California Centers

MAR 2018

California Centers Magazine serves retailers, developers, shopping center owners, investment sales brokers and tenant representation firms throughout the state of California.

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Page 23 of 28

CORPORATE ACTIONS March 2018 | California Centers Magazine 21 Bon-Ton Stores Inc. may sell all or part of the company as it restructures under Chapter 11 bankruptcy protection. It has also secured $725 million in debtor- in possession financing. OPENINGS & CLOSINGS Sprouts Farmers Market announced it will add six more locations to its 2018 expansion plans. This brings the company's new store count for the year up to approximately 30 across the U.S. Cappriotti's Sandwich Shop signed 50 franchise agreements in 2017 for new units opening in the coming years. Taco Bell projects having 9,000 restaurants opened globally by 2022. J. Crew closed approximately 39 stores in January, amounting to about six percent of its total amount of stores. Wal-Mart Stores Inc. will close 63 Sam's Club locations in 2018, with approximately 12 of those locations to be converted to e-commerce fulfillment centers in efforts to speed delivery of online orders. In addition, the company's legal name will become Walmart Inc. to reflect its growing status as an omni-channel retailer. After the closures, Sam's Club will still operate approximately 597 locations nationwide. Extreme value concept Grocery Outlet has planned 25 new store openings in Oregon, Washington, Idaho, Nevada, California and Pennsylvania in the coming few years. It is specifically targeting the Los Angeles area of CA, with over a dozen sites to feature a new Grocery Outlet. "Each of our stores is independently owned and operated locally in that market," says Grocery Outlet's VP of Marketing, Layla Kasha. "We are really a partner in the community on every level." Annual sales at Grocery Outlet have grown from approximately $500 million in 2001 to nearly $2 billion in 2016. Planet Fitness has reached a 1,500 club milestone, and now claims a presence in all 50 states. The 1,500 th unit was opened in December, and an opening in Hawaii, the only state in which it previously did not operate, occurred in Honolulu in early 2018. The company has signed agreements for another 1,000 locations to be opened across the country, with half of those due to debut in the next three years. "We've been opening about 200 per year for the past couple of years here, and plan to do so in the upcoming years," said CEO Chris Rondeau. T-Mobile has been catering to customers in new regions by opening additional stores, as a result of expanding its coverage in rural and suburban zones. This is in direct relation to its recent efforts at aggressively acquiring spectrum in lower frequency bands, to be able to supply additional coverage to previously underserved markets. Sprouts Farmers Market has added six more locations to its 2018 expansion plans. Spanning five states and slated to be added in the second quarter of 2018, these will bring the new store count for the new year up to about 30 across the U.S. Among cities targeted for new locations in California will be Lincoln and San Diego. Starbucks Corporation and Simon Property Group have reached a settlement in a lawsuit that prevented the coffee chain from closing 77 of the company's 379 Teavana retail locations. "While we don't have specifics around store closures, we can confirm that we've reached an agreement with Simon to settle our dispute," said a Starbucks spokeswoman. Some of the shops in malls owned by Simon Property Group had already closed as of January. Toys "R" Us announced that it will shutter up to 182 underperforming stores across the country as part of its Chapter 11 bankruptcy reorganization plan, affecting approximately 27 stores in California. This represents about 20 percent of the chain's store count. The company plans to focus attention toward its loyalty programs and web/ e-commerce business development aspects in the coming year. Blink Fitness, which broached new markets in 2017, including the Los Angeles market region, has announced it will open more than 25 new locations throughout the U.S. in 2018. H&M announced it will close about 170 stores in 2018 and intends to open as many as 390 new stores in the same time frame. Tropical Smoothie Café closed out the year with 101 new stores being added to its roster, besting its projected goal by one unit, and bringing its overall store count to 630 locations. Massage Heights is aggressively recruiting new single- and multi-unit franchisees to help the brand reach its goal of having 300 destinations opened by the close of 2020. Wetzel's Pretzels aims to continue its robust new store opening pipeline, with continued traditional growth bringing the brand to areas where there is identified white space. It will also incorporate updated kiosk and store design elements, co-designed in partnership with one of the biggest mall landlords in the country. It will also pursue growth strategies for non- traditional sites such as airports and colleges. Rituals, a wellness, beauty and home brand, is expanding its presence with the addition of 10 stores on the West Coast. Founded in 2000 by former Unilever executive Raymond Cloosterman, Rituals intends to have almost 700 stores in 25 countries by the end of 2018. The company believes its ethos fits well with West Coast customers, who are ready for "more mindfulness, health and the 'slowdown' movement," stated Closterman. Tuesday Morning has projected relocating 45 stores, opening 15 and expanding eight stores in 2018, with seven openings and 19 relocations planned for spring of 2018. Nekter Juice Bar opened its 100 th store location, in Anaheim Hills, in February.

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