Retail News

Marsh Supermarkets

Marsh Supermarkets closed 10 stores over the last three years through 2016 (15% of its store base), with closures accelerating in 2017. According to published reports, Marsh has also stopped paying rent on six Indianapolis stores prompting lawsuits by property owners, who are attempting to collect a total of at least $480,000 in unpaid rent and property taxes. Marsh already closed three of its Indianapolis supermarkets thus far in 2017 with a fourth underperforming store expected to close in early April. Sun Capital purchased Marsh which operated about 120 grocery stores in 2006; it is now down to 67 and will likely shrink further including locations they have stopped rent payments on.

Click here for Marsh Supermarket's full store list.

Five Below

Five Below’s fourth quarter sales increased 18.9% to $388.1 million, and comps were up 1%. Profit rose 18.5% to $49.8 million. The Company opened five net new stores and ended the quarter with 522 stores in 31 states. This represents a 19.5% increase from the prior-year period. CEO Joel Anderson stated, “We achieved another strong year of 20% sales growth, reaching the $1.00 billion milestone in sales as we opened 85 net new stores and delivered our 11th consecutive year of positive comparable sales growth. This top-line performance was accompanied by operating leverage, while we continued to invest in the business, resulting in a 24% increase in EPS for 2016.” Looking to fiscal 2017, the Company expects to open 100 new stores, including its first in California; the first 26 stores will open during the first quarter. Fiscal 2017 sales are expected to be $1.21 billion – $1.23 billion, and net income is projected to be $86.0 million – $89.5 million.

Click here for Five Below's full store list.

Whole Foods

Last week, Whole Foods opened a new store in Lakeview, IL, replacing an older location across the street. The new store is nearly double the size of the previous one, at 75,600 square feet across two floors, with half the space devoted to dining experiences, ranging from a full-service wine bar to hot and cold food bars. There are 30 competing food retail stores within three miles of the new store, including four other Whole Foods, six ALDI, 12 Jewel-Osco, six Mariano’s, three Trader Joe’s and one Fresh Thyme.

The opening comes at a challenging time for Whole Foods, which recently announced nine store closings, including one in south Evanston, IL, and abandoned its longtime goal of opening more than 1,200 stores. Currently, Whole Foods has about 440 stores in the U.S. with another 80 in the pipeline.

Click here for Whole Foods' full store list.

ALDI

Last week, ALDI broke ground on its first Virginia distribution center located in Dinwiddie. The Company is investing $57.0 million to build the 500,000 square-foot facility, which is expected to open in August 2018. ALDI’s expansion into Dinwiddie is part of a broader plan to increase the Company’s footprint in Virginia. Over the next few years, ALDI expects to add an additional 80 stores to the 38 it currently operates in Virginia. This refocus on the mid-Atlantic region may have something to do with Lidl’s pending entrance in the area over the next few months. Lidl’s first 20 US stores will be opening in North Carolina, South Carolina and Virginia, where it established its U.S. headquarters in 2015.

In other news, last week ALDI opened its fifth store in the Fort Worth, TX market. The store has a newer look with an expanded produce selection, higher ceilings and natural lighting. ALDI will now have 57 stores in the Dallas-Fort Worth metro area and 15 in the Fort Worth area, including locations in Haltom City, White Settlement, Saginaw, Arlington, Hurst, Pantego, North Richland Hills, Euless and Mansfield. By the end of 2018, the Company expects to have nearly 2,000 stores in the U.S.

Click here for ALDI's full store list.

Sportsman's Warehouse

Sportsman’s Warehouse’s fourth quarter sales increased 4.1% to $221.4 million, while comps decreased 5.2%. EBITDA margin fell 0.5% due to unfavorable SG&A margin, as costs increased faster than the revenue base. Profit fell 7.5% to $10.5 million. During its conference call, management said the Gander Mountain bankruptcy could present opportunities to acquire some stores in small communities in the Midwest. Higher-margin private-label sales increased 19% during 2016 but represented just 3.7% of annual revenue. Commenting on developments, CEO John Schaefer said, “The retail environment remained challenging during the fourth quarter and we anniversaried both the San Bernardino tragedy and the executive orders from December and January which created a difficult comparison for our hunting and shooting category. For fiscal year 2016, we continued to strengthen our market share position with 11 new stores and a 10.4% revenue increase over the prior year, maintained flat gross margins in a promotional environment, and managed expenses, inventory and capital expenditures with discipline.” Looking to fiscal 2017, 12 store openings are planned, representing an increase of 350,000 square feet.

