August 11, 2021
On August 5, Amazon Fresh opened a new, 35,000 square-foot store in Warrington, PA, its first Amazon Fresh store in Pennsylvania, and the 16th in the country. Click here to request a list of Amazon Fresh future store openings.
In other news, Amazon is expanding its same-day delivery service to half a dozen more U.S. cities including Baltimore, Chicago, Detroit, Tampa, Charlotte, and Houston, bringing the total markets served to 12. The markets previously served are Philadelphia, Phoenix, Orlando, Dallas, Nashville, and Washington, D.C. The service continues to be free, with no additional charges on orders over $35 that qualify for same-day delivery. The service is being powered by Amazon's mini-fulfillment centers, which are designed to be closer to where customers live in select U.S. markets.
Party City’s 2Q21 sales (ended June 30) more than doubled to $535.7 million, with comps up 118.3% over last year and up 19.1% over 2Q19. Party City is projecting 3Q21 comps of high single digits compared to 3Q20 and mid-teens compared to 3Q19. The Company opened or remodeled 16 NXTGEN stores during 2Q21 and plans for 41 more in 2H21, which would bring the total to 98 by year end. The capital spend for the remodeled stores is currently about $250,000, but only $150,000 after tenant improvement allowances; remodeled stores are averaging a mid-single digit sales increase compared to control stores. After scaling back substantially to just 25 Halloween City pop-up stores last year amid COVID concerns, Party City is stepping up its Halloween offering this year with expectations of 80 – 100 Halloween City locations; this is still significantly shy of the 250 operated in 2019.
According to previous management comments, the Company paid $40 million in deferred rents in 1H21, of which $15 million was paid during 2Q; another $70 million remains that will mostly be met during 2H21. Click here to request a list of future store openings.
Little Caesars Pizza is looking to grow its presence in the Denver, CO area with the addition of at least 15 units by the end of 2024. The Company is attempting to accelerate the brand's growth by focusing on multi-unit agreements in its search for partners to lead the expansion. Little Caesars currently has more than 30 existing locations in the Denver area. Click here to request a list of future store openings.
Shipt and Rite Aid announced a partnership to bring same-day delivery of health and wellness products to Rite Aid's retail footprint across 17 states. Customers can now order from more than 2,000 Rite Aid locations through the Shipt marketplace for delivery. Click here to request a list of future store openings.
Jack in the Box reported results for its 3Q ended July 4, 2021. Consolidated revenues advanced 11.2% to $269.5 million, mainly driven by 10.2% system-wide comparable store sales growth, which was on top of a 6.6% increase in 3Q20. Franchisees opened four new restaurants but also closed 13 restaurants during the quarter, pushing Jack in the Box's total store count down 1.1% year-over-year to 2,219. Restaurant-level margin was flat at 25.4%, as the leveraging impact of the Company's continued top line improvement was offset by a number of factors, including 8% wage inflation, increased food and packaging costs, and higher delivery fees. Altogether, the Company generated $79 million in adjusted EBITDA, representing an 8.5% increase over the prior year period. Click here to request a sample list of future store openings.
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Floor & Décor’s 2Q21 sales increased 86% to $860.1 million, and comps were up 68.4%. Adjusted EBITDA more than doubled to $137 million. The Company opened seven new units, ending the quarter with 147 warehouse-format stores and two design studios. On June 4, Floor & Décor completed its acquisition of Spartan Surfaces, a specialty hard-surface distributor. Terms of the deal were not disclosed, but sales and earnings attributable to Spartan were immaterial. Click here to request a sample list of future store openings.
The first round of Sephora-branded in-store shops have opened in Kohl’s stores in Sterling Heights, MI; Ramsey, NJ; Brookfield, WI; and Woodbury, MN. Another 73 will open on August 20 across 24 states nationwide. By this fall, 200 Kohl’s locations will have Sephora shops, with at least 850 expected by 2023. Online sales launched August 1. Target announced a similar in-store partnership with Ulta Beauty, with shops also opening. Click here to request a list of future store openings.
