For use by original recipient only. It is illegal to forward or otherwise distribute without permission. To report violations call (800) 421-3483.
Crittenden
Retail Space
TM
Crittenden Research, Inc.
P.O. Box 1150
Novato, CA 94948
(800) 421-3483
Vol. 26, No. 12
June 18, 2012
MONEY-MAKING MATTRESS CHAINS GROW NATIONWIDE
Ashley Furniture Industries will join the mattress game this year with its first 50 Zzz’s By Ashley
locations. Levin Furniture also enters the bedding niche with another 20 Levin Mattress locations during
the next two to three years. The new target is twice the original goal of eight to 10 more mattress stores.
This niche is often favored by landlords and property managers because of the wide variety of secondgeneration spaces they will take along with their willingness to relocate stores and adjust their property
types to fit most locations.
Ben Thorud, the man in charge of Zzz’s rollout, sees the potential for several thousand mattress stores
over the next decade — excessively optimistic, perhaps, but his statement illustrates the company’s
willingness to be aggressive. The company also has more than 400 Ashley HomeStores locations and last
year’s total sales of $3 billion bode well for the future of both chains. The Zzz’s aggressive rollout pace
means the chain will quickly cozy up next to Mattress Firm and Sleep Number by Select Comfort, the
two largest mattress chains. The fragmented nature of the mattress market — no one chain has more than a
10 percent share of the industry’s sales — also ensures regional chains such as Sleepy’s, and Mattress
Warehouse on the East Coast, and Sleep Train and Relax The Back on the West Coast, will all keep their
respective real estate departments humming. Zzz’s stores average 4,500 s.f. each. The mattress division
will eventually build its store base through a combination of company-operated stores and licensed
locations, similar to the set up which has worked for the HomeStores. Look for Zzz’s mattress products to
eventually work their way into the Ashley furniture stores.
Levin Mattress will open its fifth store overall later this month in Monroeville, Pa. Three stores also
opened last month, two in the Pittsburgh area and one in Cleveland. The mattress stores average 4,500 s.f.
and open in the same Pittsburgh and northeastern Ohio markets already served by the furniture-only stores,
providing a support system for the still relatively new concept, which debuted last September. Levin
Furniture overall is coming off sales of $175 million last year, a 17 percent increase over the previous year.
Mattress Leader Eyes Century Mark
Mattress Firm sees the potential to reach 2,500 stores nationwide in four to five years, more than double its
current 935 stores. The mattress leader will finish this year with 100 new stores, which would give it two
consecutive years of more than 100 new stores. The chain opened 106 last year. Mattress Firm is
evaluating sales from its eight mall stores, which are now in the test stage. Most stores are now on pads or
open as part of a shopping center. The company projects comps of a positive 10 to 12 percent by year-end
and total sales of $1.03 billion to $1.06 billion. Mattress Firm recorded positive comps of 16.1 percent in
the first quarter, its 11th consecutive quarter of positive comps. The chain also expects the 180 former
Mattress Giant stores, acquired on May 2, to pull in total sales of $90 million to $95 million by year-end.
The new owners expect the acquired stores to reach Mattress Firm’s system average of $1.1 million in two
years. Mattress Firm will eventually close 25 to 35 of the acquired stores over the next few years as leases
come due. The mattress stores can open in 4,500 or 6,100 s.f.
Sleep Number will add 50 off-mall stores this year, even though most of its 380 stores are in malls. The
chain wants to reach 500 stores and $3 million in sales by 2015. Several of the off-mall stores will open as
part of negotiations of lease renewals, in search of more visible locations. The off-mall stores open in
2,400 to 2,500 s.f., while mall stores require 1,600 to 1,700 s,f. Look for a net gain of 19 to 29 stores this
year and for the immediate future. Parent company Select Comfort Corp. posted record comps of positive
34 percent for the first quarter and expects to finish this year with comps of at least 15 percent. The Sleep
Number stores have slightly higher average store sales than Mattress Firm, reaching $1.9 million.
Continued on Next Page
Quotation not permitted. Material may not be reproduced in whole or in part in any form whatsoever. Copyright © 2012 Crittenden Research Inc.
For use by original recipient only. It is illegal to forward or otherwise distribute without permission. To report violations call (800) 421-3483.
