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The US
2020 Major US Store Closures and Openings Year to date in 2020, US retailers have announced 8,194 planned store closures and 3,328 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 saw updates from Furniture Factory Outlet and Furla USA, and we updated our estimates for PVH Corp.’s Heritage Brands closures, which increased the 2020 US closure count to 8,194. The chart below depicts the week-by-week totals of US store closures and openings year to date in 2020. Total openings have changed only very incrementally since week 23 (when the total stood at 3,194) and prior to that, they had roughly flatlined from week 12. In recent weeks, total closures have roughly leveled off. This week saw an addition of 122 closures. US Announced Store Closures and Openings: Week-by-Week Comparison [wpdatachart id=132]Coresight Research periodically updates the count for openings and closures when there are new updates or revisions to previous announcements from companies and this could involve retrospective revisions of totals for some weeks. Source: Company reports/Coresight Research
What Is Happening This Week in the US
Furniture Factory Outlet Files for Bankruptcy Home goods retailer Furniture Factory Outlet has filed for Chapter 11 bankruptcy protection and attributed it to a cash crunch and supply chain disruption owing to the coronavirus pandemic. The retailer has been forced to close 37 of its 68 stores since March 2020, and is looking to sell the company under bankruptcy. Furla USA Files for Bankruptcy and Plans To Close Four Stores The US subsidiary of Italian luxury goods retailer Furla has filed for Chapter 11 bankruptcy protection, citing the impact of the coronavirus pandemic on its brick-and-mortar and wholesale businesses. The company plans to close four of its 14 stores, aiming to rid itself of leases and debt, while focusing on a reorganization strategy of investing in e-commerce and wholesale.Quarterly Store Openings/Closures Settlements
Office Depot Closes 16 Stores The ODP Corporation, parent company of office supply retail banners Office Depot and OfficeMax, has announced that it closed 16 stores in the quarter ended September 27, 2020. The company operates a total of 1,244 stores under the Office Depot and OfficeMax banners as of September 27, 2020. The store closures have already been accounted for in our closures chart as part of the company’s previously announced store closure plans for the year.Non-Store-Closure News
VF Corporation Set To Acquire Supreme for $2.1 Billion Apparel and footwear company VF Corporation has announced that it has secured a deal to acquire streetwear brand Supreme for $2.1 billion by the end of year. Supreme currently has 12 stores globally and, under its new owners, is set to expand its brick-and-mortar presence. While the company has had most success in the US and Japan, company representatives said that there is potential for growth in China and other parts of Asia. VF Corporation expects Supreme to contribute at least $500 million in revenue in its next fiscal year. Ulta Beauty Partners with Target To Open Concept Concessions in 100 Target Stores Ulta Beauty has entered into a long-term strategic partnership with Target to open “Ulta Beauty at Target,” a shop-in-shop concept store that will offer established and emerging prestige brands online and in select Target locations. The concept stores will debut at more than 100 Target stores, starting 2021. These stores will not be included in our openings chart as we include only standalone store openings and closures. Coresight Research insight: This is a win-win for Ulta Beauty and Target, with the former getting greater scale rapidly and the latter bolstering its already strong position in beauty. Coresight Research data indicate that Target is the US’s third-most-shopped retailer for beauty, grooming and personal care products, and Ulta Beauty is the sixth most shopped. Our consumer profiles suggest some overlap: Both retailers attract younger-than-average beauty consumers, although Ulta Beauty attracts a more affluent shopper, on average. [caption id="attachment_119191" 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, Heritage Brands, 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 12 store closures and are not included in the chart.
Source: Company reports/Coresight Research[/caption] [caption id="attachment_119192" 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=554]
Source: Company reports/Coresight Research
[caption id="attachment_119196" 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_119197" 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 T.J. 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=555]
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=556]Revenue figure depicted for Gymboree is for the nine-month period ended November 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 2,343 store closures and 520 store openings. Our data represent closures and openings by calendar year. This week, there have been updates from Argos, Edinburgh Woollen Mill and Sainsbury’s, which increased the 2020 UK store closure count to 2,343. 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=133]Source: Company reports/Coresight Research
What Is Happening This Week in the UK
Edinburgh Woollen Mill and Ponden Home Fall Into Administration Apparel brand Edinburgh Woollen Mill and home brand Ponden Home have fallen into administration. Both brands come under the Edinburgh Woollen Mill Group’s stable of high-street chains. Edinburgh Woollen Mill Group had filed a notice to appoint administrators from FRP Advisory in October 2020 and has since closed 56 Edinburgh Woollen Mill stores and eight Ponden Home stores. Sainsbury’s Closes Over 150 Argos Stores and Plans To Further Reduce Store Count Supermarket chain Sainsbury’s closed 14 Argos stores between March and September 2020. Reporting its half-year earnings, the retailer announced plans to reduce its Argos standalone store countfrom 556 (as of September 19, 2020) to 100 by March 2024; this includes the permanent closure of 142 standalone Argos stores which did not reopen following lockdowns this year. The retailer also confirmed that an additional 14 Argos stores will close by the end of this fiscal year, March 2021. This brings our estimated number of closures for Argos in 2020 to 169 and implies a total of 300 closures between March 2021 and March 2024. The group plans to open up to 150 new Argos shop-in-shops and 150–200 collection points within Sainsbury’s supermarkets by March 2024. Coresight Research insight: Sainsbury’s grew sales by double digits at Argos during the lockdown quarter in 2020, despite the closure of Argos standalone stores. In that context, and with a large Sainsbury’s store estate in which it can put Argos implants, it is little surprise that the company has concluded that Argos can operate without a substantial standalone store estate. We have previously pointed to the lockdown as giving retailers their first concrete indication of how much sales they could retain with stores closed—and that any positive figures are likely to prompt closures.Non-Store-Closure News
Clarks Sells Majority Stake to Hong Kong Firm Footwear retailer Clarks has sold a majority stake in the company to Hong Kong-based private equity firm LionRock Capital for £100 million ($131 million). The acquisition will allow LionRock to utilize Clarks stores in the US to execute a previously announced strategic plan and will also allow Clarks to expand globally in China and other Asia-Pacific countries. The retailer had announced restructuring plans in October that include over 900 job cuts worldwide over a span of 18 months and unconfirmed plans to close 50 stores in the UK as well as closing one-quarter of its 214 stores in the US. As the plans to close these stores are as yet unconfirmed, we have not included them in our closure charts but have instead included them in our uncharted closures table. [caption id="attachment_119202" 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 six store openings and are not included in the chart.
Source: Company reports/Coresight Research[/caption] [caption id="attachment_119203" 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=558]
Source: Company reports/Coresight Research
[caption id="attachment_119205" 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_119206" 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.