Report: Retail closings outnumber openings
Bethesda, Md. A new report from CoStar Group revealed that major U.S. retailers closed nearly 7,000 stores while opening approximately 5,700 new locations in 2008.
The result is a net loss of more than 1,000 stores for the year, according to research compiled by CoStar Group’s news division. The net loss in store count, while not unexpected, follows several consecutive years of retail expansion and substantial net store growth.
The approximately 250 major retail chains CoStar included in this study have reported plans to open nearly 4,000 and close nearly 3,600 stores in 2009. However, if signs of an economic recovery remain elusive, retailers could adjust their store-opening guidance downward by mid-year, as they have the past two years.
In addition, the store-closing guidance issued by these retailers of 3,600 stores for 2009 will almost certainly increase, said CoStar, as additional retailers fall victim to the economy in the form of store closings and liquidations.
The major retailers CoStar sampled for this study opened nearly 6,500 stores in 2007 and 5,700 stores in 2008. If the nearly 4,000 planned openings are carried out in 2009, store-opening activity would be down a whopping 39%, in comparison to 2007 levels.
On a net basis, as a percentage of total store count, retailers in the pet supply, dollar store/deep discount, warehouse club, drug store, grocery, and big-box discount categories are projecting the biggest gain in stores in 2009, while retailers in the electronics, discount department, jewelry, apparel and office-supply categories are projecting the biggest loss in store counts for 2009.
Among those included in the CoStar analysis, the specific retailers planning to open the most U.S. stores in 2009 include Walgreens (540), Dollar General (450), CVS (275), Gamestop (250), Dollar Tree (235), Family Dollar (200), Walmart Supercenter (125), Aldi (80), Target (75), and Tractor Supply Co. (75).
Conversely, the specific retailers credited with the highest level of 2009 closings include Circuit City (567), Ritz Camera (400), Goody’s (287), Steve & Barry’s (252), Jones Apparel (225 – note this is for 2009 and 2010 closings), Blockbuster (150), Office Depot (118), Rite Aid (117), Zales (115), Gap (100), and Charming Shoppes (100).
In 2008, Linens ’n Things (589), Movie Gallery (530), Friedman’s Jewelers (377), Whitehall Jewelers (373), Blockbuster (277), Ace Hardware (242), Rite Aid (200), Sharper Image (184), Mervyns (176), Charming Shoppes (156), Circuit City (155), Demo (153), Claire’s (118), Value City (113), Waldenbooks (112), Transworld Entertainment (111), Zales (105), and CompUSA (103) are credited with closing the most stores — this list is overwhelmingly comprised of retailers that liquidated in bankruptcy.
Pathmark launches major savings event
MONTVALE, N.J. Pathmark unveiled its BIG SAVE event, which kicks off at all 144 Pathmark stores on May 1.
Savings throughout the store include Yellow Tag weekly price specials throughout the store, as well as thousands more items on Price Hold, which guarantee the same great low price from week-to-week for an extended time.
Pathmark is also running a special BIG SAVE Sweepstakes with prizes for four lucky winners including Two Panasonic Viera 50-inch Televisions, One Year of Groceries for free or the ultimate Grand Prize, a Mini Cooper convertible car.
Borders names head merchant for non-book products
ANN ARBOR, Mich. Borders Group announced that Michael Oprins has been named VP merchandising for non-book products. Oprins, who has been with the company for more than 18 years, is responsible in this newly created position for leading buying teams in non-book categories including: music, DVD, bargain, digital, newsstand, calendars, games, trend gifts and candy.
Oprins brings more than 25 years of retail experience to the position, including several leadership posts at Borders Group that have ranged over nearly two decades from Waldenbooks district manager and divisional merchandise manager to director of merchandising within the children’s and calendar businesses. In 2002, Oprins was named VP cafe operations, and two years later, was appointed VP Paperchase operations, where he developed and led the introduction of Paperchase gift and stationery shops in U.S. Borders superstores.