Page 2
Crittenden’s Retail Space™
MONEY-MAKING MATTRESS CHAINS GROW NATIONWIDE…
Continued from Previous Page
Sleepy’s has opened 85 stores so far this year, putting it on track to reach its goal of 100 new stores for the
year. The Hicksville, N.Y.-based chain, with most of its stores on the East Coast, will continue its push
into the South over the next year with market debut stores in Charlotte and Greensboro, N.C. The mattress
chain will also add to its five stores in the Raleigh, N.C., market. Sleepy’s is also back in Albany, N.Y., for
more stores. One of the 2012 openings will be in Clifton Park, N.Y. The store will take half of a 15,000
s.f. space, formerly occupied by Borders. The rest of the space is being subdivided into two spaces of
3,500 and 4,700 s.f. Sleepy’s also opened another store in Clifton Park this spring, converting a 4,500 s.f.
space formerly occupied by Orthodontic Centers of America. The company also re-opened in a former
Nash’s Sporting Goods store in Columbia Heights, Md., earlier this year. Sleepy’s stores can open in
4,000 to 7,000 s.f.
Mattress Warehouse, an East Coast rival of Sleepy’s, needs to open eight more locations to finish the year
with 15 new stores. The mattress stores will convert former Blockbuster and Movie Gallery locations
after receiving a vanilla shell from the landlord. Mattress Warehouse competes with Sleepy’s for 4,500 to
7,000 s.f. spaces in Pennsylvania, Virginia, West Virginia and the Washington, D.C./Baltimore area. The
mattress chain will also open in Greensboro and Wake Forest, N.C., this year, two markets where Sleepy's
has just a few locations. The mattress stores can open on end caps or in the middle of shopping centers.
Leases run 10 years on the primary term, with options totaling another 15 years. Mattress Warehouse
operates 160 locations.
On the West Coast, most of Sleep Train’s real estate activity this year will consist of relocations. The
256-store chain has leases for a total of 65 locations coming up for renewal or kickout options. The
Mattress Discounters West division will account for 10 to 15 of the 30 new stores planned for this year.
Mattress Discounters West will open in Portland and Seattle. Sleep Train will also open six stores in its
existing markets. One of the 2012 openings will be the first-ever mall store, which will open at the end of
this month in the Roseville Galleria in Roseville, Calif. The mall store will be a test and will open in
1,800 s.f., much smaller than the traditional 5,000 s.f., used on pads, power centers or on end caps in
shopping centers. Sleep Train and Sleep Train Depot account for 102 of the total locations.
Relax The Back will equal last year’s new store pace with five openings in 2012. Familiar markets in
Arizona, Florida and Texas are all potential states for new stores. Relax The Back stores open in 2,200 to
2,800 s.f., whether in new or second-gen spaces. The stores sell ergonomic work station items such as
keyboards and chairs as well as mattresses and other office furniture. There are a total of 100 locations.
REGIONAL RIVALS PRESSURE NATIONAL GROCERS
National limited assortment grocery chains will face regional challenges from Amelia’s Grocery Outlet
and Valu Land, both of which will break out of their respective single-state coverage areas in two years.
Amelia’s, which now has the backing of discount grocer Grocery Outlet, will penetrate Delaware,
Maryland and New Jersey in 2014 while Valu Land will venture outside of Michigan for the first time.
Ohio-based Marc’s Deep Discount also looks to grow. All three will face staunch competition from
national powerhouses ALDI, Save-A-Lot, Fresh & Easy Neighborhood Market and Trader Joe’s,
which dominate the limited assortment grocery niche and promise to keep the pedal to the metal in a bid to
further shore up market share.
Amelia’s will start out with four new locations this year before doubling that pace with eight more in 2013,
all in its home state of Pennsylvania. Grocery Outlet, which acquired Amelia’s in January, is confident it
can eventually expand its 14 stores to 110 by entering other East Coast states, in addition to Delaware,
Maryland and New Jersey. The new parent company will keep Amelia’s headquarters and distribution
center in place to support further East Coast growth for the chain. Grocery Outlet will open 15 namesake
stores this year and will up the pace to 20 openings next year. Familiar markets in California, Oregon and
Washington are all prime areas for growth. The Grocery Outlet stores need pads of two acres each or slots
in open-air shopping centers anchored by similarly discount-oriented chains like Walmart, Costco, Ross,
Marshalls, TJ Maxx, and Dollar Tree.
