WAL-MART SHOPS FOR SUBSIDIES
Even if vocal consumer and special interest groups aren't fans of Wal-Mart, many state and local governments apparently are, having given the retail giant roughly $1 billion in various taxpayer-underwritten subsidies to build stores in their communities in the past decade. That number comes from a recent independent report compiled by Washington, D.C.-based Good Jobs First on behalf of notorious Wal-Mart foes at the United Food and Commercial Workers International Union. See the chart below for a list of the tax breaks Wal-Mart will receive this year.
| LOCATION | STORE TYPE | ESTIMATED SUBSIDIES | MAIN SUBSIDY TYPE |
|---|---|---|---|
| Birmingham, Ala. | Supercenter | $10 million | reduced-price land |
| Palatine, Ill. | Discount | $3.5 billion | site prep; infrastructure |
| Vandalia, Ill. | Supercenter | $1 million | infrastructure |
| New Orleans | Supercenter | $7 million | property tax breaks |
| Ozark, Mo. | Supercenter | $3.5 million | infrastructure |
| Audubon, N.J. | Supercenter | $1.2 million | infrastructure |
| North Charleston, S.C. | Supercenter | $10 million | infrastructure, via TIF |
| American Fork, Utah | Supercenter | $1.2 million | infrastructure |
| Source: Good Jobs First | |||
PAY SCALE WHO SPENT HOW MUCH ON WHAT?
$2billion
JP Morgan, Apollo Management acquires AMC Theatres.
$1.5 billion
Bain Capital, The Carlyle Group and Spectrum Equity Advisors buy Loews Cineplex Entertainment Corp.
$1.2 billion
Canada-based Ivanhoe Cambridge and Frankfurt, Germany's Commerzbank form HausInvest Global to buy retail and office properties worldwide.
$620 million
Sears buys 54 Kmarts and leases seven Wal-Mart units.
$350 million
Federal Realty and ING Clarion form joint venture to buy grocery-anchored properties.
$262 million
British retailer Tesco buys 50 percent interest in Chinese retailer Hymall.
WELCOME MATS
New York and L.A. are “welcome mat” cities for people moving to the United States and have been since the mid-1960s when current immigration laws came into effect. Established ethnic communities and family connections keep immigrants coming to these cities. But what about domestic migrants? These movers are more motivated by economic concerns and job opportunities, making cities such as Phoenix, Atlanta and Charlotte, N.C., popular.
METROPOLITAN* MAGNETS FOR IMMIGRANTS AND DOMESTIC MIGRANTS [1995-2003]
| IMMIGRANTS FROM ABROAD | NET DOMESTIC MIGRATION | |
|---|---|---|
| 1 New York | 1,605,530 | -1,511,765 |
| 2 Los Angeles | 1,196,359 | -676,213 |
| 3 San Francisco | 613,037 | -556,777 |
| 4 Chicago | 527,651 | -525,974 |
| 5 Miami | 493,056 | -162,715 |
| 6 Washington, D.C. | 451,546 | -22,018 |
| 7 Dallas-Fort Worth | 386,647 | 212,758 |
| 8 Houston | 353,738 | 22,794 |
| 9 Boston | 301,915 | -141,665 |
| IMMIGRANTS FROM ABROAD | NET DOMESTIC MIGRATION | |
|---|---|---|
| 1 Phoenix | 224,305 | 387,482 |
| 2 Las Vegas | 98,813 | 368,434 |
| 3 Atlanta | 258,889 | 338,015 |
| 4 Dallas-Fort Worth | 386,647 | 212,758 |
| 5 Tampa-St. Petersburg | 99,097 | 206,223 |
| 6 Orlando | 112,061 | 188,480 |
| 7 Sacramento | 89,368 | 155,167 |
| 8 Austin | 83,113 | 146,412 |
| 9 Charlotte | 66,159 | 143,406 |
THE BIERI REPORT: SEATTLE
Downtown Seattle and Bellevue compete to be the number one shopping areas in metropolitan Seattle. The different districts in downtown Seattle, Pike's Market, 1st Street, traditional retail on 5th and Pine, and urban projects create an impressive mix of great retail. In addition, the Nordstrom renovation of the old Frederick and Nelson building has made for a top of the line flagship anchor downtown, and the Bon Marche is another powerful anchor in this area. Bellevue Square is an extremely powerful, well built and maintained center in this market.
The Kemper family has begun development on Lincoln Square, making this an extraordinary retail environment. Alderwood Mall is being renovated and seems to be headed in a positive direction. University Village is another successful area project, it was a powerful lifestyle center even before lifestyle centers were all the rage.
| Shopping Center | Ranking |
|---|---|
| Alderwood Mall | A |
| Bellevue Square | A |
| Everett Mall | C |
| Northgate | C |
| Pacific Place | C+ |
| Redmond Town Center | C |
| Southcenter Shopping Center | A |
| Tacoma Mall | B |
| University Village | B- |
| Westlake | C+ |
APPLYING PRESSURE
Home Depot is rolling out appliances to all of its stores. Currently, only about 50 percent of Home Depots sell appliances such as refrigerators and dryers. The move should allow the retailer to gain appliance market share from weaker competitors, says JP Morgan equity analyst Stephen Chick.