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10 Tenant Updates: McDonald’s and the Metaverse, Hobby Lobby in NYC, Skechers off Mall and More

February 11, 2022

AMC Theatres: The world’s largest theater chain hired Ellen Copaken, formally of Frito-Lay and Hostess Brands, as vice president of growth strategy to oversee its expansion into the multibillion-dollar retail popcorn industry outside its theaters. In November, AMC announced that it would sell its popular AMC Perfectly Popcorn through kiosks at mall retail locations around the U.S.

Aldi: The discount supermarket operator keeps rapidly expanding across the U.S. It plans to build 150 more stores throughout the country, bringing Aldi into its 38th state. To support growth in the Gulf Coast region, it will open a 564,000-square-foot regional distribution center in Loxley, Alabama, this year.

The Barn: Sales are surging at drive-thru convenience stores. The Barn on Long Island, for example, is doing banner business, up 20%, since the onset of the pandemic, according to the owner of this two-unit chain.

Cava: Catering is a growing business for quick-service restaurant chains that will create a need for more space. Last month this Mediterranean fast-food chain opened its first digital pickup kitchen in Sandy Springs, Georgia, to serve not only as a storefront for digital-order pickup and delivery but also to power its nascent catering business, which launched in New York City in November and is scheduled to go nationwide. Cava recently acquired the Zoes Kitchen chain, which operated a robust catering operation out of its stores, and is using that knowledge to build its own catering business.

Hobby Lobby: The arts-and-crafts chain’s first New York City store will open next year at The Crossing in Staten Island, according to brokerage firm Katz & Associates.

Kohl’s: The department store chain rejected takeover offers following a recommendation from its finance committee, saying current buyout options undervalue the retailer “in light of its future growth and cash flow generation.” The consideration of buyout offers comes as activist investors Macellum Advisors GP and Engine Capital urged the company to consider a sale and demanded that Kohl’s improve its business or they will nominate a new slate of directors at a Kohl’s shareholder meeting. In response, Kohl’s adopted a shareholder rights plan to ward off a hostile takeover.

McDonald’s: The maker of the Big Mac is the latest brick-and-mortar brand to join the metaverse, a network of virtual worlds and digital marketplaces that consumers access with virtual and augmented reality headsets and other tech. McDonald’s filed requests with the U.S. Patent and Trademark Office to trademark, among other things, “operating a virtual restaurant featuring actual and virtual goods” and “operating a virtual restaurant online featuring home delivery.” It also aims to trademark “online actual and virtual concerts” and other entertainment within a virtual marketplace called McCafe. Another food chain, Panera, recently filed a trademark request for the Paneraverse, a shop with downloadable, virtual food and beverage items “for use in virtual worlds,” along with the option to purchase actual goods in the virtual world to be delivered. Nike, Skechers and Walmart all have made similar filings in the past three months.

Skechers: The footwear brand is opening 120 to 150 stores worldwide after achieving record sales of $6.3 billion in 2021. Many are in second-generation spaces in open-air settings as the company exits some mall stores. It closed 11 U.S. mall stores in January and plans to close another five to 10 by the end of the year. Skechers will, for example, open in a former 21,000-square-foot Fresh Market in Snellville, Georgia. Other announced openings include 6,500- to 9,000-square-foot spaces, including several former Pier 1s.

Tesco: The U.K. supermarket company this month will open its first store dedicated to selling only “healthy” food products. It also will add under-100-calories sections to its traditional stores. U.K. chains are reconfiguring their product selections and presentations to comply with coming government restrictions on high-fat and high-sugar products.

Yum Brands: The fast-food conglomerate said it set a restaurant industry record for unit development in 2021, opening 4,180 restaurants globally across its KFC, Habit Burger Grill, Pizza Hut and Taco Bell brands. Global same-store sales climbed 10% in 2021. U.S. same-store sales surged 13% for KFC, 10% for Taco Bell, 9% for Pizza Hut and 3% for Habit Burger Grill.

By Brannon Boswell

Executive Editor, Commerce + Communities Today

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