ICSC: Mergers Impacting Industry

PALM SPRINGS, CA-Is Wal-Mart buying Ann Taylor or Tommy Hilfiger? How have other recent acquisitions, like the Federated-May department-store merger, impacted the industry? Those and other questions were on the mind of speakers here yesterday at the International Council of Shopping Centers’ Western Division Conference.

The rumor that Wal-Mart is buying both specialty chains was used at an example during the sessions to demonstrate how a retailers’ ownership group is far from permanent. In the case of Federated Department Stores’ acquisition of May Department Stores, the deal will lead to the closures of 76 department stores.

“It is almost impossible to say who is ultimately going to be my anchor if I buy this mall,” said Howard Samuels, president of Beverley Hills, CA-based developer Samuels & Co. In the case of the mall units Federated is closing, speakers speculated that Nordstrom could be a potential buyer. Another pointed out that Wal-Mart, which is increasingly looking for mall space, might want to go into some of those locations.