Openings, Closings, & Other Key Industry Highlights

Retail News

Powered by

Premier Source For Location Data

www.aggdata.com

Aldi

Published reports citing company sources indicate that Aldi North (includes stores in Belgium, the Netherlands, Luxembourg, France, Poland, Spain, Denmark and Portugal, and Trader Joe’s in the U.S.) is planning to spend more than €5.00 billion (US$5.71 billion) to revamp its stores around the world, which would be its biggest investment project ever. Aldi North plans to finance its multi-billion-euro investment from existing cash rather than by taking on debt. Aldi North’s sister chain Aldi South (includes Aldi U.S. stores, and stores in Austria and Slovenia, Great Britain, Ireland, Australia and Switzerland) announced plans last month to invest $3.40 billion to expand its U.S. store base to 2,500 by 2022.

K-VA-T

K-VA-T is planning a multi-million-dollar upgrade of its Food City store in East Brainerd, TN, which will be closed for up to four months during the renovation. As part of the upgrade, Food City is adding a six-pump Gas ‘N Go gas station to the existing 49,000 square-foot store. The store is being completely rebuilt from floor to ceiling and will feature a new bakery and deli with a sit-down cafe and expanded prepared food sections. The upgrade is the 13th by Food City in Chattanooga since the Company bought the former BI-LO stores in Chattanooga in 2015. Food City also is building a new 54,000 square-foot store in Athens, TN.

Nordstrom

Nordstrom plans to close its full-line store in Dulles, VA on September 8, 2017, when the lease expires. The store has operated since September 2002. Management commented that it believes customers are better served by other stores in the Washington D.C. area, and online. The other full-line stores in the area are located in McLean, VA, Arlington, VA, Bethesda, MD, Annapolis, MD and Columbia, MD, and the Company also operates 12 Nordstrom Rack stores in the area. Meanwhile, the Company plans to open three full-line stores and 12 Nordstrom Rack stores system-wide this fall, including a Rack store in Glenarden, MD.

As previously announced last month, Nordstrom is currently exploring the possibility of going private, and has established a special committee to look into the matter.

Hy-Vee

Hy-Vee has been experimenting with a new type of store in metro Des Moines, IA that is aimed at the health-conscious consumer. The newest concept is a 17,000 square-foot health market it plans to build in Urbandale, IA. The store will include a health food store, pharmacy, health clinic and fitness studio, along with traditional groceries. The health clinic will be operated by Hy-Vee (it has about 58 clinics in other Hy-Vee stores), and the fitness studio will be the second for the Company. The Urbandale project may also include a convenience store, grocery market, quick-serve restaurant and fueling stations.

Hy-Vee also is working on plans for a small store in West Des Moines that will include a drive-thru coffee shop on one end and a pickup lane for online grocery orders on the other.

Camping World

On June 30, Camping World said it will reopen 57 of the former Gander Mountain stores, fewer than it originally contemplated. Mr. Lemonis said, "Our original goal was to initially open 70 or more stores, and while our initial list is now less than 70, we are not willing to open stores which we do not believe have a clear path to profitability." The Company conditioned the openings on its ability to “work out details with landlords and finalize acceptable leases.” Management said that the stores are expected to reopen under the new Gander Outdoors and Overton's brand, and they will stock a fresh offering of Gander Outdoors, Overton's, and Camping World products and services. The map below shows the locations of the 57 stores.

With roughly 4,000 major retail chain store closings last year and up to another 10,000 expected in 2017, brick-and-mortar retailers are scrambling to remain relevant. Out 20-page Store Activity and Retailer Health Analysis report includes a list of retailers adding and closing stores in 2017 and provides insight into companies expanding into new markets. Click here for more information.

Brookshire Grocery Company

Brookshire Grocery Company plans to open a Super 1 Foods supermarket in Athol, ID. The 57,000 square-foot store will anchor a new commercial development called The Crossings. The store will be the first Super 1 Foods to have an Ace Hardware inside the supermarket and will also offer a full deli, a bakery, and a natural-foods section.

Stew Leonards

Stew Leonard’s is reportedly working with GGP, a developer of a mall planned for Norwalk, CT, to potentially put one of its supermarkets there. It would be Stew Leonard’s seventh store in the tristate area. GGP and Stew Leonard’s are not disclosing a potential site, but a Stew Leonard’s spokesperson confirmed Thursday the Company’s interest in working with GGP. On Long Island, Stew Leonard’s currently operates a store in Farmingdale and will open its second there in East Meadow in August.

