Openings, Closings, & Other Key Industry Highlights

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Kroger

Kroger plans to close an underperforming store and fuel center in Knoxville, TN by March 31. According to the Company, “This closing is necessary because the store has experienced significant losses for over five years now, including over $1.0 million in the last two years. Closing stores is always a last resort, and only considered after all other alternatives have been exhausted.” There are nine competing food retailers within three miles of the closing store, including four Food City, two ALDI, an Earth Fare, a Fresh Market and another Kroger (there are four Kroger stores within five miles of the closing store).

In other news, Kroger plans to invest $60.0 million for a new distribution center in Florence, KY that will service the eastern half of the U.S. The 674,000 square-foot facility, expected to open later this year, will primarily be used as a replenishment center, supporting smaller regional Kroger distribution centers with non-refrigerated goods.

Click here for Kroger's full store list.

Southeastern Grocers

Southeastern Grocers, parent company of BI-LO, Fresco y Más, Harveys and Winn-Dixie stores, continued to expand its Hispanic banner to 11 stores by unveiling five new Fresco y Más stores throughout Miami and Hialeah, FL. Management indicated that sales for the previous six Fresco y Más stores opened between June and December 2016 exceeded its expectations. Ian McLeod, president and CEO of Southeastern Grocers, commented, “Each store’s new Hispanic-focused product assortment and features, including a full-service Latin butcher shop and new Cocina, are our commitment to providing a shopping experience that reflects the cultural connection we strive to make with our Hispanic customers.”

The Fresco y Más conversions are just one of the measures Southeastern Grocers is taking to turn around its struggling operations, which experienced declining comps and EBITDA in 2016. Other actions included a new expanded private-label program, price cuts as well as converting stores to the discount Harvey’s banner, which it acquired from Delhaize in 2014. As we’ve previously covered, the Company’s bond prices have languished the past few weeks, with its 8.625% Notes due September 2018 trading at around $40.00 and yielding over 80%.

Click here for Fresco y Más' full store list.

Albertsons

Albertsons is combining two of its three divisions in Texas in a move that will take effect over the next three months. The transition will consolidate marketing and merchandising functions of Albertsons’ Houston division with its Fort Worth-based Southern division and consolidate the divisions’ respective distribution centers. The move will not affect the United Supermarkets division, based in Lubbock. As a result of the move, Albertsons plans to close a distribution center in Telge, TX, which primarily serves Randalls stores; distribution will be transferred to its Roanoke, TX distribution center, which currently serves Tom Thumb and Albertsons stores in the Dallas metro area. The Company anticipates the consolidation of the distribution centers will be completed by late summer. According to a prepared statement, combining the Houston and Southern offices will result in a headcount reduction in the Houston office.

Click here for Albertsons' full store list.

 
 

Neiman Marcus

Neiman Marcus reported total fiscal 2017 second quarter revenues of $1.40 billion, representing a decrease of 6.1% compared to total revenues of $1.49 billion for the second quarter of fiscal year 2016. During the quarter, comparable revenues decreased 6.8%. The lower sales, gross margin erosion due to higher markdowns and deleveraged expenses combined to push EBITDA down 29.7% to $116.9 million, after excluding a non-cash impairment charge of intangible assets to the Neiman Marcus brand of $153.8 million. The Company’s TTM EBITDA margin, once the highest in the department store sector, eroded 240 basis points to 9.7% in the middle of the sector. The eroding EBITDA continues to negatively impact interest coverage; TTM interest coverage has fallen to 1.60x from 3.32x in the first quarter of fiscal 2013. Additionally, Neiman’s balance sheet has become highly levered exhibited by its 10.0x debt/EBITDA and negative tangible book value of ($4.30 billion). Due to the quarter’s poor performance, the Company’s heavy debt load and withdrawal of its IPO, Neiman also announced that it is exploring and evaluating potential strategic alternatives. These include, the sale of the Company or other assets, or other initiatives to optimize its capital structure, as well as a number of other alternatives. According to published reports, Hudson’s Bay is currently in negotiations to acquire the Company, however financing the transaction could be tricky as Neiman Marcus is already highly leveraged.

Click here for Neiman Marcus' full store list.