Click here for Sportsman's Warehouse's full store list.

Giant Eagle

Last Thursday, Giant Eagle opened a new store in Erie, PA. The 75,000 square-foot store offers some new services to the area including online ordering and curbside pickup. The store replaces two other Giant Eagle stores nearby, which closed earlier this month, along with a GetGo location. Giant Eagle also operates nearby stores in Millcreek, Harborcreek, Girard, Edinboro, Meadville and Titusville, PA.

Click here for Giant Eagle's full store list.

bebe stores, inc.

bebe stores, inc. retained B. Riley & Co. as its financial advisor to explore strategic alternatives. Additionally, bebe engaged a real estate advisor to assist with options related to its lease holdings. The Company stated in its press release, “there is no assurance that this process will result in any specific transaction, and it does not expect to disclose further developments during this process unless and until the Board of Directors has approved a specific transaction or otherwise determined that disclosure is appropriate.”

In the Company’s second quarter results reported last month, bebe reported sales declined 16.8% on a net of 22 store closures and comps declined 10.5% (on top of a 2.5% decrease last year). Although gross margin improved due to lower promotional activity and fewer markdowns, SG&A margin deleveraged 470 basis points due to lower sales and overall EBITDA declined into negative territory at ($2.0 million) compared to $3.0 million last year. bebe currently operates at a TTM EBITDA margin of 2.4%, well below our monitored apparel sector average of 10.4%. The Company previously stated that for fiscal 2017 it does not plan to open any new stores, and it will close up to 25 bebe and outlet stores. This will result in a decrease in total square footage of 16% from the end of fiscal year ended July 2, 2016. bebe's current liquidity of $66.8 million as of December 31. 2016 should be adequate to fund working capital requirements in the near term; however, lesae-cancelling negotiations do not always go according to plan. If all fails, the Company could be forced to explore other less favorable alternatives.

Click here for bebe stores' full store list.

J. Crew Group

J. Crew Group’s fourth quarter sales declined 2.3% to $695.0 million, and comps were down 5%, with J. Crew comps down 7% and Madewell comps up 6%. The Company recorded a profit of $1.1 million, compared to a loss of $7.0 million in the prior-year period. J. Crew’s balance sheet remains leveraged from its May 2011 LBO, with a deficit tangible net worth position of $1.34 billion and more than $1.50 billion in debt. Management also noted in its quarterly conference call that first quarter comps are down 11% to date. The Company expects to open two J. Crew and 10 Madewell stores during fiscal 2017, while closing at least 20 underperforming locations.

Click here for J. Crew's full store list.

Wegmans

Wegmans has set opening dates for two northern New Jersey stores, including a 113,000 square-foot store in Hanover that will open on July 23; and a 108,000 square-foot store in Montvale set to open on September 24. Both are about 30 miles away from NYC. Meanwhile, the Company has also announced plans for 10 additional stores, including units in North Carolina, which it will be entering for the first time with four stores in the Raleigh/Durham/Chapel Hill metro area. Wegmans currently operates 92 total stores in New York, Pennsylvania, New Jersey, Virginia, Maryland and Massachusetts.

Click here for Wegmans' full store list.

Fareway Stores

Fareway Stores plans to build a 6,500 square-foot full-service meat market in Lincoln, NE, expected to open by late fall. It will be the Company’s second new concept store, after the first launched last spring in Omaha. The new concept includes a full-service meat department complemented by an expanded seafood section, artisan cheese, wines and beer, as well as other expanded offerings. There are nine competing food retail stores within five miles of the new store, including one ALDI, four Hy-Vee stores, a Whole Foods, a Natural Grocers, a Trader Joe’s and a Fresh Thyme Farmers Market.

Fareway Stores operates about 120 stores in Iowa, Illinois, Minnesota, Nebraska and South Dakota. It is known for opening stores mostly in small towns and has several stores in the Omaha, NE metro area and one in Nebraska City.

Click here for Fareway Store's full store list.

