weekly store closures tracker #17: michael kors buys · iconic brand group acquires remaining 50%...
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
July28,2017
FungGlobalRetail&TechnologytracksstoreopeningsandclosuresforaselectgroupofUSretailers.
1) Weforecastthatannouncedstoreclosureswilltotal9,452bytheendof2017,exceedingthe6,164storesclosedin2008.The5,442storeclosuresannouncedyeartodatearetrackingat59%ofourfull-yearforecast.Theforecastfor2017alsorepresentsayear-over-yearincreaseof361%.
2) Thisweek,MichaelKorsannouncedtheacquisitionofJimmyChoofor$1.2billion.
3) IconicBrandGroupacquiredtheremaining50%stakeinIconicCanadafor$19million.
4) TJXisopeningfiveHomeSensestores,itsnewoff-pricehomefashionsconcept.
5) Year-to-date2017,thenumberofstoreclosureannouncementshasincreased162%yearoveryear,bringingthetotalnumberofstorestobeclosedto5,442,withmoretosurelyfollow.
Deborah Weinswig
Managing Director
FGRT
US: 917.655.6790
HK: 852.6119.1779
CN: 86.186.1420.3016
Weekly Store Openings and
Closures Tracker #17: Michael Kors Buys
Jimmy Choo
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
July28,2017
2017StoreOpeningsandClosures
WhatIsHappeningThisWeek?Nomajorstoreclosureannouncementsweremadethisweek,buttheretailindustryisbracingforanotherblockbusteracquisition.MichaelKorsannouncedtheacquisitionofJimmyChoofor$1.2billion,aresponsetoCoach’srecentacquisitionofKateSpade.Meanwhile,IconicBrandGroupacquiredtheremaining50%stakeitdidnotalreadyowninIconicCanada.Tocapofftheweek,TJXwillbeopeninganewoff-pricehomefashionsconcept,HomeSense,withfivestoresinthepipelineforthisyear.
MichaelKorsAcquiresJimmyChooMichaelKorshasagreedtoacquireJimmyChoo,aluxuryfootwearbrand,for$1.2billion.ThedealcameatatimewhenMichaelKorsisfacingadownturnofbusinesswithdecliningsalesandstoreclosures.WiththepurchaseofJimmyChoo,MichaelKorsplanstoexpandbeyonditsownbrandnameforthefirsttimeandestablishapresenceintheluxuryfootwearmarket.TheacquisitionisalsoseenasaresponsetoCoach’sacquisitionofKateSpade,withbothluxuryretailersstrivingtodiversifyandexpandinternationally.
IconicBrandGroupAcquiresRemaining50%StakeinIconicCanadaIconicBrandGroupacquiredtheremaining50%stakeinIconicCanadafromitsjoint-venturepartnerinadealworth$19million.TheacquisitionfitswellwithIconic’sinternationalexpansionstrategy,asthecompanyeyesfurtherpenetrationintotheCanadamarket.BrandslicensedwithIconicincludeLondonFog,EckoUnltdandDanskin,amongothers.
TJXOpensNewOff-PriceConceptStoreHomeSenseTJXisopeninganewoff-pricehomefashionsconceptintheUScalledHomeSense.Fivestoresarecurrentlyinthepipelinebeforetheendoftheyear,withthefirstHomeSensestoreopeninginFramingham,MassachusettsinAugust.TJXbelievesthehomefashionsmarkethasshownpositivityinarelativelybleakretailenvironment,andisdeterminedtofullycapitalizeonthemomentumbybringingthealready-popularbrandinEuropeandCanadatotheUSmarket.
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
July28,2017
Year-to-Date 2017 Major US Store Closure Announcements
Gymboreeannounceditwouldbeclosing350–450stores.RalphLauren’sstoreclosingnumberwaspartofthe50-storeclosureplanannouncedinJune2016.Paylesswillcloseanadditional296storesifnegotiationswithlandlordsareunsuccessful.Ascenawillclosebetween268and667storesbyJuly2019,dependingonnegotiationswithlandlords.Source:Companyreports/FGRT
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27
32
36
40
44
50
60
61
68
70
70
70
100
100
101
110
120
138
160
171
180
190
220
250
289
350
400
400
512
1000
0 200 400 600 800 1000 1200
RalphLauren
TrueReligion
GanderMountain
EasternOufigers
lululemonathlehca
LucyAchvewear
Chico’s
Guess
AlfredAngelo
MCSports
Aaron’s
CVS
Staples
Macy’s
MichaelKors
GordmansStoresInc.
AmericanApparel
BCBG
JCPenney
CrocsInc.
WetSeal
BebeStoresInc
GameStop
hhgregg
TheLimited
SearsandKmart
Gymboree
AscenaRetail
Rue21
PaylessInc
RadioShack
Total: 5,442 announced store closures
165% year over year
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
July28,2017
Year-to-Date 2017 Major US Store Opening Announcements
Aldiwillcompletea400-storeexpansionbytheendof2018.Walmart’stargetof59storesincludesnew,expandedandrelocatedstores.Targetisonlyopeningstoresinsmallformat.Macy’sBackstagewillbeopenedwithinexistingfull-lineMacy’sstores.Source:Companyreports/FGRT
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5
5
10
17
19
20
24
30
52
59
60
60
70
90
100
100
100
111
400
650
1,290
0 200 400 600 800 1,000 1,200 1,400
Fendi
Homesense
ThredUP
Forever21(RileyRose)
Nordstrom
Macy’sBackstage
Bonobos
Costco
Target
Dick’sSporhngGoods,Inc.
Walmart
HobbyLobby
H&M
Sephora
RossStores
Lidl
Ulta
FiveBelow
TJX
Aldi
DollarTree
DollarGeneral
Total: 3,275 announced store openings
53% year over year
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
July28,2017
2016StoreOpeningsandClosures
2016 Major US Store Closures
Source:Companyreports/FGRT
2016 Major US Store Openings
Source:Companyreports/FGRT
91818263434485051
6771
123154154
233243255
463
0 50 100 150 200 250 300 350 400 450 500
JCPenneyFinishLine
Kohl’sAmericanEagle
TheChildren’sPlaceChico’sFAS
StaplesRalphLauren
WolverineWorldWideWalgreens
GapOfficeDepot
WalmartAeropostale
Men’sWarehouse/JosA.BankSearsandKmartHancockFabricsSportsAuthority
10
15
19
19
45
53
72
79
93
104
146
584
900
0 100 200 300 400 500 600 700 800 900 1,000
Zara
Target
UnderArmour
Costco
Aldi
H&M
Sephora
Dick’sSporhngGoods
RossStores
Ulta
TJX
DollarTree
DollarGeneral
Total: 2,051 announced store closures
Total: 2,139 announced store openings
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
July28,2017
DeborahWeinswig,CPAManagingDirectorFGRTNewYork:917.655.6790HongKong:852.6119.1779China:86.186.1420.3016deborahweinswig@fung1937.comKirilPopovSeniorAnalyst
EsmePauAnalyst
MatthewLeeResearchAssistantHongKong:8thFloor,LiFungTower888CheungShaWanRoad,KowloonHongKongTel:85223004406London:242-246MaryleboneRoadLondon,NW16JQUnitedKingdomTel:44(0)2076168988NewYork:1359Broadway,18thFloorNewYork,NY10018Tel:6468397017FungGlobalRetailTech.com