If my life were a movie divided into three parts, the first section would probably be titled Lady and the Lamp. Like a moth to a flame, I find myself naturally drawn to glowing orbs of all shapes and sizes. At this precise moment I own nine lamps—one of which turned into a DIY project that requires rewiring, among other cosmetic surgeries that I have been actively avoiding for months. The gate into this dangerous portal opened up when I purchased my first vintage mushroom lamp at the end of 2020 and proceeded to start collecting more of these vessels of illumination.
Hear me out: Lighting is one of the most important features in a home, so isn’t it worth investing in lamps that put the fun in functional? These are the little things that really stand out when I’m carefully scanning the interiors of a space. There’s never a lamp that goes unnoticed on my watch. Here are seven fixtures from a few of my favorite home tours that are currently living in my head rent-free. (To enhance your scrolling experience, I highly recommend streaming Ellie Goulding’s 2010 bop “Lights,” completely unrelated to the viral TikTok trend.) Light up your life!
Vintage Italian Sconces, 1950s
When most people peer into the sage bedroom inside Martha Hunt’s condo in New York City, their focus probably shifts toward the mohair-wrapped bed or the Mario Bellini sofa. But my eyes were glued to these vintage sconces on the limewashed wall that AD100 designer Giancarlo Valle sourced from Jordan McDonald. If you, like me, have been waiting for a sign to buy some sconces, then this is it! There’s something so charming about them, no? From the window to the wall, a sconce adds a touch of elegance to any room. It’s time to stop excluding them from the lighting lineup!
Vintage Monumental Undulating Wood Parquetry Lamp, 1970s
There are a lot of things to love about Elaine Welteroth’s house in the Hollywood Hills, but the one thing that immediately caught my attention was a wavy checkered lamp in the style of Pitsilkas waiting in the entryway. Positioned on top of a vintage faux goatskin–covered credenza, this is a statement piece that beckons to be called. It’s a real wow moment. (Switching out the lamp shade was a very smart choice; somebody give designer Tiffany Howell a raise!) During her AD Visits episode, Elaine revealed that she sourced the Vintage Monumental Undulating Wood Parquetry Lamp from the store Port•man•teau in New York for $998. “I am absolutely obsessed with this sexy lamp,” she gushes. “It’s literally the talking point of the house. When people walk in, they basically want to walk out with this thing—I’ve had people try.”
Mads Caprani Floor Lamp, 1970s
True story: I’ve never met a Danish lamp that I didn’t like. Is there anything sexier than the curve of a bent beechwood or teak floor lamp paired with a pleated lampshade? I think not! Looking back, I feel like Mads Caprani is responsible for getting me in sync with pleats in fashion from Issey Mayake to Julia Heuer. This particular midcentury masterpiece from the ’70s has had a grip on Instagram influencers since 2018—the owners of Home Union once told me that the vintage Caprani lamps usually sell out within a day as soon as they’re restocked, and are now priced between $1,850 and $2,200. For Miami-based interior designer Carla Lores, it was the perfect conversation piece beside the book-filled fireplace in her bedroom. “Once I find a shape that I like, I repeat it over and over unintentionally,” she says.
Tube Floor Lamp, 1970s
Julio Torres really snapped with the creative process that went into curating his Brooklyn apartment. The entire space is a burst of funky shapes and loud colors, and, in addition to collecting an abundance of tiny tables and chairs, he told us that he’s “at capacity with lamps and with clocks that don’t work.” My personal favorite piece is this midcentury modern floor lamp designed by Anders Pehrson for Ateljé Lyktan that walked so Big Bird could run. Given that Julio’s mom is an architect and his sister is a designer, it makes sense that he would opt for outsourcing the lighting. 1stDibs currently has a Tube lamp on auction with bids starting at $570.
Tahiti Table Lamp, 1981
When in Memphis (Milano), am I right? The Tribeca apartment of collector Raquel Cayre is practically a gallery for Ettore Sottsass—I don’t have enough hands to count how many pieces she owns, but this personal collection obviously includes the Tahiti lamp. “Every time I come in here, I can’t believe it’s real,” she told AD. “I do have days where I wish I lived in a Philip Johnson house in New Canaan with a Donald Judd daybed, one lamp and one book at a time. Sometimes I dream about that, but I can’t fight it. I’m a collector, and I like stuff.” (Not to be creepy, but if I were ever invited over, I would spend hours exploring every inch of her house.) Now you can find Tahiti lamps on the shelves of your local Nordstrom thanks to Olivia Kim, the brand’s VP of creative projects. Keith Johnson of Urban Architecture remains the sole Memphis distributor in the US, but Bi-Rite Studio started reproducing the lamp along with other iconic postmodern pieces from the Italian design studio in 2021, so now you can pay $1,380 instead of bidding an obscene amount of money at auction.
Toucan Table Lamp, 1980s
I can’t remember when I first started seeing toucan lamps around, but however I was exposed it definitely happened on Instagram. So, imagine my surprise when I casually spotted one on the desk of AD100 designer Rodman Primack inside the moody green office of his Mexico City residence. I’m not familiar with the backstory of the design by H.T. Huang for Huangslite, but they seem to have originated in the ’80s and typically resell between $110 and $600 on eBay, Etsy, and 1stDibs. Not only is it AD-approved, but senior design editor Hannah Martin has one in her home, in case you needed some extra convincing. “I feel like it’s become a little ubiquitous now but I really love it,” she notes.
Oo Floor Lamp, 2020
While there were almost too many lamps to choose from in the home of Ashley Tisdale, I unapologetically stan Eny Lee Parker. In her episode of Open Door, Ashley explains that her vision for the TV room was a casual space with quirky shapes where her daughter Jupiter could safely play with toys. Come for the vibes, stay for the surreal story about how she secured a Noguchi lamp before a colonoscopy. Eny Lee’s Oo floor lamp is made to order and will cost you $12,000. (The table lamp size is priced at $6,000.) As an alternative, might I suggest her latest lighting collaboration with Mitzi? There’s just something about a ceramic lamp that gets me going… Keep me away from the Twist Column Light!
A vintage Dallas streetcar has found a temporary new home: The trolley, once tucked inside the Spaghetti Warehouse in Dallas’ West End, will find a safe and secure berth at Orr Reed Architectural Co., a salvage store located a few miles south of downtown Dallas, which will provide temporary quarters while the vehicle gets renovated in preparation for its final home.