 

Urban Outfitters

Urban Outfitters reported fourth quarter sales increased 1.7% to $1.03 billion, and comps were flat. By brand, comps increased 2% at Urban Outfitters and 1.2% at Free People but decreased 2.9% at Anthropologie. Profit slipped 11.8% to $64.3 million. CEO Richard A. Hayne said, “We are pleased to announce record fourth quarter and full year sales driven mostly by the continued success in the direct-to-consumer channel. As we enter a new year, we will continue to shift our efforts and spend into our fastest growing channel.” During the year, the Company opened 29 new stores: 15 Free People, 10 Anthropologie and four Urban Outfitters stores. It also closed seven underperforming stores: two Free People, three Anthropologie and two Urban Outfitters stores.

Click links above for full store lists.

Stein Mart

Stein Mart’s fourth quarter sales decreased 2.2% to $385.5 million, and comps were down 5.5%. The Company recorded a net loss of $4.9 million, compared to a profit of $6.3 million in the prior-year period. CEO Hunt Hawkins said, “Our fourth quarter results were disappointing as we continued to work through higher than desired inventory levels and the impact of changes to marketing, merchandising and promotions implemented during the third quarter. We were aggressive with our promotions and markdowns to clear fall merchandise which severely impacted the quarter’s gross profit rate and earnings.” The Company operated 290 stores at the end of 2016, compared to 278 in 2015; it opened 13 new stores and closed one underperforming location in 2016. Looking to fiscal 2017, the Company plans to open 11 new stores, with five opening this month and six in September and October. It also plans to close five stores and relocate one existing store.

Click here for Stein Mart's full store list.

Demoulas Market Basket

Nearly three years after Demoulas’ Market Basket opened its Biddeford, ME store and indicated future expansion in Maine, the Company has yet to open a new location. While many assume the Company’s financial woes as well as a changing grocery landscape put the Company’s expansion plans on hold, a Market Basket senior executive said the Company has continued to add stores in Massachusetts and New Hampshire since the 2014 buyout by CEO Artie T. Demoulas. At least two new locations have opened each year, and Maine is still being considered for future stores.

Click here for Demoulas' full store list.

Dick's Sporting Goods

Dick’s Sporting Goods reported fourth quarter sales increased 10.9% to $2.48 billion, and comps were up 5%. Profit fell 30.1% to $90.2 million, negatively impacted by non-recurring charges totaling $92.8 million. Commenting on results, CEO Edward W. Stack said, “We are very pleased with our strong fourth quarter results, as we delivered a 17% increase in non-GAAP EPS driven by strong comp sales and gross margin expansion. We realized meaningful market share gains and saw growth across each of our three primary categories of hardlines, apparel and footwear.” During its conference call, management announced a new merchandising and vendor plan, under which it will eliminate 20% of its vendors as it expands its private-label business. The Company said the elimination of 20% of the vendors will be across the board and not concentrated within any particular category; none of its 10 largest vendors will be eliminated. Management expects its private-label business to grow to about $1.00 billion this year. It should be noted that private-label sales generate higher gross margin. In the fourth quarter, the Company opened three former Sports Authority stores as new Dick’s Sporting Goods stores. The Company also closed three Dick’s Sporting Goods stores, 13 Golf Galaxy stores and two True Runner stores.

Click here for Dick's Sporting Goods' full store list.

Smart & Final

Smart & Final’s fourth quarter sales rose 0.3% to $1.00 billion, impacted by one less week compared to last year. On a consistent 12-week comparison, sales increased 9.2%, driven by new stores, partially offset by a 2% decrease in comps. Comps were comprised of a 0.2% increase in comp transaction count, including the effect of anticipated cannibalization from new stores, and a 2.2% decrease in comp average transaction size, including the impact of deflation in key product categories in both store banners. Comps fell 2.1% at its Smart & Final banner and fell 1.5% at its Cash & Carry banner. The Company posted a net loss of $300,000, including the effect of higher store development and closing expenses and an income tax benefit of $1.7 million. For fiscal 2016, sales increased 9.3% to $4.34 billion, comps fell 0.5%, and net income fell by almost two-thirds to $12.9 million.

