BOCA RATON, FLA. — Office Depot, a wholly owned subsidiary of The ODP Corp., is providing $1.5 million to Feeding America, a domestic hunger-relief organization, in support of its COVID-19 Response Fund to help local food banks across the country distribute more than 1.3 billion pounds of food to communities in need. Feeding America’s COVID-19 Response Fund enables its network of 200-member food banks to secure the resources they need to serve the most vulnerable members of their communities. According to a recent survey by Feeding America, nearly 40 percent of those served by the network are seeking food assistance for the first time. Households with children are more likely to experience food insecurity, with a report by Feeding America finding that the number of food-insecure children could escalate to 18 million, an all-time high, due to the COVID-19 health crisis. “We are proud to support the Feeding America network of food banks as it works tirelessly to address the increased demand for food assistance resulting from the COVID-19 pandemic,” says Gerry Smith, CEO for Boca Raton-based Office Depot and The ODP Corp. “Now more than ever, we are committed to strengthening local communities and hope that this donation will help to provide relief for …
WASHINGTON, D.C. — The advanced estimate for June retail sales nationwide is up 7.5 percent on a month-over-month basis, the U.S. Commerce Department reports. Consumers visited stores and auto dealerships in-person for the second straight month as businesses began reopening their doors. Retail sales totaled $524.3 billion in June, up from $487.7 billion in May. The most recent figure shows spending is near pre-pandemic levels, as the Commerce Department reported that February 2020 spending reached $527.3 billion. The Commerce Department also revised the May retail sales rate up by 50 basis points to 18.2 percent growth from April. Matthew Shay, president and CEO of the National Retail Federation (NRF), says that while the growth is trending positively, the increasing number of positive COVID-19 cases across the country could slow sales in the months to come. As of this writing, there were nearly 3.6 million positive cases in the U.S, according to Johns Hopkins University (JHU). Additionally, JHU reports that there were 77,255 new cases Thursday, setting a single-day record. “The retail sales numbers from last month were very encouraging and reflect continued progress in the right direction,” says Shay. “However, recent spikes in infection rates across the country have us focused …
WASHINGTON, D.C. — Another 1.3 million Americans filed for first-time unemployment assistance during the week ending July 11, the U.S. Department of Labor reports. The figure is down 10,000 from the previous week’s total. Economists surveyed by Dow Jones expected just under 1.3 million claims. The four-week moving average decreased by 60,000 claims to nearly 1.4 million. This marks the 16th consecutive week that the initial claims have totaled more than 1 million due to the worldwide COVID-19 outbreak.
WASHINGTON, D.C. — The novel coronavirus could result in record-levels in spending for back-to-school supplies as families across the country are expected to buy more electronics to prepare for at-home learning, a survey conducted by the National Retail Federation (NRF) and Prosper Insights & Analytics has found. Major school systems around the country, including the Ivy League, Los Angeles Public School District, Atlanta Public Schools, New York City Public School system and the University of California school system have announced virtual learning or a hybrid of in-person and online classes for this fall. According to the annual survey, spending could reach $789.49 per family with children in elementary through high school, which would break last year’s record expectations of $696.70 per family. College students are expected to spend $1,059.20 per family. Retail spending from college students and their families is expected to total $67.7 billion, up from $54.5 billion last year and breaking the record of $55.3 billion set in 2018. Total spending for kindergarten through college combined is projected to reach $101.6 billion — exceeding last year’s $80.7 billion and topping the $100 billion mark for the first time. NRF surveyed 7,481 U.S. consumers from July 1 to 8. …
SACRAMENTO, CALIF. — California Gov. Gavin Newsom has issued a series of business closures as statewide cases of COVID-19 continue to increase. In total, the state has 329,162 confirmed cases as of Sunday, July 12, and cases are sharply rising. Based on the increase of cases, Newsom has instructed the closures of numerous indoor businesses statewide, including dine-in restaurants, bars, breweries, wineries, tasting rooms, movie theaters, family entertainment centers, zoos, museums and card rooms. Additionally, counties that have been on the “county monitoring list” for three consecutive days are required to close fitness centers, places of worship, indoor protests, offices for non-critical infrastructure sectors, personal care services, hair salons, barbershops and malls. As of July 13, there were nearly 30 counties on the monitoring list, including Fresno, Los Angeles, Napa, Orange, Colusa, Kings, Glenn, Sacramento, San Diego, Sonoma, Ventura and Riverside. According California’s COVID-19 data collections, the state experienced 109,910 new cases and 1,104 new deaths in the last 14 days. Additionally, in the last 14 days, approximately 1.5 million tests were reported with 7.4 percent resulting in a positive test.