The trolley was one of the original streetcars that ran through East Dallas nearly a century ago. It surged to fame in 2019 when Spaghetti Warehouse closed after 47 years, and the company held a giant auction of its extensive collection of memorabilia.
The streetcar attracted an anonymous buyer, but that buyer bailed once they encountered the difficulties of removing the trolley from the location.
The trolley was then bequeathed to the Junius Heights Historic District, a neighborhood association representing more than 800 homes in Old East Dallas, east of Munger Place, south of Swiss Avenue and southwest of Lakewood.
The organization wanted to save the trolley because of its role in the original streetcar program that was key to the establishment of Junius Heights and East Dallas, says a spokesperson who serves on the Junius Heights’ trolley committee, and who also has a personal connection.
“The streetcar lines were built by the developer who was selling lots in East Dallas,” she says. “Workers could take it to their offices downtown. It operated until the 1950s. My grandfather was a delivery driver for a paper company in Richardson that would deliver paper to offices in downtown Dallas. He could park his truck outside downtown and get on a subway that took him underground into the bottom of the office buildings in Dallas.”
It’s one of the few streetcars from that era that still exists.
“It was of particular interest to our neighborhood since it has ‘Junius Heights’ in that little strip across the front where it shows the next stop,” she says.
The trolley has no wheels or motor parts, so it won’t be mobile. The organization’s goal is to make it an interactive museum attraction.
“We hope that it can continue the purpose it served inside Spaghetti Warehouse where people can experience sitting inside a street car — but back in our neighborhood,” she says. “We still need to determine the best location where it can be secure and have protection from the elements, but the objective is to preserve it and save it from the scrapyard.”
When they were seeking a place where it could stay during renovations, up stepped Hannah Hargrove, owner of Orr Reed, which is dedicated to finding new homes for items of value such as reclaimed hardwood, antique lumber, doors, and wrought iron fences.
“I actually wanted to buy it — it’s a piece of our city’s history,” Hargrove says. “But when I read the fine print on the auction, I knew there was no way I could get it out. It was heartbreaking. Then during the pandemic, I was approached by the Junius Heights Historic District. who had raised enough funds to move it.”
“We determined that we could probably make the room and that our gates were big enough to accommodate its entry,” she says.
The trolley is currently being disassembled in anticipation of the journey, which they’re hoping will take place this fall.
Hargrove and her team spent much of August reconfiguring their warehouse to make space. (They’ve also been hosting sales to make space, check out the vintage sky-blue Frigidaire wall oven.)
“It’s going into a corner where we usually store larger furniture items and really nice windows — nothing that was easy to move,” Hargrove says.
“But we wanted to make sure that this piece of city history was preserved,” she says. “We care about these things. Do I need the space, of course I do — but this is a piece of our history we cannot get back.”
Fritz Jorgensen / Getty Images
Facebook Marketplace has become a go-to for consumers looking to buy and sell everything from vintage clothing to a used bike to furniture, or for those looking to rent an apartment or even buy a car. It’s targeted to your area of choice, giving you access to goods right in your neighborhood. Classified ads in the newspaper and even blurbs offering for-sale items posted to Craigslist have given way to Facebook Marketplace.
A 2022 report from social media management platform Hootsuite says Facebook Marketplace has 1 billion monthly active users worldwide, with its ads reaching 562 million people. One of the reasons it has become so popular is that — unlike paying a fee to sell an item on eBay or placing a newspaper ad — Facebook Marketplace links buyers and sellers at no charge.
While the overwhelming majority of Facebook users are honest, with millions of people using one site, dishonest people will creep in. Here’s a guide to some of the common Facebook Marketplace scams — and how you can protect yourself.
Identifying Facebook Marketplace Scams
Facebook, itself, acknowledges the possibility of scamming on its platform. But how can you tell if someone is scamming on Facebook Marketplace?
“Scams can happen on the buyer and seller side of a transaction. Some listings may also be scams,” Facebook writes in its help section. “Scams come in different forms, so it’s important to know what to look for when buying and selling on Marketplace.”
But just what should be a red flag on Marketplace? Hari Ravichandran, the founder and CEO of consumer cybersecurity company Aura, has some tips.
“Beware of quick responses, fast payments and urgency,” he said. “If you get a response immediately after posting an item for sale on Facebook Marketplace, I recommend that you wait at least 12 to 24 hours before responding to see if you get any other offers. Most legitimate buyers will ask for additional information about the item for sale, the condition of the item, or to see the item in person before agreeing to pay.”
Ravichandran also notes that potential buyers who push for personal information — like your email address or phone number — or wants to pay you quickly are likely scammers.
Red Flag: A New Account
As you interact with a potential buyer and seller on marketplace, check out that person’s account. Since it is a legacy social media provider, Facebook accounts tend to be well-established.
If you’re interacting with someone with a new account, it could be a scam account. Be very careful and ask all the right questions before conducting business.
A Closer Look at Marketplace Scams
Can you get scammed as a seller on Facebook Marketplace? Yes. As a buyer? Yes.
Buyer scams occur when someone tries to buy or trade for an item without paying. With seller scams, someone offers something for sale but doesn’t come through with an item as promised.
Potential scams, as identified by Facebook and security experts, include these 9 tactics.
1. Send the Item Before Payment Is Received
A prospective buyer might product a fraudulent receipt claiming a payment has been made and ask for the merchandise to be sent right away. Conversely, a legitimate buyer won’t ask a seller to pay in advance.
When you’re buying merchandise sold on Marketplace, Aura recommends using an accepted payment method, such as PayPal, or Facebook Marketplace. If paying with PayPal, don’t state that you are making a payment to someone who is a friend or family member. You’ll lose your protection that way, per Aura.
2. A Deal Too Good to Be True
Did you see a listing for the latest popular Nike shoes, for example, at a fraction of the retail price? The shoes probably are counterfeit.
Ask to see multiple photos of the shoes, a live video or even an original sales receipt before agreeing to buy. Again, pay with PayPal or another method that provides protection in case they are counterfeit.
