Weekly Store Openings and Closures Tracker 2018 #22: Claire’s to Close 40 More Stores, Sears Announces Further Closures
KEY POINTS
Coresight Research tracks store openings and closures for a select group of retailers in the US and the UK, as well as major US store bankruptcies.
- Year-to-date 2018, the number of US store closure announcements stands at 4,095 and the number of store openings is 1,884.
- Claire’s says it will close an additional 40 stores while in bankruptcy.
- Five Below announced it will open 125 new stores this year.
- Sears announced a further 63 closures. Its CEO has reportedly received inquiries about sales of the retailer’s assets.
- Year to date in the UK, there have been 631 store closure announcements and 616 store opening announcements.
- Dixon Carphone has announced plans to close 92 stores amid a decline in contract sales.
- Poundworld plans to close 117 stores by August.
- B&M plans to open a further 45 new stores during the year.
- Hema is looking to have 75 locations in the UK.
Coresight Research tracks news about store closures and openings, bankruptcies and management changes. Our Weekly Store Openings and Closures Tracker focuses on department stores and specialty retail, including, but not limited to, softlines, hardlines, consumer electronics, grocery and furniture.
2018 Major US Store Openings and Closures
Year-to-date 2018, the number of US store closure announcements stands at 4,095 and the number of store openings is 1,884.
What Is Happening this Week in the US?
Claire’s Plans to Close Another 40 Stores in Bankruptcy
Claire’s Stores has identified an additional 40 stores for closure. This is in addition to the 92 closures announced in March when the company declared bankruptcy amid a challenging retail environment and threats from e-commerce.
Sears Holdings to Close 63 More Stores
Sears Holdings this week announced a further 63 store closures: it will close 48 Sears stores and 15 Kmart stores by early September. The company initially announced 72 closures before stating that nine of those are being reviewed further.
Five Below to Open 125 Stores This Year
Discount retailer Five Below announced plans to open 125 new stores this year, mostly in existing markets and states, except for the addition of Arkansas. The company made the announcement during its earnings results for the end of the 2017 fiscal year. Management was optimistic about business momentum, merchandising, marketing and the prospects for growth as new stores open up strongly. As of February 3, 2018, the retailer has 625 stores in 32 states.
Non-Store-Closure News
Sears CEO Reports Parties Interested in Asset Sales
ESL Investments, the hedge fund run by Eddie Lampert, the CEO of Sears Holdings, has received inquiries about the possible sale of some of the retailer’s assets. The hedge fund proposed buying the Kenmore appliance brand as well as the Home Improvement Products, Home Services and Parts Direct businesses from Sears. “Our ability to execute the ESL proposal depends on our ability to engage with partners that can provide strategic and/or management experience to these businesses,” Lampert said.
Year-to-Date 2018 Major US Store Bankruptcies
2017 Major US Store Openings and Closures
2017 Major US Store Bankruptcies
2018 Major UK Store Openings and Closures
Year to date in the UK, there have been 631 store closure announcements and 616 store opening announcements.
Dixons Carphone to Shutter 92 Stores
Dixons Carphone has announced plans to shutter 92 Carphone Warehouse stores to bolster margins in its mobile-phone division. The group faced increased pressure, as consumers were holding on to older mobile devices for longer and opting for SIM-only deals over contracts.
Poundworld to Close 117 Stores by August
Poundworld plans to close 117 of its 355 UK stores by the end of August as part of its CVA proposal, almost-one third of its stores. The remaining stores will seek rent reductions. The bankrupt retailer is reportedly seeking £15 million in funding from Santander to finance its turnaround strategy following the CVA.
B&M Opens 47 Stores and Plans to Open a Further 45
B&M opened 47 stores and closed eight in the UK, as of March 2018, and the retailer plans to open a further 45 new stores during the year. Management said that making B&M’s offering accessible to catchments remains its top priority. Heron Foods, which is owned by B&M, opened nine new stores, as of March 2018, and will open 15–20 in the coming fiscal year.
Hema Plans to Have 75 Locations in the UK
Hema, the largest furnishings and housewares chain in the Netherlands, has established its store chain in the UK with nine stores and plans to increase this to 75 locations over time. “In my experience, the UK is the most advanced retail market in the world with the most demanding customers. If we are able to compete properly and succeed in the UK, in my view, we can succeed everywhere,” said Gerardus M. Jegen, CEO of Hema. Coresight Research estimates the company will have established 18 stores in the UK as of the end of the year.
2017 Major UK Store Openings and Closures