Big 5 Sporting Goods’ operations continued to benefit from consumers spending on outdoor activities. 2Q21 sales totaled $326 million, up 43% from last year, based on a 31.2% increase in comps and favorable calendar shifts, partially offset by the closing of one store during the year. The Company closed one additional store at the beginning of 3Q21, leaving it with 429 units currently. Over the remainder of FY21, the Company expects to open four net stores. Both gross and SG&A margins improved, and operating income increased 250% to $49 million. At the end of 2Q21, Big 5 was in a net cash position. It ended 2Q21 with no borrowings under its $150 million secured credit facility and $119 million of cash. 3Q21 comps are expected to be flat to up in the mid-single digit range.
The ODP Corporation’s 2Q21 sales increased 6% to $2.30 billion despite closing 169 units since last year, of which 55 were closed in 2Q21, leaving 1,091 units at quarter-end (a drop of 13%). Revenue increased 12% and 4% in the Business Solutions Division and CompuCom, respectively; sales were flat in the Retail Division. The Company did not provide comps. 2Q21 EBITDA increased 58% to $93 million, and EBITDA margin improved 140 bps. Free cash flow for 1H21 was $46 million, down from $140 million for the same period last year. As of June 26, net cash totaled $332 million, and liquidity of $1.70 billion was adequate to fund capital requirements. To facilitate a possible acquisition of the ODP retail unit by Staples’ retail unit, ODP plans to spin off its consumer business (including the retail stores and website) and retain its B2B operations. Click here to request a list of future store closings.
AggData's Sister Companies F&D Reports / Creditntell Launches Retailer Debt Database
New customizable Tool Compiles Key Retailer Debt Information
Industry-leading retail consulting firm Information Clearinghouse, Inc. (ICI), through its F&D Reports and Creditntell divisions, has announced the launch of its Retailer Debt Database, which aggregates all key debt instruments for hundreds of retail companies within a fully customizable interface. Click here to request more information.
Last week, Kroger announced a partnership with Kitchen United to offer customers on-demand restaurant food. The off-premise restaurant kitchen will feature up to six local, regional or national restaurant brands. When placing orders using the Kitchen United website or app or on-site via ordering kiosks, customers can select items from each restaurant to create a customized order on a single receipt. Restaurant staff will prepare the orders and delivery service fees will be determined by third-party providers. The first kitchen center is expected to open this fall at a Ralphs store in Los Angeles, CA, with additional locations expected later this year.
Presidente Supermarkets announced on August 6 the opening seven new stores in 2021 plus a new wholesale concept. The new warehouse distributors concept, Omax Plaza Wholesale, will be housed in a 100,000-square-foot building on 24 acres in Kissimmee, FL. Together, the seven stores and Omax Plaza Wholesale represent millions of dollars in economic investment, Presidente Supermarkets noted. The first 2021 store opened in January in Orlando. A second store opened in May in Miami Gardens. The next Presidente Supermarket is slated to open this month in Orlando. All together Presidente Supermarkets will open three stores in Orlando, two in West Palm Beach, one in Pompano and one in Miami Gardens, plus the Omax Plaza Wholesale store. Presidente currently operates about 30 stores. Click here to request a sample list of future store openings.
Rent-A-Center’s 2Q21 revenue increased 75% to $1.20 billion due to the acquisition of Acima Holdings, LLC, which closed in 1Q21, and a 16.6% increase in comps, partially offset by the closing of 22 stores. EBITDA increased 140% to $182 million, and EBITDA margin advanced 410 bps to 15%. Acquisition-related financing was responsible for a 570% increase in debt to $1.30 billion, while net debt increased to $1.10 billion. Management anticipates FY21 EBITDA margin increasing to between 14% and 15%, up from 12% in FY20. Free cash flow is expected to range between $300 million and $350 million.
Our Hot Market Report takes a closer look at the Washington D.C. real estate landscape, and provides visual competitive analyses as well as key real estate metrics such as future openings, store count, market share, digital insights, and demographics. Click here to request a copy of the full report.
