Fung Global Retail & Technology tracks store openings and closings for a select group of US retailers. Weekly Store Openings and Closures Tracker #6: Bonobos Opening 20 New Stores 1) Among the retailers we track, this past week, Bonobos announced plans to open 20 more physical stores by the end of 2017. 2) None of the major retailers we track made store closing or bankruptcy announcements this past week. 3) About 3,300 stores have been included in retailers store closing plans since the start of the year. Cumulative store closing announcements for year-to-date 2017 far exceed the previous year s average. We expect more announcements in the coming months, particularly for stores located in lowergrade malls. Deborah Weinswig Managing Director, Fung Global Retail & Technology deborahweinswig@fung1937.com US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 1
2017 Store Openings and Closings During this past week, none of the retailers we track made any store closing or bankruptcy announcements. The majority of retailers that have been closing stores fall within the department store and specialty retail categories. Primary reasons for the closures include: 1) declining mall traffic; 2) reconfiguration of store networks as retailers shift online; and 3) to cut losses from unprofitable stores. Year-to-Date 2017 Major US Store Closing Announcements Rue 21 Payless Inc The Limited hhgregg GameStop RadioShack Wet Seal Bebe Stores Inc* Crocs Inc. Sears and Kmart** JCPenney BCBG American Apparel Gordmans Stores Inc. Staples CVS Macy s*** MC Sports Guess Chico s Lucy Accvewear Eastern Ouaibers Gander Mountain Ralph Lauren**** 68 68 50 44 36 32 23 138 120 110 101 190 187 171 168 1 1 220 250 400 400 Total: 3,296 announced store closings 97% year over year 0 50 100 150 200 250 300 350 400 450 * Closing all 134 retail stores and 34 outlet stores ** Closing 115 Kmart and 45 Sears stores *** Part of 100-store closure announcement made in 2016 **** Closing remaining stores included in the 50-store closure plan announced in June 2016 2
Among the retailers we track, men s clothing retail startup Bonobos, rumored to be in talks to be acquired by Walmart, has announced plans to open as many as 20 more Guideshops by the end of 2017, bringing the total number of stores to 50. Value-driven retail concepts such as discount and fast fashion have been aggressive in expanding their store footprint, despite the difficult retail environment. Categories such as beauty and athleisure are outperforming the market, which is evident in their footprint expansion over the past 15 months. Year-to-Date 2017 Major US Store Opening Announcements Dollar Tree 650 Aldi* TJX** Ulta Lidl Ross Stores 130 111 100 100 90 Sephora H&M* Hobby Lobby Walmart*** Dick s Sporcng Goods, Inc. **** Target***** Costco****** Bonobos Nordstrom 59 52 30 24 20 17 Total: 2,573 announced store openings 20% year over year 0 100 200 300 400 500 0 0 * Fung Global Retail & Technology estimates ** Net store openings *** Includes new, expanded and relocated stores **** 43 Dick s Sporting Goods stores and 9 Golf Galaxy stores ***** All new openings are small-format stores ****** Adjusted to calendar year from fiscal year reporting 3
2016 Store Openings and Closings 2016 Major US Store Closings Sports Authority Sears and Kmart* Men s Warehouse/Jos A. Bank Walgreens Walmart Office Depot Gap Staples Chico s FAS The Children s Place American Eagle Kohl s Finish Line JCPenney 48 34 34 26 18 18 9 71 123 154 200 233 243 463 Total: 1,674 announced store closings 0 50 100 150 200 250 300 350 400 450 500 * Closing 206 Kmart and 37 Sears stores 2016 Major US Store Openings Dollar General 900 Dollar Tree 584 TJX 146 Ulta Ross Stores Dick s Sporcng Goods Sephora* H&M Aldi Costco** Under Armour*** Target Zara 104 93 79 72 53 45 19 19 15 10 Total: 2,139 announced store openings 0 100 200 300 400 500 0 0 800 900 1,000 * Net store number between December 2015 and March 2017. Includes 55 new stores in JCPenney and 17 standalone Sephora stores ** Adjusted from fiscal year figures *** Net number of stores in North America 4
Deborah Weinswig, CPA Managing Director Fung Global Retail & Technology New York: 917.655.6790 Hong Kong: 852.6119.1779 China: 86.186.1420.3016 deborahweinswig@fung1937.com Kiril Popov Senior Analyst Esme Pau Analyst Matthew Lee Research Assistant Hong Kong: 8th Floor, LiFung Tower 888 Cheung Sha Wan Road, Kowloon Hong Kong Tel: 852 2300 4406 London: 242-246 Marylebone Road London, NW1 6JQ United Kingdom Tel: 44 (0)20 7616 8988 New York: 1359 Broadway, 9th Floor New York, NY 10018 Tel: 646 839 17 FungGlobalRetailTech.com 5