Retail Watchers

They could have just renamed them Lowe’s Hardware stores and had a smaller format urban style store. Don’t forget Lowe’s started as a hardware store.

jamcool wrote: ↑August 24th, 2018, 6:53 am They could have just renamed them Lowe’s Hardware stores and had a smaller format urban style store. Don’t forget Lowe’s started as a hardware store.

That's what I figured they were going to do. Plus, they did open a store in Manhattan just like that.

They're not wasting any time. I already received an email announcing the store closings and the beginning of liquidation sales ("10 to 30% off.")

jamcool wrote: ↑August 24th, 2018, 6:53 am They could have just renamed them Lowe’s Hardware stores and had a smaller format urban style store. Don’t forget Lowe’s started as a hardware store.

A majority of the OSH chain was not as profitable compared to regular Lowe’s stores; however, OSH had certain stores in markets where it would be tough to build out full sized Lowe’s stores i.e. San Francisco where Lowe’s could rebrand those stores as a Lowe’s since they are the right size for the market, there’s no other competitors in those areas so they had to be profitable

Also, here’s my local OSH store that is closing. This was on 10/30/18, with 6 days left and there was barely anything left, I wouldn’t be surprised if they closed a few days sooner.

I've never seen such a good looking OSH.

I think a fair number of OSH locations will end up being small format Target stores. It's the right size and they have some locations that would work for Target.

And since OSH is not in bankruptcy, Lowe's has must be motivated to get rid of the leases as soon as possible so there maybe some financial incentives.

I felt like in NorCal a lot of these OSHs could convert to grocery stores of some kind. For any grocer who has a smaller store near an OSH, the larger OSH location would probably be a logical relocation. Safeway, Save Mart, and even Whole Foods operate quite a few smaller stores in NorCal.

You probably have to fumigate the place to make it into a grocery store with the years of built up garden pesticide, paint, etc. odors in the OSH Stores but that is another story.

I am sure landlords would prefer to divide the spaces up. Sprouts or Trader Joe's plus something else.

storewanderer wrote: ↑November 2nd, 2018, 10:55 pm I am sure landlords would prefer to divide the spaces up. Sprouts or Trader Joe's plus something else.

Dividing up a large retail space is the last thing that any landlord wants to do. You are looking at some significant expense to separate the HVAC and electrical systems, add bathrooms/plumbing, build a new facade, etc. They will do it if they have no other choice but it's a significant expense especially if only half the space is leased.

babs wrote: ↑November 3rd, 2018, 7:04 pm

storewanderer wrote: ↑November 2nd, 2018, 10:55 pm I am sure landlords would prefer to divide the spaces up. Sprouts or Trader Joe's plus something else.

Dividing up a large retail space is the last thing that any landlord wants to do. You are looking at some significant expense to separate the HVAC and electrical systems, add bathrooms/plumbing, build a new facade, etc. They will do it if they have no other choice but it's a significant expense especially if only half the space is leased.

Landlords sure seem to love carving up former Kmarts into multiple things... and even some of these former mall Sears... as you point out, you need to get the space filled up to make it worthwhile.

Just had a former Target/Gemco here carved up between Harbor Freight and Tractor Supply too. Also just had a former Scolaris carved up between Grocery Outlet and Big Lots this year. A couple years ago, repeat of the same thing with a different former Scolaris. Also another former Scolaris carved up between Grocey Outlet and Bealls.

There are also 3 former Wal Marts in this region that have been carved up to various extents.

Lots of this carving up thing happening in my area.