Accessibility Statement Skip Navigation
  • Why PRWeb
  • How It Works
  • Who Uses It
  • Pricing
  • Login
  • GDPR
  • Create a Free Account
Return to PRWeb homepage
  • News
  • Resources
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All News Releases
      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
  • Business & Money
      • Auto & Transportation

      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • View All Auto & Transportation

      • Business Technology

      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • View All Business Technology

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Financial Services & Investing

      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • View All Financial Services & Investing

      • General Business

      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • View All General Business

  • Science & Tech
      • Consumer Technology

      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • View All Consumer Technology

      • Energy & Natural Resources

      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • View All Energy & Natural Resources

      • Environ­ment

      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Health

      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • View All Health

      • Sports

      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • View All Sports

      • Travel

      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • View All People & Culture

  • Hamburger menu
  • Cision PRWeb provides efficient communication tools to continuously engage with target audiences across multiple online channels
  • Create a Free Account
    • ALL CONTACT INFO
    • Contact Us


      11AM ET Sunday – 8PM ET Friday

  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR
  • News in Focus
    • Browse All News
    • Multimedia Gallery
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR
  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR
  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR

Auditing Holiday Store Sales Will Sway Landlord Decisions in 2021, Predicts The Lamy Group

Holiday sales in 2020 must be verified for 2021 strategies and beyond, says retail financial management thought leader Kenneth S. Lamy


News provided by

The Lamy Group

Dec 07, 2020, 10:00 ET

Share this article

Share toX

Share this article

Share toX

Kenneth Lamy
Kenneth Lamy

MANDEVILLE, La., Dec. 7, 2020 /PRNewswire-PRWeb/ -- The holiday retail season has begun: shoppers are braving the cold and the pandemic to visit big boxes, open-air centers and enclosed malls, to shop or pick up items ordered online. Retailers have already begun tracking results, and will use that data to make real estate decisions to evaluate their stores and store counts in 2021 and beyond. Sales performance during the holiday season often results in retailers deciding either to close stores the following year as well as whether or not to renew expiring leases. Retailers also cite previous year's sales to convey how much rent they can afford to pay.

That data also is critical to shopping center landlords, who will make vital decisions about leasing early next year in the aftermath of the most challenging retail season in decades, said Kenneth S. Lamy, founder and CEO of Mandeville, Louisiana-based The Lamy Group, a financial management consultancy firm that helps landlords quantify retailer sales for rent collection.

A proactive audit program to verify a sampling of stores of all sizes and types is the only way to understand what occurred in 2020 and the holiday season, so we can prepare for what we pray is a happier and healthier 2021.

Post this

Landlords must carefully evaluate data from tenants after the holidays are concluded to make long-term and smart decisions in January and February, as many retail leases and lease modifications expire.

"It's early in the season, but previously published third-party reports claim that shopper traffic is down at brick-and-mortar stores. Fewer bodies are entering stores, but visit-to-buyer conversion is high. At this point in the holiday selling season, shoppers clearly are making their lists, checking them twice and targeting their shopping trips to manage risk and time in stores," Lamy said. "The lack of cherry-picking low-margin merchandise often seen at the start of the holiday season should make retailers more profitable, but also leaves landlords looking beyond percentage rent collection to determine how to structure leases going forward."

Traditionally, many retailers post about a quarter of their annual sales during the November-December period and as much as 40% of annual profits — but failure to make their revenue projections can lead to a spike in bankruptcy filings shortly thereafter, when their cash position and credit limits can't meet debt service, restocking obligations and occupancy costs in the first quarter, he observed. Some retailers likely will be asking for rent relief again as COVID-19 restrictions may slash first-quarter sales. But landlords must look beyond fourth-quarter sales reports to measure and verify the true results, especially as many leases expire at the end of January, Lamy notes.

Retailers are governed by their leases in terms of exclusions and deductions from sales, which are then subject to rent as a percentage of sales, and each lease is different, Lamy explained. This often results in errors, such as reducing reported sales when the store refunds an online purchase or failing to report buy online, pick up in store (BOPIS) sales, a very common occurrence in 2020.

"There's a true lack of transparency in place so there's not a full understanding on the part of the landlord as to what's really occurring," he said. "And you only get that transparency through auditing the store to capture the various buckets of revenue and activity that's occurred. Without transparency, there's no understanding, insight, diagnosis or ability to develop a prescriptive action to take for a solution."

Most leases requiring tenants to pay a percentage of sales as rent also provide auditing rights to landlords, whose fiduciary responsibility to partners, investors, shareholders, etc., will guide them to implement a formal, ongoing sales verification process. Thus, the data derived from a Q1 2021 audit of full-year 2020 sales will help the landlord make informed decisions in 2021.

"Landlords will need a complete sales audit of a sampling of retailers in every category to help project rental income for 2021 and beyond," Lamy observed.

Landlords need retailers' rents to pay their own mortgages, operating costs and taxes, and want their tenants to succeed, said Lamy, who for decades has worked with major retail REITS, private owners and investors to interpret patterns of retail sales. But this holiday season is a true challenge.

"Though we don't know the damage holiday online shopping will have on retailers' physical stores, landlords will never know without independent auditing and sales verification," he said. "The landlord needs to plan and allocate resources for an active audit program in 2021 to verify sales of stores of all sizes and types, from mom-and-pop stores to chain stores to major anchors. A proactive audit program to verify a sampling of stores of all sizes and types is the only way to understand what occurred in 2020 and the holiday season, so we can prepare for what we pray is a happier and healthier 2021."

About The Lamy Group
The Lamy Group is an international financial management consulting firm of certified public accountants, MBAs and other professionals. Founder, President and CEO Kenneth S. Lamy, CRRP, CRX is an instructor and volunteer for the International Council of Shopping Centers (ICSC) and other CRE trade associations for more than 30 years. The Lamy Group specializes in customized financial retail sales, compliance and specialty examinations (tenant sales audits/revenue share/data verification) programs, ancillary revenue audits, early terminations, utility audits, retail property and sales analytics, restaurant financial operations consulting including leasing consulting and related compliance programs for clients. Clients include owners, developers, managers, publicly-traded real estate investment trusts (REITs), realty advisors and institutional investors throughout North America, the Caribbean and Mexico.

Media Contact

Debra Hazel, DEBRA HAZEL COMMUNICATIONS LLC, +1 201-618-5247, [email protected]

SOURCE The Lamy Group

Modal title

Contact PRWeb

  • 11AM ET Sunday – 8PM ET Friday
  • Contact Us

About PRWeb

  • About PRWeb
  • Partners
  • Partnership Programs
  • Editorial Guidelines
  • Resources

Why PRWeb

  • Why PRWeb
  • How It Works
  • Who Uses It
  • Pricing

Accounts

  • Create a Free Account
  • Log in
  • Contact Us

Do not sell or share my personal information:

  • Submit via [email protected] 
  • Call Privacy toll-free: 877-297-8921

Contact Cision

Products

About

My Services
  • All News Releases
  • Online Member Center
  • ProfNet
Cision Distribution Helpline
888-776-0942
  • Legal
  • Site Map
  • RSS
  • Cookie Settings
Copyright © 2025 Cision US Inc.