DEERFIELD, ILL. — In its fiscal 2020 third-quarter results, Walgreens Boots Alliance Inc. said its performance was “significantly impacted by the COVID-19 pandemic,” causing sales to be roughly $700 million to $750 million lower. The decline is largely attributed to its international stores. In April, sales at Walgreens stores in the United Kingdom were down 85 percent. Deerfield, Ill.-based Walgreens says that pharmacy volume was impacted globally by a drop in doctor visits and hospital patient admissions. Profits were also hurt by a shift to low-margin items and higher supply chain and cleaning costs. Additionally, Walgreens has announced that it will be the first national pharmacy chain to offer full-service doctor offices co-located at its stores on a large scale, following a trial that began last year. The partnership with VillageMD will create 500 to 700 physician-led primary care clinics in more than 30 markets in the next five years, with the intent to build hundreds more thereafter. The clinics will be staffed by more than 3,600 primary care providers who will be recruited by VillageMD. Under the terms of the new agreement, Walgreens will invest $1 billion in equity and convertible debt in VillageMD over the next three years, …
WASHINGTON, D.C. — An additional 1.3 million Americans have filed for first-time unemployment assistance for the week ending July 4, according to the U.S. Department of Labor. Economists surveyed by Dow Jones expected just under 1.4 million claims. The most recent week continues a declining week-over-week trend, coming in at 99,000 fewer claims than the week ending June 27. The four-week rolling average was 19.1 million, down by 636,000 claims from the previous rolling average. Additionally, the continuing claims are steadily declining, coming in at just over 18 million, a decrease of 698,000 claims from the previous week.
UNION, N.J. — Bed Bath & Beyond (NASDAQ: BBBY) plans to close 200 stores over the next two years. The Union-based company made the announcement during its earnings statement for its fiscal first quarter, which runs from March through May. The report shows sales plummeted in the quarter due to the novel coronavirus pandemic and subsequent shutdowns affecting non-essential retailers. For the three-month period, net sales were approximately $1.3 billion, a 49 percent year-over-year decrease. Bed Bath & Beyond reports that 90 percent of its physical locations were closed for the majority of the quarter, causing in-store sales to decline 77 percent. During the same period, sales on the digital platform grew 82 percent. “From the beginning of this crisis, we have taken measured, purposeful steps to help keep our people safe and our customers serviced, and we are proud of the way our teams have navigated this unprecedented challenge with speed and agility,” says Mark Tritton, president and CEO of Bed Bath & Beyond. “At the same time, our actions to strengthen our financial position and liquidity are enhancing our flexibility and capacity to invest and rebuild our business for long-term success.” As of May 30, Bed Bath & Beyond operated 1,478 …
In June, Student Housing Business, sister publication to REBusinessOnline, reached out to Timothy Bradley, founder of TSB Capital Advisors, for an update on the market for financing in the student housing sector and the outlook for the year ahead. SHB: How would you describe the market for financing student housing at present? Tim Bradley: The market is challenging but not impossible for the right deal with strong sponsorship. For cash-flowing student housing assets, there is still an element of “wait and see until fall” for refinancings and acquisitions in the debt markets. We are still receiving quotes from agencies on student housing transactions, but they include conditions such as heads in beds, school starting and upfront interest reserves. It’s also important to note that agencies are focused on best-in-class owners and operators and sound real estate at this time. All-in rates are still in the low- to mid-3 percent range for fixed-rate quotes. National banks are being very selective on new originations for existing clients and we have found regional banks to be more active in the current market. Life companies are mostly on the sidelines for student housing until the fall semester plays out. For construction, we’ve been able to secure …
A “black swan” event, the COVID-19 pandemic has had a devastating impact on the hospitality sector, affecting everything from revenue to operating models and the ability for hotel owners to pay debt service, says Brian Waldman, executive vice president of investments for Peachtree Hotel Group. The insights from Waldman came last Wednesday, July 1, during a webinar he moderated on the current state of the hospitality sector. The session was titled “Distressed Hotels: Sourcing Debt and Equity, Acquisitions and Value-Add Strategies.” A group of panelists not only discussed the epic challenges currently facing the industry, but also the road ahead. IMN hosted the event, and panel participants included David Parsky, managing principal of Arris Investments; Krystal England, senior director of Canyon Partners Real Estate; Rani Gharbie, head of acquisitions and development for The Pod Hotels; and Andrew Gindy, principal of Walton Street Capital. “Fundamentals are very depressed, and as a result the industry is in a cash-preservation mode,” began Gindy. “Recovery in terms of demand will remain unclear until there is some sort of vaccine or therapeutic measure to be taken against COVID-19. Without a visible end in sight, those of us in the industry need to preserve cash. Folks …