During fiscal 2016, the Company opened 33 new Smart & Final Extra! stores, completed six conversions of legacy Smart & Final stores to the Smart & Final Extra! format, relocated six legacy Smart & Final stores and closed eight legacy Smart & Final stores. The Company opened four new Cash & Carry stores during fiscal 2016.

Looking ahead to fiscal 2017, Smart & Final expects sales growth of 5.5% – 6.5%, comp growth of 1% – 2%, adjusted net income of $39.0 million – $43.0 million, adjusted EBITDA of $185.0 million – $195.0 million, and capex of $120.0 million – $130.0 million. It expects to open 15 Smart & Final Extra! stores and four Cash & Carry stores, relocate three stores to the Extra! format and expand 4 – 5 stores to the Extra! format.

Click here for Smart & Final's full store list.

Walgreeens Boots Alliance

Walgreens Boots Alliance (WBA) is considering a move that would force the Federal Trade Commission to vote on its planned merger with Rite Aid within 30 days. According to a published report, Walgreens is considering declaring that it has “certified compliance” in its application, which would mean, in Walgreens opinion, it has given regulators substantially all the information they need to make a decision. Forcing the FTC to rule could be a risky move. However, according to the report, only two commissioners are sitting on the five-member FTC panel, a Republican and Democrat, and both commissioners would need to vote to block the $9.70 billion deal. There have been no new reports over whether the companies have agreed to divest additional stores to garner FTC approval. Previously, Fred’s, Inc. agreed to acquire 865 stores for $950.0 million, while also agreeing to divest any additional stores necessary for FTC approval.

Click here for Walgreens' full store list.

Radioshack

General Wireless Operations Inc., DIP filed a voluntary Chapter 11 petition in the U.S. Bankruptcy Court in the District of Delaware. The Honorable Brendan Linehan Shannon has been assigned to the case. The proceedings have been assigned case number 17-10506. Documents in the filing state that funds are expected to be available for distribution to unsecured creditors. RadioShack Corporation filed for bankruptcy on February 5, 2015, when it closed about half of its 4,000 stores and sold about 1,700 of the units to Standard General LP (one of its creditors), which formed General Wireless with Sprint Corporation. About 1,400 of the locations were co-branded, and the remainder were franchised units. There are currently about 1,300 stores in operation. Documents in the case state that “the Company’s outstanding trade debt is $62.8 million, of which $52.6 million is payable to vendors and trade creditors, and $10.2 million is comprised of unpaid pre-petition rent.” Yesterday, the Court authorized the Company to begin going-out-of-business sales at only 190 of 500 stores that they had requested. A hearing is scheduled for Thursday to consider expanding the order, and the Company is still evaluating options on an additional 800 locations.

Click here for Radioshack's full store list.

DSW

DSW’s fourth quarter sales inched up 0.4% to $674.6 million, but comps were down 7%. Profit more than doubled to $30.5 million. CEO Roger Rawlins stated, “Our fourth quarter continued to return to year over year profitability growth, with top line results that met our comp guidance. Inventory management and a product-focused campaign drove significantly higher gross margin, which, coupled with better expense control, resulted in a 22% increase in adjusted EPS this fall season.” During fiscal 2016, the Company surpassed 500 stores in the U.S. (currently operating 502 stores nationwide), expanded its presence in Canada with 23 locations, and launched DSW kids shops at 227 locations. DSW also plans to open its first two stores outside North America and anticipates opening another 77 kids shops in 2017.

Click here for DSW's full store list.

Weis Markets

Weis Markets reported fourth quarter sales jumped 26% to $925.1 million, benefiting from an extra week in 2016 (sales rose 17.6% adjusting for the extra week). Comps increased 3.4%, which management attributed to continuing price investments, disciplined sales promotions, an enhanced customer experience and improved supply chain efficiencies. Net income more than doubled to $41.1 million, including a one-time gain of $23.9 million on the purchase of 38 stores from Ahold Delhaize (Food Lion, LLC). For fiscal 2016, sales increased 9% to $3.14 billion, comps rose 2.9%, and net income increased nearly 47% to $87.2 million. During fiscal 2016, the Company acquired and converted 44 stores.