3. Immediate Interest
A “buyer” wants you to send a text to arrange an immediate pickup of the item. That’s an attempt to get your phone number, at which point the scammer could register quickly for a Google voice number, which will trigger a verification code sent to your phone. The scammer will ask you to send the code — just to verify you are a real person.
In reality, that code will unlock the Google voice number, which can help the scammer to perpetuate more scams, including stealing your identity.
Don’t communicate outside of Marketplace.
4. A Fake Rental Property
The house advertised might be just what you’re looking for, but don’t send a deposit until you, or someone you trust, has had a chance to tour the place to make sure it is as advertised — and it’s available.
Scammers will advertise properties that aren’t even for rent, take a payment and vanish.
5. A Broken Item
That gaming system you just paid $100 for? It doesn’t work, even though the listing might have said it was barely used. You handed over that $200 to the seller at your meeting place in the parking lot of the local McDonald’s without plugging it in. And you’ll never find that seller on Facebook again.
It’s best to turn on and test electronics or other items that might not work before you hand over payment.
6. Bait and Switch
Advertising one item, then seeking to substitute it is the classic bait and switch. You see an item you’ve been searching and searching for, then the seller tells you it isn’t available and offers another, more expensive item in its place.
Don’t be afraid to walk away from a deal if it’s not what you originally wanted.
7. Overpayment
Say the buyer and seller agree on a $20 sales price, but the buyer pays $50, tells the seller it was an error and asks for $30 back. That isn’t a problem until the bank catches up with you. The card that the seller used to pay you could have been stolen or a check was counterfeit. You’re out the original payment — plus the “overpayment” you returned.
It’s best to decline overpayments and ask the buyer to resend payment in the correct amount.
8. Giveaways
If you see an offer for something free or a drawing for a free item, skip it. It likely is a phishing scheme. You hit a link to enter the drawing, and malware or a virus could be downloaded to access your confidential information, according to Aura.
9. The Lost Package
According to Facebook, a marketplace user can claim an item purchased was never received when it was or that the item was shipped to you when it wasn’t. In either case, that user will be seeking a refund from the honest person in the transaction — you.
Make sure you have tracking information for any shipments involved to help fend off this scam.
How To Report a Facebook Marketplace Scam
Can you trust Marketplace on Facebook? The site makes it easy to report a suspected scam, and Aura’s Ravichandran recommended following through.
“If you are scammed, immediately report it to Facebook Marketplace,” he said. “If you spot a seller or buyer trying to pull off a scam, report it to protect other unsuspecting sellers and buyers.”
How To Report a Listing Scam
If you come across a listing for sale that you believe to be a scam:
- With the item listing open on your device screen, click the three dots in the upper right-hand corner.
- Click “report listing.” A menu of action items will pop up.
- Click “scam,” “appears to be counterfeit” or the action you deem appropriate.
- You also will have the option to block the seller.
How To Report a Seller Scam
To report what you think is a scam by a seller on Marketplace:
- With the item listing open on your device screen, tap the name of the seller.
- Tap the three dots below the seller’s name.
- Click “report seller.”
- Follow the prompts.
How To Report a Buyer Scam
To report a perceived scam by a buyer on Marketplace:
- With the item listing open on your device screen, click the box that reads “more options.”
- Then click “report buyer.” You will have a chance to block the buyer. Another option gives you a chance to review the person’s Facebook account, which should help you to determine whether the buyer has a longstanding account or a new one.
Final Take
It’s unfortunate that we have to worry about financial fraud being perpetrated through a scam, but we do, and it even happens on Facebook Marketplace. The key takeaways to remember: be cautious, don’t engage with another party outside of Facebook, stay away from links or other tools that could be phishing for information and report any scams to keep yourself and others safe.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.
HARARE, Zimbabwe — Zimbabwe has launched gold coins to be sold to the public in a bid to tame runaway inflation that has further eroded the country’s unstable currency.
The unprecedented move was announced Monday by the country’s central bank, the Reserve Bank of Zimbabwe, to boost confidence in the local currency.
Trust in Zimbabwe’s currency is low after people saw their savings wiped out by hyperinflation in 2008 which reached 5 billion%, according to the IMF.
With strong memories of that disastrous inflation, many Zimbabweans today prefer to scramble on the illegal market for scarce U.S. dollars to keep at home as savings or for daily transactions. Faith in Zimbabwe’s currency is already so low that many retailers don’t accept it.
The central bank disbursed 2,000 coins to commercial banks on Monday. The first batch of the coins was minted outside the country but eventually they will be produced locally, according to the governor of the Reserve Bank of Zimbabwe, John Mangudya.
The coins can be used for purchases in shops, depending on whether the shop has enough change, he said.
“The government is trying to moderate the very high demand for the U.S. dollar because this high demand is not being matched by supply,” said Zimbabwean economist Prosper Chitambara.
“The expectation is that … there will also be moderation in terms of the depreciation of the local currency, which should have some kind of stabilizing effect in terms of pricing of goods,” he said.
Any individual or company can buy the coins from authorized outlets such as banks, according to an announcement by the country’s central bank.
People can buy the gold coins from authorized agents such as banks using the local currency or foreign currencies and purchasers can choose to keep the coins at a bank or take them home. Foreigners can only buy the coins in foreign currency, said the central bank.
Called Mosi-oa-Tunya, which in the local Tonga language refers to Victoria Falls, the coins “will have liquid asset status, that is, it will be capable of being easily converted to cash, and will be tradable locally and internationally. The coin may also be used for transactional purposes,” said the central bank. People holding the coins can only trade them for cash after 180 days from the date of buying, the bank said.
The coins, each weighing one troy ounce with a purity of 22 carats, can also be used as security for loans and credit facilities, said the central bank. The price of the coins will be determined by the international market rate for an ounce of gold, plus 5% for the cost of producing the coin. At the time of the launch Monday, the cost of Mosi oa Tunya coin was $1,824.
Internationally, gold coins are used in countries such as China, South Africa and Australia to hedge against inflation and as an investment opportunity, although they are not as widely used as currency as envisaged by Zimbabwe’s central bank, said Chitambara.
“For Zimbabwe we are in chronic hyperinflation so the expectation is that there will be a huge uptake of these gold coins,” he said. However, most Zimbabweans struggle with daily survival and won’t be able to buy them, he said.
“For the common man, there is not really much to benefit directly from this, especially if you don’t have any excess cash,” said Chitambara.
