he said, “My vision would have us have a brick-and-mortar location where we have a high concentration of (online) customers: the bigger cities on the coasts, as well as in the Midwest.”

Read more: Harry & David is making a return to physical retail after closing nearly all of its stores during Covid (Modern Retail)

Dutch Bros Coffee plans to double number of locations by 2029

Dutch Bros Coffee has raised its target number of locations from 4,000 to 7,000.

The coffee chain currently operates more than 1,000 locations in 18 states but says it plans to reach more than 2,000 units within four years, essentially doubling its current store count before the end of this decade.

Dutch Bros is currently the third-largest coffee chain in the U.S. by unit count. Starbucks has around 18,500 U.S. locations and Dunkin'​ has about 10,000.

Dutch Bros also has a deal to bring Dutch Bros packaged coffee and related products to grocery shelves for the first time, which will increase brand awareness, according to CEO Christine B.

The company had previously announced a plan to open at least 160 new stores in 2025, but will likely increase those plans. It hired former Yum! Brands executive Brian Cahoe, who was responsible for growing KFC in the U.S. He assumed his new responsibilities as chief development officer, responsible for overseeing the Dutch Bros new store growth and development strategy.

Read more: Dutch Bros thinks it can open a lot more shops than previously expected (Restaurant Business)

Store closures are increasing retail space availability by 12.5 million sq. ft. in 2025

Retailer closures have caused retail space availability to increase by approximately 12.5 million sq. ft. since the start of 2025, according to a recent analysis by CoStar Group.

Since the start of 2024, announced closures total more than 10,000 stores, with chains like Big Lots, JOANN Stores and Party City, each closing hundreds of locations.

Planned closures are not limited to the chains going out of business. Macy's Inc. announced in February that 66 stores will permanently close in 2025.

Separately, JCPenney announced it is closing eight stores by mid-2025 as part of ongoing restructuring efforts following its 2020 bankruptcy filing. Those are:

- California: The Shops at Tanforan in San Bruno
- Colorado: The Shops At Northfield in Denver
- Idaho: Pine Ridge Mall in Pocatello
- Kansas: West Ridge Mall in Topeka
- Maryland: Westfield Annapolis Mall in Annapolis
- North Carolina: Asheville Mall in Asheville
- New Hampshire: Fox Run Mall in Newington
- West Virginia: Charleston Town Center in Charleston

Of the 143 U.S. markets within the CoStar national retail index, available retail space increased in 79 over the past year, while 64 saw a decline in retail space availability over the same time frame.

In almost half of major U.S. retail markets, retail space availability increased, but in some markets, such as Tampa, Nashville, and Orlando, availability actually decreased, as retail space availability is still tight across the U.S from a historical perspective.

Read more: Available retail space increases for first time in two years (Chain Store Age)

Walmart plans to open or remodel 45 fuel stations across the U.S. in 2025

Walmart plans to open or remodel 45 fuel stations across the U.S. in 2025, many of which are part of a c-store operation.

Fuel stations is nothing new to Walmart. it added fuel to its extensive offerings in 2002, and by December 2024, Walmart hit a milestone when it opened its 400th fuel center in Palm Springs, Calif. Upcoming new locations include Tahlequah, Okla., Laredo, Texas, and other cities across the U.S.

According to Dave DeSerio, VP of fuel and convenience for Walmart U.S., these c-stores with fuel service is another example of how Walmart is responding to its customer and member needs.

“Member” refers to the Walmart+ membership program, where members save even more at the pump, with a 10-cent discount per gallon as part of Walmart+ member perks. Unlike other c-stores, there is also everyday low prices on snacks, beverages and other items at Walmart’s Fuel and Convenience stations.

After opening these new planned locations, the big-box mass merchandiser will operate more than 450 Walmart fuel centers across 34 states, making Walmart one of the 20th largest c-store operators in the country competing with the likes of 7-Eleven, Alimentation Couche-Tard (Circle K) and Casey's General Stores.

