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Tuesday, Feb. 23, 1999

Wal-Mart to be key player in consolidation

Also: Shoe store and restaurant are among new tenants at Sunrise Mall

By JEFFREY TOMICH
Staff Writer

   Consolidation in the retail industry will continue in 1999 as companies compensate for softer sales than last year, a panel of retail analysts said at the National Retail Federation's annual convention in New York.
   Dana E. Cohen of Donaldson, Lufkin & Jenrette Securities believes Wal-Mart's expansion of its Supercenters that combine food and general merchandise items and the company's debut of a smaller grocery format could indirectly spur further consolidation among food and discount retailers.
   Analysts also said department stores likely will continue to struggle to regain sales from specialty stores and discounters.
   And though department stores already have jumped on many opportunities to combine operations, other pairings still are a possibility, said Jeffrey M. Feiner, managing director of Lehman Brothers.
   Middle-market retailers will be under strong pressure in 1999 to find new ways to generate excitement, analysts said.
   Sears and J.C. Penney, both of whom posted disappointing holiday sales in 1998, are being squeezed by upscale department stores drawing customers with promotions as well as discounters' improved product selections.
   George Stracha vice president of research at Goldman Sachs & Co., said Sears and Penney aren't doomed, though, and are better positioned than any retailer to serve the middle market.
   "It's only a matter of making themselves meaningful for that customer again," he said.
   Retail sales are expected to gain 3 percent to 3.5 percent, less than 1998's impressive 4.5 percent to 5 percent gain, Lehman Brothers' Feiner said.
   

Additions to Sunrise Mall

   Banister Shoes, the warehouse division of women's shoe maker Nine West, has inked a lease for 3,300 square feet on the upper level of Sunrise Mall and is expected to open in mid-March, said Keith Schiff, the mall's general manager. The company has a six-month lease but is considering a permanent store.
   The mall also has a new food court tenant, Gyros & Kabob, which specializes in Middle Eastern and Greek cuisine. Also, Brandy's Delight, a kiosk tenant selling mini-doughnuts, opened earlier in the month.
   Trevor Stores, a retailer of home furnishing accessories and gifts, has started building out 6,300 square feet on the mall's lower level. Schiff said the company was pleased with sales at its temporary holiday store at the mall, which has closed. Hot Springs, Ark.-based Trevor Stores operates 23 stores in the South Central and Southwestern U.S.
   

Ceramic warehouse opens

   Georgia Sulsh of Corpus Christi has opened Georgia's Originals Ceramic Warehouse, a ceramic warehouse and studio, at 3760 Saturn Road.
   Sulsh, who learned the craft from her grandmother years ago, will offer ceramic how-to classes and carry ceramics supplies and products.
   

Relocated Eckerd's opens

   Eckerd Corp. opened its just-relocated store at 4102 Ayers St. on Sunday. The 10,900-square-foot free-standing store replaces the store at 4201 Ayers in the Portairs shopping center and has a drive-through window and photo center with one-hour processing.
   Florida-based Eckerd now operates 11 stores in the Corpus Christi area.
    On Retailing is published every other Tuesday in the Staff Writer business section. Items for consideration includes information on new, relocated and expanded businesses and retail trends, and should be sent to: On Retailing, Corpus Christi Staff Writer, P.O. Box 9136, Corpus Christi, Texas 78469; e-mail Jeffrey Tomich at tomichj@caller.com; fax items to (361) 886-3732; or call (361) 886-4316.

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