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Storefronts: What the tenants are up to

March 12, 2020

Neiman Marcus says it plans to close most of its 22 Last Call outlet stores. The company wants to refocus on its core luxury business. A few Last Call stores will remain open to sell Neiman Marcus clearance merchandise. The Dallas Morning News

Dick’s Sporting Goods will be removing the guns from 440 of its 726 stores this year. The retailer stopped selling hunting rifles and ammunition at 125 stores last year. WSB-TV

Online luxury consignment retailer The RealReal opened its West Coast flagship store, a two-level, 8,000-square-foot unit in San Francisco’s Union Square. KPIX CBS

Supermarket chain Lowes Foods opened two Knock Knock Spirits liquor stores adjacent to two of its grocery stores in South Carolina. These liquor stores have their own entrances, addresses and checkouts, in compliance with local laws that prohibit supermarkets from selling alcohol. The retailer is finding ways to expand its liquor sales in states that have tight restrictions on such retail. The State

Lego says it will open 150 stores globally in 2020, bringing its total count to 720. China will be home to at least 80 of those. Forbes

Art Van Furniture filed for Chapter 11 bankruptcy protection and announced plans to close its 169 stores, which are located in the Midwest. Levin Furniture says it will buy 44 of them. Detroit Free Press

TJX Cos. opened its first Connecticut Homesense store. This 30,000-square-foot unit, at the Enfield (Conn.) Commons shopping center, takes some of the space formerly occupied by Bob’s Discount Furniture. Journal Inquirer

Hustler Hollywood will open an erotica novelty store inside a former Rent-A-Center retail building in Boise, Idaho. Rent-A-Center has relocated. Hustler Hollywood operates some 35 units across the U.S., according to its website. BoiseDev

Modell’s Sporting Goods filed for Chapter 11 bankruptcy protection and announced plans to close its 153 stores, which are located in Connecticut, Delaware, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island and Virginia, as well as Washington, D.C. Bloomberg

Mom-and-pop women’s apparel retailer Bling is opening its 12th store, in Wichita, Kansas. The company, whose stores are located across Kansas and Nebraska, has an additional three units planned for this year. The Wichita Eagle

New Gap Inc. CEO Sonia Syngal

New Gap Inc. CEO Sonia Syngal

Gap taps Old Navy chief to turn around other brands

Gap Inc. named Sonia Syngal, CEO of the conglomerate’s Old Navy business since 2016, the company’s next CEO, effective March 23. Syngal will join the Gap Inc. board and says her top priority will be to strengthen the performance of the Gap, Old Navy, Athleta, Banana Republic, Hill City, Intermix, and Janie and Jack brands.

Shoe chain launches high-tech urban stores

Fleet Feet opened a scaled-down urban concept called Fleet Feet Drop Shop in Portland, Oregon. Fleet Feet Drop Shop stores measure patrons’ feet using 3D-scanning technology and then deliver custom-designed sneakers to the customer’s home within two days. “We saw an opportunity to develop a concept shop sized for the urban retail environment that doubled down on convenience and selection for the customer,” said Wade Pannell, co-owner of Fleet Feet. “At about 1,300 square feet, Fleet Feet Drop Shop has a smaller footprint than a traditional Fleet Feet store, but we’ve removed the constraints of physical inventory in order to maximize every square foot of the customer experience and, ultimately, the customer’s satisfaction in receiving the shoe model and size they need in the color they want.” Carrboro, North Carolina–based Fleet Feet operates 182 stores.

Burlington to shutter e-commerce efforts

Executives of Burlington say the off-price retail chain will focus on brick-and-mortar sales and shutter its e-commerce operation. Difficulties replicating the company’s “off-price treasure hunt” merchandising strategy online combined with slow growth in website sales spurred the decision. “Our average retail unit is $12,” CEO Michael O’Sullivan told analysts on an earnings call. “When you fully account for the cost of merchandising, processing, shipping, accepting returns [via e-commerce], it’s very difficult to make those price points.” O’Sullivan said online sales make up 0.5 percent of the company’s overall business. The company operates 720 stores and has plans to open 54 new ones this year.

By Brannon Boswell

Executive Editor, Commerce + Communities Today