DIpil Das
The US
2020 Major US Store Closures and Openings Year to date in 2020, US retailers have announced 8,013 planned store closures and 3,354 openings. Our data represent closures and openings by calendar year, so these totals include announcements made in 2019 of closures and openings expected to fall in 2020. This week, we have updated our 2020 US closure count for Ascena Retail Group, and this has changed our 2020 US closure count to 8,013. The chart below depicts the week-by-week totals of US store closures and openings year to date in 2020.US Announced Store Closures and Openings: Week-by-Week Comparison [wpdatachart id=114]
Source: Company reports/Coresight Research
Coronavirus Update: US States and Stores Are Reopening
Many US retailers have reopened stores, as state governments have relaxed their lockdown restrictions. This week saw reopening updates from Aritzia and Alice+Olivia, among others. See the Coresight Research Coronavirus Tracker for regularly updated details of announced store reopenings and US states that are permitting the reopening of businesses.What Is Happening This Week in the US
Ascena Retail Group To Close 23 More Stores; Sells Catherines Specialty retailer Ascena Retail Group has announced plans to close 23 more stores in addition to its previously announced list of more than 1,000 stores earmarked for closure. Our closures chart represents the aggregate number of stores that are estimated to close this year. The company, which filed for bankruptcy in July, also announced that it has sold the intellectual property assets and e-commerce business of its Catherines plus-size banner to Fullbeauty Brands Operations, owned by Apax Partners and Charlesbank Capital Partners, for $40.8 million. The company’s plan to reorganize in bankruptcy will be confirmed after a hearing scheduled for October 23. Lululemon Athletica To Expand Its Store Footprint Specialty retailer Lululemon Athletica plans to open more stores as part of its growth strategy. While most of these new stores will open overseas, particularly in China, the retailer will also open stores in the US. The company has tried to build a strong community of followers through experiential initiatives such as offering free classes, organizing sporting events and supporting local athletes and yoga practitioners. The company’s store expansion strategy is driven by these kind of initiatives. As the company has not yet disclosed how many stores it will open, we have not made any updates to the openings chart. Tractor Supply Store Count Reaches 1,900 Rural lifestyle retailer Tractor Supply has announced the opening of its 1,900th store, which will be located in Oakhurst, California. Last year, the company opened 80 stores, and it continues to expand this year, having previously announced plans to open 75–80 stores. The new California store features BOPIS (buy online, pick up in store) and same-day delivery from store services as well as a pet wash station. Coresight Research insight: The home-improvement and gardening sector continues to grow strongly: Sector sales increased by almost 12% year over year in August, although the growth rate is decelerating. Despite high online sales growth rates at major chains, the sector remains predominantly store-based. As we discuss in our forthcoming report on home-improvement e-commerce (which covers Tractor Supply), online sales account for only a single-digit share of the home-improvement and gardening sector. Even as e-commerce grows, we see retailers with stores retaining a significant advantage over online-only retailers for browsing, advice and immediacy of availability.Non-Store-Closure News
DSW To Open In-store Shops at Hy-Vee Footwear and accessories retailer DSW plans to open in-store shops at six Hy-Vee supermarkets next month and expects to open more in 2021. The in-store shops will span 1,200 square feet and will feature approximately 200 footwear styles. The stores will also feature a “digital showroom wall” showcasing 100 trending styles for kids, men and women. Customers will be able to use QR codes to order shoes from the DSW e-commerce site. DSW and Hy-Vee entered into a partnership in April this year, which kicked off with DSW footwear pallet format displays across more than 120 Hy-Vee stores. [caption id="attachment_116693" align="aligncenter" width="700"]
Coresight Research attributes store openings and closures to the year in which they occurred or are expected to occur. We estimate this information for Bed Bath & Beyond, Foot Locker, Gap, GNC, H&M, JCPenney, Kmart, Sears and Signet Jewelers among others. Estimates for Abercrombie & Fitch, American Eagle, Foot Locker, GameStop, GNC, G-III Apparel, Hollister and H&M are based on the existing proportion of stores in the US. Aerie, Banana Republic, Bed Bath & Beyond, Build-A-Bear, Chico’s, Gap, Genesco, Intermix, Michaels, Old Navy, Signet Jewelers, Tapestry and Williams-Sonoma closures pertain to North America closures. Ahold Delhaize includes Food Lion, Hannaford, Stop & Shop and The Giant Company banners. Foot Locker includes the Foot Locker, Lady Foot Locker, Champs Sports, Foot Action and SIX:O2 banners. Lululemon closures pertain to its Ivivva banner. Macy’s includes Macy’s and Bloomingdale’s banners. Papyrus includes American Greetings, Carlton Cards, Paper Destiny and Papyrus banners. Signet Jewelers includes Kay, Zales, Peoples, Jared and regional banners. Stage Stores includes Bealls, Goody’s, Palais Royal, Peebles and Stage banners. Ascena Retail includes Justice, Catherines, Ann Taylor, Lane Bryant, LOFT and Lou & Grey. *Total includes a small number of retailers that each announced fewer than ten store closures and are not included in the chart.