Cabela's/Bass Pro Shops

Earlier today, the Federal Trade Commission provided notification that it will not block the merger between Bass Pro Shops and Cabela’s, nor will it require store divestitures. Completion of the transaction remains subject to closing conditions, including: (i) the approval of the Company’s stockholders at a meeting to be held on July 11, (ii) the closing of the purchase and sale of substantially all of the business of World’s Foremost Bank (Cabela’s credit card unit), and (iii) other customary closing conditions. Cabela’s continued operational deterioration will need to be addressed. This deterioration likely triggered the recent modification of terms of the original merger agreement to lower the purchase price. Under the amended agreement, Bass Pro will acquire Cabela’s for $61.50 per share in cash, representing a total transaction value of $5.00 billion. This is down from $65.50 per share in cash, for a total original price of $5.50 billion.

West Marine

On June 29, West Marine, Inc. and Monomoy Capital Partners announced that they entered into an agreement in which Monomoy will acquire the Company in a transaction that values it at about $338.0 million, representing a 9x EBITDA multiple. Under the terms of the agreement, West Marine’s stockholders will receive $12.97 per share in cash for each share of common stock they own, which reflects a premium of 32% to the 30-day weighted average stock price for West Marine’s shares. Randy Repass, the Company’s founder and a board member, has entered into a voting agreement whereby he and his affiliated entities have agreed to vote on shares representing 20% of the Company's voting power in favor of the transaction. West Marine’s board has unanimously approved the agreement and recommends that all of the Company’s stockholders vote in favor of the transaction. The transaction is expected to close in the third quarter of this year, subject to West Marine's stockholder approval and other customary closing conditions. The Company has improved its operations over the last few years by cutting costs, closing and combining underperforming stores, and realigning its product mix to more profitable items. The balance sheet is clean and cash flow has been positive. The stock price is not excessively low, but is trading below both its five-year and one-year highs, and it has been stable. These factors made the Company an accommodating LBO target. The announcement makes no mention of financing for the transaction.

Alimentation Couche-Tard

On June 28, Alimentation Couche-Tard completed its previously announced $4.40 billion acquisition of CST Brands, Inc. To gain FTC approval and complete the deal, the Company agreed to sell 70 Circle-K corner store gas stations in the U.S. to Empire Petroleum Partners for an undisclosed amount (the deal is expected to be completed by September 2017); the Company also obtained clearance from the Competition Bureau in Canada a day earlier. Following these transactions, Couche-Tard will operate over 1,300 new sites in the U.S. and Canada, bringing its total network to nearly 14,000 sites worldwide.

In the wake of the deal, some members of CST Brands’ senior leadership team are leaving the Company, including Kim Lubel, CST’s chairman, president and CEO, and Hal Adams, president, retail operations.

Central Grocers

The June 28 auction related to the sale of Central Grocers, Inc., DIP’s distribution center and Strack and Van Til Super Market stores was adjourned to tomorrow (July 6). An auction for the debtors’ remaining real estate, including 11 retail stores, was adjourned without date.

As previously reported, Albertsons’ Jewel Food chain was the “stalking horse” bidder for 19 Strack & Van Til locations and inventory, with an offer of $100.0 million. The Debtor previously indicated it was evaluating proposals to acquire its one million square foot distribution center in Joliet, IL, and six additional real estate assets.

CVS Health

As part of its new store design announced earlier this year that will focus on healthier food, CVS Health is moving most of its candy away from the storefront, banning the sale of low-protection sunscreens and eliminating foods that contain artificial trans-fat. The new changes are part of the Company’s efforts to stand apart from its rivals and emphasize the “Health” aspect of its name. CVS, which ended tobacco sales three years ago, also stopped selling sunscreens and tanning oils with SPF under 15. Meanwhile, Walgreens Boots Alliance says consumers should have the freedom to make any purchase choice even if it includes items that may be considered unhealthy. Walgreens continues to keep its candy near the front of the store and sells tobacco.

In other news, CVS Pharmacy plans to remodel a vacated building in Bankers Hill in the San Diego, CA area and reopen it in 2018 as one of its stores. The Company has nearby locations in Hillcrest, North Park and downtown San Diego.

Southeastern Grocers

Last week, Southeastern Grocers reopened a Winn-Dixie store in New Orleans, LA, more than four months after a tornado damaged it. The store features improvements including more modern store design and signage, an updated fresh produce department and expanded prepared foods.

