Highlights include Saks, Inc. (SKS), Nordstrom, Inc. (JWN), Wal-Mart Stores, Inc. (WMT) and Target Corp. (TGT).To attract shoppers trading down, high-end retailers Saks, Inc. (SKS) and Nordstrom, Inc. (JWN) are expanding their reach with new stores in outlet mall locations.Consumers that typically shop in luxury retail stores have experienced unparalleled wealth destruction from asset values deflating in housing and the equity markets. This demographic is increasing savings, paying off debt and looking over their shoulders to see if they are still employed. Even so, those consumers still want to shop at Saks, Nordstrom, or privately-held Neiman Marcus because of the popular brands and exceptional customer service offered in those stores. They just want to pay less.This is where outlet malls fit in to a luxury retailer's strategy. Previously, outlet malls were used to move overstocked merchandise, odd ...

Operationally, Kimco Realty’s (KIM) portfolio continues to perform well. KIM continues to sign new leases at higher rents and most of the company’s current leases are at below market rents. In addition, the company has adequate liquidity on its line of credit to address 2009 debt maturities.We think KIM is one of the best-positioned retail REITs in the continued economic downturn. KIM has a geographically diverse portfolio with concentrations in high income, high growth areas. We are changing our current recommendation to hold due to macroeconomic factors.Going forward, transactional income will be much lower than previous years. With cap rate increases and the lack of available financing, KIM will have a much more difficult time selling newly developed properties. If the retail landscape gets worse, there could be a pre-emptive dividend cut in an effort to conserve cash.Read the full analyst …

The news for US retailers is grim to say the least. But Justice Litle says investors can still make profits by shorting the most vulnerable firms in the industry. He picks three retail stocks that look overvalued in today’s climate.

This from Taipan Daily

At market extremes (where fortunes are most often won and lost), the wild outliers get closer to reality. Such is the case with the “mega-mall ghost town” scenario.

In the past two weeks, the financial press has been chock-a-block with headlines like “Commercial Property Loses Shelter” and “Struggling Retailers Press Struggling Landlords on Rent.”

“U.S. retailers are expected to begin a wave of post-holiday bankruptcy filings,” the Wall Street Journal writes, “altering the landscape at malls and on main streets across the country.”

One mall store manager – who requested his name not be mentioned – told the WSJ he expects more returns than sales on some days.

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