Posts Tagged ‘retail expansion’

Boscov’s To Seek Bankruptcy Protection

It’s official:

Boscov’s Inc., the 9,500-employee department-store chain founded in 1911 in Reading, Pennsylvania, filed for Chapter 11 bankruptcy protection in Wilmington, Delaware, today, citing decreased consumer spending.

Boscov’s, which said in court papers that it’s the biggest family-owned full-service department store chain in the U.S., will immediately close 10 of its 49 stores. The company said it will borrow as much as $250 million from a group of lenders led by Bank of America Corp. to help it restructure.

The Associated Press has the full list of stores that are closing:

MARYLAND
Marley Station Mall, Glen Burnie
Owings Mills Mall, Owings Mills
White Marsh Mall, Baltimore

NEW JERSEY
Monmouth Mall, Eatontown

PENNSYLVANIA
Harrisburg East Mall, Harrisburg
Monroeville Mall, Monroeville
Montgomery Mall, North Wales
Oxford Valley Mall, Langhorne
South Hills Village Mall, Bethel Park

VIRGINIA
Piedmont Mall, Danville

More coverage from the Associated Press, Wall Street Journal, and Reuters.

This is a blow to the retailer that touts itself as American’s largest family owned department store. In an age of consolidation and rapid, national, retail expansion, Boscov’s was one of the last regional department store chains that we had here in the Mid-Atlantic.

I wonder how many of these locations are being scouted by JC Penney and Kohl’s.

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NYC Chain Stores, By the Numbers

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Let’s play a game. I’ll name two retailers and you guess which one has more locations in the five boroughs of New York City. Ready?

Starbucks vs. Dunkin’ Donuts

McDonald’s vs. Burger King

Rite Aid vs. CVS

Coach vs. H&M vs. Pinkberry

Best Buy vs. American Apparel

According to a new study from the NYC-based think tank, Center for an Urban Future, the numbers are suprising.

Dunkin Donuts has more locations (341) in the five boroughs than Starbucks (235). Though Starbucks’ has more than double the amount of Manhattan locations (186 vs 78). McDonald’s has 248 locations compared to Burger King’s paltry 92. Rite Aid has 209 locations to CVS’s 108, but not as much as NYC-favorite Duane Reade (with 216 locations). Coach and H&M have as many NYC locations as California upstart Pinkberry (all with 12 locations in the city) and would you believe that American Apparel has more locations than Best Buy (16 vs 9).

The details revealed by the study are interesting, with a thorough breakdown of how many locations each retailer has in each borough. It is worth downloading the PDF and taking a look at their results.

Couple of interesting commentaries on the report from the New York Daily News, the New York Observer, and the New York Post.


Photo above from Flickr user lab2112, used under Creative Commons.

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Wal-Mart to cut back on expansion

Over at Big Box Watch, I’ve noted that Wal-Mart has announced that they are scaling back their expansion efforts. New store growth will be reduced to 170 supercenters next year, down from 270 stores that they had originally planned to open this year.

This move by Wal-Mart is a long time coming. The rate that the retailer grew eventually would have to end. Wal-Mart needs to reevaluate their offerings and fuel growth from within, rather than fuel growth with new stores. Their comp store sales have not been strong in a long time, and now they have to figure out way.

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Wal-Mart pulls out of Staten Island proposal

Citing the high cost to clean up toxic chemicals from the site, Wal-Mart has pulled out of a proposed retail development in southern Staten Island. Neighborhood activists say that the proposal was scraped due to local opposition to the project.

Last year, a similar development was shelved in Rego Park, Queens. People are already speaking out against rumors of Wal-Mart in the Bronx. I wonder if Wal-Mart be able to open a store within New York City or if they will only be able to do that after they drastically alter their business model and design. The store design and experience found in the new White Plains store has been talked about. Wal-Mart is going to have to improve on this design and really learn how to work with the community before they will see a store in NYC.

I don’t think Wal-Mart will be able to get approval for a site within NYC within the next three years, at least. Come back to this site in 2009 to see if I am correct.