The Bentonville, Ark.-based retailer runs over 4,600 Walmart locations in the U.S. and nearly 5,600 more internationally. There are also 600 Sam’s Clubs across the U.S.

Read more: Is Walmart the next major c-store competitor? (Retail Dive)

Academy Sports + Outdoors plans to open 20-25 new stores in 2025

Academy Sports + Outdoors has surpassed 300 stores after opening in York, Pa., Harrisburg, Pa. and Hagerstown, Md. These 2025 openings mark Academy's first locations in Pennsylvania and Maryland, increasing the retailer's footprint to 21 states.

In addition, Academy opened a new store in Kansas City, Mo. in March, and will open another new location in Charlotte, N.C. in April 2025.

The company plans to open a total of 20-25 new stores in its 2025 fiscal year. In 2024, Academy opened a total of 16 new locations across 10 states, including its first in Ohio.

Read more: Academy hits 300 stores; expands into two East Coast states (Chain Store Age)

The Paper Store expands new concept "Uncharted" with second store.

TPS Group Holdings, which operates The Paper Store and other retail concepts around the world continues to expand its new concept store branded as Uncharted. The second store opens this Saturday, March 29, 2025 in Greenvale, N.Y. The new store fills a 10,782-sq.-ft. corner location on Long Island’s Green Cove Plaza.

The first Uncharted store opened last November at The Shops at Oak Brook Place in Chicagoland, and Tom Anderson, president and CEO of The Paper Store is pleased with the results. In fact, the Oak Brook store has become the highest performing store in TPS Group Holdings' portfolio of brands. Six additional Uncharted stores are slated to open throughout Illinois this year as part of the company’s $60 million investment in new and existing stores over the next four years.

Uncharted carries home decor, beauty, toys and clothing brands including BIRKENSTOCK, Free People and Kendra Scott. For photos of the new store, follow link to article.

The Paper Store currently operates 100 stores.

Read more: Uncharted, sister to The Paper Store, unveils first Long Island location (Long Island News)

PGA Tour Superstore opened second store in Michigan; seven more to open in U.S. in 2025

PGA TOUR Superstore, founded by Arthur M. Blank, who is still chairman of AMB Sport & Entertainment, has 75 locations in the U.S., and will open seven more in 2025, according to a prepared statement by Jill Spiegel, president.

Most of the locations are in the Southeast and the West Coast in 27 states, but by the end of the year, it will have a presence in 30 states when the company adds new stores in Connecticut, Kentucky and Missouri. The PGA Tour Superstore has already began the buildout for a new store in St. Louis County, its first store in Missouri. The goal is to grow more in the central part of the country, according to Spiegel. PGA Tour Superstore locations average 35,000 square feet.

The newest store opened in greater Grand Rapids, Mich. It features a wide range of golf equipment and apparel, an 896-square-foot indoor putting green, and offers lessons from certified professionals and an in-house club repair and custom club-making facility for repairs, regripping, adjustments and custom fittings. It has two Studio-brand bays for golf instructions and club fitting, four practice bays and four simulator bays for customers to play virtual rounds and test equipment.

Read more: PGA Tour Superstore, ‘A Disneyland for Golfers,’ Continues Rollout (Women’s Wear Daily)

Ocean State Job Lot is acquiring 15 Big Lots leases in eight different states

Ocean State Job Lot is the latest chain to scoop up former Big Lots leases from Gordon Brothers, acquiring 15 stores in eight different states: Delaware, Maine, Maryland, Massachusetts, New Jersey, New York, Pennsylvania and Vermont.

The Rhode Island-based discount chain already has 159 locations in the Northeast, and the expansion will add two new states to its presence: Delaware and Maryland. The Big Lots stores are expected to be renovated, rebranded and reopened as Ocean State’s Job Lot by mid-summer 2025.

OSJL said in a statement that these converted stores range in size from 27,188 square feet to 43,021 square feet.

Ocean State Job Lot has previously taken over former Christmas Tree Shops and Toys"R"Us stores to turn them into new locations.