Source: Company reports/Coresight Research [/caption] [caption id="attachment_116694" align="aligncenter" width="700"]
Coresight Research attributes store openings and closures to the year in which they occurred or are expected to occur. We estimate this information for Abercrombie & Fitch, Aldi, Casey’s, Dollar General, Foot Locker, Gap, Hollister and H&M among others. Estimates for Abercrombie & Fitch, American Eagle, Foot Locker, Hollister, Home Depot and Levi’s are based on the existing proportion of stores in the US. Aerie, Athleta, Bed Bath & Beyond, Genesco, GNC, Michaels, Old Navy, Sephora, Tapestry, Under Armour and Urban Outfitters openings refer to North America openings. Ahold Delhaize includes Food Lion, Hannaford, Stop & Shop and The Giant Company banners. Amazon includes Amazon 4-Star and Amazon Go Grocery banners. Foot Locker includes the Foot Locker, Lady Foot Locker, Champs Sports, Foot Action and SIX:O2 banners. Hibbett Sports includes Hibbett and City Gear banners. Signet Jewelers includes Jared, Kay, Peoples, Zales and regional banners. TJX includes HomeGoods, Homesense, Marshalls, Sierra and T.J. Maxx banners. *Total includes a small number of retailers that each announced fewer than five store openings and are not included in the chart.
Source: Company reports/Coresight Research [/caption] 2020 Major US Uncharted Openings and Closures The table below details announced openings and closures not included in our totals, as the companies did not provide detail on timing or location. [wpdatatable id=460]
Source: Company reports/Coresight Research [caption id="attachment_116695" align="aligncenter" width="700"]
Coresight Research attributes store openings and closures to the year in which they occurred or are expected to occur. We estimate this for some retailers, including Abercrombie & Fitch, Athleta, Ascena Retail, Chico’s, Gap, Hibbett Sports, Old Navy, Pier 1 Imports, Tuesday Morning and Walgreens. Our closure estimates for Burberry and GIII-Apparel are based on the proportion of existing stores in the US. Ahold Delhaize includes Food Lion, Hannaford, Stop & Shop and The Giant Company banners. CVS includes retail drugstores, onsite pharmacy stores, specialty stores and pharmacies within Target stores. Dick’s Sporting Goods includes Dick’s Sporting Goods and specialty concept banners. Foot Locker includes Foot Locker, Lady Foot Locker, Kids Foot Locker, Champ Sports, Footaction, Intermix and SIX:02 banners. Lululemon includes Lululemon and Ivivva banners. Signet Jewelers includes Jared, Kay, Peoples, Zales and regional banners. Tailored Brands includes Men’s Wearhouse, Men’s Wearhouse and Tux, Jos. A. Bank and K&G banners. Tapestry includes Coach, Kate Spade and Stuart Weitzman. Banana Republic, Bed Bath & Beyond, Foot Locker, Gap, Genesco, GNC, Michaels, Old Navy, Ralph Lauren, Signet Jewelers, Tapestry and Williams-Sonoma closures pertain to North America. RTW Retailwinds includes New York & Company and Fashion to Figure banners. *Total includes a small number of retailers that each announced fewer than 20 store closures and are not included in the chart.
