Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/448937
using a smartphone app, and a text alerts them when the gro- ceries are ready for pickup. Walmart began testing a similar concept last September on its home turf in Bentonville, Ark. Some grocery sellers are installing lockers at which shoppers can pick up their online-ordered bags of produce and packaged goods — a trend that could supplement retail leasing revenue over time, Porjes says. Peapod, for one, is leasing space for gro- cery pickup lockers at three Metro stations in Washington, D.C., as part of a six-month pilot program. "For commuters who are not always able to be home for grocery delivery, this is a perfect solution," Porjes said. Finally, the practice of "crowdsourcing" — whereby com- panies such as Uber use the Internet and GPS-enabled smart- phones to tap into pools of freelance delivery drivers — could also be a boon to supermarkets and other food stores, Jaggi says. General Growth Properties, Macerich, Simon and other top U.S. mall owners are using some of these freelance drivers to of- fer rapid delivery of items bought from tenants' stores. For Jaggi, the potential for supermarkets to do the same was underscored on a recent Uber ride in Dallas. "Before the Uber driver picked me up, he asked me if I wanted a lunch," Jaggi said. "He told me many of the drivers he knew were offering delivery services. When you start getting third-party service providers in the busi- ness of delivering groceries — now you've got a real change in the way we perceive the shopping experience." S C T Growth in specialty- grocer sector spurs development, attracts investors F e b r u a r y 2 0 1 5 / S C T 37 Mobs of investors are fighting over properties anchored by big super- market chains such as Harris Teeter, Kroger and Publix, leading those seeking less competition to focus on shopping centers anchored by specialty grocers, such as Earth Fare, Sprouts Farmers Market, The Fresh Market, Trader Joe's and Whole Foods. According to Franklin Street Retail Investment Advisors, 51 specialty-grocery-anchored U.S. shopping centers have traded hands in the past two years, accounting for an aggregate $1.3 billion, double the amount sold in 2012. About 80 percent of last year's specialty-grocery-anchored prop- erties were single-asset deals, according to Gary Saykaly, senior director at Franklin Street. Of the 10 transactions that were part of a larger portfolio sale, most consisted of entry-level transactions or the buyout of a partnership interest. Fresh Market was the most popular specialty supermarket among traded properties last year, account- ing for 37 percent of the total, Saykaly reports. Whole Foods made up 28 percent of the deals, Trader Joe's 22 percent, Earth Fare 12 percent and Sprouts 2 percent. Whole Foods properties garnered the lowest cap rates: 4.9 to 5.4 percent. In regional terms, the Southeast was the hot zone, as 66 percent of the total sales volume last year occurred in Florida and North Carolina, according to Franklin Street. Georgia was the third-most active state, with 22 percent of the total. The majority of sellers were developers and private investment groups, among them Och-Ziff Capital Management Group and Rialto Capital Management. Specialty grocers are helping to drive a new wave of ground-up development as well, since they are growing much faster than their traditional supermarket peers, according to Franklin Street. Whole Foods has 15 new stores under way, followed by Fresh Market, which is planning to open 10. Meanwhile, Earth Fare, Sprouts and Trader Joe's have collectively announced 22 stores set to open this year. All these are to roll out in the Southeast, 17 of them opening in Florida. Only eight are redevelopments, Saykaly says. The majority of the developers involved are privately owned. —JG