Despite Market, Retail Sales Encouraging

[IMGCAP(1)]NEW YORK CITY-Even with a weakening economy, retail fundamentals are still solid, said experts at NAREIT’s 2008 conference here at the Walford Astoria. But panelists said even with positive sales growth in the first quarter, they are still cautious about the future.

Following introductory remarks from Steven Wechsler, president & CEO of NAREIT, Martin Stein Jr., chairman and CEO of Regency Centers Corp. and NAREIT chair moderated the “CEO Marketplace-Consumed by Retail,” luncheon panel, which included remarks from top retail CEOs about the impact of the economy on the retail sector. Robert Taubman, chairman, president and CEO of Bloomfield Hills, MI-based Taubman Centers Inc. said that although May was a good month, consumer confidence is down. “We are in a slowdown, but not yet a recession.”

[IMGCAP(2)]Milton Cooper, chairman & CEO of Kimco Realty Corp., agreed that it is a tough environment, but he said that he is beginning to notice regional differences as far as performance. “The sunshine states–which include California, Arizona and Florida–that had the housing boom then bust, are hurting the most,” he said, adding that he is noticing that retail stores that deal with housing merchandise such as furniture, appliances, and linens, are most affected. Supermarkets are doing well because food is essential, he said.