Burlington closing Carson City, NV location

[bryceleinan]

Burlington is closing their Carson City, NV location on 4/19 due to “lease issues.” This was a former division 1 Walmart divided between Burlington and what was to be a Sportsman’s Warehouse (before their bankruptcy). Instead, the Sportsman’s box got divided between Big Lots and Big 5, with Burlington in the old, fairly lightly remodeled Walmart portion. There are rumors that another large retailer may be moving in, but those are unsubstantiated. Ross relocated from Douglas County into a box next to Burlington several years ago.

There is no possibility of grocery in this location due to a parcel restriction the nearby Raley’s has had in place since the 80s. That was the main reason Walmart 1648 relocated to Douglas County - Walmart wanted to make the location a Supercenter, and they could not due to Raley’s enforcing their restriction.

https://www.nevadaappeal.com/news/2024/ ... -underway/

[ClownLoach]

No surprises here, they have been actively getting rid of their big stores like these and downsizing. Many were in old Kmart buildings and have traded down to a closed Toys or Sports Authority. They would rather have a nicer, much smaller store.

[storewanderer]

Didn't see this coming but maybe it is not so surprising. Burlington seems to be having some issues. They keep blocking off more and more of their sales floors. I've left single items I wanted to buy multiple times in Reno due to the terrible checkout situation.

The past couple times in Reno they did not have a security by the door and I watched one person walk out with items who didn't pay. Alarm went off. Nobody seemed to care.

The Big Lots on the other hand I'm surprised it survives.

I suspect Hobby Lobby takes the space and Ross expands into part of it. They'll do far more volume.

Could this be a good Sam's Club site (get Big Lots and Big 5 too) or would the grocery thing make that impossible?

[mbz321]

Didn't see this coming but maybe it is not so surprising. Burlington seems to be having some issues. They keep blocking off more and more of their sales floors.

I honestly can't differentiate between Burlington/Ross/Gabe's these days...all three, and to some extent you can throw TJMaxx/Marshall's in there, seem to have an almost identical selection of merchandise.

[ClownLoach]

Didn't see this coming but maybe it is not so surprising. Burlington seems to be having some issues. They keep blocking off more and more of their sales floors. I've left single items I wanted to buy multiple times in Reno due to the terrible checkout situation.

The past couple times in Reno they did not have a security by the door and I watched one person walk out with items who didn't pay. Alarm went off. Nobody seemed to care.

The Big Lots on the other hand I'm surprised it survives.

I suspect Hobby Lobby takes the space and Ross expands into part of it. They'll do far more volume.

Could this be a good Sam's Club site (get Big Lots and Big 5 too) or would the grocery thing make that impossible?

Sam's wants 160,000 Sq ft and up going forward for their new stores. This is too small. And a lease restriction would probably have very specific language such as no fresh meats, no produce, no food at all over X hundred square feet.

Hobby Lobby is downsizing and capping out at 40K for the most part, and walling off excess space in their larger stores. Burlington isn't having problems, they just stopped buying "clothing by the pound" to fill out their sales floors and are focusing on higher priced items. They are systematically relocating all their large stores to smaller formats, as I said previously many full Kmart stores run by Burlington moving down to former BB&B, Toys R Us, Sports Authority, original PetSmart large format, etc.

[Alpha8472]

Burlington had done some crazy stuff over the past couple of years that is really annoying customers. They closed off the restrooms and have put up rope lines outside in front of the entrance doors. It is like you are lining up to get into an exclusive club.

It isn't COVID anymore. I don't know why they need a roped waiting queue area to get into the store.

I assume this is to trip shoplifters if they try to dash out the door with their arms full of merchandise.

Burlington has had a single line for checkout for a while, but it now seems to take forever. Something about their checkout process is unusually slow.

I have noticed huge sections of the store empty of merchandise. There is so much unused floor space. It looks really bad. My local store is a former Sports Authority, so it isn't that big. However, it is much bigger than the typical Ross. Ross seems to favor smaller stores.

I don't know why, but for some reason Ross seems like a more appealing store than Burlington.

[bryceleinan]

Didn't see this coming but maybe it is not so surprising. Burlington seems to be having some issues. They keep blocking off more and more of their sales floors. I've left single items I wanted to buy multiple times in Reno due to the terrible checkout situation.

The past couple times in Reno they did not have a security by the door and I watched one person walk out with items who didn't pay. Alarm went off. Nobody seemed to care.

The Big Lots on the other hand I'm surprised it survives.

I suspect Hobby Lobby takes the space and Ross expands into part of it. They'll do far more volume.

Could this be a good Sam's Club site (get Big Lots and Big 5 too) or would the grocery thing make that impossible?

The lobby of hobbies is indeed the rumored retailer according to social media...

[ClownLoach]

Didn't see this coming but maybe it is not so surprising. Burlington seems to be having some issues. They keep blocking off more and more of their sales floors. I've left single items I wanted to buy multiple times in Reno due to the terrible checkout situation.

The past couple times in Reno they did not have a security by the door and I watched one person walk out with items who didn't pay. Alarm went off. Nobody seemed to care.

