*** Lidl Initial Store Opening List Now Available ***
Lidl announced that it will open its first nine stores on June 15. Earlier this month it disclosed that 20 will open this summer in Virginia, North Carolina and South Carolina, but yesterday provided the nine store locations. They include Kinston, Greenville, Rocky Mount, Sanford and Winston-Salem, NC; Spartanburg and Greenville, SC; and Virginia Beach and Hampton, VA.
AggData has compiled a geo-coded list of the first 20 store locations - click here to download.
Marsh Supermarkets, LLC, DIP / Giant Eagle
Marsh Supermarkets Holding, LLC, DIP received Court approval of a revised proposed order for bid procedures to address comments and objections from various parties including the Creditors Committee, with only a few modest changes to the bid deadlines. The amended bid deadlines require the Debtors to seek Court approval to pay any Stalking Horse break-up fee or expenses. The Debtors also filed a motion to reject the leases for eight properties, which will be heard on June 14. The Debtors have said that any potential sale needs to close before June 25, the day July rent comes due for most of the stores that are being marketed. The Debtors stated that they are not in a position to incur July rent for the leases. A representative for the Debtors stated that five parties have expressed interest in certain stores representing nearly all 44 locations.
Published reports speculate that the interested parties include Giant Eagle, which has 400 stores from Indiana to Maryland, and opened its first store in Indiana about a year ago, in Carmel, under the Market District banner. According to a Giant Eagle representative, “While we also continuously evaluate opportunities for potential growth throughout all of our marketing areas, at this time there are no confirmed plans to expand our supermarket presence throughout Muncie or greater Indiana.” Giant Eagle has not confirmed such plans though they would be near the top of the list for parties interested in locations. However, Giant Eagle has been under speculation about being acquired earlier this year, with Kroger being mentioned. Kroger could also have an eye on certain Marsh locations, but with nearly 80 stores and already serving as the dominant grocer in the greater Indianapolis operating area, it would likely be piecemeal interest. Meijer and/or its affiliated Fresh Thyme Farmers Market entity could also have interest.
Meanwhile, Marsh has closed its pharmacies after agreeing to sell its prescription records and drug inventory to CVS Health for $38.0 million. As of April, it had pharmacies in 37 of its 64 stores.
Click above links for each company's full store list.
Camping World Holdings / Gander Mountain, DIP
On May 26, Camping World Holdings closed on its previously announced acquisition of certain assets of Gander Mountain, DIP and its Overton’s, Inc. boating business. The Company plans to acquire 70 or more stores, and it has until October 6 to decide which leases it will take. A list of the locations is expected to be released within the next week or two, according to Chairman Marcus Lemonis. Camping World’s $37.7 million bid was for a minimum of 17 Gander Mountain stores, two Overton’s retail units, as well as the Gander and Overton’s e-commerce platforms. The Gander Mountain locations are large, ranging in size from 60,000 square feet to 120,000 square feet; in comparison, the average store size for a Camping World store is 37,500 square feet. The Company filed a secondary offering to fund the acquisition of the Gander assets, and for corporate purposes; proceeds are expected to range between $106.0 million and $122.0 million. As of the end of the first quarter (March 31), Camping World had $332.2 million in working capital and $174.7 million in cash and cash equivalents.
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Albertsons / Sprouts Farmers Market
A published report claims that Albertsons has abandoned its attempt to purchase Sprouts Farmers Market. In March, when reports surfaced of Albertsons’ interest in Sprouts, Sprouts’ stock was trading around $19 per share, but it has since grown 26% to $24, raising the cost and diminishing the attractiveness and likelihood of the deal. The story noted that Target had approached Sprouts but also backed out. We would think Albertsons is still lurking for another major deal that could re-spark their IPO ambitions.
Click above links for each company's full store list.
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. Our 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.