“Many people have no money for bread, let alone for savings,” he said. “The expectation is that indirectly it will benefit the ordinary person through moderating the prices.”
Companies with excess cash can find the coins useful to store value and also as an alternative investment asset, although individuals and companies are likely to continue preferring the dollar because “it is convenient and highly liquid,” he said.
Selling the coins in fast depreciating local currency could also result in “rent-seeking behavior, speculation and arbitrage within the economy,” as some could buy using local currency and then sell in dollars later, he said.
The fact that Zimbabwe’s central bank would have to buy the gold from miners of the metal such as informal artisanal miners could also present challenges and result in increased smuggling, analysts say.
“Gold deliveries in Zimbabwe have significantly recovered because of the appetizing U.S. dollar payments offered to artisanal miners,” noted securities firm Morgan & Co in a market intelligence report.
“However, should there be a disparity between the amount of U.S. dollars used to purchase the gold from miners and the U.S. dollars used to pay for the coins, this could squeeze the central bank and its intermediaries’ foreign currency reserves. If this ripples to artisanal gold miners, this could result in low deliveries to Fidelity Printers and increase gold smuggling activities,” noted the Morgan report. Fidelity Printers, a subsidiary of the central bank, is the country’s only authorized gold buyer.
Zimbabwe has substantial gold deposits and exports of the precious metal is one of the southern African country’s major foreign currency earners. Gold production improved to about 30 tons in 2021, compared to 19 tons in 2020, according to official figures. Small–scale producers such as poorly regulated artisanal miners contributed 19 tons of the gold delivered in 2021, according to official figures.
Gold smuggling has been rampant. The country is estimated to be losing about $100 million dollars worth of gold monthly to smuggling, home affairs minister Kazembe Kazembe has said. Smuggling is costing the country about 36 tons of gold annually, according to a report issued this month by the Center for Natural Resource Governance, a local natural resources watchdog. Legally all gold mined in Zimbabwe is supposed to be sold to the central bank, but many producers prefer to smuggle the gold out of the country in order to get payment in U.S. dollars.
wundervisuals / iStock.com
The price of clothes is up 4.2% since last August. This is partially due to rising cotton prices, in addition to retail workers demanding they be paid more. Some articles of clothing like formalwear have increased even more in price. Dresses cost almost 12% more than last year, and suits are sport coats are up 4.7%.
Take a Look: 10 Things You Should Always Buy at Walmart
More: 15 Cheap, Beautiful Places To Retire
Buy Retail Gift Cards at a Discount
Do you have a shop that you always go to when you need new clothes? Check sites like CardCash where you can search for a retailer and buy a gift card for less than the card’s value. Typically, you can score gift cards for 13%-25% more than you pay for them.
Check the Cash-Back Options on Your Credit Card
Some credit cards will offer you the option to use the cash back you earn for gift cards.
One of the cards that offers this is Chase Freedom Unlimited, which offers 6.5% cash back on travel purchased through Chase Ultimate Rewards, which lets you redeem rewards for gift cards to shop with.
Additionally, the Discover It Cash Back card offers 5% cash back at different places each quarter and 1% cash back on all other purchases. They also match your cash back accrued at the end of your first year using Discover It Cash Back. All of this can be used to purchase retailer gift cards through their rewards program.
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Sell Clothes at Consignment Stores
When you bring your gently worn clothes to a consignment store, an associate will examine them to see if they can sell them at their store. In exchange, you’ll usually have the option of receiving cash for your clothes, or store credit. Typically, the store credit amount is higher than the cash amount. If you’re looking to score clothes on a budget, you can use your store credit to add some new pieces to your closet.
Shop at Thrift Stores
Pre-worn clothes are your friend when you’re on a budget. Head to secondhand stores to peruse gently used clothes for maybe a quarter of the price they originally sold for. This also gives you the opportunity to find one-of-a-kind and vintage pieces.
Look for Coupons
Never go shopping for clothes without searching for coupons first. One great site to use is RetailMeNot.com. You can search for the retailer you want to shop from and they’ll let you know about sales or discount codes you can use.
You can also install a Chrome extension like Honey, which searches for discount codes and coupons and applies them to the items in your shopping cart.
Shop Out of Season
The sale sections are full of clothes that are out of season. Don’t pass these deals up simply because you can’t wear them tomorrow. You’ll find some of the lowest prices on items stores are trying to sell because they’re not in demand. Think about shopping for bathing suits in the winter time and winter coats in the dead of summer. There’s also bound to be end of season sales, so always keep an eye out for those from your favorite retailers.
Shop in the Boy’s or Men’s Department
If you’re not already, consider browsing clothing made for boys and men. Often, basics will cost much less than they do in the girl’s or women’s department. You can pay to have the clothes altered if you need, and it probably will still cost you less than it would have from the women’s department.
Rent or Borrow Clothes for Special Occasions
It might be tempting to splurge on a new dress for a wedding or party, but that can cost hundreds of dollars. Instead, consider asking a stylish friend if you can wear something of theirs, so it still feels new to you, but won’t cost you anything.
You can also look into sites like Rent the Runway, where you can rent designer clothes for a fraction of what it would cost to buy them.
Host a Clothing Swap
It seems like we always have clothes we wouldn’t mind parting with. Put those to good use with a clothing swap. Invite friends to bring clothes over that they don’t want anymore and take a look at everyone else’s items. You’ll have cleaned your closet and you’ll walk away with a few new items without it costing you anything.
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People walk near a Kohl’s department store entranceway on June 07, 2022 in Doral, Florida.
Joe Raedle | Getty Images
Kohl’s might not be selling its business after all. But it’s now looking to sell some of its real estate, reversing its prior stance.
The retailer on Friday announced it terminated deal talks with The Vitamin Shoppe owner Franchise Group, confirming CNBC’s reporting from Thursday evening. Instead, Kohl’s said, it will continue to operate as a standalone public company.
Kohl’s for months has been pressured by activist firms including Macellum Advisors to consider a sale of the company, in large part to unlock the value tied up in Kohl’s real estate.
Macellum has argued that Kohl’s should sell some of its real estate and lease it back as a way to unlock capital, particularly during tough times. Kohl’s, however, has been resistant to so-called sale leaseback transactions, at least at such a large scale.
