May 5, 2017 Fung Global Retail & Technology tracks store openings and closings for a select group of US retailers. 1) Among the retailers we track, this past week, Bonobos announced plans to open 20 more physical stores by the end Weekly Store of 2017. Openings and Closures 2) None of the major retailers we track made store closing or Tracker #6: bankruptcy announcements this past week. 3) About 3,300 stores have been included in retailers’ store Bonobos Opening 20 New closing plans since the start of the year. Cumulative store closing announcements for year-to-date 2017 far exceed the Stores previous year’s average. We expect more announcements in the coming months, particularly for stores located in lower- grade malls. Deborah Weinswig Managing Director, Fung Global Retail & Technology [email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Deborah Weinswig, Managing Director, Fung Global Retail & Technology [email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 1 Copyright © 2017 The Fung Group. All rights reserved. May 5, 2017 2017 Store Openings and Closings During this past week, none of the retailers we track made any store closing or bankruptcy announcements. The majority of retailers that have been closing stores fall within the department store and specialty retail categories. Primary reasons for the closures include: 1) declining mall traffic; 2) reconfiguration of store networks as retailers shift online; and 3) to cut losses from unprofitable stores. Year-to-Date 2017 Major US Store Closing Announcements Rue 21 400 Payless Inc 400 The Limited 250 hhgregg 220 GameStop 190 RadioShack 187 Wet Seal 171 Bebe Stores Inc* 168 Crocs Inc. 160 Sears and Kmart** 160 JCPenney 138 BCBG 120 American Apparel 110 Gordmans Stores Inc. 101 Staples 70 CVS 70 Macy’s*** 68 Total: 3,296 MC Sports 68 announced store closings Guess 60 Chico’s 50 Lucy Accvewear 44 97% Eastern Ouaibers 36 year over year Gander Mountain 32 Ralph Lauren**** 23 0 50 100 150 200 250 300 350 400 450 * Closing all 134 retail stores and 34 outlet stores ** Closing 115 Kmart and 45 Sears stores *** Part of 100-store closure announcement made in 2016 **** Closing remaining stores included in the 50-store closure plan announced in June 2016 Source: Company reports/Fung Global Retail & Technology Deborah Weinswig, Managing Director, Fung Global Retail & Technology [email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 2 Copyright © 2017 The Fung Group. All rights reserved. May 5, 2017 Among the retailers we track, men’s clothing retail startup Bonobos, rumored to be in talks to be acquired by Walmart, has announced plans to open as many as 20 more Guideshops by the end of 2017, bringing the total number of stores to 50. Value-driven retail concepts such as discount and fast fashion have been aggressive in expanding their store footprint, despite the difficult retail environment. Categories such as beauty and athleisure are outperforming the market, which is evident in their footprint expansion over the past 15 months. Year-to-Date 2017 Major US Store Opening Announcements Dollar Tree 650 Aldi* 130 TJX** 111 Ulta 100 Lidl 100 Ross Stores 90 Sephora 70 H&M* 60 Hobby Lobby 60 Walmart*** 59 Total: 2,573 Dick’s Sporcng Goods, Inc. **** 52 announced store openings Target***** 30 Costco****** 24 20% year over year Bonobos 20 Nordstrom 17 0 100 200 300 400 500 600 700 * Fung Global Retail & Technology estimates ** 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 Source: Company reports/Fung Global Retail & Technology Deborah Weinswig, Managing Director, Fung Global Retail & Technology [email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 3 Copyright © 2017 The Fung Group. All rights reserved. May 5, 2017 2016 Store Openings and Closings 2016 Major US Store Closings 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 Kohl’s 18 Total: 1,674 Finish Line 18 announced store closings 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 Deborah Weinswig, Managing Director, Fung Global Retail & Technology [email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 4 Copyright © 2017 The Fung Group. All rights reserved. May 5, 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 Hong Kong: 8th Floor, LiFung Tower 888 Cheung Sha Wan Road, Kowloon Hong Kong Tel: 852 2300 4406 London: 242-246 Marylebone Road London, NW1 6JQ United Kingdom Tel: 44 (0)20 7616 8988 New York: 1359 Broadway, 9th Floor New York, NY 10018 Tel: 646 839 7017 FungGloBalRetailTech.com Deborah Weinswig, Managing Director, Fung Global Retail & Technology [email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 5 Copyright © 2017 The Fung Group. All rights reserved. .