Weekly Store Openings and Closures Tracker

September 1, 2017

FGRT tracks store openings and closures for a select group of retailers in the US and, as of last week, in the UK as well. 1) We forecast that announced store closures in the US will total 9,452 by the end of 2017, exceeding the 6,164 stores closed in 2008, and Weekly Store representing a year-over-year increase of 361%. The 5,763 store Openings and Closures closures announced year to date are tracking at 61% of our full-year Tracker #22: forecast. 2) This week, Perfumania has filed for bankruptcy. It plans to close 64 Perfumania Files for stores and privatize the company as part of its reorganization. Bankruptcy, to Close 64 3) Macy’s named former eBay executive Hal Lawton as President, Stores; Macy’s Names effective September 8. 4) Ulta reaffirmed that it is on track to open 100 new locations in New President 2017. 5) Year-to-date 2017, the number of store closure announcements has increased 181% year over year, bringing the total number of stores to be closed to 5,763. 6) Starting last week, we added coverage of the UK market. Year to date, there have been 487 store closure announcements from major Deborah Weinswig retailers in the UK, compared to 529 openings, with the number of Managing Director closures significantly lower on a year-over-year basis, and openings FGRT on par with 2016. [email protected] US: 917.655.6790 7) Pep&Co closed 20 stores and replaced them with concessions. HK: 852.6119.1779 CN: 86.186.1420.3016

September 1, 2017

2017 Store Openings and Closures

What Is Happening this Week in the US?

Perfumania Files for Bankruptcy and Plans to Close 64 Stores American specialty retailer Perfumania has filed for bankruptcy. It plans to close 64 of its 226 stores and privatize the company as part of its reorganization. According to the company’s announcement, it is reducing the number of retail stores to better align with current consumer shopping patterns, in order to increase investments in its e-commerce business.

Macy’s Appoints Former eBay Executive Hal Lawton as President Macy’s has named former eBay North America SVP Hal Lawton as President, effective September 8. Lawton has a strong technology and e-ecommerce background. Prior to joining eBay, he worked at Home Depot and McKinsey & Co.

Ulta On Track to Open 100 Stores in 2017 During its earnings call, Ulta reaffirmed that it is on track to open 100 new locations in 2017. The company already opened 20 stores in the second quarter, bringing the total to 1,010 stores. Management emphasized that cannibalization of existing store sales is low, which suggests that combining the online experience with the brick-and-mortar shopping experience is important.

Estée Lauder CEO Denies the Company is in Talks for a Potential Sale or Merger President and CEO Fabrizio Freda said that Estée Lauder Companies is not for sale, according to a Bloomberg article, reiterating that the company is strong and has excellent momentum going forward.

September 1, 2017

Year-to-Date 2017 Major US Store Closure Announcements

RadioShack 1000 Payless Inc 700 Rue 21 400 Ascena Retail 400 Sears and Kmart 358 Gymboree 350 The Limited 250 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 Macy’s 100 Staples 70 Total: CVS 70 5,763 Aaron’s 70 announced store closures

MC Sports 68 Perfumania 64 181% Alfred Angelo 61 year over year Guess 60

Chico’s 50 Lucy Acvewear 44 lululemon athleca 40 Eastern Ouiers 36 Gander Mountain 32 True Religion 27 Ralph Lauren 23

0 200 400 600 800 1000 1200

Gymboree announced it would be closing 350–450 stores. Ralph Lauren’s store closing number was part of the 50-store closure plan announced in June 2016. Ascena will close between 268 and 667 stores by July 2019, depending on negotiations with landlords. Source: Company reports/FGRT

September 1, 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

Dick’s Sporng Goods, Inc. 52

Target 30

Costco 24

Bonobos 20 Macy’s Backstage 19 Total: 3,300 Nordstrom 17 announced store openings

Forever 21 (Riley Rose) 10 Rodd & Gunn 9 54% Abercrombie & Fitch 7 year over year ThredUP 5 Homesense 5

Mackage 5

Kohl’s 4

Fendi 3

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

Aldi will complete a 400-store expansion by the end of 2018. Walmart’s target of 59 stores includes new, expanded and relocated stores. Target is only opening stores in small format. Macy’s Backstage will be opened within existing full-line Macy’s stores. Rodd & Gunn to open 8–10 stores by the end of 2018. Mackage plans to operate 25 stores across North America in the next five years. Source: Company reports/FGRT

September 1, 2017

2016 Major US Store Openings and Closures 2016 Major US Store Closures

Sports Authority 463 Hancock Fabrics 255 Sears and Kmart 243 Men’s Warehouse/Jos A. Bank 233 Aeropostale 154 Walmart 154 Oﬃce Depot 123 Gap 71 Walgreens 67 Wolverine World Wide 51 Ralph Lauren 50 Staples 48 Chico’s FAS 34 The Children’s Place 34 American Eagle 26 Total: 2,051 Kohl’s 18 announced store closures Finish Line 18 JCPenney 9 0 50 100 150 200 250 300 350 400 450 500

Source: Company reports/FGRT

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

Source: Company reports/FGRT

September 1, 2017

What Is Happening this Week in the UK? As of last week, we have expanded our coverage of store openings and closures to include the UK market.

