Weekly Store Openings and Closures Tracker #17: Michael Kors Buys Jimmy Choo

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KEY POINTS

Fung Global Retail & Technology tracks store openings and closures for a select group of US retailers.

  • We forecast that announced store closures will total 9,452 by the end of 2017, exceeding the 6,164 stores closed in 2008. The 5,442 store closures announced year to date are tracking at 59% of our full-year forecast. The forecast for 2017 also represents a year-over-year increase of 361%.
  • This week, Michael Kors announced the acquisition of Jimmy Choo for $1.2 billion.
  • Iconix Brand Group acquired the remaining 50% stake in Iconix Canada for $19 million.
  • TJX is opening five HomeSense stores, its new off-price home fashions concept.
  • Year-to-date 2017, the number of store closure announcements has increased 162% year over year, bringing the total number of stores to be closed to 5,442, with more to surely follow.

2017 Store Openings and Closures

What Is Happening This Week?

No major store closure announcements were made this week, but the retail industry is bracing for another blockbuster acquisition. Michael Kors announced the acquisition of Jimmy Choo for $1.2 billion, a response to Coach’s recent acquisition of Kate Spade. Meanwhile, Iconix Brand Group acquired the remaining 50% stake it did not already own in Iconix Canada. To cap off the week, TJX will be opening a new off-price home fashions concept, HomeSense, with five stores in the pipeline for this year.

 

Michael Kors Acquires Jimmy Choo

Michael Kors has agreed to acquire Jimmy Choo, a luxury footwear brand, for $1.2 billion. The deal came at a time when Michael Kors is facing a downturn of business with declining sales and store closures. With the purchase of Jimmy Choo, Michael Kors plans to expand beyond its own brand name for the first time and establish a presence in the luxury footwear market. The acquisition is also seen as a response to Coach’s acquisition of Kate Spade, with both luxury retailers striving to diversify and expand internationally.

 

Iconix Brand Group Acquires Remaining 50% Stake in Iconix Canada

Iconix Brand Group acquired the remaining 50% stake in Iconix Canada from its joint-venture partner in a deal worth $19 million. The acquisition fits well with Iconix’s international expansion strategy, as the company eyes further penetration into the Canada market. Brands licensed with Iconix include London Fog, Ecko Unltd and Danskin, among others.

 

TJX Opens New Off-Price Concept Store HomeSense

TJX is opening a new off-price home fashions concept in the US called HomeSense. Five stores are currently in the pipeline before the end of the year, with the first HomeSense store opening in Framingham, Massachusetts in August. TJX believes the home fashions market has shown positivity in a relatively bleak retail environment, and is determined to fully capitalize on the momentum by bringing the already-popular brand in Europe and Canada to the US market.

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2016 Store Openings and Closures

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