April 3, 2024
BJ's Wholesale Club will soon open five new stores, as part of its plans to open 12 new clubs and 15 gas stations this year. The Maryville, TN store will be BJ's fourth in Tennessee; the Myrtle Beach, SC store will be its second in South Carolina; the Palm Coast and West Palm Beach, FL stores will be the 38th and 39th clubs in Florida; and the Carmel, IN store will be its second in Indiana.
On March 28, reports stated that 99 Cents Only Stores LLC is considering a bankruptcy filing, and possibly liquidation because “a sale process for some of its assets has stalled.” The reports also state that discussions are ongoing, and many alternatives are being considered, including out-of-court options.
Kroger announced that its "spoke" delivery facilities, built in partnership with Ocado, in Austin and San Antonio, TX, and South Florida will close on May 25th, only about two years after the South Florida site opened, which marked Kroger’s first venture into that state. The Company noted that customers may still use Kroger Delivery in Florida if they reside within approximately 90 minutes of its facilities located in Groveland, Tampa, Jacksonville, and Cocoa Beach.
HEB is opening a 117,000 square-foot store in Fort Worth, TX on April 10 at the Alliance town Center. This will be the fifth storefront in the Dallas-Fort Worth area under its namesake banner after opening stores in Frisco and Plano in late 2022, followed by sites in McKinney and Allen in 2023. HEB's Mansfield store, which will be its sixth to open in the Dallas-Fort Worth area, is slated to open this spring. HEB also broke ground on a store in Melissa, a city north of Dallas, in January, with plans to open that store sometime next year.
This week, HEB also announced "major renovation" plans for its Central Market store in San Antonio. The location will undergo a full interior remodel that includes repositioning select departments, expanding cafe seating and improving administrative spaces.
Lidl has laid off an undisclosed number of workers at three units in the U.S., affecting roles ranging from administrative assistant to senior IT specialist. The layoffs come a year after Lidl let go of roughly 200 employees in the U.S., primarily impacting employees at its U.S. headquarters in Arlington, VA.
Lidl also announced the expansion of its outdoor garden centers to 76 stores, or nearly half of its U.S. stores, following a successful pilot. The Company first tested the Garden Center concept in 2022 on Long Island, NY, with Gabrielsen Farms, and then expanded the concept across its stores in New York. Now, the concept was rolled out to stores in Georgia, North Carolina, and South Carolina in late March, then Virginia and Maryland in early April. At the end of April, locations in Delaware, Pennsylvania, and New Jersey will add the centers.
Ames recently announced it will begin to open stores nationwide by June 2026, with the aim to open at least 35 locations by late 2027 and more in 2028. Select locations will provide the option to order online and pickup in-store along with a pharmacy and a cafe. Its website will provide online ordering and home delivery. Seven distribution centers will open near Ames locations to handle deliveries. Ames closed its last 327 stores in 2002, but before then sold clothing, shoes, furniture, jewelry, electronics, and toys.
Academy Sports + Outdoors will open 15 to 17 stores in FY24, starting with two new stores in 1Q24 in Knightdale, NC and Greenwood, IN. Grand opening festivities took place two weeks ago at the Knightdale store, and the grand opening for the Greenwood store will occur on April 12-14. The Company will open 160 to 180 new stores over the next five years.
Home Depot announced that it has agreed to acquire SRS Distribution Inc. (SRS), a residential specialty trade distribution company serving professional roofers, landscapers and pool contractors. Under the terms of the deal, Home Depot will acquire SRS for a total enterprise value (including net debt) of approximately $18.25 billion, which will be funded with cash on hand and new debt. The acquisition is subject to customary closing conditions, including regulatory approvals, and is expected to be completed by the end of FY24.
In the JOANN Inc., DIP case, Joanne’s TSA exit financing included a $100 million exit FILO term loan. Gordon Brothers has now provided a commitment for the $100 million FILO Term Loan Exit Facility “to support the Debtors’ restructuring and bolster its liquidity.” We note that documents in the case indicate that in October 2023, the Company engaged Gordon Brothers Holdings II LLC, an affiliate of Gordon Brothers, the prepetition lender under a $115.7 million FILO Term Loan, due 6/22/27 (extended by six months) to assist in renegotiating the Company’s store leases. The prepetition FILO Term Loan will convert to the $100 million Exit FILO Term Loan when the Company emerges from bankruptcy.
In the Rite Aid, DIP case, an order was issued conditionally approving the adequacy of the Disclosure Statement. The order also approved the solicitation procedures and established the following dates and deadlines:
- Sale Transaction Deadline - April 8
- Voting Deadline - April 15
- Statement Objection Deadline - April 15
- Combined Hearing Date - April 22
The Debtors announced they entered into preliminary agreements with its key stakeholders which it believes will allow it to reorganize and emerge from bankruptcy.
Checkers and Rally's recently inked an agreement for a new location in Peoria, AZ, further expanding its presence in Arizona. There are currently nine restaurants in Arizona, and over 800 in the U.S. The new restaurant will be owned and operated by business partners, Dan Leung and Fred Bux, marking their fourth location overall, with more in development to open before year-end.
The information contained in this newsletter is compiled from sources which RetailStat, LLC (“RetailStat”), does not control and unless indicated is not verified. Its contents are not to be divulged. RetailStat, its principals, and writers do not guarantee the accuracy, completeness or timeliness of the information provided nor do they assume responsibility for failure to report any matter omitted or withheld because of their negligence.
