X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEW YORK CITY-Even though retailers might have some tough times ahead, private equity firms are still interested in investing in the industry, said representatives from some of those firms yesterday at Goldman Sachs’ Annual Global Retailing Conference. “One of the reasons that we’re seeing so many opportunities is that the environment is getting more difficult,” said Mike Calbert, a director at New York City-based Kohlberg Kravis Roberts & Co. “The opportunity arises out of this difficult environment.”

The grocery sector is one area that has taken a hit because of competition from discounters like Wal-Mart; mega-chain Albertsons put itself on the block last week. But don’t count out grocery chains just yet, Calbert says. “We think it’s a long-term, viable format,” he said. “It’s always going to be here in one fashion.”

John Roth, a general partner at Los Angeles-based Freeman Spogli & Co., says that a retailer’s financial data aren’t the main thing a firm takes into consideration before making an acquisition. The company’s management team and consumer appeal can be more important, he says. “We’re doing our consumer research,” Roth said. “That doesn’t show up in the numbers.”

Another priority these firms consider is the longevity of a chain, says Ron Burkle, a managing partner at the Los Angeles-based Yucaipa Cos. “We really look at [a retailer] and say, ‘Is it going to be good 10 years from now?’”

The speakers also said that they didn’t have a preference between mall-based and open-air positioned retailers when making an investment decision. “I don’t think the mall is the issue,” Calbert says. “It’s where are the opportunities? Where can we create value?”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt. NET LEASE Spring 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt. NET LEASE Awards 2021Event

These awards honor the industry's most influential and knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.