With those 15 Big Lots leases and its previously planned organic expansion, Ocean State Job Lot plans to open 22 new stores in 2025.

Read more: Ocean State Job Lot acquires 15 former Big Lots locations (WPRI)

Five Below plans to open at least 150 stores in 2025

With consumers trading down and seeking discounts, Five Below is on a tear. In FY2025, Five Below plans to open at least 150 stores, and the chain is already one third of the way there.

According to comments from Five Below CFO Kristy Chipman, CPA, MBA during an earnings call yesterday, at least 50 of those stores are set to be operational by the end of the first fiscal quarter.

This is in addition to 22 Five Below stores that opened at the end of the fourth quarter, contributing to its total of 227 new locations in fiscal 2024. Five Below’s fiscal year ended on February 1, 2025.

The current store count is approximately 1,807 across 45 states. The new locations would put Five Below just under 2,000 locations.

Read more: Iconic discount chain that’s ‘cheaper than Dollar Tree’ to open up 150 new locations in 2025 – and 50 are coming in days (The U.S. Sun)

Publix Super Markets continues expanding but within the same eight states where it operates stores.

Publix Super Markets continues its expansion plans in 2025 at the same pace as 2024 when it opened 43 stores. All 1,400 Publix stores are located in Alabama, Florida, Georgia, Kentucky, North Carolina, South Carolina, Tennessee and Virginia.

In 2025, Publix is aiming to expand in the same eight states where it currently has stores, according to an interview that Publix vice president of real estate strategy and operations Bridgid O’Connor did with ICSC's C+CT .

Publix has seven prototype store layouts but the standard store size is about 50,000 square feet. Recently Publix opened large-format (55,000-square-foot) stores in Tampa and in Kentucky. The large-format prototype serves beer and wine and has expanded deli offerings.

Publix continues to look for new locations with the understanding that market dynamics vary, so O'Connor likes to encourage landlords to bring them development opportunities before assuming the potential location is not the right fit.

Sites can be submitted by regular mail to Publix headquarters in Lakeland, Fla., but they must be in writing and directed to one of 10 Publix real estate managers responsible for the territory in which a location is to be submitted.

If you plan to submit a site for consideration, include location (quadrant, intersection, city, county, state), proof of control of the site, zoning, trade area map showing site, competition, existing Publix stores and distance from site to other grocery stores and the demographics of the trade area (1, 2 and 3 mile radius).

Real estate managers responsible for their respective territories are Sarah Johnston, MBA, Julianne Polston, Dalton Locke, Mike Leahy, David Parry, CCIM, Jon Adams, Austin Stone, Jordan Konieczki, Eva Gullett, CCIM and Mike Gordon.

Publix is not a publicly traded company. It's privately owned by the founder's family and past and present employees.

Read more: Publix’s Bridgid O’Connor Discusses Store Strategy (ICSC C+CT)

Princess Polly expands nationally with seven new stores

a.k.a. Brands is expanding the digitally native Princess Polly chain mostly in A+ malls with seven new stores to open in 2025, according to Eirin Bryett, co-founder and co-CEO of Princess Polly. This brings the total number of stores to 13.

New openings:

1. New York City (SoHo)
2. Dadeland Mall (Miami-Dade)
3. Glendale Galleria (Glendale, Calif.)
4. Easton Town Center (near Columbus, Ohio)
5. The Westchester (White Plains, N.Y.)
6. Roosevelt Field (Long Island, N.Y.)
7. King of Prussia Mall (near Philadelphia)

The stores in Columbus, Glendale, Miami, and New York City will open in the first half of the year, with the remaining stores opening in the back half.

The majority of the new Princess Polly stores will be between 4,000 and 5,000 square feet but the SoHo flagship store will be about 8,000 square feet on two levels.

The first Princess Polly store opened in 2023 at Westfield Century City mall in Los Angeles, and the chain already operates six stores, all selling trendy apparel aimed at Gen Zers who monitor Tik-Tok celebrities.

Read more: Princess Polly Grows U.S. Store Fleet with Seven New Openings in 2025 (Business Wire)