Mormon Mall

Last week, a 700,000 square-foot mega mall funded by the Jesus Christ Church of Latter Day Saints opened in the heart of Salt Lake City. More than 90 retailers will be inside this mega-store and 1/3 of them are brand new to Salt Lake City. City Creek Center, the mall's name, has fountains that spew fire and water, a retractable sun room, along with other man-made fixtures. The store has a deal with the church and will be closed on Sundays and also will be sharing some profits with the church. Mormons have a tradition with this type of investment. Brigham Young, the Church’s second president, founded Zions Cooperative Mercantile Institution which is sometimes referred to as “America’s First Department Store."

This mall is sure to be a hit in Salt Lake City because it incorporates new stores and modernized shopping but still stays true to Mormon beliefs and tenants. Also, this mall shows that although we are slowly coming out of a recession some groups, like the Church of Latter Day Saints, still has money to develop and build. What will be interesting is if stores like Macy's and Tiffany & Co. will sell the same merchandise they do in other stores in the City Creek Center or will they adjust to fit a Mormon audience.

The full article can be found at: http://www.businessweek.com/articles/2012-03-16/what-slowdown-the-mormons-are-building-a-mega-mall

Sears: Saving Money by Closing Doors

Sears Holdings Corp plans on closing 62 of its’ retail stores in order to reduce expenses. Edward Lampert, Sears’ CEO, just had the company’s largest quarterly loss in at least nine years.  Its’ goal is to raise about $770 million to help recuperate from that loss. Shares fell 1.1 percent to $82.55 at the close in New York but shares have more than doubled this year after falling 56% last year.

The company also owns Kmart and has 45% less cash than last year with $747 million in the fourth-quarter. Kmarts have been struggling for years now and the amount of these types of stores have been falling with the success of major player Walmart and also wholesalers such as Costco and BJ’s. To survive, Sears not only has to raise money but find a way to reinvent itself to survive in the new market.

The full article can be found at: http://www.bloomberg.com/news/2012-03-16/sears-to-close-62-stores-in-first-half-of-this-year-to-cu.html

Walmart’s Lines Are About To Get Even Crazier

Apple’s new iPad will be coming not only to Apple Stores but also to Wal-Mart Stores eight-hours earlier.  The world’s largest retailer will be selling a limited number of iPads. This is a special arrangement because Apple does not typically favor other retailers over its over 350 Apples stores. IPads account for about 20% of Apple sales and it is the company’s second best-selling product behind the iPhone. This is a huge competitive advantage for Wal-Mart because it gets a head start over Best Buy and Target.  Sales will probably not affect Apples stores too much because of the limited quantity that Wal-Mart will be selling earlier. Lines will form just as long around these Wal-Marts at each and every Apple store.

The full article can be found at: http://www.bloomberg.com/news/2012-03-15/wal-mart-to-start-selling-ipads-at-midnight-before-apple-stores.html