Source: Company reports/Coresight Research [/caption] [caption id="attachment_116696" align="aligncenter" width="700"]
Coresight Research attributes store openings and closures to the year in which they occurred or are expected to occur. We estimate this information for some retailers, including Aldi, Costco, Dollar Tree, Five Below and Family Dollar. Estimates of store openings for Gap, Levi’s and are based on the proportion of existing stores in the US. Estimates of store openings for H&M, Lululemon Athletica and TJX are based on net new stores in the US. Ahold Delhaize includes Food Lion, Hannaford, Stop & Shop and The Giant Company banners. Amazon includes Amazon Go, Amazon Books and Amazon 4-Star stores. CVS includes retail drugstores, onsite pharmacy stores, specialty stores and pharmacies within Target stores. Dick’s Sporting Goods includes Dick’s Sporting Goods and specialty concept banners. Foot Locker includes Foot Locker, Lady Foot Locker, Kids Foot Locker, Champ Sports, Footaction and SIX:02 banners. Macy’s includes Bloomingdale’s and Bluemercury banners. Signet Jewelers includes Jared, Kay, Peoples, Zales and regional banners. Tailored Brands includes Men’s Wearhouse. Tapestry includes Coach, Kate Spade and Stuart Weitzman. TJX includes TJ Maxx, Marshalls, HomeGoods, Sierra and HomeSense. Athleta, Banana Republic, Bed Bath & Beyond, Casper Sleep, Dufry AG, Foot Locker, Gap, Genesco, GNC, Michaels, Old Navy, Ralph Lauren, Signet Jewelers, Tapestry, Tempur Sealy and Williams-Sonoma openings refer to North America openings. RTW Retailwinds includes the New York & Company and Fashion to Figure banners. *Total includes a small number of retailers that each announced fewer than 15 store openings and are not included in the chart. **Indochino openings refer to North America total openings, excluding one opening announced for the greater Toronto area.
Source: Company reports/Coresight Research [/caption] 2020 Major US Retail Bankruptcies [wpdatatable id=461]
Revenue figure depicted for Centric Brands is for the nine-month period ended September 30, 2019. *Fairway Market filed for bankruptcy for the second time after entering and exiting bankruptcy in 2016; True Religion Apparel filed for bankruptcy for the second time after entering and exiting bankruptcy in 2017. **J.Crew Group includes J.Crew and Madewell banners; Ascena Retail Group includes Justice, Catherines, Ann Taylor, LOFT, Lane Bryant and Lou & Grey banners; Le Tote includes Lord & Taylor banner; Tailored Brands includes Men’s Wearhouse and Jos. A. Bank, Moores Clothing for Men and K&G banners. N/A – Not Available Source: Company reports/Coresight Research 2019 Major US Retail Bankruptcies [wpdatatable id=462]
Revenue figure depicted for Gymboree is for the nine-month period ended Nov 3, 2018. *A’gaci filed for bankruptcy for the second time after entering and exiting bankruptcy in 2018. N/A – Not Available Source: Company reports/Coresight Research
The UK
2020 Major UK Store Closures and Openings For 2020, major retailers in the UK have announced 2,094 store closures and 531 store openings. Our data represent closures and openings by calendar year. This week, we have updated our 2020 UK closure count for J.Crew and Next, and this has changed our 2020 UK closure count to 2,094. The chart below depicts the week-by-week totals of UK store closures and openings year to date in 2020.UK Announced Store Closures and Openings: Week-by-Week Comparison [wpdatachart id=115]
Source: Company reports/Coresight Research
What Is Happening This Week in the UK
Aspinal of London To Launch CVA proposal Luxury leather goods and accessories retailer Aspinal of London announced that it has launched a company voluntary arrangement (CVA) proposal after succumbing to the effects of the coronavirus pandemic. The retailer may close 10 stores across the UK, which would put 300 jobs at risk. The retailer also owns an online store. The financial results for the year ended March 2019 showed that the company’s losses doubled to £4.4 million ($5.6 million) and operating losses amounted to £4 million ($5.1 million) on the back of an 11% year-on-year rise in turnover to £35 million ($44.5 million). Bushell Investment Group Acquires Aldo; Retailer To Close Five Stores Birmingham-based investment firm Bushell Investment Group has acquired shoes and accessories retailer Aldo, thereby saving over 700 jobs and safeguarding investments of over £30 million ($38.2 million). The retailer is permanently shutting five Aldo stores while exploring “future options” for eight others. The retailer filed for administration in June this year after its business was hit hard by the coronavirus pandemic. Professional services firm RSM was appointed as administrators. J.Crew Exits UK Market by Closing Its Six Stores Specialty apparel retailer J.Crew has announced its departure from the UK market by permanently closing all of its six stores. This move comes after its parent company in the US emerged from Chapter 11 bankruptcy as it won court approval for its restructuring plan. The retailer decided to