Continued on Next Page
Quotation not permitted. Material may not be reproduced in whole or in part in any form whatsoever. Copyright © 2012 Crittenden Research Inc.
For use by original recipient only. It is illegal to forward or otherwise distribute without permission. To report violations call (800) 421-3483.
Crittenden’s Retail Space™
Page 3
REGIONAL RIVALS PRESSURE NATIONAL GROCERS…
Continued from Previous Page
Grocery Outlet is coming off $1 billion in sales for 2011. The chain has 160 stores in six states, all on the
West Coast. Amelia’s and Grocery Outlet both open in 15,000 to 20,000 s.f.
Expect Valu Land to open four to six stores through late March, the end of its current fiscal year. Parent
company Spartan Stores Inc. considers its first limited-assortment stores as its ticket outside of Michigan.
The Grand Rapids, Mich.-based chain has to deal with running all 96 of its traditional supermarkets in the
Wolverine State, which has one of the highest unemployment rates in the nation. Spartan Stores has
opened just one traditional location during each of the last three years but early response to Valu Land
shows strong promise for future growth in the limited-assortment niche. Valu Land stores cost less to build
because of their 18,000 to 20,000 s.f. size requirements. The traditional supermarkets open in 48,000 to
50,000 s.f. The first two Valu Land locations opened in former Glen’s Market and Family Fare locations,
two of the four traditional supermarket concepts under the Spartan Stores umbrella.
ALDI will open 80 to 90 stores both this year and next. The first store in the Manhattan borough of New
York City will open this fall and the first 10 stores in the Houston market will open next spring; the
company plans 30 Houston openings through 2015. ALDI, which operates more than 1,200 stores in
31 states, pulls in more than 20 million customers per month. The stores take 17,000 s.f. and need at least
two acres of land to insure at least 85 parking spaces.
Save-A-Lot Blooms in Food Deserts
Look for Save-A-Lot to concentrate on rural and urban markets — particularly ‘food deserts’ that do not
have traditional supermarkets in the area — for several of this fiscal year’s 50 additional stores. The chain
last month added a store in Atlantic City, N.J., which qualifies as a food desert area because there are no
full-service grocery stores within a 21 mile radius. Save-A-Lot sees enough sites in these supermarketdeprived markets to open 250 locations over the next five years. Almost all the stores Save-A-Lot added
last year were in markets designated as food deserts. The stores average 15,000 s.f. and carry 25,000 SKUs
per store. Save-A-Lot finished the last year with positive comps of 3.2 percent from its 1,332 stores.
Parent company SUPERVALU Inc. also plans to remodel a total of 100 locations across its system, which
includes 1,102 traditional supermarket and drugstore concepts under multiple nameplates.
Tesco PLC, owners of Fresh & Easy, expects its limited assortment stores to become profitable in 2014, a
year later than originally planned. The chain’s operating loss did decline 18 percent last year, dropping to
$235.4 million, and comps were up 12 percent as total sales rose 27 percent to $1.02 billion. Fresh & Easy
will finish this FY with 230 locations in Arizona, California and Nevada by reaching its target of 45 new
locations. The chain has opened 26 locations so far this year, pushing its total store count to 197. Fresh &
Easy can open its Express format in 3,000 s.f., in addition to its more traditional 10,000 s.f. footprint. The
Express stores, which rolled out last year with seven locations, will add at least two more this year, in Bell
and Palos Verdes Estates, Calif. Express can take over former Blockbuster Video locations. Tesco PLC
had originally talked about taking Fresh & Easy to 200 locations by 2009. Now, three years later, it is
closing in on that goal.
Making Trades for Shopping Center Spaces
Trader Joe’s will open at least 19 locations this year, including one this August in Winston-Salem, N.C.
The first Austin location will also open next year. Monrovia, Calif.-based Trader Joe’s already has opened
two Houston locations this year in Memorial and Montrose and plans to add more stores in Dallas, Fort
Worth and Plano. The Trader Joe’s stores can open in 10,000 to 14,000 in shopping center spaces. The
company has over 375 locations in 31 states, generating estimated sales of $9 billion.