Sports Direct/MC Sports

Sports Direct International PLC entered into an agreement to purchase the intellectual property of bankrupt MC Sports. The assets to be acquired include: (i) customer files, email addresses, phone numbers and physical mailing addresses; (ii) an email database of individuals who have shopped at MC Sports in the past 36 months; and (iii) trademarks, tradenames, and domain names associated with MC Sports. The price is $76,000, and completion of the transaction is subject to Bankruptcy Court approval. It should be noted that MC Sports’ name recognition is geographically limited to an area in seven Midwestern states that previously comprised its operating territory. Sports Direct has been aggressive about entering the U.S. sporting goods market. It reportedly made an unsuccessful attempt to enter the market in mid-2016 when it and Modell’s Sporting Goods pursued the acquisition of up to 200 stores from Sports Authority, DIP at its bankruptcy auction. More recently it purchased the assets of Bob’s Stores and Eastern Mountain Sports (EMS), as part of the bankruptcy auction of Eastern Outfitters, LLC. It appears that the MC Sports transaction and the Bob’s EMS acquisitions have a common thread — acquiring the assets of troubled companies at low prices. However, the history of Bob’s and EMS shows this has been a risky strategy. Additionally, last week we reported that Sports Direct has been acquiring shares of The Finish Line, Inc., and it is now Finish Line’s largest shareholder. The timing is interesting, considering that Finish Line’s stock is trading near a five-year low.

Sprouts Farmers Market

Sprouts Farmers Market plans to open a 30,000 square-foot store in south Reno, NV store on September 13. Another store in nearby Sparks is currently under construction.

Sports Basement

Sports Basement, a San Francisco, CA sporting goods retailer, opened a new store in Santa Rosa on June 27, its eighth location. The store was previously home to a Sports Authority location that closed last year. This is Sports Basement’s first North Bay location. The Company says its stores offer discounts as much as 30% off the manufacturers’ suggested retail price, and the Company has a rental business for snow sports, camping, and bicycles. There are nine sporting goods retail stores within five miles of the new store, including Dick’s Sporting Goods, Big 5, Champs, Golf Mart, REI, Sportsman’s Warehouse, West Marine, Worldwide Golf Shops and Performance Bicycle.

Sendik's Food Markets

Sendik's Food Markets plans to open a small-format store near Marquette University in downtown Milwaukee, WI. The 4,800 square-foot store will include Sendik’s Express, the Company’s online ordering and curbside pickup service. It is expected to open during the 2017 – 2018 academic year.

Staples

On June 28, Staples and Sycamore Partners entered into a merger agreement in which Sycamore will acquire the Company in a leveraged buyout transaction that values Staples at about $6.90 billion. Under the terms of the agreement, Staples’ stockholders will receive $10.25 per share in cash, which represents a premium of 20% to the 10-day weighted average stock price for Staples’ shares for the period ended April 3, the last trading day prior to speculation about a potential transaction. Staples’ board has unanimously approved the merger agreement and recommends that all Staples stockholders vote in favor of the transaction. The deal is subject to customary closing conditions, including the receipt of regulatory and stockholder approval, and is expected to close no later than December. The closing is not subject to a financing condition. UBS Investment Bank, BofA Merrill Lynch, Deutsche Bank, Credit Suisse, Royal Bank of Canada, Jefferies, Wells Fargo Bank, National Association and Fifth Third Bank are providing debt financing for the transaction. Concerns associated with the transaction stem from the Company’s ongoing operational problems. Generally, using debt to finance the purchase of a relatively stable company presents risks. However, the risk of debt financing is attenuated in the case of Staples. This is because the retail unit has virtually no upside potential, while operations could deteriorate even further unless cost-cutting and store closings outpace the erosion in demand.

Following the merger announcement, Sycamore Partners announced plans to divide Staples into three separately financed units: U.S. retail, Canadian retail, and corporate supply. The three businesses would remain under the same corporate umbrella. Creditntell notes that there is no mention of the planned corporate structure of such a separation, as divisions or subsidiaries. The stated intent is to compartmentalize the risks of each unit to facilitate raising funds from investors — ostensibly, to make the financing of the commercial unit more palatable to investors who might be concerned about risks related to the retail units. Separating the three units may also have future impacts, perhaps to facilitate selling one or more of the units apart from the others, again in light of the relative attributes of each unit. The plan may also seek to provide insulation from the other units if a restructuring of one or more of the units is ever necessary. But this would depend on the ultimate corporate structure, as well as other factors.

London Drugs

Last week, London Drugs opened the first LDEXPRESS in Calgary, Alberta; a 4,000 square-foot “grab-and-go" store, including a full-service pharmacy, and full-service ship-to-store pick up for everything available through the Company’s ecommerce site. In addition to the pharmacy, the smaller footprint showcases cosmetics and dermatology products, small housewares and office supplies, high-tech accessories, a photo kiosk and food to-go from Spolumbo’s foods and deli.