Best Buy
Best Buy’s first quarter sales increased 1% to $8.53 billion, and comps were up 1.6%. Domestic revenue increased 1.1% to $7.91 billion, driven by comp growth of 1.4%, partially offset by the loss of revenue from 12 large format and 40 Best Buy Mobile store closures. During the conference call, management indicated that online revenue reached $1.00 billion for the first time in a non-holiday quarter. The Company also noted an improvement in sales of appliances and home theater products following the hhgregg liquidation during the quarter. There is about a 20% overlap of hhgregg’s stores with the Company’s units, mostly in the Midwest and Southeast. The Company also reached its goal of cutting $400.0 million in costs three quarters ahead of schedule, and announced a new target of $600.0 million in expense reductions to be completed by the end of fiscal 2021.
Click links above for each banner's full store list.
SpartanNash
SpartanNash reported first quarter sales growth of 5.4% to $2.40 billion. Sales for its distribution segment increased 17% to $1.16 billion, driven by the Caito acquisition and organic sales growth of 4.2%, which offset the negative impact of food deflation. Military segment sales fell 4.6% to $643.3 million, due to lower sales at the Defense Commissary Agency (DeCA) operated commissaries and the shift of New Year’s Day into the first quarter. Retail segment sales fell 2.7% to $596.2 million, primarily attributable a 2.2% comp decline that resulted from a 40 basis point negative impact from the New Year’s Day shift, competitive new store openings, the impact of ongoing deflation and unseasonable warm weather in the northern geographies. After restructuring and asset impairment charges of $1.0 million, versus $15.3 million a year earlier, net income increased to $15.0 million, from $9.9 million last year.
During the quarter, the Company sold one store and closed three others in connection with lease expirations and store rationalization plans, ending the quarter with 153 corporate-owned retail stores, 78 pharmacies and 30 fuel centers.
Looking ahead, SpartanNash expects retail segment comps in the slightly negative to flat range in 2017. For its military business, it expects to begin shipping DeCA private-brand products in the second quarter; although the Company will see limited financial contributions due to the start-up costs associated with the rollout.
Click here for SpartanNash's full store list.
RadioShack
General Wireless Operations announced it closed most of its over 1,000 Radioshack locations over Memorial Day weekend. Currently, only 70 Company-owned stores and 425 independent franchised units remain in operation. General Wireless, which acquired RadioShack out of bankruptcy in 2015, continues to operate the RadioShack.com website.
Click here for RadioShack's full store list.
ALDI
Fifteen ALDI grocery stores in the Battle Creek, Kalamazoo and Grand Rapids markets will be renovated as a part of the Company’s previously announced $1.60 billion investment to remodel and expand more than 1,300 U.S. stores by 2020. Among the changes being made are moving in-store pickup areas to the front of the store, testing online grocery ordering with in-store pickup in three southeast Michigan markets, creating a relaxing lounge-like area for shoppers picking up online orders and increasing the number of fresh and organic items as well as expanding the produce, deli, bakery and baby departments.
Separately, Aldi unveiled plans to build a new store in Palatine, IL. The Company already operates a smaller nearby store, which would close once the new store opens. In February, Aldi announced it would spend more than $3.00 billion to pay for land, facilities and equipment for 650 new stores in the U.S. by the end of 2018, which would bring the number of its U.S. stores to about 2,000.
Click here for ALDI's full store list.
Floor & Decor Holdings
Floor & Décor Holdings reported first quarter sales jumped 30.6% to $307.3 million, and comps were up 12.8%. Profit rose 56.7% to $11.1 million. During the quarter the Company opened three new stores and relocated one existing store, ending with 72 locations in operation, a unit increase of 20% over the prior year. The Company priced its IPO on April 26, 2017 at $21 per share, selling 10.1 million shares of common stock resulting in net proceeds of $192.0 million. The proceeds were used to repay a portion of its $350.0 million senior secured term loan facility maturing September 30, 2023. On March 31, 2017, Floor & Décor amended its credit agreement governing the term loan facility to lower the interest rate by 75 basis points beginning the first day of the second quarter (March 31). This also includes another interest rate reduction of 50 basis points upon completion of the IPO. The Company expects this to occur during the fourth quarter (October 1).
