2017 Store Closings Planned

With a new year comes change. New retail trends. New consumer behavior and demands. New tools and technologies to incorporate. New opportunities.

And with all that is new, retailers are forced to adapt to meet demand and stay ahead of the competition. That sometimes means downsizing to stay competitive and some retailers simply have too many stores.

There’s a total of 14 major retail chains have announced that they will close at least 100 stores by the end of 2020. Others will reach that total by the end of 2017. In some cases, these numbers appear to be on the low side, given the difficulties some retailers are encountering.

Aeropostale. The chain filed for bankruptcy in May 2016 and said it would close 154 stores. Now it appears that the chain will close all but about 230 of its 800 or so stores.

American Eagle Outfitters Inc. (NYSE: AEO). The company plans to close 150 stores over three years.

Chicos FAS Inc. (NYSE: CHS). Planned to close 120 stores between fiscal 2015 and 2017.

The Children’s Place Inc. (NASDAQ: PLCE). Planned to close 200 stores between fiscal 2015 and 2017.

CVS Health Corp. (NYSE: CVS) CVS Health executives outlined their long-term strategy for growth, which includes closing 70 stores in 2017.. The drugstore retailer’s overall cost-cutting plans aim for $3 billion in savings from 2017 to 2021.

Finish Line Inc. (NASDAQ: FINL). Has said it will close 150 stores by 2020.

Hancock FabricsThe company filed for bankruptcy in February 2016 and will close all 255 of its stores.

J.C. Penney — CEO Marvin Ellison made headlines in March that when he told Fortune he wouldn’t undertake “any wholesale closings of stores in its 1,020-location fleet,” though it did shutter seven locations. The Plano, Texas-based retailer operates almost as many stores as it did in 2006, but its annual sales were roughly $7 billion higher back then than they were last year. Ellison told the magazine that Penney’s future lies in e-commerce and physical stores working together.

Kohl’s. After a rocky start to 2016 when it announced 18 store closures, the Wisconsin-based no-frills retailer rebounded and reported better-than-expected results in its most recent quarter. Kohl’s, though, continues to struggle. Comparable-store sales in its latest period fell 1.7 percent, the third straight decline in this closely watched retail metric of sales at stores open a year or more, a worrisome sign for Wall Street.

Macy’s Inc. (NYSE: M). Plans to close 100 stores. The country’s largest department store chain announced plans in August to shutter 100 underperforming locations in 2017, about 15 percent of its brick-and-mortar footprint. Macy’s shed 41 locations last year and axed thousands of employees. Terry Lundgren, who had led the retailer for more than a decade, will step down next year from the CEO spot and become executive chairman.

Men’s Wearhouse Inc./Jos. A. Banks. Parent Tailored Brands Inc. (NYSE: TLRD) plans to close 250 stores, primarily outlet stores.

Office Depot Inc. (NYSE: ODP). At the time of its merger with OfficeMax, the chain said it would close 400 stores by the end of this year, and that appears to be the case.

Sears Holdings Corp. (NASDAQ: SHLD). Between Sears and Kmart stores, the company plans 142 store closings, with more likely. The Hoffman Estates, Illinois-based company has been floundering for years under the control of hedge fund tycoon Edward Lampert, who arranged the merger of Sears and Kmart that created the current company more than a decade ago.

Sports AuthorityAnother bankruptcy, with 140 stores closing.

Walgreen Boots Alliance Inc. (NYSE: WBA). The company planned to close 154 stores. Last week the company announced the sale of 865 Rite Aid Inc. (NYSE: RAD) stores to Fred’s Inc. (NASDAQ: FRED) in an effort to win approval for the Walgreens-Rite Aid merger.

Walmart Stores Inc. (NYSE: WMT). With cost pressures in mind, Walmart said in January that it would close 269 stores around the world, including its small-format Express locations that were designed to compete against the dollar stores that have taken market share from the giant in recent years. Rising expenses are weighing on the world’s largest retailer, which raised the salaries of thousands of hourly employees last year and unveiled a plan to spend billions on expanding its e-commerce operations.

The good news for U.S. retailers this holiday season is that revenues are expected to rise by about 4% and same-store sales are figured to increase by 1%. The less-good news however is that profits for the fourth quarter (ending in January) are expected to fall 1.8%.




Regulators Block Staples and Office Depot Merger

STAPLESThe FTC on Dec. 7 said it had filed an administrative complaint charging that Staples’ proposed $6.3 billion acquisition of Office Depot would violate the antitrust laws by significantly reducing competition nationwide in the market for “consumable” office supplies sold to large business customers for their own use. Staples and Office Depot are each other’s closest competitors in the sale of consumable office supplies to large business customers, according to the complaint.

Staples, Inc. (Nasdaq: SPLS) and Office Depot, Inc. (Nasdaq: ODP) announced that they intend to contest the U.S. Federal Trade Commission’s decision to challenge the merger of the two companies. The companies were informed of the FTC’s decision earlier Monday.

The proposed acquisition would benefit customers, employees and shareholders, and the companies look forward to a full, impartial judicial review of the competitive effects of the transaction.

Staples and Office Depot will demonstrate that the FTC’s decision is based on a flawed analysis and misunderstanding of the intense competitive landscape in which Staples and Office Depot compete. In fact, the FTC’s decision to contest the merger contradicts its own unanimous ruling in the Office Depot – OfficeMax merger in 2013, in which the commission declared the market highly competitive. At the time, the FTC ruled that Staples and Office Depot face “strong competition” from “a host” of competitors. The office products landscape has grown even more competitive since then.

