Weekly Store Closures Tracker #17: Michael Kors Buys · Iconic Brand Group Acquires Remaining 50%...
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1 Deborah Weinswig, Managing Director, FGRT [email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright © 2017 The Fung Group. All rights reserved. July 28, 2017 Fung Global Retail & Technology tracks store openings and closures for a select group of US retailers. 1) We forecast that announced store closures will total 9,452 by the end of 2017, exceeding the 6,164 stores closed in 2008. The 5,442 store closures announced year to date are tracking at 59% of our full-year forecast. The forecast for 2017 also represents a year-over-year increase of 361%. 2) This week, Michael Kors announced the acquisition of Jimmy Choo for $1.2 billion. 3) Iconic Brand Group acquired the remaining 50% stake in Iconic Canada for $19 million. 4) TJX is opening five HomeSense stores, its new off-price home fashions concept. 5) Year-to-date 2017, the number of store closure announcements has increased 162% year over year, bringing the total number of stores to be closed to 5,442, with more to surely follow. Deborah Weinswig Managing Director FGRT [email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Weekly Store Openings and Closures Tracker #17: Michael Kors Buys Jimmy Choo
Transcript of Weekly Store Closures Tracker #17: Michael Kors Buys · Iconic Brand Group Acquires Remaining 50%...
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
July28,2017
FungGlobalRetail&TechnologytracksstoreopeningsandclosuresforaselectgroupofUSretailers.
1) Weforecastthatannouncedstoreclosureswilltotal9,452bytheendof2017,exceedingthe6,164storesclosedin2008.The5,442storeclosuresannouncedyeartodatearetrackingat59%ofourfull-yearforecast.Theforecastfor2017alsorepresentsayear-over-yearincreaseof361%.
2) Thisweek,MichaelKorsannouncedtheacquisitionofJimmyChoofor$1.2billion.
3) IconicBrandGroupacquiredtheremaining50%stakeinIconicCanadafor$19million.
4) TJXisopeningfiveHomeSensestores,itsnewoff-pricehomefashionsconcept.
5) Year-to-date2017,thenumberofstoreclosureannouncementshasincreased162%yearoveryear,bringingthetotalnumberofstorestobeclosedto5,442,withmoretosurelyfollow.
Deborah Weinswig
Managing Director
FGRT
US: 917.655.6790
HK: 852.6119.1779
CN: 86.186.1420.3016
Weekly Store Openings and
Closures Tracker #17: Michael Kors Buys
Jimmy Choo
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
July28,2017
2017StoreOpeningsandClosures
WhatIsHappeningThisWeek?Nomajorstoreclosureannouncementsweremadethisweek,buttheretailindustryisbracingforanotherblockbusteracquisition.MichaelKorsannouncedtheacquisitionofJimmyChoofor$1.2billion,aresponsetoCoach’srecentacquisitionofKateSpade.Meanwhile,IconicBrandGroupacquiredtheremaining50%stakeitdidnotalreadyowninIconicCanada.Tocapofftheweek,TJXwillbeopeninganewoff-pricehomefashionsconcept,HomeSense,withfivestoresinthepipelineforthisyear.
MichaelKorsAcquiresJimmyChooMichaelKorshasagreedtoacquireJimmyChoo,aluxuryfootwearbrand,for$1.2billion.ThedealcameatatimewhenMichaelKorsisfacingadownturnofbusinesswithdecliningsalesandstoreclosures.WiththepurchaseofJimmyChoo,MichaelKorsplanstoexpandbeyonditsownbrandnameforthefirsttimeandestablishapresenceintheluxuryfootwearmarket.TheacquisitionisalsoseenasaresponsetoCoach’sacquisitionofKateSpade,withbothluxuryretailersstrivingtodiversifyandexpandinternationally.
IconicBrandGroupAcquiresRemaining50%StakeinIconicCanadaIconicBrandGroupacquiredtheremaining50%stakeinIconicCanadafromitsjoint-venturepartnerinadealworth$19million.TheacquisitionfitswellwithIconic’sinternationalexpansionstrategy,asthecompanyeyesfurtherpenetrationintotheCanadamarket.BrandslicensedwithIconicincludeLondonFog,EckoUnltdandDanskin,amongothers.