Click here for Floor & Decor's full store list.
Grocery Outlet
Grocery Outlet has plans to open additional new stores in the highly competitive southern California market, including locations in Tustin, Irvine and San Gabriel, as well as up to four more undisclosed locations. The Company, which already has 20 stores scattered throughout the region, plans to open a total of eight new stores this year and at least 10 more next year. Grocery Outlet currently operates more than 270 stores in California, Nevada, Idaho, Oregon, Washington and Pennsylvania.
Click here for Grocery Outlet's full location list.
Trader Joe's
Published reports indicate that Trader Joe’s is planning to open a 14,500 square-foot store in North Brunswick, NJ later this year. The Company has 12 locations throughout New Jersey, and this would be the first Middlesex County store.
Click here for Trader Joe's full location list.
Publix
After years in the making, Publix has finally opened its new 45,600 square-foot store in Atlanta, GA, at the Moores Mill Shopping Center. As seen in the map below, there are four competing food retail stores within three miles of the new store, including two other Publix stores and two Kroger stores.
Click here for Publix's full location list.
Sherwin-Williams / The Valspar Corporation
Sherwin-Williams received regulatory approval from the FTC and Canadian Competition Bureau to complete its acquisition of The Valspar Corporation. The Company now expects to close the acquisition tomorrow (June 1).
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Save Mart
On May 24, Save Mart opened a new store in Los Banos, CA. It is the Company’s seventh supermarket to incorporate the brand’s updated look and new features aimed at increasing convenience and service. The 52,000 square-foot store replaces a smaller one across that street that closed May 21. Save Mart operates 207 traditional and price-impact stores under the Save Mart, Lucky, FoodMaxx, S-Mart Foods and MaxxValue Foods banners in California and northern Nevada.
Click here for Save Mart's full store list.
Christopher & Banks
Christopher & Banks reported first quarter sales decreased 11.5% to $88.6 million, driven by 32 net store closures and comps declining 8.9% (on top of a 6.2% growth last year). Although comps declined in the first quarter, e-commerce sales increased 14.7%, however, they remain a small portion of total sales. On the e-commerce front, management expects to offer fulfillment options later this year such as “ship to” and “pick up in store.” Overall weaker sales deleveraged SG&A margin 50 basis points, and as a result, EBITDA swung into the negative territory and EBITDA margin eroded 470 basis points. Additionally, the Company currently operates at a negative TTM EBITDA. During the quarter free cash burn slightly improved to ($6.7 million), compared to ($8.7 million) for the same period last year as a result of lower capital spend. Going forward, management noted that 38% of all sales are done on its private company card offerings and the Company is committed to expanding that business. Additionally, management is currently in discussions with landlords to negotiate rent costs. The Company expects to close four MPW (Misses, Petite and Womens) and one Christopher & Banks (CB) store this year, and convert 16 CB and CJ Banks stores into eight MPW stores.
Click here for Christopher & Banks' full store list.
Yum! Brands
Last week, Yum! Brands’ Taco Bell division unveiled a new, ambitious five-year growth plan that includes adding 2,500 stores worldwide, which will bring its store base to 9,000 locations by 2022. It plans to grow annual sales from its current $10.00 billion to $15.00 billion. Restaurants will be added domestically, along with four key international markets that include Brazil, Canada, China and India, targeting 100 restaurants in each market. Between 2012 and 2016, Taco Bell opened more than 600 new restaurants, excluding license units, domestically, and plans to improve its growth rate in 2017.
Click here for Taco Bell's full store list.
CVS Health
CVS Health opened its first standalone store in Colorado, located in Parker. It is the first of three locations (the others are in Denver and Littleton) set to open in the Greater Denver market this summer. Additional locations are slated to open in Colorado Springs in 2018. CVS announced the launch of 39 pharmacies within Target Stores throughout the state last year.
