Download - Weekly Store Closures Tracker #17: Michael Kors Buys · Iconic Brand Group Acquires Remaining 50% Stake in Iconic Canada Iconic Brand Group acquired the remaining 50% stake in Iconic

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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

[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

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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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July28,2017

Year-to-Date 2017 Major US Store Closure Announcements

Gymboreeannounceditwouldbeclosing350–450stores.RalphLauren’sstoreclosingnumberwaspartofthe50-storeclosureplanannouncedinJune2016.Paylesswillcloseanadditional296storesifnegotiationswithlandlordsareunsuccessful.Ascenawillclosebetween268and667storesbyJuly2019,dependingonnegotiationswithlandlords.Source:Companyreports/FGRT

23

27

32

36

40

44

50

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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July28,2017

Year-to-Date 2017 Major US Store Opening Announcements

Aldiwillcompletea400-storeexpansionbytheendof2018.Walmart’stargetof59storesincludesnew,expandedandrelocatedstores.Targetisonlyopeningstoresinsmallformat.Macy’sBackstagewillbeopenedwithinexistingfull-lineMacy’sstores.Source:Companyreports/FGRT

3

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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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

10

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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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