restructure its business in May as it found its US customers had increasingly turned to cheaper European rivals such as H&M and Zara. Coresight Research insight: J.Crew faced challenges with its positioning in the UK market from the start, using pound-for-dollar pricing at the time of its market entry. Without the brand strength to justify such pricing, and with such a policy leaving little room to adjust for local market competition or consumer demand, the retailer appeared to struggle to establish a position in the market. Next Plans To Open Six and Close 13 stores Multinational clothing, footwear and home products retailer Next reported plans to open four new large Beauty and Home concept stores. The retailer aims to open these stores in Gateshead Metro Centre, Milton Keynes and Watford in October and another before Christmas in Reading. Additionally, it plans to open two more mainline stores and close 13 for the full year ending January 2021. Our closures and openings chart depict the calendarized estimates. Coresight Research insight: On Next’s first-half earnings call last week, CEO Lord Wolfson noted that its new beauty stores are “part of a much bigger endeavor to grow [its] beauty business” and whether or not the stores are ultimately successful, Next expects to learn from the venture. The category is buoyant for Next: The retailer grew its online beauty sales by 19% in lockdown and by 50% in recent weeks.Non-Store-Closure News
John Lewis Partnership Books $600 Million Write-Down on Store Values; Retailer Scraps Annual Bonus The John Lewis Partnership that owns John Lewis & Partners and Waitrose & Partners has initiated measures to adjust to the Covid-19 crisis and its aftermath. It will book a £470 million ($598 million) write-down on the value of its John Lewis department stores to reflect their reduced contribution to sales. The retailer has also declared that it will scrap its annual staff bonus—for the first time since 1953. The retailer has seen notable growth in its online sales, which accounted for 60% of John Lewis’s total sales in July, up from 40% before the crisis. [caption id="attachment_116697" align="aligncenter" width="700"]
Coresight Research attributes store openings and closures to the year in which they occurred or are expected to occur, and we estimate this information for some retailers, including Boots, Debenhams, H&M, M&S, Sainsbury’s and Truworth. Arcadia refers to Topshop and Topman banner store. McColl’s includes convenience stores and newsagents. Baird Group includes Ben Sherman, Jeff Banks and Suit Direct licensed stores among others. *Total includes a small number of retailers that each announced fewer than four store openings and are not included in the chart.
Source: Company reports/Coresight Research [/caption] [caption id="attachment_116698" align="aligncenter" width="700"]
Coresight Research attributes store openings and closures to the year in which they occurred or are expected to occur, and we estimate this information for some retailers, including Aldi, B&M, H&M, Lidl, M&S and Sainsbury’s. Card Factory is based on the proportion of net existing stores in the UK. Source: Company reports/Coresight Research [/caption] 2020 Major UK Uncharted Openings and Closures [wpdatatable id=468]
Source: Company reports/Coresight Research [caption id="attachment_116699" align="aligncenter" width="700"]
Coresight Research attributes store openings and closures to the year in which they occurred or are expected to occur. We estimate this information for some retailers, including B&M, Burberry, Homebase, Laura Ashley, M&S, New Look and Office. Arcadia includes Topshop, Topman and Miss Selfridge banners. McColl’s includes convenience stores and newsagents. *Total includes a small number of retailers that each announced one or two store closures and are not included in the chart.
Source: Company reports/Coresight Research [/caption] [caption id="attachment_116700" align="aligncenter" width="700"]
Coresight Research attributes store openings and closures to the year in which they occurred or are expected to occur. We estimate this information for some retailers, including Aldi, Iceland, Heron Foods and M&S. Our estimate of store openings for Card Factory is based on the proportion of net existing stores in the UK. Abercrombie & Fitch includes Abercrombie & Fitch and Hollister banners. Urban Outfitters includes the Anthropologie banner. H&M includes H&M and Weekday brands. McColl’s includes convenience stores and newsagents. *Total includes a small number of retailers that each announced one or two store openings and are not included in the chart.
Source: Company reports/Coresight Research [/caption] Notes Figures represent store openings and closures that occurred, or are expected to occur, in the respective calendar years. For some retailers, store opening and closure numbers are estimated, including from part-year data, global figures or announced closure/opening programs that span multiple years. Estimates are updated as companies announce details. Figures for openings and closures are gross.