Weekly Store Openings and Closures Tracker #30: Walgreens to Close 600 Stores; Lloyds Pharmacy to Close 190 Stores

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KEY POINTS

Fung GlobFGRT tracks store openings and closures for a select group of retailers in the US and the UK.

  • Year-to-date 2017, the number of store closure announcements in the US has increased 203% year over year, bringing the total number of stores to be closed to 6,121.
  • Walgreens plans to close around 600 Rite Aid stores, starting next spring.
  • Hudson’s Bay Company announced that its CEO will step down effective November 1. The company has sold its Lord & Taylor flagship Fifth Avenue store to WeWork.
  • Toys“R”Us has received court approval for $3.1 billion of new financing.
  • Year to date in the UK, there have been 854 store closure announcements from major retailers, significantly lower on a year-over-year basis. The 750 store openings, however, are a slight increase compared to 2016.
  • Lloyds Pharmacy announced it will close 190 stores.

2017 Major US Store Openings and Closures

FGRT has a dedicated team tracking news about store closures and openings, bankruptcies and management changes. Our Weekly Store Openings and Closures Tracker focuses on department stores and specialty retail, including, but not limited to, softlines, hardlines, consumer electronics and furniture.

What Is Happening this Week in the US?      

Walgreens to Close Around 600 Rite Aid Stores, Starting Next Spring

Walgreens Boots Alliance (WBA) plans to close about 600 drugstores, as it completes its acquisition of Rite Aid stores, according to a company spokesperson. The stores set to be closed were chosen due to overlap with another Rite Aid or Walgreens location. We have not included this 600-store number into our estimate for total store closures announcements for 2017, since the closings will not take place until next spring and will be completed over an 18-month period.

Non-Store Closure News

Hudson’s Bay Company CEO Steps Down

Hudson’s Bay Company (HBC) announced that Jerry Storch will step down as CEO, effective November 1, 2017. Richard Baker, Governor and Executive Chairman of HBC, will take over the role until a permanent replacement is found.

Hudson’s Bay Company Sells Lord & Taylor Fifth Avenue Flagship Building to WeWork

Hudson’s Bay Company (HBC) has entered into a strategic partnership with office-sharing company WeWork. HBC will sell its New York City flagship Lord & Taylor store to WeWork Property Advisors in a transaction valued at $850 million. The Lord & Taylor store is to be converted into WeWork’s New York headquarters, WeWork office space and a redesigned smaller Lord & Taylor store of approximately 150,000 square feet. See our recent report: Hudson’s Bay Company and WeWork Redefine the Traditional Department Store

Toys“R”Us Receives Court Approval for $3.1 Billion of New Financing

Toys“R”Us announced that the US Bankruptcy Court had entered a final order granting the company $3.1 billion in debtor-in-possession financing. The financing is meant to keep the company stocked and operating as normal through the upcoming holiday season and beyond.

 

2016 Major US Store Openings and Closures

 

2017 Major UK Store Openings and Closures

Lloyds Pharmacy to Close 190 Stores

Lloyds Pharmacy announced it will close 190 stores across England because of government cuts, business rates and the apprenticeship levy. The retailer has yet to announce a possible timeline for the closures.

 

 

2016 Major UK Store Openings and Closures