Tiger Direct (mostly) abandoning brick-and-mortar operations
Consumer electronics retailer Tiger Direct has decided that brick-and-mortar is overrated.
The retailer is closing all but three of its 34 physical stores in the U.S. and internationally in order to focus exclusively on e-commerce.
An IT products and solutions provider, the company has made the strategic decision to accelerate its business-to-business and public sector customer focus, but mostly via its website.
“We appreciate the continued support of our valued customers over the years and hope they take advantage of the significant discounts during store-closing sales events. We also encourage our customers to continue to shop tigerdirect.com for future savings and an outstanding assortment of products,” said Adam Shaffer, president of Tiger Direct Business.
DJM Real Estate, a division of Gordon Brothers Group, has been retained to dispose of 27 TigerDirect stores in the United States and Canada. These properties are available for sublease or assignment and range from 14,000- 33,400 square feet.
TigerDirect.com, a subsidiary of Systemax Inc., has been serving businesses and personal electronics users for more than 25 years.
Express to open at least 30 outlet stores
Express is going full-steam ahead with its outlet-store strategy, with plans to open 30-plus stores in 2015. The retailer ended the year with 41 outlet stores in operation.
“Together they generated approximately $55 million of incremental revenue, far surpassing our initial estimate,” said Paul Dascoli, senior VP and CFO, Express, on the chain’s quarterly earnings call. Express is expanding its outlet store division both through new construction and conversions.
About half of its current outlet portfolio is made up of conversions from full-price Express stores in outlet malls or from Express clearance stores.
Big moves and profits for Citi Trends
The turnaround at Citi Trends seems nearly complete and now the urban fashion retailer is making some major executive moves just as it reported impressive fourth quarter results.
The retailer announced that Ed Anderson is retiring as CEO, effective March 21. Jason Mazzola, currently EVP and CMO, will become president and CEO effective March 22 and has been also appointed to the Board of Directors.
Additionally, Bruce Smith, the Company’s Executive Vice President and Chief Financial Officer, will also become its Chief Operating Officer.
The high level personnel moves were announced in conjunction with spectacular fourth quarter results that highlight the effectiveness of the company’s business model. Sales increased 15.2% to $181 million and same store sales increased 13.9% during the period ended Jan. 31. The strong sales fueled a dramatic rise in profitability, with net income increasing 213% to $4.7 million, or 31 cents a share, from $1.5 million, or 10 cents a share, during the fourth quarter the prior year.
“When I came back to the company at the beginning of 2012, my job was to lead a turnaround of the company,” Ed Anderson said. “That work is largely complete as the Company just reported a very successful 2014 and again is in strong financial condition. The successful turnaround of Citi Trends could not have been done without Jason Mazzola. He is an extraordinarily skilled merchant, leader and executive. He has earned this promotion and he will do well.”
Citi Trends Inc. operates 513 stores in 29 states.