Petco loses millions due to loyalty program
Wednesday, September 9, 2026
Is your commercial building ready for the EV revolution? Electric vehicle adoption in Florida is accelerating rapidly, turning charging infrastructure from a luxury perk into a core property requirement. For commercial landlords and retail center operators, adding EV charging stations is no longer just about sustainability—it is a proven strategy to boost tenant retention, increase visitor "dwell time," and generate new passive revenue streams. Read our latest blog post to learn how upgrading your property's tech stack can drive long-term asset value.
Is the "Retail Apocalypse" over? Far from it—retail has simply evolved. Oversized, massive department stores have stepped aside for a much more dynamic, community-driven engine. Today, the shopping centers seeing the highest foot traffic and lowest vacancies aren't relying on big-box giants. Instead, they are winning big by curating experiential, necessity-based spaces: boutique fitness, upscale salons, and artisanal cafes. Read our latest blog post to discover how this structural shift is redefining South Florida retail property values and what it means for landlords looking to optimize their spaces.
For decades, business owners operating in the Sunshine State shared a common, frustrating grievance: Florida was the only state in the nation that levied a sales tax on commercial real estate leases. Whether you were renting a boutique on Delray Beach’s Atlantic Avenue or a corporate office space in Tampa, a percentage of your revenue went straight to the state as a tax on your rent.
That heavy operational burden is officially a thing of the past.
Following a multi-year phaseout, Governor Ron DeSantis signed House Bill 7031, completely repealing Section 212.031 of the Florida Statutes. This landmark legislation completely eliminated both the state sales tax and all local county discretionary surtaxes on commercial real property leases. For local business owners, this historic tax repeal provides massive financial relief, fundamentally changing the math behind retail leasing and corporate expansion across Florida.
Here is what you need to know about the repeal and how it directly affects your bottom line.
Walk into almost any bustling retail plaza from Palm Beach County down to the Tampa Bay area, and you are bound to notice a significant shift in the tenant mix. Nestled between your favorite local coffee shop and a boutique clothing store, you are increasingly likely to find an urgent care center, a specialized physical therapy clinic, or a modern dental studio.
Welcome to the era of "Medtail"—the strategic intersection of healthcare delivery and traditional retail real estate.
An estimated 20% of leased retail space nationwide is now dedicated to medical operations. As healthcare providers aggressively pursue "retail-like" access strategies to serve expanding populations, landlords have a unique opportunity. Shifting your property management strategy to welcome healthcare tenants is one of the most lucrative ways to future-proof a retail asset.
Here is why retail property owners are actively betting on medical tenants, and what you need to know to capitalize on the trend.
Finding the perfect storefront in a bustling South Florida retail plaza is an exciting milestone. Whether you are eyeing a high-foot-traffic spot in Delray Beach or an up-and-coming corridor in Tampa, location sets the foundation for your business.
However, CoStar Group's national retail analytics highlight that rising operating costs are putting increased pressure on retail margins, driving elevated store closures among value-challenged and independent tenants (Svec, 2026). In this climate, a great location can quickly turn into a financial headache if you don’t carefully vet the lease agreement.
Before signing on the dotted line, ensure you ask your broker and landlord these five critical questions.
Discover why PBC retail rents are reaching record highs in 2026. Get the Q1 market snapshot on vacancy rates and NNN pricing from Atlantic Commercial Group.
Explore the 2026 South Florida commercial real estate outlook. Atlantic Commercial Group breaks down Medtail trends, retail intelligence, and why Delray Beach remains a top investment hub.
Delray is booming, and we're breaking down the key trends investors need to know for 2025. From record-low vacancies to a new "flight to quality," find out why this coastal city is a top-tier market for investment.
Petco's relaunch of the Petco Perks loyalty program weighed on net sales after customer point redemption volumes far exceeded initial projections, with a mid-single-digit millions of impact on sales. The redesigned program, intended to remove friction and boost customer engagement, achieved success in driving redemptions—perhaps too much. Members earning 10 points per dollar on most products and 30 points per dollar on private label brands redeemed rewards at volumes that dragged second quarter sales, which otherwise would have tracked above outlook. The pet retailer quickly implemented guardrails to control redemption velocity and plans to refocus on personalization capabilities for long-term growth. Despite the early challenges, Petco reported its second consecutive quarter of same-store sales growth, up 0.6% year-over-year in Q2 2026, improving from four quarters of comparable declines in 2025.
QVC Group has exited Chapter 11 bankruptcy with its debt reduced by over $5 billion and access to a new $600 million asset-based lending facility. As part of the restructuring, CEO David Rawlinson stepped down from the top role and was succeeded by Mike George as interim chief executive officer and board chair, effective immediately. George previously served as president and CEO of QVC Group for 16 years, from 2006 until his retirement in 2021. QVC Group's common stock has been approved for trading on Nasdaq under the ticker QVCG. The Chapter 11 exit was completed in less than four months after filing in the spring of 2026, representing a relatively swift restructuring timeline. The company has repositioned itself with a digital-focused strategy emphasizing live social shopping expansion across multiple platforms.
Saks Global's Chapter 11 bankruptcy filing has proven beneficial for Simon Property Group, which saw 1 million square feet of space vacated—almost entirely from Saks Off 5th closures—yet maintained occupancy levels equal to the end of Q1 as new tenants filled the space at higher rents. While Saks Off 5th had been paying $18 million in annual rent before ceasing payments after bankruptcy, Simon Property is confident new tenants will pay significantly higher rent, with initial base rent from new leases up 17% year-over-year through Q2 2026. Simon Property expects to collect $30 million in rent from new tenants filling just half of the closed Saks Off 5th stores in its portfolio, compared to the $18 million Saks Off 5th was previously paying. The landlord's $100 million investment in Saks Global's merger with Neiman Marcus gave Simon strategic leverage to exit or renegotiate unfavorable lease terms.