In other news, a new Weis Markets prototype store opened last week in Hampden Township, PA. The new 65,000 square-foot store has a large local foods section, more than 1,900 organic and gluten-free products, and an enhanced produce department. The store also sells fuel and has a drive-thru pharmacy, a pub, an ice cream parlor and a Chobani Yogurt Bar. The Company hopes to eventually incorporate the most successful elements of the prototype into its other locations.

Click here for Weis Market's full store list.

Future Retail Store Closings

AggData monitors upcoming retail store closings throughout the day and maintains an active database of store locations and anticipated closing dates. Here is a sample of recently announced store closings.

Please contact AggData to request a full future store closing list.

H.E. Butt

The city of Houston has signed off on a $13.9 million plan to use federal funding to purchase nine undeveloped acres from Houston Community College, then lease the property to H.E. Butt Grocery to open a store. H.E. Butt’s 72,000 square-foot market would be one of its few Houston locations in a lower-income, predominantly African-American neighborhood.

Click here for H.E. Butt's full store list.

Golub

Golub Corp.’s Price Chopper in Clifton Park, NY closed on March 11, to allow for the construction of a new Market 32 store on the site. The new Market 32 is expected to open in July and will be 54,000 square feet, nearly twice the size of the existing 28,000-square-foot Price Chopper. The new store will be the second Market 32 for Clifton Park, the first of which opened in summer 2015.

Click here for Price Chopper's full store list.

Citi Trends

Citi Trends’ fourth quarter sales increased 5.4% to $185.5 million, and comps were up 3.4%. Profit rose 60% to $5.6 million. For fiscal 2016, sales were up 1.7% to $695.2 million, but comps slipped 0.4%; full-year profit also decreased 14.1% to $13.3 million. During the year, Citi Trends opened 18 new stores, relocated or expanded 13 other stores, and closed six underperforming locations. The Company currently operates 537 stores located in 31 states.

Click here for Citi Trends' full store list.

Target

Target announced plans to remodel 110 of its stores across the country during 2017 (600 by 2019), with a third of those renovations slated for the Dallas-Fort Worth area. Target has 47 stores and three distribution centers in North Texas. Additional details on the remodels are expected the coming weeks. The Company said it does not have any new stores slated for the region. Those 47 Target stores compete with about 145 Walmart stores in the Dallas – Fort Worth metro area.

Click here for Target's full store list.

Staples

Staples’ fourth quarter sales fell 2.9% to $4.56 billion, reflecting a 1% decrease in comps and the closing of 48 stores during the year. Fourth quarter EBITDA margin increased 0.4% to 7.6%, excluding non-recurring charges. Commenting on results, CEO Shira Goodman said, “Our fourth quarter results were right in-line with our expectations, and I’m increasingly confident that we have the right plan and the right team to transform Staples and get back to sustainable sales and earnings growth. I am particularly proud of our ability to grow our delivery business by continuing to enhance our offering and satisfy our business customers.” The Company closed 13 stores during the fourth quarter of 2016 and 48 stores for the full year in North America, and ended the year with 1,255 stores in the U.S. and 304 stores in Canada. It closed a total of 242 stores in 2014 and 2015. Management said it expects to close approximately 70 additional stores in 2017, though the Company has not yet provided locations for the closures. Management also said that 250 leases per year are up for renewal over the next three years.

Click here for Staples' full store list.

Wegmans

Wegmans Food Market will anchor a new shopping center in Chantilly, VA, where construction is now underway. Regency Centers Corp. is developing The Field at Commonwealth, a $45.0 million shopping center, expected to be completed next year. In the D.C. region, Wegmans currently has five stores in Northern Virginia and one in Germantown, MD. This will be the third Wegmans in Fairfax County.

Click here for Wegmans' full store list.

Wawa

Wawa is a considering a site for its first store in Palm Beach, FL. The site is directly next door to a Cumberland Farms location and a few stores down from a Dunkin’ Donuts. The Company operates 95 stores in the state, which represents 13% of its store base.

Click here for Wawa's full store list.