Click here for CVS' full store list.
Shoe Carnival
Shoe Carnival’s first quarter sales decreased 2.7% to $253.4 million, and comps were down 3.9%. Profit fell 22.8% to $8.2 million. CEO Cliff Sifford commented, “While February was a very challenging month due to the delay in the tax refunds, we are encouraged by the improvement in our sales as we progressed through the quarter. Comps for March and April combined, which includes the shift in the Easter selling season, were up in the low single digits. Our focus on inventory management resulted in higher merchandise margins and a per-store reduction in inventory for the quarter.” The Company expects to open 19 stores and close approximately 18 – 20 stores during fiscal 2017, of which seven new stores were opened during the first quarter, and five underperforming stores were closed.
Click here for Shoe Carnival's full store list.
Walgreens
Walgreens is closing a store in Tallahassee’s south side near Florida A&M University’s campus on June 27. It is the second Tallahassee site the Company has closed this year.
Click here for Walgreens' full store list.
Signet Jewelers
Signet Jewelers reported first quarter sales decreased 11.1% to $1.40 billion, and comps were down 11.5%. The decrease was driven primarily by declining mall store traffic coupled with a highly promotional environment, which was further aggravated by independent jewelers liquidating at deeper discounts. The Company also noted that first quarter sales were negatively impacted by Mother’s Day timing and a delay in tax refunds. Sterling Jewelers’ comps decreased 12.8%, Zale Jewelry’s comps fell 12.7%, Piercing Pagoda’s comps slipped 1.3% and U.K. comps were down 3.5%. As a result, profit fell 46.5% to $78.5 million. Ultimately, EBITDA margin fell 4.5% due to the sales deleveraging of fixed costs. Signet remains on track to close 165 – 170 stores this year, and open about 90 – 115 stores, for a net selling square footage change of flat to a 1% decline; store openings will be primarily Kay off-mall stores. The Company also announced a strategic outsourcing of its credit portfolio, with initial plans to sell $1.00 billion of its prime credit quality accounts receivable to Alliance Data Systems. Signet will use the sales proceeds to repay the $600.0 million securitization facility, and the remainder of the proceeds will be used for share repurchases.
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Walmart
Walmart announced plans to invest $450.0 million in its Florida stores in 2017 and 2018. As part of the investment, the Company will expand its more than 375-facility footprint in Florida and build on the continued positive momentum in U.S. sales, customer traffic and customer feedback. From February 1, 2017 through January 31, 2018, Walmart intends to open nine new stores and remodel more than 40 locations statewide and, in the coming months, will announce the official grand opening of its 150-acre e-commerce distribution center campus in Davenport, which is now fully operational. In addition, the Company confirmed its plans to break ground later this year on a new distribution center for perishable goods in the City of Cocoa, with an investment of more than $145.0 million in the 640,000 square foot facility. Last year, Walmart invested millions in more than 30 store remodels across Florida and opened a supercenter in Lake Nona.
Click here for Walmart's full store list.
William-Sonoma
Williams-Sonoma’s first quarter sales inched up 1.2% to $1.11 billion, and comps were up 0.1%. By banner, comps decreased 1.4% at Pottery Barn, fell 5.7% at Pottery Barn Kids, and dropped 14.3% at PBteen, while comps increased 3.2% at Williams Sonoma and rose 6% at West Elm. Profit was essentially flat at $39.6 million. CEO Laura Alber commented, “In the first quarter, we saw strong sequential improvement in the Pottery Barn brand, demonstrating the effectiveness of the brand initiatives that we are implementing. West Elm, our newer businesses (Rejuvenation and Mark and Graham), and our Company-owned global operations delivered another quarter of double-digit growth, and Williams Sonoma started the year off strongly. We also continued to realize positive results from our supply chain initiatives, as we drive continuous improvements across the organization to deliver increased efficiencies and a superior customer experience.” The Company plans to open 24 new stores this year (four Williams-Sonoma, eight Pottery Barn, 10 West Elm and two Rejuvenation), and close 20 underperforming locations (seven Williams-Sonoma, six Pottery Barn, three West Elm and four Pottery Barn Kids).