The company did complete a small sale-leaseback deal earlier on in the Covid pandemic, according to Peter Boneparth, chair of Kohl’s board. It recognized a gain of $127 million by selling and leasing back its San Bernardino e-commerce fulfillment and distribution centers.
On Friday, though, Kohl’s explicitly noted in its press release that its board is currently reevaluating ways that the retailer can monetize its real estate. Franchise Group had been planning to finance a portion of its Kohl’s acquisition by selling a chunk of Kohl’s real estate to another party and then leasing it back. This likely gave Kohl’s an idea of what sort of value it could fetch for its owned bricks-and-mortar stores and distribution centers.
“Now you’ve got an environment where financing has changed so much that it may in fact be more attractive to use real estate as a monetization vehicle,” Boneparth told CNBC in a phone interview.
“When you combine that with what we think the levels of the stock are, it becomes a much different exercise than it was in a previous financing environment,” he explained. “It’s no secret that Kohl’s has a very big asset on the balance sheet: Real estate.”
As of Jan. 29, Kohl’s owned 410 locations, leased another 517 and operated ground leases on 238 of its shops. All of its owned real estate was valued at a little more than $8 billion at that time, an annual filing shows.
Pros and cons
Proponents of sale-leaseback deals argue it’s a convenient way for companies to come up with funds to put toward future growth, so long as there is a buyer for the real estate. But it also leaves the seller with having to meet lease obligations since they would be renting the property they just sold.
Those leases could become much more difficult to break and rents can fluctuate across markets. Kohl’s said in its annual filing that a typical store lease has an initial term of 20 to 25 years, with four to eight five-year renewal options.
In 2020, Big Lots reached a deal with private-equity real estate firm Oak Street to raise $725 million from selling four company-owned distribution centers and leasing them back. It gave the big-box retailer additional liquidity during near the onset of the Covid-19 pandemic.
Also in 2020, Bed Bath & Beyond completed a sale-leaseback transaction with Oak Street, in which it sold about 2.1 million square feet of commercial real estate and netted $250 million in proceeds. Mark Tritton, the Bed Bath CEO at the time, touted the deal as a move to raise capital to invest back in the business. Now, though, Bed Bath is facing another cash crunch as its sales slump and Tritton was ousted from his role earlier this week.
Oak Street had been planning to offer financing to Franchise Group in a Kohl’s deal, CNBC previously reported, according to a person familiar with the discussions. A representative from Oak Street didn’t respond to CNBC’s request for comment.
Kohl’s on Friday reaffirmed its plan to conduct a $500 million accelerated stock buyback later this year. It reduced its revenue guidance for the fiscal second quarter, citing a recent softening in consumer demand amid decades-high inflation.
“Clearly the the consumer is under even more pressure today,” Kohl’s CEO Michelle Gass told CNBC in a phone interview. “We’re not immune to that … but Kohl’s stands for value. And at times like this it’s more important than ever to amplify that message.”
She added that Kohl’s partnerships with Amazon and Sephora remain in place and part of the company’s longer-term strategy to win over new customers.
“The conclusion of the board process was absolutely the right answer,” she said.
Kohl’s shares fell more than 20% Friday to hit a 52-week low. Franchise Group shares were recently down about 9%, also touching a 52-week low.
Macellum didn’t respond to CNBC’s request for comment.
METRO Cebu is projected to benefit from the retail sector’s recovery being the largest metropolitan hub outside Metro Manila as mall operators here brace for revenge shopping and dining, property consultancy firm Colliers International said on Friday.
Cebu’s expansion of its consumer base, supported by projected growth in office and residential supply, should sustain retail buoyancy post-2022, Colliers said.
In the first quarter of 2022, vacancy across malls in Metro Cebu reached 6.4 percent, higher than the 2.6 percent recorded in 2018. The disruptions caused by Covid-19 pandemic have resulted in the closure of some brick-and-mortar shops especially in regional and super-regional (50,000 square meters and above of leasable area) malls.
Colliers estimates that about 60 percent of upcoming retailers in Cebu are likely to come from F&B retailers followed by clothing and footwear at 17 percent. This is similar to what was seen in Metro Manila in Q1 2022 where F&B accounted for 42 percent of new retailers followed by clothing at 17 percent.
Some of the new and upcoming retailers in Cebu include Nature Republic, New York Fries & Dips, Sumo Niku, Lantaw Seafood and Grill, Nanyang. Skechers also opened its biggest branch in Cebu.
“By the end of 2022, we see vacancy dropping to about 5.5 percent as we project retail space absorption to pick up amid limited new supply,” Colliers associate research director Joey Bondoc said in a statement.
The consultancy firm believes that the enactment of stimulus measures such as the Foreign Investments Act and Retail Trade Liberalization should facilitate the entry of foreign retailers and contribute to greater retail space take-up beyond 2022.
Major mall operators in Cebu should be proactive in tapping foreign retailers’ retail space demand.
The Inter-Agency Task Force for the Management of Emerging Infectious Diseases also further relaxed Covid-19 restrictions in areas under Alert Level 1 by allowing all establishments (indoor and outdoor) to operate at full capacity.
Limited new supply
National and local developers also continue to build new malls in Cebu. From 2019 to Q1 2022, Colliers has recorded the delivery of 87,800 square meters (944,700 square feet) of new retail space with the completion of Ayala Malls Central Bloc in Cebu IT Park, Il Corso by Filinvest, and Elizabeth Mall expansion. From 2022 to 2024, it sees the annual delivery of about 44,400 square meters (473,400 square feet) of new supply. Among the malls due to be completed are Astra Lifestyle Center by Cebu Landmasters and Gatewalk Central Mall by Ayala and Aboitiz Land.
Sustaining retail demand
Data from Philippine Statistics Authority (PSA) show that growth in household spending for non-essential items such as clothing and footwear grew by 11.9 percent in 2021, a turnaround from -16.4 percent in 2020.
Household consumption should also be supported by continued inflow of overseas Filipino worker (OFW) remittances. In 2022, the central bank projects remittances to grow by four percent in 2022.
In 2020, the Central Visayas region accounted for 5.3 percent of total OFWs deployed abroad from 5.1 percent in 2019.
Colliers believes that the improving consumer and business confidence should also result in greater consumer traffic in malls.