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Report: Rite Aid to buy Eckerd, Brooks drug stores

Just the other day, I talked somewhat about the pharmaceutical retail industry in New Jersey. In a word, it’s crowded. Like I said the other day, before I even take a look at the local, Mom & Pop pharmacies, I’ve got a CVS, two Eckerds, Drug Fair, Rite Aid, Walgreens, and a Target Pharmacy. Add in the local pharmacies and a couple of supermarkets, it’s a crowded enviroment. A crowded enviroment which is now about to get smaller as reports are that Rite Aid is in discussions to buy Eckerd & Brooks drug stores.

Under terms being discussed, Rite Aid would pay about $1.5 billion in cash, with the rest in stock, The Wall Street Journal reported on its Web site Wednesday night, citing two people familiar with the matter.

The deal would add about 1,800 stores to Rite Aid’s existing 3,300 locations, making Rite Aid a stronger rival to Walgreen Co. and CVS Corp. There are currently 6,171 CVS stores and 5,401 Walgreen stores, according to the companies’ Web sites.

Brooks has about 330 locations in New England and New York.

What does this mean? It gives Rite Aid a leg up and moves itself up the food chain, allowing the retailer to compete better with Walgreens and CVS. I also don’t think this will be the last consolidation-type move within this industry. As consolidation has swept other segments of the retail industry, pharmaceutical retail is not immune and I think that some of the bigger players in the field will be buying up more regional chains over the next few years.

Sidenote - does Rite Aid have the best NYSE stock symbol, RAD, or what?

More coverage from Marketwatch.

Related: last week, Chain Store Age Blog had a funny piece about Walgreens in Lincoln, Nebraska: Walgreens Ahead, and Ahead, and Ahead.

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Target and BJ’s near deal to open stores in Stafford (NJ)

New retail development here in New Jersey.

From the Asbury Park Press:

The firm developing the Stafford Business Park is close to completing a deal that would bring a Target store to the site, according to a firm partner.

Joe Del Duca of the Barnegat-based Walters Group said his company is in the “latter stages” of negotiations with the retail chain. The business park, which recently received a greenlight from the state Pinelands Commission, is located off Route 72 just west of the Garden State Parkway.

Another firm, Scarborough Properties, had been planning to bring a Target to a location further east in Stafford along Route 72. However, Chris Scarborough, a firm principal, said Thursday that his company now plans to bring a BJ’s Wholesale Club to that site, which lies between Doc Cramer and Martin Truex Jr. boulevards.

Scarborough said the BJ’s deal is “98 percent done.”

This is an area of crazy retail development over the past few years, on top of crazy housing development. Wal-Mart and Kohl’s each have new-er stores along this same stretch of road, that sees a large seasonal (Summer) shift in population. A Target going in this area will undoubtedly do very well.

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Finding the balance between community and corporate design

If you’ve driven past a Royal Farms Convenience Store, you may have noticed that it stands out. If you haven’t, take a look at the website and you’ll get an idea of what the stores look like. Using a very bright color pallette, the stores are well designed but boy, do they stand out when you drive down the road. It’s not a bad design at all, it just won’t work every where you would want to put a convenience store.

However, Royal Farms is working with the community in Snow Hill, Maryland, to pacify their fears about the design of their new store on Route 113. The whole area is currently undergoing redevelopment, with the road being widened from two lanes to a four lane divided highway and this new convenience store is just the start of more long term commercial development.

From the story:

“We feel like we foresee that 113 is going to be developed eventually from the Maryland-Delaware line all the way to Berlin,” said Arlene Page, president of the Bishopville-St. Martin’s Neck Road Community Association. “Before we start developing it, could we please have some thought on what it looks like and plan it?”

To me this is an interesting mix of community and corporate design with an eye towards the future. I admit I don’t know much about the area, except that it is very tranquil and beautiful right now. If long term development is expected, it is good to see residents and commercial developers keeping an eye on what is to come and working together.

Much like Wal-Mart’s local store designs, Royal Farms and several other retailers are stepping forward and realizing that one architectural mold will not fit every part of the country.

Retail development doesn’t have to be ugly, it’s just that most of it is. I hope that in a few years we can look at the Route 113 corridor as an example of good, forward-looking retail development that both serves and compliments the community around it.

