Kroger announced today that they have made a “meaningful investment” in Lucky’s Market. Lucky’s is a 17 store supermarket chain located in 13 states, and is based in Niwot, Colorado. Their format is natural and organic. Kroger states that the investment will “significantly accelerate Lucky’s Market’s growth in new and existing markets”. It has long been rumored that Lucky’s was looking for sites here in Minnesota; this new strategic partnership with Kroger may move up their timeline for an entry here.
Since its first location in Minneapolis in 2012, New Bohemia Wurst & Bier Haus has been on a tear to take over the wurst and sausage restaurant niche here. They have opened locations in the Uptown area of Minneapolis, Eagan and Mankato, and now have a deal signed for a location in Roseville at Snelling Avenue and County Road C. And that isn’t enough for this interesting and innovative restaurant group – the Minneapolis/St. Paul Business Journal reports they are also looking for locations in the Southwest metro in Eden Prairie and Bloomington, the East metro in St Paul and Woodbury, and Northeast metro in Blaine and Lino Lakes, as well as outstate Rochester, then onto other states. Brian Ingram, COO, was quoted in the Pioneer Press back in February, stating “We’d like to get 12 stores by the end of the year. We’ve been looking at places like Eden Prairie and Woodbury. We’ll probably open one in Wisconsin as well.”
These are guys who like to think outside of the box. Inside their restaurants, customers sit at long communal tables. The menu includes craft beer and traditional brats, but also smoked Antelope is on their menu, along with alligator, wild boar and yak – ACK!
Target is reporting that they remodeled only 9 stores in 2015 of their total 1,793 locations. That is down from 39 remodels in 2014, and a high of nearly 400 in 2011. These numbers do not reflect the 274 small renovations completed, such as new checkout lanes for self-service, or small updates.
One of the 9 major store remodels last year was in their Minnetonka, MN, location, a $10 million project that added new décor, updated grocery departments and upgraded dressing rooms.
They have 36 stores slated for remodel in 2016. Target’s CEO Brian Cornell stated that they are testing new initiatives in 25 southern California stores to help hone their prototype.
The only grocery store in Victoria closes again. Victoria’s Market originally opened as Fresh Seasons Market in 2009, and has always struggled to gain a profitable foothold in the competitive world of supermarkets here in Minnesota. It closed in 2014, and reopened last year as Victoria’s Market, but this time with pickets by former employees for unpaid vacation and pension benefits. It is doubtful another grocer will take on the challenges of this location in the near future
Now three locations to go for that Blucy burger (a big burger stuffed with cheese – bleu, American, cheddar, pepper jack, or even a breakfast burger). The Blue Door Pub has opened a new location in the Twin Cities at 1514 Como Avenue SE in Minneapolis by the University of Minnesota. Blue Door Pub also has locations in the Longfellow neighborhood of Minneapolis and on Selby Avenue in St. Paul.
Eat in or take out. Some competition for Matt’s Jucy Lucy!
Vacancy in the Minneapolis/St. Paul metro area retail market is below the Country’s average. This is our strongest year since the recession, fueled by grocery anchored centers and regional mall activity here. We believe Minnesota will continue to beat the U.S. metrics of GDP growth and consumer spending in 2016, as well as unemployment, and retailers will continue to expand, relocate and right-size in our market in the near future.
Read our Q4 2015 Marketbeat for more retail real estate insights around the U.S.
Cushman & Wakefield/NorthMarq has attracted a new type of food to the north end of Nicollet Mall.
CWN Senior Director Kim Meyer represented building owner KBS in a new 2,231 sq. ft. lease for Five Guys Burgers and Fries on the first floor of RBC Plaza in downtown Minneapolis. It will be the first location for the chain in downtown Minneapolis, joining 18 other locations throughout the state.