Pep&Co Closed 20 Stores and Replaced them with Consessions Fashion retailer Pep&Co closed 20 stores, or about one-third of its standalone stores, and replaced them with concessions. According to the Chief Executive Adrian Mountford, store-in-stores have been driving incremental revenue growth. The company will open 50 shop-in-shops by October, and is on track to open a total of 100 concessions in Poundland outlets this year.

Year-to-Date 2017 Major UK Store Closure Announcements*

Store Twenty One 122 99p Stores 60 Dixons Carphone 45 Jones Bootmaker 40 Linens Direct 36 Budgens 34 Pep&Co 20 Jaeger 20 Blue Inc 17 Style Group Brand Stores 17 Ness Clothing 10 French Connecon 6 ShoeZone 6 N Brown 5 Triumph 5 Total: 487 Mothercare 5 announced store closures Card Factory 4 New Look 4 52% iCandy (iCandy Cards and Gis) 4 year over year Joy the Store 4 B&Q 3 Kit and Ace 3 American Eagle 3 Sainsbury’s 2 HMV 2 Clas Ohlson 2 Debenhams 2 Argos 2

0 20 40 60 80 100 120 140

* The chart only shows selected retailers. Source: Company reports/FGRT

September 1, 2017

Year-to-Date 2017 Major UK Store Opening Announcements*

Smiggle 67

Aldi 60

The Works 60

Lidl 55

Tapi Carpets 51

Ausn Reed 50

M&S 34

House 25

Iceland 25

The Fragrance Store 17

Sports Direct 15

Dukla 9 Waitrose 9 Total: 529 B&M 9 announced store openings Pets at Home 7 Honey Birdee 7 2% White Stuﬀ 6 year over year Schuh 5

Boden 2

Ben Sherman 2

0 10 20 30 40 50 60 70 80

* The chart only shows selected retailers. FGRT has calendarized the announcements of store openings/closures, which involves estimation for some retailers. Aldi will complete a 300- store expansion by 2022. Smiggle will open 200 stores by 2019. Lidl will open 50–60 stores by the end of 2017. Pets at Home will open five stores in FY2017 and 10 stores in FY2018. Source: Company reports/FGRT

September 1, 2017

2016 Major UK Store Openings and Closures 2016 Major UK Store Closures*

BHS 164 Ausn Reed 120 My Local 90 Dixons Carphone 89 Store Twenty One 77 Tesco 58 Brantano 58 Card Factory 47 B&Q 32 Sky 30 Monsoon/Accessorize 28 Bea Living 24 ShoeZone 19 Mothercare 19 Neo Stores 16 JD Sports 13 M&S 12 American Apparel 12 New Look 10 Argos 10 Laura Ashley 9 WHSmith 9 Next 8 Sainsbury’s 8 French Connecon 8 Banana Republic 8 Morrisons 7 Clas Ohlson 7 Game 5 Total: 1,014 Ben Sherman 5 announced store closures Iceland Foods 3 McEwans of Perth 3 Waitrose 2 Oliver Bonas 2 Furniture Barn 2

0 20 40 60 80 100 120 140 160 180

* The chart only shows selected retailers. Source: Company reports/FGRT

September 1, 2017

2016 Major UK Store Openings*

Phase Eight 59 Card Factory 50 Sainsbury’s 47 Tesco 42 B&M 33 WHSmith 32 Lidl 30 TK Maxx 24 Smiggle 23 New Look 20 JD Sports 19 Pep & Co 15 White Stuﬀ 12 Waitrose 11 M&Co 10 Jack Wills 10 WHSmith 10 Next 9 Oliver Bonas 9 Tiger 7 Superdrug 7 Dreams 7 Primark 7 The White Company 5 Food Warehouse by Iceland 4 Habitat 4 Fat Face 3 Total: 538 White Stuﬀ 3 announced store openings Game 3

Laura Ashley 2 Massimo Du 2 Zara 2 Ted Baker 2 Argos 2

0 10 20 30 40 50 60 70

* The chart only shows selected retailers. Source: Company reports/FGRT

September 1, 2017

Deborah Weinswig, CPA Managing Director FGRT New York: 917.655.6790 Hong Kong: 852.6119.1779 China: 86.186.1420.3016 [email protected]

Kiril Popov Senior Analyst

John Mercer Senior Analyst Esme Pau Analyst

Simic Chan Senior Research Associate Eva K. Senior Research Associate

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