March 15, 2023
Dick’s Sporting Goods announced it was finally terminating the Field & Stream concept. Eight locations were closed in 4Q22 and will reopen this year as House of Sport stores and four as expanded Dick’s stores, with the five remaining stores to be converted by 2024. In addition, one other House of Sports is planned for FY23, with 10 more planned for FY24, and potential to grow the format to as many as 75 to 100 within five years. The Company will also open a new 50,000 square-foot Dick’s prototype store in South Bend, IN later this year, using concepts developed from House of Sports. Management also plans to grow the footprint of Golf Galaxy Performance Centers and convert temporary value chain stores to permanent locations. The Company also recently acquired the outdoors Moosejaw concept.
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Sprouts Farmers Market is closing 11 locations, as the Company focuses on developing smaller format (avg. 23,000 square feet) stores, with the aim of opening a minimum of 30 in 2023. According to the Company’s CFO, all of the closing stores are about 30% larger than Sprouts’ current store prototype and were generating negative four-wall cash flow; one store will shutter in 1Q23, and the rest will close in 2Q23.
Last year, the Company opened 16 new stores, nine of which were the smaller format. The chain also closed four locations last year, ending with 386 locations in 23 states. Sprouts has about 80 new stores in the pipeline, 60 of which have signed lease agreements. In the first two weeks of March, the Company opened locations in Norwalk and Stockton, CA, and there are at least two more slated to open this month in The Villages, FL and Merced, CA.
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BJs Wholesale Club announced that there will be five new club openings in 2023, including its first-ever store in Alabama. All of the new units will include a BJ’s gas station; they will be located in Madison, AL, Mt. Juliet, TN, Johnson City, NY, Lewis Center, OH, and North Jacksonville, FL.
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Jack in the Box’s CEO expects the Company will return to positive net new unit growth in 2023 for the first time since 2019. Earlier this month, the burger chain announced it signed 14 new restaurant commitments to enter Arkansas, where it has never been before, and Florida, where it hasn’t had a presence in over 30 years. The two deals followed four development agreements that were signed in Q1 that will allow the Company to expand within its existing St. Louis, Hawaii, and Nashville markets. There are currently more than 2,180 Jack in the Box restaurants across 21 states, and approximately 600 Del Taco restaurants across 15 states.
In the Party City, DIP case, the Debtors submitted a list of 10 additional stores where closing sales will commence. These units bring the total count of stores designated for closure to 32 thus far. The Debtors entered the proceedings with 770 corporate stores and 53 independent franchise locations.
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REI is planning to open a store in Sarasota, FL this fall. The 25,000 square-foot location will be the eighth store in Florida. This spring, REI is planning to open a 24,000 square-foot store in Marina del Rey, CA, joining six stores within 26 miles, 11 in the Los Angeles metro area, and 30 in the state overall. Other REI stores scheduled to open this year include a 21,000 square-foot store in Huntington, NY, opening in the summer, a 22,000 square-foot location in Bedford, NH, opening in the fall, and a 33,000 square-foot unit in Laguna Hills, CA, also opening this fall.
In a call with investors, Kohl’s new CEO Tom Kingsbury said the Company plans to reduce its inventory levels in the future, as well as reimagine how it gets rid of excess products. At the same time, Kingsbury also announced that the retailer will update its stores with a “more modern feel” through strategies such as reducing the level of graphics and signage. These efforts are intended to capitalize on the younger, more diverse shoppers which management says have been drawn to its stores following the roll out of its partnership with Sephora.
VillageMD, which is majority owned by Walgreens Boots Alliance, acquired Starling Physicians, expanding its footprint in the Northeast. Starling has more than 30 locations in Connecticut offering primary care and a range of specialties including cardiology, ophthalmology, endocrinology, nephrology, and geriatric care. The terms of the transaction were not disclosed. VillageMD operates from 680 practice locations in 26 markets.
Noodles & Company opened 16 restaurants during 2022, ending the year with 461 restaurants. For FY23, the Company expects 7.5% new restaurant growth system-wide, with a majority of openings being Company-owned.
In other news, the Company is rolling out digital menu boards by year end, with plans to spend about $10 million on the launch. Management indicated that the boards would allow the chain to test dynamic pricing, charging different prices for items at different times of day. While 80% of meals from Noodles & Company are eaten off-premises, according to the Company, nearly 75% still enter the restaurant either to eat there or pick up an order.
After opening four stores in February, Aldi opened another nine locations in early March. Since 2017, the Company has been in the midst of a $3.40 billion capital spending plan that included adding about 900 new locations, and it currently operates more than 2,200 stores across 38 states.
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Amazon’s ‘Just Walk Out’ technology is coming to college campuses through a new collaboration with Transact Campus, a mobile credential and payment platform. Through the partnership, vendors both and on and off campus that accept Transact’s card system for payment will be able to offer frictionless check out. Shoppers, which includes students and any verified user with a university account, can scan their unique QR code to enter a store, starting a virtual shopping session during which the technology detects what shoppers take from or return to the shelves. Transact will begin rolling out the Just Walk Out technology integrations in the coming months for campuses already using its platform and will offer the service to additional campuses later this year.
In comments made last week, Walmart CFO John David Rainey said the Company will decrease its reliance on deriving its profits from its brick-and-mortar stores. Instead, the retailer will focus on expanding e-commerce channels and reevaluate the fees it charges third party sellers on the Company’s website. Currently, Walmart operates more than 5,000 locations across all its banners, including Walmart Supercenters, Neighborhood Markets, and Sam’s Club.
Internationally, Walmex is investing to upgrade its stores, supply chain, and technology. Walmex plans to invest $1.50 billion in the region this year, which is 27% more than it spent last year. About 45% of the investment will be dedicated to store remodels and maintenance, improving omnichannel capabilities, and implementing projects to increase energy efficiency and sustainability. Another 29% will go towards building new stores and clubs, 14% will go towards technology, and 12% will be used to expand and modernize its supply chain.
Zumiez opened 17 stores during FY22 and intends to open 23 new stores in FY23, including up to eight in North America, 10 in Europe, and five in Australia.
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Gordon Food Service is opening six new locations in the greater Houston, TX area to serve local restaurants, food operations, and the public, of which four opened today (March 14) and two are due to open later. These are the first Gordon stores in Texas and the most opened at one time. Each location is 25,000 – 30,000 square feet and offers large seasonal produce departments, fresh meats, grab & go meals, and tortillerias.
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