06/30/15 09:37 AM EDT

Retail Callouts (6/30): Solid Chain Store Sales Number, BONT Sale Leaseback

Takeaway: Chain Store Sales Put Up a Big Number, Need to See More as Comps Remain Difficult | BONT sale leaseback = defense, not offense.

Chain Store Sales Put Up a Big Number, Need to See More as Comps Remain Difficult

Takeaway: After a noticeable sequential slowdown in the 1-yr trend line last week, we saw a meaningful acceleration against tough comps from 2014 translating to the best 2yr comp reading we've seen reported in 2015. We'll need to see more of the same as comps remain difficult across retail until we get through September and BTS.

BONT - The Bon-Ton Stores, Inc. Announces Sale-Leaseback Agreement

(http://investors.bonton.com/releasedetail.cfm?ReleaseID=919749)

Takeaway: This isn't an offensive move by BONT, and the market said as much yesterday. The deal covers 20% of BONT's 30 owned properties and the deal terms aren't overly attractive. Plus, we think it's hard to justify paying ~$15 per square foot for department store pads in markets like Milwaukee, Green Bay, and Joliet. These stores are some of the company's most attractive doors with sales per square foot 170% to 350% above the fleet average. So, why didn't BONT monetize more doors -- if these are the terms WP Carey was willing to pay, it's entirely possible that the company didn't want more of what BONT was offering.

OTHER NEWS

KSS - Kohl’s Corporation Announces $600,000,000 Cash Tender Offer for Certain Notes

(http://phx.corporate-ir.net/phoenix.zhtml?c=60706&p=irol-newsArticle&ID=2063299)

TUES - Tuesday Morning Corporation Announces CFO Departure

(http://ir.tuesdaymorning.com/releasedetail.cfm?ReleaseID=920036)

PIR - Pier 1 Imports Appoints Retail Industry Veteran Jeffrey N. Boyer Executive Vice President and Chief Financial Officer

(http://phx.corporate-ir.net/phoenix.zhtml?c=117517&p=irol-newsArticle&ID=2063599)

TGT, RAD - Ex-Target exec to lead store ops for Rite Aid

(http://www.retailingtoday.com/article/ex-target-exec-lead-store-ops-rite-aid)

Authentic Brands Group Acquires Tretorn

(http://wwd.com/business-news/mergers-acquisitions/authentic-brands-group-tretorn-acquisition-10173169/)

Kering - Potential Suitors Emerge for Sergio Rossi