Kirkland

Kirkland’s reported fourth quarter sales increased 2.1% to $203.2 million, but comps were down 4.6%. Profit fell 12.4% to $14.5 million. The Company opened four new stores and closed one underperforming location during the fourth quarter, bringing its total store count to 404 as of January 28. CEO Mike Madden said, “Customers responded well to our seasonal assortment during the fourth quarter, and our e-commerce channel continued its strong momentum. We managed our operating expenses well during the quarter, and inventory ended the year in good position. While store traffic was challenging, we made solid progress in 2016 to strengthen our management team, improve our supply chain and advance our omni-channel model.”

Click here for Kirkland's full store list.

 

Safeway

On March 18, Safeway will unveil a renovated store in Severna Park, MD. Enhancements include expanded departments and product selections. Safeway’s Eastern Division operates more than 120 stores in Maryland, Virginia, D.C. and Delaware.

Click here for Safeway's full store list.

 

Chipotle Mexican Grill

According to published reports, Chipotle Mexican Grill is closing all 15 ShopHouse Asian Kitchens by Friday. The Company reportedly has a deal to sell the leases for the ShopHouse locations. Chipotle opened the first ShopHouse in 2011 and grew the fast casual Asian brand to 15 locations. It said in its most recent annual report that it was not able to generate enough sales to warrant future investment and announced last year that it was exploring strategic alternatives for the ShopHouse concept. Chipotle operates two other concepts (besides its traditional Chipotle brand), Pizzeria Locale, which has seven locations, and Tasty Made, a burger restaurant it debuted in Ohio in October.

Meanwhile, on March 8, a securities class action lawsuit that was filed in January 2016 on behalf of purchasers of Chipotle Mexican Grill securities from February 4, 2015 through January 5, 2016 was dismissed. The lawsuit was filed following foodborne illness outbreaks in 2015 that were linked to Chipotle. The lawsuit alleged that Chipotle, along with its co-CEOs, Steve Ells and Monty Moran, made materially false and misleading statements to investors and/or failed to disclose that Chipotle’s quality controls were not in compliance with applicable consumer and workplace safety regulations.

Click here for Chipotle's full store list.

 

Wendy's

NPC International entered into an agreement with Valenti Mid-Atlantic Management LLC to acquire 62 Wendy’s restaurants for $52.6 million, plus amounts for working capital. As part of the transaction, NPC plans to remodel certain acquired restaurants in Wendy’s new “Image Activation” format. The stores are located in south central Pennsylvania in and around Harrisburg and Allentown, PA. This is NPC’s seventh acquisition in the Wendy's system since 2013 and will increase its holdings to 246 restaurants.

Click here for Wendys' full store list.

Walmart

Walmart recently opened a Supercenter in Tomball, TX that features the first Chobani Café outside New York. The 2,000 square-foot café offers Mediterranean-inspired dishes. The new store also has a custom design and incorporates new technologies, including Mobile Scan & Go, as well as other new services and products that could be implemented in other stores. It also has the first Walmart Care Clinic in Greater Houston.

Click here for Walmart's full store list.

Party City

Party City Holdco’s fourth quarter sales decreased 4.1% to $749.3 million, and comps were down 3.5%. Profit declined 1.6% to $85.2 million. CEO James M. Harrison stated, “Our performance in 2016 demonstrates the resiliency of our business, the repeat purchase nature of our everyday product categories, and the strength of our unique vertical model. Despite an unfavorable calendar shift affecting Halloween, our most important holiday, we were able to deliver our seventh straight year of record revenues in constant currency as a result of our diversified revenue model that reaches across multiple channels. We are pleased that 2016 was also our 16th consecutive year of record EBITDA, which has been driven by consistently growing our share of shelf 1 and continually increasing our operational efficiencies.”

In other news, Party City acquired a majority interest in Granmark S.A. de C.V., a manufacturer and distributor of party supplies, gift wrap and stationery items based in Monterrey, Mexico. Under terms of the agreement, Party City purchased an 85% interest in Granmark valued at $22.0 million, with an agreement to purchase the remaining interest over the next three to five years.

Click here for Party City's full store list.