The Container Store reported 1Q21 sales, which jumped 61.7% to $245.3 million and were up 17.1% over 1Q19. E-commerce sales fell 51% compared to 1Q20, as consumers returned to brick-and-mortar stores, but were still up 44% compared to 1Q19; e-commerce represented 19% of sales. The Company delivered 1Q profitability for the first time in over a decade, with gross margin rising 800 bps to 59.6%, and adjusted EBITDA margin rising to 13.7% from 2.9% in 1Q20 and 5.1% in 1Q19. During the quarter, the Company opened its first smaller-format store (20,000 square feet) in Annapolis, MD and has plans to open an even smaller store (12,000 square feet) in Colorado Springs, CO in FY22. The Company’s average store size is currently 25,000 square feet. The Company ended 1Q21 with $166 million in total debt and $120 million in combined cash and revolver availability.
Last week, Hy-Vee announced the launch of Wall to Wall Wine and Spirits, a new division focused on providing a best-in-class wine, spirits, and beer selection in a standalone format. The first Wall to Wall Wine and Spirits locations are planned for West Des Moines, IA, Papillion, Omaha, and Lincoln, NE. No opening dates have been disclosed. Click here to request a list of future store openings.
Panera Bread, Caribou Coffee and Einstein Bros. Bagels announced the formation of Panera Brands. The three brands are owned by investment firm JAB Holding Company. Panera Bread has more than 2,100 bakery-cafes. Caribou Coffee is an Upper Midwest coffee brand with 713 stores in 10 countries. Einstein Bros. operates 1,005 stores consisting of Einstein Bros. Bagels, Bruegger's Bagels, Noah's New York Bagels, and Manhattan Bagel.
Saladworks is opening several new locations, including four more inside Kroger stores in the Cincinnati, OH and Northern Kentucky area this summer. The new Ohio restaurants join two existing Saladworks locations in Columbus and another Kroger store in Cincinnati. Saladworks said its parent company, WOWorks, is planning to grow the chain in Ohio due to opportunities among the state's growing millennial and Gen Z guests' spending power and lifestyle needs. Saladworks' move to open restaurants within grocery chains and other non-traditional venues began in 2018, when the brand opened its first in-store location in a ShopRite in Philadelphia, PA. Saladworks currently has restaurants in 10 grocery stores in Pennsylvania, Maryland, Ohio, and New York, with additional locations projected to open in 2021 and 2022.
Giant Eagle recently closed its full sit-down restaurant called Market District Kitchen & Bar in its Bexley, OH supermarket. Giant Eagle has not announced plans for the 4,000 square-foot space.
Papa John's International has expanded its partnership with Drake Food Service International (DFSI) to open over 220 Papa John's restaurants by 2025. The deal includes more than 170 units across Latin America, Spain and Portugal, where DFSI currently operates in excess of 280 locations. DFSI plans to open 50 new restaurants in the U.K. over the next four years, where it recently purchased over 60 Papa John's restaurants in London. Under the terms of their expanded partnership, DFSI will operate more than 560 Papa John’s restaurants in total by 2025. Click here to request a list of future store openings.
Shake Shack recorded 104% revenue growth to $187.5 million during 2Q21, based on a 52.7% comps increase from the return of indoor dining and contributions from net 29 domestic Company-operated stores over the past year. The Company was finally able to reopen several urban locations in New York City starting in late June, which has fueled continued 38% comp growth in July. While in-restaurant dining has been the main top line driver, Shake Shack has also retained a good portion of its digital sales, which accounted for 47% of total sales during 2Q. Restaurant operating margin rose substantially in line with revenues, reaching 19.2% in 2Q, compared to 2.2% in the prior year period and 17.3% in 1Q21. The Company generated $20.6 million in adjusted EBITDA, versus an $8.8 million EBITDA loss last year. Management expects to generate $194 million – $200 million in revenue during 3Q as the comp growth eases to the mid to high 20s. The Company also narrowed its FY21 new unit guidance to 35 – 38, compared to 35 – 40, previously.
Marco's Pizza announced its expansion strategy for the greater Cleveland, OH area, with plans to add five new stores to the market by 2025 by partnering with franchise operators. Marco's has signed 98-plus franchise agreements nationally year-to-date. The Company currently has over 200 stores in various stages of development and aims to grow its 1000-plus unit footprint by more than 10% this year.