A recently released survey by the central bank noted that consumer confidence in the next 12 months surged to its highest level in more than four years.
The 5.4 percent growth of the Central Visayas region from a 9.9 percent contraction in 2020 should also support the recovery in retail demand and other property segments. These factors should encourage more retailers to lease out physical mall space.
Prevailing headwinds
However, the rising inflation is likely to clip consumers’ purchasing power, according to Colliers.
Data from the central bank show that the country’s inflation reached 5.4 percent in May 2022, the highest since November 2018.
The central bank projects average inflation to reach between 5.0-5.8 percent by the end of 2022.
Some of the headwinds that are also likely to affect the retail segment are the spread of new Covid-19 variants, higher oil prices and global supply chain disruptions.
Colliers believes that the stronger-than-expected economic growth is likely to support the country’s retail sector.
This optimism is likely to be seen in major economic centers including Metro Manila and Cebu.
“We also see greater potential for the retail sector of Metro Cebu as the leisure sector starts to recover after more than two years of slump,” Bondoc said.
The Philippine economy surged by 8.3 percent in Q1 2022, a growth that is seen benefiting the retail sector as the domestic economy is mainly consumption-driven. (CSL)
Selling or buying a property is one of life’s biggest financial transactions and comes with a host of additional expenses.
But while some costs are unavoidable, there are plenty of ways to save money when moving house. We’ve rounded up some of the best.
Pick your estate agent carefully
The most expensive costs for selling a house are estate agent fees, which are usually paid by the seller to their agent and can be up to 1.5% on the cost of the final selling price of the property.
Depending on your area, the agent and how much work you’re expecting them to do for their commission, you may be able to negotiate a lower rate.
But with it being a sellers’ market in many areas, increasing numbers of house owners are instead minimising high street agents’ involvement completely by going online to use less traditional estate agents to market their property. This can save thousands of pounds.
Online estate agent Strike works nationwide and sells properties for free. Even with a relatively conservative 1% commission from a traditional estate agent, this could see sellers saving £2,500 in fees on a £250,000 house.
Strike makes money through offering a host of optional extras that sellers can use, although they say around 40% of customers choose a totally free sale. Optional additional services include £599 flat fee marketing boosts offering professional photography, a video trailer and a premium Rightmove listing, as well as conveyancing, mortgages and moving services. You can get a free online valuation with Strike here.
Whichever estate agent you opt for, whether an online one like Strike or competitors like Yopa, which charges a flat £999 fee per sale, or a high street option, it’s worth getting more than one quote on the value of your house. Valuations can vary greatly so getting a strong idea of the local property market and where your home sits within it price-wise means you’re more likely to get the maximum price for your sale.
Some builders also offer part exchange on new build properties, which is another way to eliminate estate agents’ commissions. It’s worth investigating what the local going rate for your property is before you agree to this though, even just using online valuation tools, as the amount they offer could be less than you’d get opening your house up to the wider market.
Legal fees
Traditional solicitors’ fees for conveyancing were always higher than their online counterparts but, with coronavirus seeing a backlog of house moves and high demand, prices have increased even further over the last few years meaning it could cost up to £1,500 in fees for someone to oversee the legal process.
There are many online conveyancers and who can oversee buying, selling or remortgaging a property, but the one downside to this process is that, while they are considerably cheaper and you could save hundred of pounds, often they are dealing with dozens of cases in a hub, meaning you don’t always get to speak to the same person.
This can cause delays so it’s worth considering whether price or speed is your priority during the process before trying to cut costs here.
Whoever you choose to do your conveyancing, make sure they are fully regulated and, if possible, read independent reviews or speak to previous customers before starting the process. If you do go for more of a traditional solicitor, check what is included in the price and what is likely to be extra, for example local government searches are likely to cost around £300 so check if these are included. Also ask if they do a fixed fee conveyancing package so at least you know what you’re paying before you start down the process rather than suddenly getting a shockingly high bill where every letter or chasing email they’ve sent has added a bit more to your costs.
Other fees
Of course there are plenty of other fees within the house buying and selling process. Make sure to look carefully at what kind of survey you need on any new property you’re buying. While you (and a mortgage company) want to make sure that your new home is in good condition there are several different types of survey and going for a less in-depth one if possible will save you money.
Meanwhile, make sure your mortgage is fixed for as long as you can get it at the lowest rate you can get it, and look for any deals, discounts or perks. For example, some mortgage brokers take their fees from the banks themselves rather than customers which could save several hundred pounds. Some mortgage companies offer incentives like money towards legal fees or waiving application fees. While this shouldn’t sway your choice to a worse-value mortgage over a better one, it’s worth taking into consideration.
Removals… or not
Ideally before you put your house on the market have a big declutter as part of your sprucing up process. Get a skip if need be, or do regular tip and charity shop runs as well as selling anything that could find a new home on Music Magpie (great for DVDs, CDs and games), MPB (higher value unused tech and camera gear), Ebay (everything else) or other local selling sites – it’s all extra money for the moving fund.
Not only will having a good organise of your home before you have to pack it up mean that you’re not moving unnecessary items, but it also could have a knock-on effect on how it looks for potential buyers on viewings. Rooms look bigger and more tempting when things are a bit less cluttered which subconsciously could encourage people to think your home is worth more and make your money in the long term.
As you get closer to move day, you need to weigh up money saving versus sanity saving. Do you have access to a van or can you hire and drive one at a cost of a few hundred pounds, could you assemble a group of friends or family to help lug the heaviest things in and out, do you have children or pets to worry about?
Removal company costs vary greatly dependent on where the country you are and how big a house you’re moving from. The average cost of a removal company for a three-bedroom house is currently estimated at around £1,500, but in some parts of the country where demand is high it can be significantly more than that.
If you do decide to go down the professional removals firm route, then the fact you’ve already got rid of anything that doesn’t need space in your new home means that at least you’re not paying them for wasted time. Removals companies vary greatly in both price and how they work, so think carefully about exactly what you need them to do – do you need them to pack and unpack everything and dismantle and put back together all your furniture, which will be expensive. Or could they drop off the packing materials for you to do it yourself and just turn up on the day to load the lorry? There will be a significant difference in price between these two types of service.
