3rd From Sol

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Tag Archives: retail

Illogical: Commercial Real Estate Price Boom in an Internet Economy

26 Tuesday Dec 2017

Posted by Paul Kiser in About Reno, Business, Management Practices

≈ 2 Comments

Tags

commercial property prices, commercial real estate, Free Internet, Internet retail, malls, real estate, realty, Recession, retail, retail store closings

Commercial property pricing is meeting reality

Something is wrong in the commercial real estate market. The price per square foot has exploded since the Great Recession of 2007-8. After hitting bottom in May 2009, commercial real estate prices recovered its pre-Recession level in 2013; however, the boom in prices continued upward, reaching a peak of over 125% of pre-Recession prices in 2016.

The odd thing is that the browse-and-click Internet retail market has pushed retail store closings to historic highs, especially big box retail space. What is taking the place of the vacated retail space?

Retail store closings are at historic highs

Nothing.

These large retail spaces are sitting empty, sometimes for years, while commercial real estate prices keep going up. That’s not logical.

Reality is catching up with realty. Green Street Commercial Property Price Index (CPPI) report indicates that commercial property prices have leveled off in 2017. Of all the sectors, mall space has seen the sharpest decline in 2017, down by 11%. This may be the first hint of a commercial real estate bust cycle, that could signal the start of the next recession.

Green Street CPPI by sector

 

Early 2014 PR Fails: Target and Christie

13 Monday Jan 2014

Posted by Paul Kiser in Branding, Business, Communication, Crisis Management, Customer Relations, Customer Service, Ethics, Government, Honor, Information Technology, Internet, Management Practices, Politics, Public Image, Public Relations, Respect, Social Media Relations

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Tags

bridgegate, George Washington Bridge, Governor Chris Christie, GW bridge scandal, New Jersey, Nixon, retail, store, Target

Self-inflicted Wounds?

Self-inflicted Wounds?

Only 13 days in 2014 and Target and New Jersey Governor Chris Christie share the spotlight for worst public image of the new year.

Target credit information theft just keeps getting worse. We learned last week that data was stolen for 70 million Target customers, not 40 million as belatedly reported earlier this month. Target is averaging over one sales-killing announcement a week so far this year and each new announcement makes the crisis worse. There are people who say Target will survive, but if someone were going to attempt to kill a leading corporate retail organization, this would be the way to do it.

It’s not like Target has no competition. Making customers worry of whether their credit data is safe when they shop is not a unique experience desired by any retail store.  Add the but-wait-it-gets-worse element and sales are bound to sink.

Target will likely continue to minimize the crisis, which will only increase the distrust of the brand. The PR strategy they are following is going to dig them into a deeper grave.

Not to be outdone, Governor Chris Christie is dropping his own PR boob bombs. After claiming that a traffic tie up at the George Washington Bridge was part of a legitimate traffic study, he then was forced to confront emails that clearly indicated his top aides were involved in Nixon-era tactics aimed at some type of petty revenge act.

Governor Christie's apology missed the mark

Governor Christie’s apology missed the mark

The issue is not whether or not Governor Christie knew that his senior staff were behaving like chimpanzees throwing their poop at people in the zoo, the issue is Christie is either 1) incompetent for surrounding himself with idiots, and/or, 2) incompetent for not knowing what was going on, or, 3) aware of everything and is lying about it. 

The big PR factors in both crises are the lack of humility and accepting responsibility. Instead of minimizing the crisis, Target should have been ahead of the crisis. Not only should they be providing the most accurate and honest information, they should have been apologizing to their customers, assisting them, and offering to make things right for any customer who is affected by the loss of their credit data. This is an issue of long-term survivability, not revenue projections for the current quarter.

As for Governor Christie, that ship has sailed. He had a chance to accept responsibility and resign. His, the-buck-stops-here-but-I’m-blaming-everyone-else strategy only proved that he has dignity of Lance Armstrong. He could have admitted his mistakes, stepped back, and then worked to rebuild his reputation, but he instead he revealed how low he can go.

Public image is everything, and it does not suffer fools gladly.

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