Weekly Store Openings and Closures Tracker #10: Sears Closing More Stores

June 9, 2017

Fung Global Retail & Technology tracks store openings and closures for a select group of US retailers. 1) This week, the Retail Dive reported that in addition to the 160 Weekly Store store closures already announced earlier this year, Sears Holdings will be closing 66 more stores—of which 49 are Openings and Closures Kmart and 17 are Sears stores. No official comment has been Tracker #10: issued by Sears yet. 2) Year-to-date 2017, the number of store closure Sears Closing announcements has increased 286% year over year, bringing More Stores the total count to 4,789, with more to surely follow. 3) In last week’s edition of this report, we updated the number of stores that Dollar General is set to open in FY17 to 1,290, from the previously expected 1,000. The 290 new stores will be added by converting acquired store locations in 36 states from a multi-price point retailer.

Deborah Weinswig Managing Director, Fung Global Retail & Technology [email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016

June 9, 2017

2017 Store Openings and Closures

What is happening this week? After the frenzied store closing activity last week, this week looks to be relatively calmer for the retail industry. Some 66 stores have been added to the list of stores being closed, all belonging to Sears Holdings, under the brand names of Sears and Kmart. In the meantime, Dollar General will add 290 more stores after completing an approved acquisition of store locations from a small-box, multi-price point retailer in 36 states.

Sears Reportedly to be Closing 66 More Stores 49 Kmart and 17 Sears stores will likely be added to the latest round of closures for Sears Holdings, which has already announced 160 closings this year. The number of stores set to be shuttered now totals 226. The news was reported by Retail Dive, but no official comment has been made by Sears thus far.

Dollar General Expanding Retail Footprint Pursuant to the report on Dollar General’s revised store count guidance last week, its management has now shed more light on the situation. The discounter received approval from the Federal Trade Commission in April for the proposed acquisition of 322 stores in 36 states from a small-box, multi-price point retailer. Approximately 290 stores will reemerge under the Dollar General banner, and the retailer revised its store opening count guidance for 2017 to 1,290, up from the 1,000 announced earlier in the year.

Year-to-Date 2017 Major US Store Closure Announcements

RadioShack 1000 Payless Inc****** 512 Rue 21 400 Gymboree* 350 The Limited 250 Sears and Kmart** 226 hhgregg 220 GameStop 190 Bebe Stores Inc 180 Wet Seal 171 Crocs Inc. 160 JCPenney 138 BCBG 120 American Apparel 110 Gordmans Stores Inc. 101 Michael Kors 100 Staples 70 Total: 4,789 CVS 70 Macy’s*** 68 announced store closures MC Sports 68 Guess 60 Chico’s 50 Lucy Acvewear 44 286% lululemon athleca 40 year over year Eastern Ouiers 36 Gander Mountain**** 32 Ralph Lauren***** 23 0 200 400 600 800 1000 1200

* Reported by the Wall Street Journal on May 4, 2017, with no official comment. ** Closing 164 Kmart and 62 Sears stores. *** Part of 100-store closure announcement made in 2016. **** The number of store closures could reach 80 based on the recent management announcement. ***** Closing remaining stores included in the 50-store closure plan announced in June 2016. ****** Payless will close an additional 296 stores if negotiations with landlords are unsuccessful. Source: Company reports/Fung Global Retail & Technology

June 9, 2017

Year-to-Date 2017 Major US Store Opening Announcements

Dollar General 1,290

Dollar Tree 650

Aldi* 400

TJX** 111

Five Below 100

Ulta 100

Lidl 100

Ross Stores 90

Sephora 70

H&M* 60

Hobby Lobby 60 Walmart*** 59 Total: 3,262 Dick’s Sporng Goods, Inc. **** 52 announced store openings Target***** 30 Costco****** 24

Bonobos 20 53% year over year Macy's Backstage******* 19

Nordstrom 17

Forever 21 (Riley Rose) 10

0 200 400 600 800 1,000 1,200 1,400

* By the end of 2018. ** Net store openings. *** Includes new, expanded and relocated stores. **** 43 Dick’s Sporting Goods stores and 9 Golf Galaxy stores. ***** All new openings are small-format stores. ****** Adjusted to calendar year from fiscal year reporting. ******* Will be opened within existing full-line Macy's storesMacy’s stores.. Source: Company reports/Fung Global Retail & Technology

June 9, 2017

2016 Store Openings and Closures 2016 Major US Store Closures

Sports Authority 463

Sears and Kmart* 243

Men’s Warehouse/Jos A. Bank 233

Walgreens 200

Walmart 154

Oﬃce Depot 123

Gap 71

Staples 48

Chico’s FAS 34

The Children’s Place 34 American Eagle 26 Total: 1,674 Kohl’s 18 announced store closures Finish Line 18 JCPenney 9

0 50 100 150 200 250 300 350 400 450 500

* Closing 206 Kmart and 37 Sears stores. Source: Company reports/Fung Global Retail & Technology

2016 Major US Store Openings

Dollar General 900

Dollar Tree 584

TJX 146

Ulta 104

Ross Stores 93

Dick’s Sporng Goods 79

Sephora* 72

H&M 53

Aldi 45

Costco** 19 Under Armour*** 19 Total: 2,139 Target 15 announced store openings Zara 10

0 100 200 300 400 500 600 700 800 900 1,000

* Net store number between December 2015 and March 2017. Includes 55 new stores in JCPenney and 17 standalone Sephora stores. ** Adjusted from fiscal year figures. *** Net number of stores in North America. Source: Company reports/Fung Global Retail & Technology

June 9, 2017

Deborah Weinswig, CPA Managing Director Fung Global Retail & Technology New York: 917.655.6790 Hong Kong: 852.6119.1779 China: 86.186.1420.3016 [email protected]

Kiril Popov Senior Analyst Esme Pau Analyst Matthew Lee Research Assistant

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