The Big Lots on the other hand I'm surprised it survives.

I suspect Hobby Lobby takes the space and Ross expands into part of it. They'll do far more volume.

Could this be a good Sam's Club site (get Big Lots and Big 5 too) or would the grocery thing make that impossible?

The lobby of hobbies is indeed the rumored retailer according to social media...

Here's the deal with Hobby Lobby. They are last to lease a site, not first.

Their strategy is to pursue problem properties that have sat vacant for years. They strong arm the landlord and offer 25% of the asking rent, only a ten year term, and then they say they don't want any up front money because they'll build out the space themselves with their own crew from Oklahoma City. For most landlords who can't write off any more losses and are going broke, they are better off taking the 75% or more below asking because they won't have to offer millions of dollars to prepare the space.

Of course they could have a deal worked out already and would be a more desirable tenant for the landlord than Burlington, and they could wall off the unwanted space and either moth ball it or sub lease it. I don't know that market but I do know how they operate. A good tenant aside from the fact they're cheap rent, they usually will do triple net as well.

[storewanderer]

Didn't see this coming but maybe it is not so surprising. Burlington seems to be having some issues. They keep blocking off more and more of their sales floors. I've left single items I wanted to buy multiple times in Reno due to the terrible checkout situation.

The past couple times in Reno they did not have a security by the door and I watched one person walk out with items who didn't pay. Alarm went off. Nobody seemed to care.

The Big Lots on the other hand I'm surprised it survives.

I suspect Hobby Lobby takes the space and Ross expands into part of it. They'll do far more volume.

Could this be a good Sam's Club site (get Big Lots and Big 5 too) or would the grocery thing make that impossible?

The lobby of hobbies is indeed the rumored retailer according to social media...

Here's the deal with Hobby Lobby. They are last to lease a site, not first.

Their strategy is to pursue problem properties that have sat vacant for years. They strong arm the landlord and offer 25% of the asking rent, only a ten year term, and then they say they don't want any up front money because they'll build out the space themselves with their own crew from Oklahoma City. For most landlords who can't write off any more losses and are going broke, they are better off taking the 75% or more below asking because they won't have to offer millions of dollars to prepare the space.

Of course they could have a deal worked out already and would be a more desirable tenant for the landlord than Burlington, and they could wall off the unwanted space and either moth ball it or sub lease it. I don't know that market but I do know how they operate. A good tenant aside from the fact they're cheap rent, they usually will do triple net as well.

There is a weird Ross next to this store. The weird Ross sits in small tenant/strip mall space. It is not in anchor space. It is very small/shallow. Ross moved from a store that was a full size mid 90's Ross one building and to the left of the Carson Target because that center had so little traffic Ross was failing there and wanted to move to a better location. So I think they could carve off 20k square feet of Burlington for Ross somehow and then give Hobby Lobby 50k square feet of space and it could work.

Carson is an excellent spot for a Hobby Lobby. They absolutely need to get a location there and this is exactly where they need to be. There are other retail boxes near it that could work. The Save Mart nearby does almost no volume and I have no idea how it stays open. I don't think the Kohls or JCP Stores are terribly productive either. The Kohls building (former Mervyns) is probably the best size fit for Hobby Lobby.

[ClownLoach]

The lobby of hobbies is indeed the rumored retailer according to social media...

Here's the deal with Hobby Lobby. They are last to lease a site, not first.

Their strategy is to pursue problem properties that have sat vacant for years. They strong arm the landlord and offer 25% of the asking rent, only a ten year term, and then they say they don't want any up front money because they'll build out the space themselves with their own crew from Oklahoma City. For most landlords who can't write off any more losses and are going broke, they are better off taking the 75% or more below asking because they won't have to offer millions of dollars to prepare the space.

Of course they could have a deal worked out already and would be a more desirable tenant for the landlord than Burlington, and they could wall off the unwanted space and either moth ball it or sub lease it. I don't know that market but I do know how they operate. A good tenant aside from the fact they're cheap rent, they usually will do triple net as well.

There is a weird Ross next to this store. The weird Ross sits in small tenant/strip mall space. It is not in anchor space. It is very small/shallow. Ross moved from a store that was a full size mid 90's Ross one building and to the left of the Carson Target because that center had so little traffic Ross was failing there and wanted to move to a better location. So I think they could carve off 20k square feet of Burlington for Ross somehow and then give Hobby Lobby 50k square feet of space and it could work.

Carson is an excellent spot for a Hobby Lobby. They absolutely need to get a location there and this is exactly where they need to be. There are other retail boxes near it that could work. The Save Mart nearby does almost no volume and I have no idea how it stays open. I don't think the Kohls or JCP Stores are terribly productive either. The Kohls building (former Mervyns) is probably the best size fit for Hobby Lobby.

A Kohl's/former Mervyn's is double the size of Hobby Lobby current stores. There are many in SoCal that are in old Mervyn's and they are actively downsizing these locations as they reduce their SKU depth. They are condensing the sales floors towards the doors and using gondola fixtures to wall off the back half of the store leaving it empty. Again they're trying to get into the 40s and out of these larger 70-80K boxes.