Click here for Williams-Sonoma's full location list.
Dollar Tree
Dollar Tree’s first quarter sales increased 4% to $5.29 billion. Comps rose 2.5% at its Dollar Tree segment. Comps for the Family Dollar segment and for the entire Company increased 1.2% and 0.5%, respectively. Net income, including a $50.9 million receivable impairment charge related to the collectability of its divestiture-related receivable from Dollar Express, fell 13.8% to $200.5 million.
During the quarter, the Company opened 164 stores, expanded or relocated 51 stores, and closed 16 stores.
Looking ahead at fiscal 2017, the Company now expects consolidated sales of $21.95 billion – $22.25 billion, compared to previous guidance of $21.94 billion – $22.33 billion; comp growth in the low single-digits; 3.9% square footage growth; and EPS of $4.17 – $4.43, compared to $3.80 in fiscal 2016.
Click here for Dollar Tree's full store list.
Ulta Beauty
Ulta Beauty’s first quarter sales increased 22.5% to $1.31 billion, and comps were up 14.3%. The comp increase was driven by 8.7% transaction growth and 5.6% growth in average ticket. Retail comps increased 10.9%, and salon comps were up 9.9%. Profit rose 39.4% to $128.2 million. Average inventory per store increased 11.2%, driven by 104 net new stores, the scaling-up of the Greenwood, IN and the opening of the Dallas, TX distribution centers, and other investments in inventory and brands. CEO Mary Dillon said, “Strong execution of our growth strategies delivered above plan sales and earnings growth. Our results reflect continued newness and innovation in merchandising, successful marketing programs, steady progress in our salon business and exceptional growth in e-commerce.” During the first quarter of fiscal 2017, the Company opened 18 stores and closed two underperforming stores, ending with 990 stores in operation, a 12% increase from the prior year.
Click here for Ulta Beauty's full store list.
Costco
Costco’s third quarter sales rose 7.8% to $28.86 billion. Comps, excluding gasoline and the effect of foreign currency exchange, rose 5%; consisting of 5% growth in the U.S., 3% in Canada, and 6% in “Other International.” Net income increased 28.4% to $700.0 million, positively impacted by an $82.0 million tax benefit in connection with the $7.00 per-share special cash dividend announced on April 26.
Costco opened a net 27 new warehouses over the past year, bringing its total count to 732. It has added 12 fulfillment centers for online orders over the last year (total of 19). While online is still a small percentage of Costco’s overall sales (it’s on track to make up just 3.5%, or about $4.00 billion, this fiscal year), CFO Richard Galanti said the Company has been working on growing that business. Costco currently offers between 8,000 and 10,000 items online. Instacart now offers delivery from 240 Costco warehouses, up from 132 last year. The Company reported 11% e-commerce sales growth year over year.
Click here for Costco's full location list.
Future Retail Store Closings
AggData monitors upcoming retail store closings throughout the day and maintains an active database of store locations and anticipated closing dates. Here is a sample of recently announced store closings.
Please contact AggData to request a full future store closing list.
2017 Mergers & Acquisitions Report
After three consecutive years of increases, 2016 global merger and acquisition (M&A) activity fell to $3.840 trillion, from the 2015 record high of $4.660 trillion. Analysts are predicting 2017 will keep pace, as companies and investors remain receptive to building scale. The Merger & Acquisition Activity report includes a list of all significant M&A activity including notable asset sales within the retail / wholesale food, convenience store, foodservice, retail / wholesale drug, casual dining / restaurant, mass merchandise, electronics / office products, home improvement / building materials, sporting goods, department stores / apparel / footwear / jewelry, and e-commerce sectors. Click here for more information.
