[ROCKETMAN]

Originally Posted by Bogie Shooter

From this post I assume Publix management shared with all employees why the store was not going into the mall near the library. Is that true?

If you are asking did they make an announcement over the p a -no. just word of mouth.

[LndLocked]

"That is common to do business that way in strip mall retail areas. EVERYWHERE"

I respectfully disagree.

It is NOT common for a landlord / developer to ask for a % of gross profits in a lease agreement. They make money (as the have a right to) on lease payments (and some would say Common Area Management (CAM) ) ... however, a % of profits from your tenants is by no means normal.

[graciegirl]

Originally Posted by LndLocked

"That is common to do business that way in strip mall retail areas. EVERYWHERE"

I respectfully disagree.

It is NOT common for a landlord / developer to ask for a % of gross profits in a lease agreement. They make money (as the have a right to) on lease payments (and some would say Common Area Management (CAM) ) ... however, a % of profits from your tenants is by no means normal.

I doubt whether Publix gives a percentage of it's profits to the landlord..But it is NOT uncommon for clothing and other retail stores to do so across the U.S. I would guess as Jan said that the Publix was sought after and probably wrote a good agreement..

But again. I present this link to back up what I said.

http://www.ehow.com/how_107812_lease-retail-space.html

[JB in TV]

Originally Posted by LndLocked

"That is common to do business that way in strip mall retail areas. EVERYWHERE"

I respectfully disagree.

It is NOT common for a landlord / developer to ask for a % of gross profits in a lease agreement. They make money (as the have a right to) on lease payments (and some would say Common Area Management (CAM) ) ... however, a % of profits from your tenants is by no means normal.

I respectfully disagree with you. It IS common practice for a landlord of a mall/strip mall to ask for and get a % of the take from the tenants businesses. VERY common.

[T-325]

From Entrepreneur.com

Percentage rent clause Herb Weitzman, CEO of Weitzman Group and Cencor Realty Services in Dallas, says tenants agree to pay higher rent when their sales exceed a certain threshold. The International Council of Shopping Centers publishes rent guidelines--a supermarket can pay 2 percent of gross sales to its landlord and make a profit, a pizza parlor can pay 10 percent and so on. Your broker will negotiate an initial rent below that; then, once you start making money, it will go up. Be careful. As Hein says, "Retail sales can have big swings. We negotiate that percentage rent doesn't start until our tenants have hit their sales figures for 12 months in a row."

Read more: aaa.entrepreneur.com/article/205996#ixzz2PpB19Vfa



Older article from the Times:
aaa.nytimes.com/2006/03/22/realestate/commercial/22grocer.html?pagewanted=all&_r=0

Supermarkets are a low-margin business, in part because a large proportion of their stock consists of perishable goods. A decade or so ago, a supermarket would pay an amount equivalent to 2 percent of its sales in rent in affluent neighborhoods, Mr. Catsimatidis said. Now, it has to pay as much as 8 percent of sales, he said. To hold onto a store on University Place and Eighth Street, Mr. Catsimatidis said, he had to agree to twice the previous rent.

[Bogie Shooter]

Originally Posted by ROCKETMAN

If you are asking did they make an announcement over the p a -no. just word of mouth.

That would be called a rumor.

[KeepingItReal]

...

[mrsyarbie]

Publix is family owned and operated all over Florida, they do what ever they choose to do, in this case they chose not to...

[DougB]

Sweetbay? Publix? What's the difference?

[ilovetv]

Originally Posted by mrsyarbie

Publix is family owned and operated all over Florida, they do what ever they choose to do, in this case they chose not to...

Seems like a good company to me, and it's what people here are begging for in the southwestern end of TV.

"Publix Super Markets, Inc., commonly known as Publix, is an American supermarket chain based in Lakeland, Florida.
Founded in 1930 by George W. Jenkins, it is an employee-owned, privately held corporation. Publix is currently ranked No. 67 on Fortune magazine's list of 100 Best Companies to Work For 2011 and was ranked No. 6 on Forbes' 2011 list of America's Largest Private Companies and is the largest in Florida.

The company's 2011 sales totaled US$27.1 billion, with profits of nearly $1.5 billion, ranking #106 on Fortune magazine's Fortune 500 list of U.S. companies for 2012. Supermarket News ranked Publix No. 8 in the 2012 "Top 75 North American Food Retailers" based on 2008 fiscal year sales. Based on 2011 revenue, Publix is the fourteenth-largest US retailer......

