Although the current pandemic has created a flood of negativity around us, the world of retail has recently seen some positive news.
Numerous retailers have released growth plans and better-than-expected performance numbers for their most-recent fiscal quarters. Many of these notions include expanding physical footprints in the brick-and-mortar sector.
The current retail landscape has seen its fair share of ups and downs during the current pandemic, however, there has been plenty of healthy performance numbers and announcements for future expansions.
See for yourself:
Revenue rose 25% for the retailer’s second fiscal quarter last month, with an operating profit that soared to 74%. Being an essential business, Target has remained open through the pandemic, which has clearly served them well. Some of their success is due to increases of online orders placed in-store and curbside pickup.
The farming retailer has had consistent, healthy growth during the current health crisis. Tractor Supply’s net sales increased 35% in their second quarter, with earnings-per-share 61% higher. For their current quarter, the retailer has already seen their sales numbers climb to double digits. The retailer also expects to open 75-80 new stores this year.
American Eagle Outfitters
The past year has led to many expansions for American Eagle, especially with the launch of their newest sub-brand, Offline. The retailer plans to open 25 new Aerie stores this year, including two locations for Offline.
Off-price retailer, Ross, is expecting to open a total of 66 new locations by the end of this year. At the start of 2020, the company announced their plans to open 100 Ross Dress for Less and dd’s DISCOUNTS stores.
So far this year, the discount retailer has opened 84 new stores, and expects to end the year with 110 new locations.
The German grocery chain has announced plans to invest more than $500 million to open 50 new stores by 2021.
Burlington Coat Factory
The off-price retailer made the decision to close/relocate some of their locations. However, they will also be expanding with 36 new stores by the end of the year.
The discount grocery chain has planned for an additional 70 new US stores by the end of 2020.
The grocery store chain is expanding their physical footprint throughout Florida this November with four new stores. Winn-Dixie plans to open even more stores within the region in early 2021.
Costco has shown reluctance towards offering e-commerce pickup options, however their financial results showcase a clear success rate among consumers. At the end of their fourth quarter, their membership-renewal rate came in at 91%, an all-time high for the retailer.
The luxury retailer has achieved recording-beating numbers for their most recent fiscal quarter. RH’s financial results featured soaring percentages for net revenue, margins and income. The recent sales spike in the home décor sector has certainly benefited the retailer. However, their main traffic driver is the luxurious atmosphere they bring to their showrooms.
“Physical retailing is not dead. It simply lacks imagination,” said RH Chief Executive Officer Gary Friedman on CNBC’s Mad Money.
Lululemon’s second quarter results beat expectations, with a total revenue of $903 million. This past year has been an inflection point for the retailer, allowing them to focus on their omnichannel presence.
The craft retailer noted a successful second quarter, with a net sales increase of 11%, surpassing initial estimates. Michaels also announced plans to hire for over 16,000 seasonal positions. The holidays are expected to create significant traffic and sales for the retailer. With this, Michaels hopes to provide an exceptional level of customer service.
Ulta has remained focused on growing and expanding their operating model as the retail landscape continues to change during these times. The beauty retailer has announced plans to open at least 30 new stores in 2021, with an optimistic outlook for continual growth.
The Swedish furniture retailer is experimenting with new retail concepts around the US. IKEA will open 50 new smaller-format stores in urban areas such as New York City, Los Angeles and Chicago.