Look for Marc’s Deep Discount to open in former supermarket spaces. The opportunistic retailer will open
its first location in over a year in the fourth quarter in a former Giant Eagle space in the Brecksville Town
Center in Brecksville, Ohio. Construction on the future 46,000 s.f. location started last month. Marc’s
Deep Discount will also be taking over same adjacent spaces. The chain has 62 stores in the Cleveland,
Akron, Canton, Columbus, and Youngstown markets. It also has six similar format stores trading as Xpect
Discounts in Connecticut.
Quotation not permitted. Material may not be reproduced in whole or in part in any form whatsoever. Copyright © 2012 Crittenden Research Inc.
For use by original recipient only. It is illegal to forward or otherwise distribute without permission. To report violations call (800) 421-3483.
Page 4
Crittenden’s Retail Space™
CONTACTS
Company (Parent Company)
7-Eleven
(7-Eleven Inc.)
http://www.7-11.com
Address
1722 Routh St.
Suite 1000
Dallas, TX 75201
ALDI
(ALDI Inc.)
http://www.aldifoods.com
U.S Office:
200 N Kirk Road
Batavia, IL 60510
Amelia’s Grocery Outlet
(Grocery Outlet, Inc.)
http://www.ameliasgo.com
Au Bon Pain
(A Bon Pain Corp.)
http://www.aubonpain.com
4030 Graybill Road
Leola, PA 17540
Corner Bakery Cafe, The
(The Corner Bakery)
http://www.cornerbakerycafe.com
Casey’s General Stores
(Casey’s General Stores Inc.)
http://www.caseys.com
Circle K
(Alimentation Couche-Tard Inc.)
http://www.circlek.com
Fresh & Easy Neighborhood
Market
(Tesco, PLC)
http://www.freshandeasy.com
1 Au Bon Pan Way
Boston, MA 02210
21700 Park Central Drive
Suite 1300
Dallas, TX 75251
1 S.E. Convenience Blvd.
Ankeny, IA 50021
12911 N. Telecom Parkway
Tampa, FL 33637
U.S. Office
2120 Park Place
Suite 200
El Segundo, CA 90245
Contact/E-Mail Address
Phone Number/Fax
CA (Los Angeles, Orange County)
Mike Austin
(972) 828-4211
Real Estate
[email protected]
CA (San Francisco, Bay Area) NV, OR, WA)
Marc Clough
(972) 828-4247
Real Estate
marc.clough @7-11.com
CA (San Diego, Riverside), Denver, Las Vegas,
Salt Lake City, St. Louis, Kansas City
Steve Oliver
(972) 828-4257
Real Estate
stephen.oliver @7-11.com
Chicago, Detroit, TX (DFW/Austin)
Mike McCormick
(972) 828-4986
Real Estate
[email protected]
CT, Boston, NJ, Philadelphia, New York (Metro) RI
Ken Barnes
(972) 828-4916
Real Estate
[email protected]
Florida
Grant Distel
(702) 445-4313
Real Estate
[email protected]
Washington, D.C./Baltimore, VA
Armand Keurian
(972) 828-4953
Real Estate
[email protected]
Chris Stair
(630) 879-8100
Director of Real Estate
Ext. 7737
[email protected]
Brian Holcombe
(630) 879-8100
Director of Real Estate
Ext. 7737
[email protected]
Ken Graff
(877) 243-5427
Real Estate
[email protected]
Corey Andrews
(617) 423-2100
Director, Real Estate
fax: (617) 423-7879
[email protected]
John Billingsley
(617) 423-2100
EVP, Chief Services Officer
fax: (617) 423-2100
[email protected]
Jonathon Benjamin
(972) 619-4100
VP, Franchise Development
[email protected]
Kirk Haworth
(515) 965-6100
Director of Real Estate
fax: (515) 965-6107
[email protected]
Butch Seber
(813) 910-6879
VP, Development
fax: (813) 910-6912
[email protected]
Central Coast, Central Valley, Kern
County, Los Angeles
Linda Haynes
(310) 341-1200
Real Estate Director
[email protected]
Las Vegas, Phoenix, San Diego,
Orange County, San Bernardino
Tom Scorer
(310) 341-1200
Real Estate Director
[email protected]
Los Angeles, Riverside
Wally Cathey
(310) 341-1200
Real Estate Director
[email protected]
Reno, Sacramento, San Francisco
Schuyler Jackson
(310) 341-1200
Real Estate Director
[email protected]
Continued on Next Page
Quotation not permitted. Material may not be reproduced in whole or in part in any form whatsoever. Copyright © 2012 Crittenden Research Inc.
