Tag Archives: University Mall

Welcome To Another Performance of Retail Theft Kabuki Theater

Last Friday’s meeting of the House Judiciary Committee was, to the casual observer, devoted to beating the drum for a crackdown on retail theft, the crime formerly known as shoplifting. (Does “retail theft” sound less, I don’t know, recreational than shoplifting? Probably.)

Anyway. There’s precious little evidence to support claims that retail theft is on the rise. The main propagator of this assertion is the National Retail Federation, a lobbying group for the industry that’s been making it easier and easier to steal stuff by cutting staff and instituting self-checkout. The NRF spent years flogging a bogus study that allegedly showed a tsunami of “organized retail crime,” only to retract it last month. Actual crime statistics indicate that “organized” theft accounts for a small fraction of shoplifting. And outside of a handful of major cities, there’s no evidence that retail theft is on the rise at all.

So now the tactics have shifted. We hear much less talk about rampant crime in our malls and downtowns, and more about the “perception” of a problem. People “feel” as though shoplifting is a crisis. Therefore, the argument goes, we must treat it like a crisis.

As a result, House Judiciary is considering an array of crime bills, and it began a scheduled series of hearings on Friday. But if you watched closely, you could detect a bit of nudge-nudge, wink-wink going on. The hearing seemed designed to meet the perception of disorder with the counter-perception of a crackdown than with an actual “tough on crime” offensive.

Continue reading

When “Opportunistic Investors” Grab a Chunk of Your Town

Is it just me, or is something slightly… off… about the sale of South Burlington’s University Mall to a global investment firm?

On the surface it seems like good news. Taconic Capital Advisors and Eastern Real Estate will buy the Mall for a tidy $60 million, which happens to be $26.2 million north of its assessed value.

Let’s stop there. A big investment fund buying a declining property in a dying industry for nearly double its assessed value?

Things that make you go hmmmm…

Taconic describes its traders as “opportunistic investors” looking for market inefficiencies. That’s usually Wall Street-speak for “we buy low on assets and squeeze every last dollar out of them.” See: Every time an investment firm buys newspapers.

The above chart, courtesy of the investor-information website “WhaleWisdom,” shows a damn high churn rate for Taconic. The different colors represent different market sectors. As you can see, Taconic specializes on diving into market sectors where they see potential profit and getting out just as quickly.

Given that history, it’s a little hard to credit Taconic’s stated intention to “reenergize” the mall and “build on its success.” First of all, long-term stewardship of an asset doesn’t seem to be Taconic’s game. And second, success?

“That does not compute,” said Mr. Spock when asked for comment.

Continue reading