DIpil Das
The US
2020 Major US Store Closures and Openings Year to date in 2020, US retailers have announced 8,325 planned store closures and 3,363 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 Casper Sleep, Dillard’s, Fossil, Francesca’s and Sally Beauty, which increased the 2020 US closures and openings count. 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=134]
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
Ascena To Close All Justice Stores by Early 2021 Ascena Retail Group, parent company of Ann Taylor, Justice Brands, Lane Bryant and LOFT brands, has announced that it has sold the intellectual property of its Justice brand, along with other brand assets and liabilities, to Justice Brand Holdings, an entity formed by brand management company Bluestar Alliance LLC, for approximately $90 million. Ascena filed for bankruptcy in July 2020 and announced the closure of 618 of its 813 Justice stores, with the remaining stores now set to close in early 2021 after operating through the 2020 holiday season. Our estimate of total 2020 store closures under Ascena, which have been previously accounted for, remains at 1,156. Francesca's To Close 140 Stores by January 2021 Through a filing with the Securities and Exchange Commission, womenswear retailer Francesca’s has announced plans to close 140 stores by January 30, 2021. Based on calendarizing this total, we estimate that around 84 of these will occur by the end of the year, taking our total estimated number of closures for Francesca’s in 2020 to 97. The retailer currently operates 700 stores, primarily located in malls. Herman Miller To Open Two Stores Office furniture and equipment retailer Herman Miller has announced that it has opened a store in Los Angeles and plans to open another store in New York on November 20. Spanning 1,500 square feet each, the experiential retail concept stores specialize in high-performance “task” chairs and other products for home offices and small business workers. Quarterly Store Openings/Closures Settlements Fossil Closes Five Stores Fashion accessories retailer Fossil has announced that it closed three full-price accessory stores and two outlets in North America in the quarter ended October 3, 2020. Including the latest batch of closures, the retailer has closed 10 stores, year to date. The retailer operates 189 stores in North America as of October 3, 2020. Sally Beauty Closes 34 stores and Opens 25 Stores Globally Beauty products retailer Sally Beauty has announced that it closed 34 Sally Beauty Supply stores (net) and opened 25 Beauty Systems Group stores (net) globally in the quarter ended September 30. Taking these into account, our year-to-date estimate of US closures stands at 35 for Sally Beauty Supply stores and 23 US openings for Beauty Systems Group stores. In our charts, we represent both of these under the parent company, Sally Beauty. The group operates 3,644 Sally Beauty Supply stores and 1,251 Beauty Systems Group stores as of September 30. Dillard’s Closes One Dillard’s Store and Opens One Clearance Center Department store chain Dillard’s closed one Dillard’s store and opened one clearance-center store in the quarter ended August 3, 2020. The company operates 250 Dillard’s store and 32 clearance centers as of October 31, 2020. Casper Sleep Opens Six Stores Mattress retailer Casper Sleep announced that it has opened six stores in the quarter ended September 30, 2020. Including these store openings, the retailer has opened eight stores this year so far. The company operates 65 stores as of September 30, 2020.Non-Store-Closure News
Guitar Center To File for Bankruptcy Musical instruments retail chain Guitar Center plans to file for Chapter 11 bankruptcy and expects to complete its restructuring plan by the end of 2020. The filing is part of a restructuring deal with key stakeholders that would cut $800 million in debt from Guitar Center's books and add $375 million in new liquidity. The retailer has not announced plans to reduce its store footprint as part of the filing but has hired advisers to evaluate its real estate portfolio for possible closures. Tailored Brands To Exit Bankruptcy Tailored Brands, parent company of Men's Wearhouse and JoS. A. Bank brands has received approval for its plans to reorganize in Chapter 11 bankruptcy and is expected to exit bankruptcy by the end of November 2020. The retailer filed for Chapter 11 bankruptcy protection in August this year. As part of the restructuring plan, Tailored Brands will shed $686 million in debt and transfer ownership to lenders and other creditors. [caption id="attachment_119637" 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_119638" 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. Beauty Systems Group, a subsidiary of Sally Beauty Holdings, is charted under the parent banner. *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=564 table_view=regular]
Source: Company reports/Coresight Research [caption id="attachment_119639" 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_119640" 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 2,351 store closures and 534 store openings. Our data represent closures and openings by calendar year. This week, there have been updates from Poundland and WHSmith, which increased the 2020 UK store closure and openings count. 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=135]
Source: Company reports/Coresight Research
What Is Happening This Week in the UK
Poundland To Open 10 Stores Discount retailer Poundland has announced that it plans to open 10 stores in the UK by December 5, 2020. The company also plans to open 45 new stores in 2021 as part of a £15 million ($20 billion) investment. The expansion is part of Poundland’s transformation plans, which have also seen it extend the range of products that it offers to customers. The retailer opened four stores earlier this year, which takes the total number of openings in 2020 to 14. WHSmith To Close 25 Stores In its preliminary full-year results, books and stationery chain WHSmith has announced that it expects to close 25 stores in its fiscal year ending August 2021. The company has 420 leases expiring within three years, of which 120 are under negotiation with landlords this year. The company stated that depending on negotiations with landlords and the government’s future approach to property rates, it expects to close 25 stores as leases expire in this fiscal year. Based on calendarizing this total, we estimate that around eight of the 25 stores closures will have occurred by the end of 2020.Non-Store-Closure News
LK Bennett Prepares To Launch CVA Womenswear retailer LK Bennett is reportedly preparing to launch a CVA (company voluntary arrangement) proposal that would involve the closure of five stores, while remaining stores would move to a turnover-based rental model. The retailer said that the objective of the CVA proposal is to mitigate the ongoing financial impact of the coronavirus pandemic and may result in at least four to five store closures and a small number of job losses. The retailer currently employs 400 people and has 18 stores, all of which are currently closed due to coronavirus lockdown restrictions. The closures are not tracked as the CVA has not yet been approved and the timeline is uncertain. [caption id="attachment_119641" 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, Truworth and WHSmith. 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_119642" 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=566 table_view=regular]
Source: Company reports/Coresight Research [caption id="attachment_119643" 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_119644" 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.