Distance between old and new properties is also a factor with anything over around 25 miles’ distance tending to attract premium prices. Demand for good removals firms is high, so as soon as you have a potential move date speak to your preferred company – they’ll move it if needed, but you don’t want to miss out completely. Also, while Friday is a popular day to move because it minimises time off work it’s also the most popular and thus more expensive. Consider a mid-week date when prices may be less expensive.
As with your solicitor, make sure you’ve done homework on the firm you’re using. Read online reviews, ask friends and family who’ve moved, preferably recently, and ask several companies to come out, see your home and make an informed estimate on the job.
Don’t forget savings in your new house
Wherever you’re moving to, there’s plenty of ways to save money as you set up your new home.
Use price comparison sites like Money Supermarket or ComparetheMarket.com to get the best deals on everything from your home insurance, new energy suppliers and other utilities.
Don’t just assume that transferring over existing TV subscriptions, broadband deals and such like is doing to give you the best deal – take the opportunity to sign up as a new customer and see what offers you get – often for companies like Sky or BT Broadband you’ll get a better deal or new offers as a new customer.
If you’ve not joined any cashback sites before it’s worth doing that before you sign up for any new accounts as there as some great cashback deals when signing up for long contracts – for example, Quidco will give members £154 cashback when they sign up for Sky, £122 cashback for BT TV and Broadband, £110 cashback on Coverbaloo home insurance or £88 for Virgin which is a great deal if you were planning on signing up anyway.
Shoppers enter a Kohl’s store in Peoria, Illinois.
Daniel Acker | Bloomberg | Getty Images
A little-known conglomerate of companies including The Vitamin Shoppe, Pet Supplies Plus and a home furnishing chain called Buddy’s is suddenly the talk of the retail industry.
Franchise Group, a publicly traded business with a market capitalization of about $1.6 billion, has entered into exclusive sale talks with Kohl’s. It proposed a bid of $60 per share to acquire the retailer at a roughly $8 billion valuation. Franchise Group and Kohl’s are in a three-week window during which the two businesses can firm up any due diligence and final financing arrangements.
Questions have since been swirling about what all this will mean for Kohl’s, should a deal go through: What will happen to the Sephora beauty shop-in-shops within Kohl’s, or the retailer’s returns partnership with Amazon? Will Kohl’s CEO Michelle Gass stay on with the company? Are store closings inevitable?
Also, why would Franchise Group want to own Kohl’s in the first place, as retailers including Kohl’s confront inventory challenges and inflation? Just a few weeks ago, Kohl’s slashed its financial forecast for the full fiscal year as more Americans pull back on discretionary spending. Meanwhile, investors are wrangling with rate hikes from the Federal Reserve and the potential for a recession in the near term.
The deal is still in flux, so those questions don’t have firm answers at this point. Instead, analysts and experts point to Franchise Group’s track record and its recent acquisitions for a better sense of what Kohl’s future could hold.
Spokespeople from Franchise Group, Sephora and Amazon didn’t immediately respond to requests for comment on this story. Kohl’s declined to comment.
What Franchise Group wants
“What Franchise Group does is look for good businesses and well-known, strong brand names with a good consumer following,” said Michael Baker, a senior research analyst at D.A. Davidson.
“And then they have a different strategy on how to capitalize or how to monetize those acquisitions,” he added. “Sometimes it’s turning them from company-owned stores into franchise stores.”
Franchise Group was founded in 2019 through a $138 million merger between Liberty Tax Service and Buddy’s, according to the company’s website.
Under President and CEO Brian Kahn, who has a private equity background, Franchise Group went on to scoop up Sears’ outlet business; Vitamin Shoppe; American Freight, which sells furniture, mattresses and appliances; Pet Supplies Plus; Sylvan Learning; and Badcock, a home furnishings chain that caters to lower-income households.
A Vitamin Shoppe store in New York.
Scott Mlyn | CNBC
Franchise Group is mostly in the business of owning franchises. But the consensus is that Kahn likely won’t employ the same strategy at Kohl’s, which has more than 1,100 bricks-and-mortar stores across 49 states.
“The strategy there would be to work with the current management team to run [Kohl’s] better, or replace management if needed,” said Baker. “They’ve done that with some of their assets. … Kahn has a track record of doing good deals.”
Baker used Franchise Group’s most recent acquisition of Badcock, a deal valued at about $580 million, as one example. The company has since entered into two different sale agreements, one for Badcock’s retail stores and another for its distribution centers, corporate headquarters and additional real estate, to net roughly $265 million altogether. Rob Burnette remains in his role as Badcock president and CEO.
On an earnings call in early May, Franchise Group’s Kahn told analysts — without naming Kohl’s directly — what he looks for in any transaction.
“Management, for us, is always the key,” he said. “Whether we do very small transactions or very large transactions.”
“We’ve got a lot of conviction in the brands that we operate now,” Kahn also said on the call.
He added that all of Franchise Group’s past acquisitions generate plenty of cash to support the company’s dividend and to allow for further M&A activity, and any deals it considers in the future would also have to fit this mold.
A real estate play
Earlier this year, Kohl’s deemed a per-share offer of $64 from Starboard-backed Acacia Research to be too low. In late May, the retailer’s stock traded as low as $34.64 and it hasn’t been as high as $64.38 since late January. Kohl’s shares closed Wednesday at $45.76.
Franchise Group likely views its $60-per-share offer as somewhat of a steal, particularly if the company can finance most of the transaction through real estate.
Franchise Group said in a press release earlier this week that it plans to contribute about $1 billion of capital to the Kohl’s transaction, all of which is expected to be funded through debt rather than equity. Apollo is in talks to potentially be Franchise Group’s term loan provider, according to a person familiar with the matter. Apollo declined to comment.
Meanwhile, the majority of this deal is anticipated to be financed through real estate. CNBC previously reported that Franchise Group is working with Oak Street Real Estate Capital on a so-called sale-leaseback transaction. Oak Street declined to comment.
If it plays out this way, Franchise Group would receive an influx of capital from Oak Street, and it would no longer have Kohl’s real estate sitting on its balance sheet. Instead, it would have rent payments and lease obligations.
As of Jan. 29, Kohl’s owned 410 locations, leased another 517 and operated ground leases on 238 of its shops. All of its owned real estate was valued at a little more than $8 billion at that time, an annual filing shows.
