Levin Tenant Survey Reveals Optimism for Current Holiday Season

Most Retailers Planned To Boost or Maintain Inventories to Meet Expected Up-tick in Demand. End Quote

New York, NY (1888PressRelease) December 01, 2010 - While 2010 has been a tough year for retailers, there is optimism that the current holiday season will be better than 2009, according to a tenant survey conducted this fall by Levin Management Corporation. In that survey, 46% of respondees projected higher sales for the holiday season, and 22% said sales would at least match year-ago totals. Reported sales were mixed prior to the holidays, with just 30% of respondents indicating an up-tick and 52% reporting lower sales.

The survey polled retailers based within Levin's current portfolio which includes more than 90 diverse retail properties totaling 12.5 million square feet with approximately 1,000 tenants. Properties range from downtown stores to lifestyle centers, and from neighborhood and community centers to power centers in New Jersey, New York, Pennsylvania, Virginia, North Carolina and Florida. Levin offers a full range of services for its clients, including leasing, property management, accounting, construction management, marketing and risk management.

"While sales have struggled for most of the year, the mood among retailers is reasonably bright," said Matthew K. Harding, president and chief operating officer of Levin Management Corporation. "Because of the size and geographic scope of our portfolio, these results suggest a broader indication of what to expect."

The 2010 holiday season projections follow a 2009 season when just 39% reported similar or higher sales over 2008, and 46% reported a seasonal decline. The remainder indicated no basis for comparison.

The economy, of course, remains the overriding factor. Asked how economic conditions have impacted 2010 sales, only 3% of surveyed retailers indicated "significantly higher" sales relating to the economy, while 40% said their sales were "significantly lower." The remainder cited minimal or no impact.

And nearly three-quarters of respondees reported that their companies had not added stores in 2010. On the upside, 25% indicated their companies had indeed opened new stores, a clear sign that renewed industry-wide expansion may be underway.

Reflecting optimism for the holiday season, 27% of those surveyed said they planned to boost inventory levels, and 42% to at least maintain the same inventory levels as a year ago. With those inventories placed on store shelves, 55% indicated that they expected their seasonal markdowns to be unchanged from a year ago, and 23% will boost markdowns.

But injecting a note of caution, just 31% of the respondees said they would add holiday season staff. Overall, 47% said holiday season staffing was expected to be the same as a year ago, and 35% indicated that seasonal staffing would actually be less than in 2009.

"In the overview, these results indicate that while 2010 has not been a very good year for the retail community, there have been enough good signs, including store openings, inventory levels the same or higher for most, and signs of an economic upturn, to foster optimism," said Harding. "On the negative side, seasonal hiring apparently will not be as strong as in the past, and there is some indication of the ongoing impact of the recession on retailing in general.

"Levin Management is optimistic as well about the holiday season," he added. "We have actively and aggressively worked throughout the year to position our portfolio and tenants to best take advantage of this crucial seasonal period."

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