Industry Updates: Discount and Specialty Stores – January 2016
Barnes & Noble has promoted Mary Amicucci to Chief Merchandising Officer.
Dollar Tree has announced that Howard R. Levine CEO; President Family Dollar will be leaving effective January 15, 2016.
Fred Meyer has announced the retirement of Lynn Gust, President Fred Meyer effective January 31st, and the promotion of Jeff Burt to President Fred Meyer. At this time Burt is President of Kroger: Central Division. A replacement will be named at a later date for his current position.
Hancock Fabrics has named Rebecca Flick CFO effective January 4, 2016.
Target announced Janna Potts has been named Exec VP and Chief Stores Officer. Her previous title was Senior VP Human Resources. Also, the company announced that Tina Tyler has left effective January 9th
Walmart announced the departure of Stephen Quinn, the Chief Marketing Officer of Walmart U.S. The role of Chief Marketing Officer of Walmart U.S. will be assumed by Tony Rogers in mid-January.
Dollar Tree has completed its $8.5 billion acquisition of Family Dollar. With the completion of the acquisition the company has approximately 13,000 locations make them by store count the largest in the country.
Ollie’s Bargain Outlet raised its full year outlook after the holiday season sales. The company is projecting an increase of approximately 19% for total net sales and 5.5% increase for same store sales.
Mergers and Acquisitions
Party City has announced they have acquired two franchise groups with 23 locations in Arizona, New Mexico and Kansas.
Pep Boys is being acquired by Icahn Enterprises for more than $1 billion. Bridgestone Corp. had agreed to acquire Pep Boys but has since ended their bid. Icahn Enterprises will pay Bridgestone Corp. a $39.5 million termination fee on behalf of Pep Boys.
Amazon will be opening a 50,000 square foot warehouse in New York City. It will be located on the fifth floor of an office building across the street from the Empire State Building. This is a different type of distribution center than the other distribution centers Amazon operates. This location is for serving Amazon Prime members that can use the Prime Now rapid deliveries service. This service can get their orders in two hours or less. The only Amazon customers that can use this service have paid a $99 a year membership fee.
Amazon announced it is expanding its campus pickup program to the University of Pennsylvania. The staffed location will open this spring; this location will allow students the ability to pick-up and return items they have purchased from Amazon. Members of Amazon’s Student and Prime programs are eligible for free same-day pick-up at this location. This is Amazon’s fifth campus pickup program offering.
Brookstone opened the company’s first overseas location in Nanjing, China
Dollar Tree will be opening 13 new locations in Pennsylvania. The locations are slated to open in Allentown, Bensalem, Bethlehem, Chester, Fairless, Levittown, Woodlyn, Dickson City, South Hampton and Philadelphia.
Kmart will be closing stores across the US with liquidation sales staring January 24th. It is not clear the exact number of closing at this time. The closings will take place in March and April.
Target plans to open at least 11 stores in 2016, most of the new locations will be small store format. Opening in March in Long Beach, CA, and in July two locations in Philadelphia, PA, one in each of the following city/states: Allentown, PA, Brooklyn, NY, Queens, NY, Brookline, MA and Chicago, IL and in October one location in New York, NY, Cupertino, CA and Chicago, IL.
Walmart plans to begin construction on a new supercenter in Whitehall Township, MI. The construction on the location will begin in the spring of 2016 with an opening in 2017. The new supercenter will be approximately 126,000 square feet and located at the southeast corner of US 31 and Whitehall Rd in Whitehall Township, MI.
Walmart announced that the company will be closing 269 locations worldwide this year. This includes 154 locations in the U.S.: 102 Walmart Express locations, 23 Neighborhood Markets, 12 supercenters, six non-supercenters, four Sam’s Clubs, and seven locations in Puerto Rico.