“If Franchise Group can get the $7 billion or $8 billion out of the real estate, they’re only paying about $1 billion for the assets. So it’s pretty cheap,” said Susan Anderson, a senior research analyst at B. Riley Securities. “And I think [Kahn] wouldn’t do the deal unless he already has the sale lined up and agreements already in place.”
‘A playbook in place’
But some retail experts are pouring cold water on the plan, saying such a substantial real estate sale could end up putting Kohl’s in a much weaker financial position.
“This is completely unnecessary and will only serve to weaken the firm and restrict investments that are needed to revitalize the business,” said Neil Saunders, managing director of GlobalData Retail. “Takeovers of other retail businesses that have followed this model have never ended well for the party being taken over.”
To be sure, some sale-leaseback transactions, and particularly those on a much smaller scale, have been seen as successful.
In 2020, Big Lots reached a deal with Oak Street to raise $725 million from selling four company-owned distribution centers and leasing them back. It gave the big-box retailer additional liquidity during near the onset of the Covid-19 pandemic.
Also in 2020, Bed Bath & Beyond completed a sale-leaseback transaction with Oak Street, in which it sold about 2.1 million square feet of commercial real estate and netted $250 million in proceeds. Bed Bath CEO Mark Tritton touted the deal at the time as a move to raise capital to invest back in the business.
Franchise Group could be eyeing Kohl’s as a way to create more efficiencies on the backend, between all of its other businesses, according to Vincent Caintic, an analyst at Stephens. Cobbling together resources such as fulfilment centers and shipping providers could be a smart move, he said.
“They have the furniture stores, a rent-to-own store, and a lot of them deal with consumer goods,” Caintic said. “Maybe they can get some additional pricing power by becoming a larger player.”
At the same time, he said, this would be Franchise Group’s largest acquisition to date, which could come with a steeper learning curve.
All of Franchise Group’s retailers combined did $3.3 billion in revenue in calendar year 2021. Kohl’s total revenue surpassed $19.4 billion in the 12-month period ended Jan. 29.
“Franchise Group has a history of buying businesses, levering them up, and then freeing up capital very quickly to pay off that debt,” Caintic said. “They do have a playbook in place.”
But, he added, the companies Franchise bought before it pursued Kohl’s were much smaller – “And those were done when it was very cheap to get debt.”
The drawn-out bidding process for Kohl’s doesn’t appear to be coming to an end any time soon.
It could take several weeks, if not longer, for a deal to come together, a person familiar with the situation told CNBC. The dialogue has been particularly lengthy because of the difficulty in securing financing in uncertain market conditions, the person said, adding that a likely per-share deal price at this point would be in the mid-$50s.
Kohl’s shares were up about 1% at $41.64, giving the company a market value of roughly $5.36 billion. The stock had traded as low as $34.64 as recently as May 24.
“Anybody who buys the business is going to need time,” said the person, who requested anonymity because the discussions are private and ongoing. “Nobody is prepared to sign a deal right now.”
The Wall Street Journal reported Thursday evening that private equity chain Sycamore Partners and retail conglomerate Franchise Group have both submitted their bids to acquire the off-mall department store chain. It’s unclear whether any other parties are interested at this time, the Journal said. About two weeks ago, Kohl’s CEO Michelle Gass said final and fully financed bids from possible buyers were expected in the coming weeks.
This saga at Kohl’s has been playing out for more than half a year, which deal experts describe as an abnormal amount of time.
The off-mall department store chain was first urged in early December of 2021 by New York-based hedge fund Engine Capital to consider a sale, or another alternative to boost its stock price. At the time, Kohl’s shares were trading around $48.45.
In mid-January, activist hedge fund Macellum Advisors then pressured Kohl’s to consider a sale. Macellum’s CEO, Jonathan Duskin, argued that executives were “materially mismanaging” the business. He also said Kohl’s had plenty of potential left to unlock with its real estate.
That was enough for the retailer to get serious about its options. In early February, Kohl’s said it had brought on bankers at Goldman Sachs and PJT Partners to help the retailer field offers and also to make some outreach.
Spokespeople for Kohl’s and Sycamore declined to comment. Franchise Group, Goldman Sachs and PJT Partners didn’t respond to CNBC’s request for comment.
Kohl’s also that month deemed that an offer from Starboard-backed Acacia Research, at $64 a share, was too low. That offer valued Kohl’s business at about $9 billion.
Kohl’s probably wishes it had taken that offer, according to Brian Quinn, a professor at the Boston College Law School who specializes in mergers and acquisitions.
“The stock price that they thought internally they could maybe hit, that no longer looks reasonable,” he said. “My guess is that if you had told the board [at Kohl’s] what would happen in the marketplace in April and May, they would have sold the company.”
“But the thing is, nobody knew what the future was going to bring,” he added.
A cool start to the spring coupled with a softening consumer appetite for discretionary items amid rising inflation weighed on Kohl’s financial results for the three-month period ended April 30. Sales fell to $3.72 billion from $3.89 billion in 2021. Kohl’s also slashed its profit and revenue forecast for the full fiscal year.
Quinn said the bleak outlook likely jolted prospective buyers.
“It’s as if you were going to buy a house,” he said. “And as you’re talking to the seller, or the seller’s agent, the roof collapses. This is a very dynamic process in terms of negotiating.”
At one point, Simon Property Group, the biggest mall owner in the United States, was reportedly in the mix of potential bidders for Kohl’s. But a person familiar with the situation told CNBC last month, after Kohl’s dismal quarterly report, that Simon was not preparing a bid.
Quinn said that Kohl’s board of directors might end up balking at the lower-priced bids and not end up pursing a sale of the company after all. “And they might just not sell the company because of the current state of the market,” he added.
Sliding stock markets, supply chain headaches, surging interest rates and the war in Ukraine have combined to stifle deal-making and IPOs in the retail sector so far this year.
Experts say it’s unclear when that could pick back up. The consensus seems to be after Labor Day. For Kohl’s, the best bet might be to stall for as long as possible.
“Kohl’s probably did receive two bids, but it doesn’t like either one and it isn’t ready to say so with the market so unsettled,” Gordon Haskett analyst Don Bilson wrote in a research note. “That, as much as anything, explains why it may be bidding for more time.”