Martin's Super Markets

Last week, Martin’s Super Markets opened a new store in South Bend, IN, replacing a nearby location. Among the new features of the replacement store is a Martin’s Smokehouse BBQ facility (its second chain wide), a community room with seating for up to 84, a Starbucks kiosk and a pharmacy. The supermarket is anchored by a Martin’s Express convenience store/fuel center. It offers Martin’s Groceries-To-Go, an app- and web-based ordering system in which customers can order online and schedule a time for pickup. Martin’s Super Markets operates more than 20 stores in Indiana and Michigan.

Click here for Martin's Super Markets' full store list.

Brookshire Brothers

Brookshire Brothers recently opened its relocated Brookshire Brothers Express store in Valley Mills, TX, which features fresh meat and produce, a deli, Western Union, money orders and a full-service courtesy booth. Brookshire Brothers operates 115 retail outlets, including grocery stores and convenience stores as well as free-standing tobacco, pharmacy and fuel locations, in Louisiana and Texas.

Click here for Brookshire Brothers' full store list.

Walmart

Walmart will invest $800.0 million in its Chilean business over the coming 36 months, with plans to open as many as 55 – 60 new stores and remodel 50 existing units. A Walmart Chile representative stated, “We are confident in the future potential of the country, and we are convinced that spaces exist to continue expanding our low-cost model.”

Walmart opened a Neighborhood Market in Myrtle Beach, SC, which it says is “new and unique.” The 46,000 square-foot store is a prototype that includes updated signage, granite floors, lower countertops in the deli and bakery for easier ordering, and wider aisles. It also offers organic produce, meat, pantry and grocery staples, a full-service deli, an in-store bakery, a pharmacy, a fuel station and free in-store pickup. There are nine competing food retail stores within five miles of the new store, including three BI-LO stores, five Food Lions, and a Kroger.

Click here for Walmart's full store list.

Wawa

On March 23, Wawa held grand openings for three stores in south Florida including two in Palm Springs and one in Riviera Beach; its first Wawa stores in Palm Beach County. The Company operates more than 730 convenience stores, with more than 500 offering gas, in Pennsylvania, New Jersey, Delaware, Maryland, Virginia and Florida.

Click here for Wawa's full store list.

Payless Inc.

According to published reports, Payless Inc. is looking to close 400 to 500 stores as it reorganizes its operations. The Company had previously considered shuttering up to 1,000 of its more than 4,000 stores located in 30 countries, and reports suggest the exact number has not been finalized. The reports also say that the potential closures may lead to a more formal restructuring in the coming weeks. The private equity firms Golden Gate Capital and Blum Capital Partners have owned Payless since 2012, when Collective Brands Inc. spun off the chain.

Click here for Payless' full store list.

Finish Line

Finish Line’s fourth quarter sales declined 0.4% to $557.5 million, and comps fell 4.5%. On a brighter note, sales of branded Finish Line shops within Macy’s locations increased 35%. The Company recorded a loss of $9.5 million, compared to a profit of $4.0 million during the prior-year period. CEO Sam Sato commented, “Our fourth quarter earnings performance represented a disappointing finish to a challenging year financially for our Company. As elements of our footwear offering did not resonate with our customers as we expected and the overall retail environment in February became increasingly difficult, we made the decision to get more aggressive on pricing to be competitive and clear slow moving product. While this allowed us to end fiscal 2017 with clean inventory levels, it put significant pressure on fourth quarter product margins.” Finish Line opened six stores during fiscal 2017 and closed 24 underperforming locations, including seven during the fourth quarter; it ended the year with 573 stores. Looking to fiscal 2018, Finish Line expects comps to increase in the low-single digits and EPS to be $1.12 – $1.23, an increase of 6% – 16% compared to the $1.06 EPS in fiscal 2017.

Click here for Finish Line's full store list.

Shoe Carnival

Shoe Carnival’s fourth quarter sales inched up 0.2% to $234.2 million, while comps slipped 1.2%. The Company recorded a loss of $92,000, compared to a profit of $4.2 million in the prior year; 4Q16 loss included non-cash impairment charges of $3.6 million related to seven Puerto Rico stores. CEO Cliff Sifford said, “Our comparable stores sales performance was in line with the updated expectations we provided in January and our gross profit margin came in better than we anticipated. Our team took decisive actions to promote our seasonal boot footwear to ensure we ended 2016 in a clean inventory position. We believe the strong athletic footwear cycle we experienced during the year will continue into 2017 and we are pleased with the early results from our casual sandal footwear.” The Company opened 19 stores and closed nine underperforming stores during fiscal 2016, including four opened and four closed during the fourth quarter.

