Trump said he doesn't see a recession after the bond market spooked investors and the Dow suffered its worst day of the year last week.Marketsread more
Americans now say they approve of free trade by 64%-27%, a margin of better than two to one. That's up from 57%-37% early in Trump's presidency, and 51%-41% near the end of...Politicsread more
Stocks in Asia edged up Monday morning as U.S. Treasury yields bounced higher after plunging last week which sent markets into a panic.Asia Marketsread more
Beijing wants to use reforms to support a slowing economy.China Marketsread more
Trump said Cook made a "good case" that it would be difficult for Apple to pay tariffs, when Samsung does not face the same hurdle because much of its manufacturing is in...Technologyread more
The yield on the benchmark 10-year Treasury note briefly fell below the 2-year rate on Wednesday, a phenomenon in the bond market known as yield curve inversion, which is...Marketsread more
Despite aggressive strides, Waymo needs one thing before their self-driving cars become a seriously useful transportation system: people. We talked to the ones closest to it.Technologyread more
The hearing will now begin next Monday to allow time for the completion of a previous trial that revolves around former 1MDB unit SRC International, a Kuala Lumpur High Court...Asia Newsread more
"I don't want to do business at all because it is a national security threat," Trump told reporters.Technologyread more
Trump's is due to visit Copenhagen early next month, when the Arctic will be on the agenda in meetings.Europe Politicsread more
The MacBook Pro recall and its subsequent ban from flights underscores the increasing brand risk from problems with lithium-ion batteries.Technologyread more
Grocery store openings declined 29 percent last year as expansion plans cooled and some supermarkets prepared to file for bankruptcy in the year Amazon acquired Whole Foods, according to a new report from Jones Lang LaSalle.
But investments in grocery-anchored shopping centers in 2017 climbed 5.3 percent from 2016, JLL found, making it one of the only retail sectors to see deal growth in a year of low transaction volume.
"Traditionally, retail has such a reputation right now of everybody being afraid of disruption by e-commerce," James Cook, JLL's director of retail research in the Americas, told CNBC. "Grocery is considered to have a moat around it to defend against e-commerce, and because of that, these [assets] are seen by retail property investors as a safe investment."
To be sure, these investors aren't interested in all grocery-anchored centers, Cook cautioned. Just this month, for example, Williamsville, New York-based Tops Friendly Markets filed for bankruptcy, and reports surfaced that Winn-Dixie owner Bi-Lo was preparing to do so, too. There's a glut of shopping centers built around weak tenants that risk going dark, just like many malls anchored by weak department stores.
"In many U.S. markets you might have six or more grocery chains," Cook said. "In most cases, investors are only interested in the top one or two. Those are the most defensible."
The short list for those top grocery contenders include Whole Foods, Trader Joe's, Florida-based Publix, Wegmans and some of Kroger's brands. And for the most part today, these chains are opening few new stores. Instead, they are investing in their existing locations to fulfill online orders and ease the delivery of groceries to homes.
The strongest U.S. markets for grocery stores, where the most businesses continue to expand, include California, Virginia and North Carolina, according to JLL. Texas, although it's still a top market for grocers, added fewer stores in 2017 than in 2016. The growth in that state has stemmed from a spurt of new residential development. Where there are homes, people need more grocery stores.
Source: Jones Lang LaSalle
"Retailers die but retail does not," Cook said about the ongoing evolution in the grocery space. "There's just churn as retailers are either disrupted by new business models, or they go out of fashion."
Germany-based Lidl was one new player in the U.S. grocery market that everyone had their eyes on in 2017, when it began opening stores across the Southeast. Shortly thereafter, Lidl halted several of its construction projects, local news outlets have reported, as the company admitted it might have started expanding too quickly. Lidl opened nearly 50 stores across the U.S. last year.
In turn, Lidl offered other supermarket chains a warning sign: Many markets weren't ready for another grocer in town. The German company also had to fix a few snags internally. It's still working out its private-label items, its layout of U.S. stores and its marketing strategy for American consumers.
The most successful grocers today have well-known private labels, fresh food at affordable prices and digital platforms that allow for shopping online, Cook said.
"We've got two types of classes in grocery right now: One is about offering the best goods at the lowest prices — it's a price play that's targeted at the families in America shopping on a budget, so someone like Aldi is a part of that," he said. "Another avenue of success is offering a great shopping experience to shoppers who aren't as price sensitive — those leaders are Whole foods and Wegmans."