TJXOpensNewOff-PriceConceptStoreHomeSenseTJXisopeninganewoff-pricehomefashionsconceptintheUScalledHomeSense.Fivestoresarecurrentlyinthepipelinebeforetheendoftheyear,withthefirstHomeSensestoreopeninginFramingham,MassachusettsinAugust.TJXbelievesthehomefashionsmarkethasshownpositivityinarelativelybleakretailenvironment,andisdeterminedtofullycapitalizeonthemomentumbybringingthealready-popularbrandinEuropeandCanadatotheUSmarket.
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
July28,2017
Year-to-Date 2017 Major US Store Closure Announcements
Gymboreeannounceditwouldbeclosing350–450stores.RalphLauren’sstoreclosingnumberwaspartofthe50-storeclosureplanannouncedinJune2016.Paylesswillcloseanadditional296storesifnegotiationswithlandlordsareunsuccessful.Ascenawillclosebetween268and667storesbyJuly2019,dependingonnegotiationswithlandlords.Source:Companyreports/FGRT
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36
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44
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60
61
68
70
70
70
100
100
101
110
120
138
160
171
180
190
220
250
289
350
400
400
512
1000
0 200 400 600 800 1000 1200
RalphLauren
TrueReligion
GanderMountain
EasternOufigers
lululemonathlehca
LucyAchvewear
Chico’s
Guess
AlfredAngelo
MCSports
Aaron’s
CVS
Staples
Macy’s
MichaelKors
GordmansStoresInc.
AmericanApparel
BCBG
JCPenney
CrocsInc.
WetSeal
BebeStoresInc
GameStop
hhgregg
TheLimited
SearsandKmart
Gymboree
AscenaRetail
Rue21
PaylessInc
RadioShack
Total: 5,442 announced store closures
165% year over year
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
July28,2017
Year-to-Date 2017 Major US Store Opening Announcements
Aldiwillcompletea400-storeexpansionbytheendof2018.Walmart’stargetof59storesincludesnew,expandedandrelocatedstores.Targetisonlyopeningstoresinsmallformat.Macy’sBackstagewillbeopenedwithinexistingfull-lineMacy’sstores.Source:Companyreports/FGRT
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5
5
10
17
19
20
24
30
52
59
60
60
70
90
100
100
100
111
400
650
1,290
0 200 400 600 800 1,000 1,200 1,400
Fendi
Homesense
ThredUP
Forever21(RileyRose)
Nordstrom
Macy’sBackstage
Bonobos
Costco
Target
Dick’sSporhngGoods,Inc.
Walmart
HobbyLobby
H&M
Sephora
RossStores
Lidl
Ulta
FiveBelow
TJX
Aldi
DollarTree
DollarGeneral
Total: 3,275 announced store openings
53% year over year
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
July28,2017
2016StoreOpeningsandClosures
2016 Major US Store Closures
Source:Companyreports/FGRT
2016 Major US Store Openings
Source:Companyreports/FGRT
91818263434485051
6771
123154154
233243255
463
0 50 100 150 200 250 300 350 400 450 500
JCPenneyFinishLine
Kohl’sAmericanEagle
TheChildren’sPlaceChico’sFAS
StaplesRalphLauren
WolverineWorldWideWalgreens
GapOfficeDepot
WalmartAeropostale
Men’sWarehouse/JosA.BankSearsandKmartHancockFabricsSportsAuthority
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15
19
19
45
53
72
79
93
104
146
584
900
0 100 200 300 400 500 600 700 800 900 1,000
Zara
Target
UnderArmour
Costco
Aldi
H&M
Sephora
Dick’sSporhngGoods
RossStores
Ulta
TJX
DollarTree
DollarGeneral
Total: 2,051 announced store closures
Total: 2,139 announced store openings
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
July28,2017
DeborahWeinswig,CPAManagingDirectorFGRTNewYork:917.655.6790HongKong:852.6119.1779China:86.186.1420.3016deborahweinswig@fung1937.comKirilPopovSeniorAnalyst
EsmePauAnalyst
MatthewLeeResearchAssistantHongKong:8thFloor,LiFungTower888CheungShaWanRoad,KowloonHongKongTel:85223004406London:242-246MaryleboneRoadLondon,NW16JQUnitedKingdomTel:44(0)2076168988NewYork:1359Broadway,18thFloorNewYork,NY10018Tel:6468397017FungGlobalRetailTech.com
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