Click here for Shoe Carnival's full store list.

Casey's General Stores

Casey’s General Stores will open a new convenience store in Pella, IA and will close three nearby stores next month.

Click here for Casey's General Stores' full store list.

Restaurant Brands International

Restaurant Brands International completed the acquisition of Popeyes Louisiana Kitchen on March 27, following the successful completion of its tender offer to purchase all of the outstanding shares of common stock of Popeyes at $79 per share. As of the expiration date of the tender offer on March 24, 17 million shares of Popeyes common stock had been validly tendered and not withdrawn, representing roughly 83% of Popeyes' outstanding shares of common stock. Upon consummation of the merger, Popeyes will become an indirect, wholly-owned subsidiary of RBI.

Click here for Popeyes Louisiana Kitchen's full store list.

Starbucks

During Starbucks’ annual meeting, the Company announced plans to create more than 240,000 new jobs globally (68,000 in the U.S.) as it reiterated its intent to open 12,000 new stores globally and 3,400 new stores in the U.S. by fiscal 2021, including 100 more Military Family Stores in the U.S. to support military communities.

Click here for Starbucks' full store list.

GameStop

On March 23, GameStop reported fourth quarter sales decreased 13.6% to $3.05 billion, driven by a 16.3% decline in comps, which were significantly impacted by the weakness of certain AAA titles and aggressive console promotions by other retailers during the holidays. As a result, new hardware sales declined 29.1%, and new software sales fell 19.3%. Pre-owned sales also dropped 6.7% compared to the prior-year period. Despite the significant deterioration in gaming, adjusted net earnings fell just 3.1% to $243.8 million. For fiscal 2017, the Company is projecting comps of -5% to flat and EPS of $3.10 – $3.40 compared to $3.40 in 2016. In 2017, the Company anticipates that it will open approximately 35 new Collectibles stores globally and roughly 65 new Technology Brand stores. The Company also anticipates that it will close 2% – 3% of its global store footprint.

Click here for GameStop's full store list.

At Home Group

At Home Group reported fourth quarter sales increased 26.4% to $234.5 million, driven by the addition of a net 23 new stores over the past year and a comp increase of 7.1%. The Company opened one new store during the fourth quarter and ended the year with 123 stores operating in 30 states, representing a 23% increase year-over-year. Profit fell 74% to $15.3 million as a result of a difficult comparison to the prior year period when the Company recorded an income tax benefit of $47.6 million compared to an expense of $8.7 million this year. Adjusted profit rose 101.8% to $17.4 million compared to $8.6 million last year. CEO Lee Bird stated, “We are pleased to report results for our 11th consecutive quarter of over 20% net sales growth and our 12th consecutive quarter of positive comparable store sales growth. Our fourth quarter outperformance was driven by strong new store results accompanied by a 7.1% comparable store sales increase as we further elevated our holiday assortment and capitalized on an inventory opportunity identified earlier in the year, both of which were well-received by our customers. Our unparalleled in-store home décor assortment, together with our compelling value price points, are resonating with our customers now more than ever.”

Click here for At Home's full store list.

Darden Restaurants

Darden reported third quarter sales increased 1.7% to $1.88 billion while diluted EPS expanded 60%. Comparable restaurant sales grew 0.9% during the quarter, reflecting increases of 1.4% at Olive Garden, 0.2% at LongHorn Steakhouse, 0.9% at The Capital Grille, 4.7% at Eddie V’s, 0.8% at Seasons 52, 0.5% at Bahama Breeze. Comps declined -1% at Yard House. Over the past year, the Company added a net of 10 new Company-owned stores, bringing its store count to 1,545 as of February 26.

Darden increased its fiscal 2017 EPS outlook to $3.95 – $4.00 reflecting an updated outlook comp growth of 1.5%. Previous guidance had been for EPS of $3.87 – $3.97, and comp growth of 1% – 2%.