 

Savers

Savers, operator of more than 330 thrift stores, is shutting down more than a third of its Chicago-area stores this spring. Savers stores in Downers Grove, Arlington Heights, Franklin Park and Glenview will close April 17. Savers closed its Unique thrift store in Chicago's West Rogers Park neighborhood yesterday. The Company stated, “Though unfortunate, we have determined that despite our best efforts, local market pressures have made it necessary to close certain Savers and Unique thrift stores in Chicago.”Antonio Perez / Chicago TribuneA Savers thrift store in Downers Grove is prepared for its grand opening in April 2011. The store in the western suburb is among those slated to close April 17, 2017. The closures this spring, in Chicago and other markets, only affect about 4% of Savers’ stores. Nine Chicago-area Savers and Unique stores will remain open.

Click here for Savers' full store list.

Tailored Brands

Tailored Brands’ fiscal 2016 sales decreased 3.4% to $3.38 billion, net of 57 store closures from last year, driven by continued weak comps. By retail segment, comps decreased 0.6% at Men’s Wearhouse, 9.5% at Jos. A Bank, 2.4% at K&G and 2.6% at Moores. However, management noted that the turnaround of Jos. A. Bank has been successful, as the banner now operates with positive comps. Due to decreased occupancy costs from fewer stores, total gross margin improved 20 basis points to 42.7%. Tailored Brands continues to close more stores than it opens. In fiscal 2016, the Company shuttered a net of 119 Jos. A. Bank stores, closed or converted 102 Men’s Warehouse & Tux to Tuxedo shops at Macy’s, opened two Men’s Wearhouse, two Moore’s and two K&G stores for a total of 1,667 stores. For fiscal 2017, the Company expects comps for Men's Wearhouse to be down low-single digits, Jos. A. Bank to increase mid-single digits, and Moores and K&G to be down mid-single digits. Additionally, management stated that the Macy’s tuxedo business did not ramp up as expected and the Company’s 2017 plan assumes no further Macy’s store expansion, and that adjusted operating losses will grow from $14.0 million in 2016 to between $19.0 million to $20.0 million in 2017. Management is currently in the early stages of negotiations with Macy’s and stated that a restructured agreement will involve a different operating model. As a result, Tailored Brands recorded an asset impairment charge of $14.0 million in the fourth quarter related to fixed assets in the Macy's stores.

Click links above for full store lists.

Del Taco

Del Taco plans to open new unit developments in Florida and Georgia, as it pushes growth in the Southeastern U.S. The Company said a newly signed 10-unit development deal will bring Del Taco to West Palm Beach County, FL, with openings to begin in 2018. Additionally, the first location of a six-unit development agreement for southern Georgia is slated to open in Warner Robins, GA this spring. That will be followed by planned development in Macon, Albany and Tifton, adding to Del Taco’s existing corporate footprint in the Atlanta, GA metro area, where the brand currently operates eight corporate-owned restaurants and will add another one in the summer in Kennesaw.

Click here for Del Taco's full store list.

 

Dunkin' Brands

Dunkin’ Brands has signed multi-unit store development agreements with two franchise groups to develop a total of 17 Dunkin' Donuts restaurants throughout Alabama and Mississippi over the next several years. The first of nine new restaurants are expected to open in Birmingham, AL in 2017. Five new restaurants will open in Mobile, AL and three in Biloxi, MS, with the first in each state expected to open in 2018. There are currently 29 Dunkin' Donuts restaurants located throughout the two states.

Click here for Dunkin' Donuts' full store list.

Ulta Beauty

Ulta Beauty’s fourth quarter sales increased 24.6% to $1.58 billion, and comps jumped 16.6%. The comp increase was driven by 10.9% growth in transactions and 5.7% growth in average ticket. Salon sales increased 15.2% to $62.9 million, and e-commerce sales grew 63.4% to $154.9 million. Profit rose 30% to $140.2 million. During the quarter, the Company opened 25 stores, ending with 974 stores in operation. In 2017, the Company plans to open 100 net new stores, and remodel 13 locations. CEO Mary Dillon said, “The Ulta Beauty team delivered outstanding fourth quarter results, capping an exceptional year of sales and earnings growth while investing to drive market share gains and create sustainable long term shareholder value. We are confident in our outlook for continued success in 2017 as we execute our strategy to be a destination for All Things Beauty, All in One Place™. Our new brand pipeline is very healthy and we are particularly excited to announce the addition of the Estée Lauder Companies’ MAC brand, which will launch on Ulta.com and begin to roll out to stores this spring.”

Click here for Ulta Beauty's full store list.