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J.C. Penney Brushes Off Slowdown Signs, Keeps Bold Expansion Plans

As I talked about last week, JC Penney is looking forward to a strong BTS season. Now, Reuter’s is talking about the economic slowdown and how that may effect JC Penney (see: J.C. Penney Brushes Off Slowdown Signs, Keeps Bold Expansion Plans). Although retailers at large at worried about what may or may not be looming on the horizon, investors believe mid-tier retailers like JC Penney and Kohl’s have the most to gain in the coming months. The article talks a bit about the Sephora venture and JC Penney’s sponsorship of the MTV Video Music Awards.

Speaking of which, the commercials that they are showing on MTV for the JC Penney “VMA Insider” contest are pretty lousy. Not only do they not make much sense, but the fashion that they show in the commercial is just bad - not exactly the best foot forward that they could be going with.

The season is just getting underway now and it should be interesting to see what the early indications are when JC Penney and other retailers release their July sales next week.

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Wal-Mart’s Urban Tale

Great post over at the Chain Store Age Blog discussing Wal-Mart’s new White Plain’s store (see: Wal-Mart’s Urban Tale). The post includes a good rundown about some of the history of White Plains which led Wal-Mart to select it as it’s next urban store. It also has some photos of the store. Although I am a fan of the escalator system, the rest of the store seems very bland and not very exciting. Not the look they are going for, I’m sure.

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First look at Gap

I took a trip to the mall on Saturday, as I already talked about. After jotting down a few thoughts I had after going into a few stores, I wanted to give a little more space to Gap.

First, I’ll just put it out there - I love the Gap store that I stepped in to on Saturday. It is not the same Gap that we’ve seen in seasons past. It is exciting, fun, and I think the merchandise might also be good enough to buy.

At the beginning of June, news started to come out about the re-launch/re-branding of Gap. I shared some thoughts I had then - see: Gap’s Makeover. Concentrating on four shops within the store (denim, t-shirts, active, and “clean”), Gap is looking to create a shopping experience that is fun, as well as easy for the customer to shop.

I think that they may be getting it right.

Walk in to your local Gap store and looks different. Using their trademark blue as the base color, they’ve opened things up with a lot of intricate visual elements balancing large, colorful, retro-inspired graphics & marketing materials. Each zone of the store is compact and easy to shop. On each side of the store (men’s & women’s), they have three small rooms/shops leading into the bigger, open, denim area in the back of the store. On the men’s side, t-shirts/polos leads into a room of khakis and wovens, leading into a room with accessories and the remaining summer clearance, leading into the big denim area. Similar thing on the women’s side: t-shirts and polos leading into wovens and kkahis leading into activewear leading into the denim room.

Simple, simple, simple.

They’ve rethought the merchandise and they’re rethought their shopping experience. They’ve reorganized the merchandise categories, making it easy to find what you’re looking for.

Increased signage and excellent use of mannequins make the experience an exciting one (even having mannequins outside each dressing room, allowing them to showcase more and more outfits). Add in some nice finishing details, including a glass table that is full of literally hundreds of buttons from denim jeans, make it a polished, thought-out concept.

The new styles of clothing showcase their carefully thought-out retreat into stylish basics. Denim, denim, denim, and the new styles are a good balance of trendy and basic.

Will customers respond? Like others have said, it is going to take more than one season to make a turnaround. But this could be a step in the right direction. The buzz that I’ve heard from some is that there are good things in store for this retailer.

My only complaint? I’m not a fan of the merchandising of their denim wall. It appears that they are organizing everything by size, and not by color/wash. This is something I noticed at the end of last season in their stores. All of the jeans are together by style (straight, boot, loose, etc) and then sized - mixing all of the color/washes together. So you go to the shelf for 32×30 and then look through until you find the color/wash you want.

Although it makes an interesting looking wall, I don’t know if it is practical for the customer to shop. I want to find the color I want (dark wash, for example), and then find it in my size. When there are several washes of the same cut together, it seemed hard to find exactly the one I wanted. While I was there, I did overhear one customer remark on the same thing.

Or maybe, to their discredit, the walls were really badly merchandised & recovered when I was there! But it seems too neat to be bad recovery - it seems intentional that all of the washes/colors are mixed. Maybe someone with better knowledge of this can comment on this?

Other than that, great visit to the Gap. Keep an eye out for them and see if customers respond to their Back to School campaign.

Last week I talked about a trip to Old Navy and how their new merchandise mix and merchandising looked for the Back to School season. See also: First look at Old Navy.

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