The Company also announced yesterday that it has agreed to acquire Cheddar’s Scratch Kitchen for $780.0 million in an all-cash transaction. The purchase price represents a multiple of 10.4x TTM EBITDA. The transaction is expected to be accretive to earnings in fiscal 2018. The deal is anticipated to close in the Company’s fourth quarter, ending May 28, 2017.

Click links above for full store lists.

Meijer

Meijer plans to close two underperforming Chicago, IL-area stores, located in Berwyn and Melrose Park. The Berwyn store, which opened in 2012, and the Melrose Park location, open since 2011, will close June 17. According to a Company representative, both stores are about 90,000 square feet and are thus considered smaller-format stores for Meijer, which has been more successful in the Chicago suburbs with its “supercenters” that are typically closer to 200,000 square feet. The representative also said that the Chicago area continues to be an important market for Meijer, which has invested more than $200.0 million in nine new Illinois supercenters, primarily in suburban Chicago, over the past five years. Meijer currently has 21 stores in the Chicago market, of which three (Bloomingdale, Algonquin and McHenry) will be remodeled this year as part of a $375.0 million investment announced earlier this month. Meijer also owns property in nearby Kankakee, Aurora and Hoffman Estates and could eventually develop those sites.

Meanwhile, Meijer continues to expand in the Indianapolis, IN market with plans to open two Supercenters in McCordsville and Franklin on May 2. It has invested heavily in Indianapolis in recent years, with its 15 stores there either new or recently remodeled with improved store layouts, and expanded grocery and health and beauty sections. According to Nielsen, as of January 2017 Kroger was the market leader in the Indianapolis metro market with 50 stores and a 31.3% market share, followed by Walmart with 32 stores and 26.5% market share, and Meijer with 14 Supercenters (almost all new to the market) and a 12.8% market share.

Finally, Meijer is close to receiving all necessary approvals to begin construction on a store in Jamestown Township, MI. The 156,000 square-foot store will include a fuel station, convenience store and gardening center. The store is expected to open in July 2018.

Click here for Meijer's full store list.

Amazon

Earlier today Amazon.com announced it reached an agreement to acquire Dubai-based online retailer Souq.com. Souq.com, which sells consumer electronics, fashion, household items and other goods, claims to be the largest e-commerce site in the Arab world. Terms of the deal were not disclosed, but sources indicate Amazon’s bid was around $580.0 million. Souq.com was said to be valued at $1.00 billion at the time of a funding round last year, but reports indicate that valuation has since dropped. The acquisition is expected to close in 2017.

Starting April 1, Amazon will be collecting sales tax from 45 states. The only states where Amazon won’t collect sales taxes will be Alaska, Delaware, Oregon, Montana and New Hampshire, which are the five states in the union that do not have state sales taxes.

According to published reports, Deutsche Post’s package service DHL will deliver goods for Amazon’s AmazonFresh service in Germany. The two companies have signed an exclusive deal, and a trial will start in Berlin. Amazon launched a fresh food delivery service in Seattle in 2007 and has since expanded to a handful of other U.S. cities. Last year, it expanded the service to London.

On March 23, Amazon opened its fifth brick-and-mortar bookstore in Lakeview, IL. The 6,000 square-foot store is the Company’s first location in the Midwest. The Company plans to continue expanding the concept, with locations set for Paramus, NJ; Columbus Circle in Manhattan, and two in the greater Boston metro area.

Amazon has reportedly postponed the launch of its first “cashier-less” convenience store called Amazon Go, which was set to launch by the end of March, due to technical difficulties. Sources have indicated that Amazon is having trouble tracking more than 20 customers at the same time and monitoring items that move from their specific positions on the shelf. There was no indication of how long Amazon will delay the opening.

Meanwhile, Amazon is reportedly exploring plans to open physical furniture and home appliance stores that let customers shop in virtual reality. The technology would give people the ability to see how the couch or refrigerator looks in their home before buying it. Amazon is also rumored to be exploring an electronics-store concept. The store could include technology associated with Amazon devices and services.

Bojangles' Restaurants

Bojangles’ Restaurants signed a new multi-unit development agreement with VABO, Inc. of Wilmington, NC, operator of several quick-service restaurants in South Carolina and Georgia. According to the agreement, VABO is scheduled to open four new Bojangles’ restaurants over the next four years, including possible locations in Chesapeake, Portsmouth and Virginia Beach, VA.

Click here for Bojangles' full store list.