Publix - Wikipedia, the free encyclopedia

[Geewiz]

It all honesty...the taste is the decider. The meat and sourdough is better at Sweetbay....for the staples I go to Walmart...fruit and better bakery at Publix...it anyone has a better suggestion...I'm open.

[graciegirl]

Originally Posted by KeepingItReal

It would be nice to see something done just for the overall benefit it would be to the residents once in a while. Especially since in this case there is an almost critical need identified for more grocery stores on the south/west side.

Of course rent would be expected but it must be a percentage of profits too.......

I thought someone once said everything that happens here is not purely profit driven. Maybe I misunderstood.....

If this were true, what you surmise, then Publix would not have opened all of the other stores here. They are doing just fine with this business model and it is up to THEM where they open another store. Now that Sweetbay is building where they are, it is a taking a bit of the initiative away for them to build close by. They have smart minds figuring their profitablity.

Making a profit is how people do business If they do it WELL they make a lot of money and that makes them rich. Being rich is not a sin unless you harm people or do it illegally or deal drugs or run a cartel.

[senior citizen]

Originally Posted by LndLocked

"That is common to do business that way in strip mall retail areas. EVERYWHERE"

I respectfully disagree.

It is NOT common for a landlord / developer to ask for a % of gross profits in a lease agreement. They make money (as the have a right to) on lease payments (and some would say Common Area Management (CAM) ) ... however, a % of profits from your tenants is by no means normal.

Not sure what percentage mall stores or developers take (such as in The Villages) although we did read "way back when" that to have a retail business in TV, one would have to share a small percentage of the profits......in addition to paying the rent of course.

In our small town, a merchant simply pays his rent to the landlord.
No shared profits. A merchant of any kind has plenty of expenses in taxes to the state, to the federal gov't, employee payroll and contributions, and on and on.......without giving a percentage to the landlord. Merchants up here also pay their own utilties, heat, etc. Not talking mall stores, just "Main Street" businesses.

Doubt if our supermarkets share their profits with our town, although they do philanthropical type charity which benefits many.

Franchises are a whole different ballgame. A cousin of ours in New Jersey owns a franchise for at least 35 years now and how they "limit your profits" is by giving you a designated "route"........hard to grow a business that way. Anyone who watches "Undercover Boss" will recently have seen mention of how a franchise may sound good initially, but then they get sucked under with all kinds of expenses.......

We also liked Sweetbay.......Publix was good too, but preferred Sweetbay as we are used to Hannaford out of Maine /Vermont, etc.

Hope all the folks in the newer areas get exactly what they need and soon. Both of our rentals were very conveniently located, first to Sweetbay near the Village of Caroline and secondly to a Publix in Mulberry Grove.

[skip0358]

If the stores are required to give a percentage so be it. I've heard that all stores & resteraunts have a % base IF they're on TV property. That's their issue not ours. As for Publix picking the site Sweetbay will occupy I happen to think would have been a mistake because it's to close to Colony. From a customer base the southern end would be a much better grab as that's where ALL the newer residents will be going, besides those people on Rts 44 & 44A along with the Wildwood area. I know there's a lot of activity on the East side of BuenaVista by Brownwood where the Hospital was supposed to be.Think about a ride from down that way up to either Publix or the new Sweetbay ( forget your ice cream ). JMO

[JohnFromMaine]

Originally Posted by graciegirl

I respectfully disagree. The developer built the store at Colony for Publix too and probably does get a percentage. That is common to do business that way in strip mall retail areas. EVERYWHERE. I am surprised that some people don't know this is common practice. Are you supposed to not make money when you are in business?

I heard a LONG time ago that Sweetbay was slated to go where it went.

The practice described is economics 101, even earlier than that we learned it in general business courses in junior high.

Please don't make the developers out to be greedy when they are just doing business in established and accepted ways.

Most grocery stores almost everywhere do not own their buildings and can negotiate their own deal.

Here is another little secret. If you paid twenty dollars for the shirt you are wearing, the store you bought it from paid ten for it and the fabric manufacturer made a profit too. That is common business practice and it isn't wrong to make money.

I googled this and this is the first of hundreds of things like it that came up.

http://web.mit.edu/cre/students/faculty/pdf/rlease3.pdf

The profit motive is GOOD and it's what creates jobs. Something the current administration doesn't seem to understand.

As to the pros and cons of Publix vs SweetBay, I think they both have their good and bad points and I shop at which ever has what I want or need.

I suspect that we will eventually see a Publix down near Brownwood or maybe near the end of Morse Blvd.