“This merger creates an unparalleled opportunity to better serve customers of Staples and Office Depot,” said Ron Sargent, chairman and chief executive officer, Staples. “The combined company would generate significant savings, and we’re committed to investing savings in lower prices for all customers. We’ll also use the savings to continue to invest in our people, technology and customer service.”

Roland Smith, chairman and chief executive officer, Office Depot said, “The combination of Staples and Office Depot is based on creating an organization able to compete in a vibrant market with strong regional players and powerful new national entrants. We are confident that this transaction is consistent with the 2013 FTC statement in the Office Depot-Office Max merger and intend to pursue legal options in order to complete this transaction.”

The acquisition is expected to generate more than $1 billion of net synergies over the three-year integration period as the combined company aggressively reduces global expenses and optimizes its retail footprint. The savings will dramatically accelerate Staples’ strategic reinvention, which is focused on driving growth in delivery businesses and in categories beyond office supplies.

The companies intend to show that the FTC underestimates the disruptive effect of new competitors in the digital economy and ignores the vigorous competition Staples faces from numerous competitors, including office products dealers, manufacturers selling office supplies direct to business customers, dealers in adjacent categories, cooperatives of regional players, Internet resellers, big-box chains and club stores.

Even though Staples and Office Depot disagree with the FTC’s interpretation of the competitive landscape, the companies proposed divesting more than $500 million in commercial business in an effort to complete the transaction and unlock tremendous value for shareholders and customers. The FTC rejected this solution, even though it would strengthen a national competitor, further enable a host of independent office products dealers, and help minority and woman-owned businesses compete for national commercial customers.

 




Openings & Closings Around Tucson

Open ClosedCHRISTIE’S APPLIANCE CLOSING AT BROADWAY & WILMOT
Christie’s Appliance will be moving out of the Wilmot Plaza at Broadway & Wilmot. Christie’s Appliance has leased a 14,437-square-feet space at Joann’s Center, located on Broadway Blvd, just east of Kolb Rd. The Premises will be used for the retail sale of home appliances, furniture, electronics, mattresses and for related products and services. They are scheduled to open for business January 2015. Andy Seleznov and Melissa Lal represented the Landlord, Larsen Baker, while Craig Finfrock of Commercial Retail Advisors, represented the Tenant.

WHOLE FOODS MARKET AT CASAS ADOBES PLAZA TO OPEN AUG. 27
The newly re-constructed Whole Foods Market at Casas Adobes Plaza, 7133 North Oracle Road will open its doors this week, on Wednesday, August 27 to the public. Previously the store was 16,000-square-feet, it has now doubled to 32,000-square-feet and will feature a dine-in restaurant with 45 seats and additional seating on the patio. The redevelopment razed the building where Starbucks and Einstein Bagels had previously occupied to make room for the expansion.

RILLITO MARKETPLACE TO OPEN IN THE FALL
Pima County is constructing a 12-foot-wide paved path about 600 feet long with three 110-foot-long Ramadas to shade shoppers at Pima County’s Rillito Regional Park, 4502 N. First Ave. in Tucson. Vendors will set up in gravel areas along the paved pathway. Construction of an outdoor marketplace is underway. The marketplace will be in the southeast corner of the park and is expected to be completed by mid-October. The Heirloom Farmers Market is temporarily located west of the Rillito Regional Park during construction and runs from 8 a.m. to noon every Sunday.

JACKSON TAVERN TO OPEN AT PLAZA PALOMINO IN FALL
Later this Fall, Brian Metzger plans to bring Jackson Tavern, named after Metzger’s son ‘Jackson’, to the 3,700-square-feet formerly occupied by Red Sky Cafe at 2900 N. Swan Road in Plaza Palomino. Serving a menu of New England comfort foods and craft beers the Chef, Virginia “Ginny” Wooters is still finalizing the menu. The restaurant will feature a tree-shaded picnic area with tables and chairs and an ice cream stand serving scoops of Ice Cream. Burak Bekat of 23 Studios is architect of the project. Metzger’s first restaurant was o the northwest side of town, Jax Kitchen closed in January. He then opened Poppy Kitchen at La Paloma Resort & Spa, 3770 E Sunrise Drive in March. A bankruptcy filing in May turned over operation of The Abbey at 6960 E Sunrise Drive to his former wife, Sandy Ford in mid-July as part of the divorce settlement. Metzger also has Gio Taco at 350 E. Congress St. downtown, which opened in December.

OFFICE DEPOT CLOSING AT 7220 E BROADWAY
The Office Depot has announced it is closing its doors at 7220 E. Broadway at the end of business Sept. 6. Office Depot acquired OfficeMax Inc. last year, and plans to close at least 400 locations in the U.S. to reduce overlap between the two businesses over the next several years, 165 of those by the end of this year. There are nine other Office Depot and OfficeMax locations in the Tucson area, including an OfficeMax on East Broadway at Craycroft Road, closest to this location.

FIREHOUSE SUBS OPENS NEAR TUCSON MALL
Three years after Firehouse Subs opened in Marana, a second opened Monday near the Tucson Mall. The restaurant is operated by Kristi and Lee Transue, the daughter and son-in-law of the Marana owners Bob and Jo Anne Westerman, who opened Firehouse at 3844 W. River Road in the Marana Marketplace, in summer 2011. Firehouse is a national chain born in Florida in 1994. It sells sandwiches that take their names from fire department lingo including “fully involved” Engineer and a turkey sandwich called the Hook & Ladder. The new restaurant at 475 W. Wetmore Road is open from 10 a.m. to 9 p.m. Sundays through Thursdays and from 10 a.m. to 10 p.m. Fridays and Saturdays

If you know of any openings and closings, please let us know at REDailyNews@outlook.com