“Five Guys is an excellent addition to our growing retail and dining options at RBC Plaza,” said Kim. “They provide a high-quality product that is an ideal fit for the downtown Minneapolis market and RBC Plaza, and having more food concepts on the north end of Nicollet Mall will be great for the city and the employees in the surrounding buildings.”
The new location will be in the northwest corner of RBC Plaza, with both interior and exterior access. The restaurant joins Subway, Sproud Salad Company, Caribou Coffee and D’Amico & Sons as food offerings in RBC Plaza, which last year wrapped up an 18-month renovation project. Kim hopes to wrap up another lease or two in RBC’s retail space soon.
The nearly year and a half transformation of RBC Plaza created a unified space involving, among many features, the conversion of former four-story retail and food court space on the 3rd and 4th floors of the 555 Nicollet Mall to a vibrant two-story atrium within the premiere 40-story office tower at 60 S. 6th Street.
Cushman & Wakefield | NorthMarq employees took home several big awards at the annual Minnesota Shopping Center Association STARR Awards, which honor the best and brightest in retail.
Several CWN projects and employees were recognized as the industry’s best of 2015 at the event, held Dec. 1 at the Golden Valley Country Club, and multiple company employees were named leaders for the organization heading into 2016.
Here’s a full breakdown of all the CWN winners from the big event!
- RBC Plaza in downtown Minneapolis was named Top Renovation/Remodel of Interior Retail over 15,000 sq. ft. That property is leased by Kim Meyer (retail), as well as Brent Erickson, Mark Stevens and Peter Fitzgerald (office), and is managed by Theresa Elveru, Alexander Leuthner and Jennifer Dewberry.
- Colonial Square in Wayzata was chosen as Top Renovation/Remodel of Exterior Retail over 20,000 sq. ft. That property is managed by Senior Property Manager Emily Becker.
- Excelsior Marketplace in Excelsior was named Top Redevelopment. That project is leased by Associate Director Peter Armbrust.
- Kurt Stenson, Senior Property Manager, was honored as one of two MSCA Committee Members of the Year.
- Leah Maurer, Director-Capital Markets Group, was named Treasurer of the MSCA Board of Directors for next year. Kurt was also named co-chair of the MSCA Sponsorship Committee in 2016, and Leah was named co-chair of the Legislative Committee.
Congratulations to all the particpants honored by the MSCA, and great work!
There has been lots of buzz around the first Shake Shack restaurant opening in Minnesota. The 2,800 sq. ft. restaurant will open at the Mall of America’s new North Food Court next summer. Their customers are historically very enthusiastic about their hamburgers, hot dogs, fries & shakes (which are simply great), and long waits in line are common at their locations. David Daly at CBRE is looking for an additional 4 to 6 locations here in the metro area.
Shake Shack opened in 2004 as a hot dog cart in Madison Square Park in Manhattan. They are now in 13 states in the U.S., as well as Tokyo, London, Istanbul, Moscow, Beirut, Dubai, Abu Dhabi, Dona Kuwait City and Jeddah. Started as a private company, Shake Shack went public in late 2014, with the initial share pricing of $21 immediately rising by 123% to $47 on their first day of trading.
Earlier this year Target was looking to expand its food selection and offer a wider range of more high-end options. Now it seems that Target would like to move into another aspect of the food business as well: grocery delivery. The proposed delivery service came up during the retailer’s vendor summit, where they also discussed how Target customers are interested in more natural and organic products than in the past.
According to the Minneapolis / St. Paul Business Journal, competitors such as Amazon and Walmart are already testing grocery delivery:
“Amazon and Walmart are also experimenting with food delivery in markets such as California and New York, and is partnering with Excelsior, Minn.-based Oppidan about building a drive-up grocery concept.”
Target’s chief marketing officer told vendors that the company plans to start testing delivery “in the very near future,” but hasn’t yet said where the test will take place.
For more information, read the full article from Consumerist.
Questions about our retail services or looking for additional market intel? Please contact us and one of our retail experts will address your inquiry as soon as possible.