Amazon

Amazon will hold its annual Prime Day on July 11. The event offers new deals and promotions as often as every five minutes as a way of drumming up business during a traditionally slow e-commerce period. Amazon says it will offer “hundreds of thousands of deals” on July 11, with about 40% of this year's “Lightning Deals” will come from small businesses and entrepreneurs.

Amazon has completed its acquisition of Dubai-based Souq.com, the Middle East’s biggest online retailer. According to an SEC filing from March, Amazon paid $580.0 million for the Company.

In other news, Amazon plans to open an 850,000 square-foot facility staffed with robots and more than 1,000 workers in South Florida. The “mega-warehouse,” which will be located in Opa-locka (a city in Miami-Dade County), is expected to open next year and would be its largest facility south of Tampa.

Elsewhere, the Company is opening a fulfillment center in Salt Lake City, its first facility in Utah. The 800,000 square-foot facility is expected to cost about $200.0 million.

Costco

Costco purchased about 16 acres of land to build its second Jacksonville, FL location. Plans call for a 154,500 square-foot warehouse and gas station. The Company is expected to spend $11.7 million on the project.

Williams-Sonoma

Williams-Sonoma opened the largest version yet of its dual-concept format in Seattle. The 7,000 square-foot store features kitchen and food products, including an assortment of food from local businesses, as well as the Williams Sonoma home furnishings line. The store also offers complimentary in-home interior design services, a cookbook club and monthly cooking classes for adults and children.

Times Supermarkets

Hawaii’s Times Supermarkets chain will be sold by its parent, Quinn Stores Inc., to an affiliate of the Japanese retailer Don Quijote Group. The deal includes all of QSI’s 24 Hawaii-based supermarkets, which do business under the Times Supermarket (17), Big Save Markets (5), Shiuma’s Supermarkets (1) and Fujioka’s Wine Times (1), on the islands of Oahu, Kuia and Maui. Financial terms were not disclosed. Quinn’s Stockton, CA-based company, PAQ, which operates discount stores including Food 4 Less and Save-A-Lot on the West Coast, was not included in the deal. Don Quijote Group operates 354 discount retail and convenience stores internationally. The acquisition is expected to close on August 31.

ABC Supply

ABC Supply announced on Friday that it has acquired Capstone Supply, a distributor of select exterior building materials. Financial terms of the deal were not disclosed. Capstone’s Columbus, OH location with be consolidated with ABC’s Columbus branch, while its Cincinnati, OH location will become an offsite warehouse for ABC’s branch in Cincinnati.

L.L. Bean

L.L. Bean opened its first Wisconsin store in Brookfield on June 19, a 15,000 square-foot location. The Company already has a large following in the Milwaukee area through its website and catalog business. The Company is primarily a direct retailer, with its online and catalog business accounting for 80% of annual sales; however, in recent years it has been adding physical stores and expanding beyond its Northeastern base. There are now 38 full-line L.L. Bean stores in 18 states, along with 10 outlets. The Company is opening about five new stores per year, with stores opening in North Bethesda, MD (first in Maryland); Mashpee, MA (fifth in Massachusetts); Park City, UT (first in Utah); and Charlottesville, VA (fourth in Virginia) later this year. Stores sell about 75% clothing and footwear and 25% equipment, which is roughly the reverse of the typical REI store.

Pier 1 Imports

Pier 1 Imports reported first quarter sales decreased 2.1% to $409.5 million, primarily due to flat comps and the average number of stores operating during the quarter down 1%. E-commerce sales grew 23% to $99.3 million; they represented 24% of sales, compared to 19% in the prior-year period. The Company recorded a net loss of $3.0 million, narrowed 50.4% from the prior year. During the quarter, the Company closed three underperforming stores and opened one new location, ending with 1,016 stores. The Company continues to expect to close about 20 – 25 net stores during the fiscal year. CEO Alasdair James stated, “Whilst we’ve shown operational improvement for several consecutive quarters, there is still much to be done to build the business to its full potential, significantly strengthen our profitability and increase shareholder value.” Subsequent to quarter end, the Company amended its $350.0 million revolving credit agreement, extending the maturity from June 18, 2018 to June 2, 2022. As of June 2, there were no borrowings under the facility and $42.2 million in outstanding letters of credit.

The RoomPlace

The RoomPlace, a home furnishings retailer based in the Midwest, opened a new showroom and warehouse distribution center in Indianapolis, IN, the Company’s 25th location across Illinois and Indiana. At 70,000 square feet, with a 16,000 square-foot clearance center, the unit is among the Company’s largest.

Click here to view future retail store closings.