Developers Diversified Realty Corp. said it would sell a 20% stake in the company to Germany's Otto family for $112.5 million. The Otto family, which owns malls and retailers in Central and Eastern Europe, could increase its stake to 30% of DDR.
To improve profits during the recession, Target is moving toward a model more like that of rival Wal-Mart, focusing more on food, health care products, personal items and other necessities so it won't have to mark down bigger-ticket items. Target also will adjust its marketing to play up its low prices.
Consumer confidence in the U.S. has dropped this month, partly because of increasing concerns about job prospects. New measurements indicate that deterioration of home prices is accelerating. Data from the Federal Reserve show bank-loan delinquencies are rising. Microsoft, Office Depot and other companies are reporting dismal outlooks. Federal Reserve Chairman Ben Bernanke might be holding out hope that the economy will recover next year, but the data indicate that the financial crisis and recession are feeding off each other to perpetuate a downward spiral, according to this article.
Phoenix Building Group will build a 180,000-square-foot portion of the 600,000-square-foot Adams Dairy Landing project in Blue Springs, Mo. The other sections will be built by Lowe's and Target. The project is expected to be done by the end of the year.
Retailers are reporting poor earnings, but some are in strong positions despite the numbers. Macy's and Home Depot have made cuts but also are making changes. Home Depot is emphasizing customer service, and Macy's plans to target merchandise by region.