For use by original recipient only. It is illegal to forward or otherwise distribute without permission. To report violations call (800) 421-3483.
Crittenden’s Retail Space™
Page 5
CONTACTS
Continued from Previous Page
Company (Parent Company)
Fresh & Easy
(Cont’d)
Address
2120 Park Place
Suite 200
El Segundo, CA 90245
Grocery Outlet Bargain Market
(Grocery Outlet Inc.)
http://www.groceryoutlets.com
2000 Fifth Street
Berkeley, CA 94710
Kangaroo Express, Pantry,
Corner, Pantry, Golden Pantry,
Handy Pantry
(The Pantry Inc.)
http://www.thepantry.com
Kum & Go
(Kum & Go, L.C.)
http://www.kumandgo.com
Levin Mattress
(Levin Furniture)
http://www.levinfurniture.com
Mattress Firm
(Mattress Firm Holding Corp.)
http://www.mattressfirm.com
Mattress Warehouse
(Mattress Warehouse Inc.)
http://www.sleephappens.com
Marc’s Deep Discount
(Marc’s Deep Discount)
http://www.marcs.com
QuikTrip
(QiuikTrip Corp.)
http://www.quiktrip.com
Panera Bread
(Panera Bread Co.)
http://www.panerabread.com
RaceTrac, RaceWay
(RaceTrac Petroleum, Inc.)
http://www.racetrac.com
Relax The Back
(Relax the Back Corp.)
http://www.relaxtheback.com
Save-A-Lot
(SUPERVALU Inc.)
http://www.save-a-lot.com
http://www.sav-a-lot.com
305 Gregson Drive
Cary, NC 27511
Sleep Number by Select Comfort
(Select Comfort Corp.)
http://www.sleepnumber.com
Sleep Train, Mattress Discounters
West
(Sleep Train Mattress Centers)
http://www.sleeptrain.com
Sleepy’s
(Sleepy’s, Tbe Mattress
Professionals)
http:/www.sleepys.com
Contact/E-Mail
Phone/Fax
Southern California (Express Format)
Adam Mayfield
(310) 341-1200
Real Estate Director
[email protected]
SF Bay Area, ID, SD, WA
Marc Drain
(510) 704-2819
VP, Real Estate
fax: (510) 649-1484
[email protected]
CA (central, south), NV, OR
Bill Coyle
(510) 845-1999
Real Estate
fax: (510) 649-1484
[email protected]
Joanna Detling
(919) 774-6700
Director of Real Estate
fax: 919 777-5139
[email protected]
6400 Westtown Parkway
West Des Monies, IA 50266
Nikki Phillips
Real Estate/Construction
(515) 226-0128
301 Fitz Henry Road
Smithon, PA 15479
Joe Fleckenstein
VP, Bedding/New Business
[email protected]
Bruce Levy
VP, Real Estate/Construction
[email protected]
Sam Tucker
Real Estate
[email protected]
Ken Sustin
Real Estate Department
[email protected]
Pam Friggel
Real Estate Manager
[email protected]
Cory Davenport
VP, Franchise Development
(724) 872-2050
5815 Gulf Freeway
Houston, TX 77023
4949 New Design Road
Frederick, MD 21703
5841 W. 130th St.
Parma, OH 44130
4705 S. 129th East Ave.
Tulsa, OK 74134
3630 S. Geyer Road
Suite 100
St. Louis, MO 63127
P.O. Box 15035
Atlanta, GA 30348
6 Centerpointe Drive
Suite 350
La Palma, CA 90623
100 Corporate Office Drive
Earth City, MO 63045
9800 59th Ave. N.
Minneapolis, MN 55442`
2205 Plaza Drive
Rocklin, CA 95765
1000 S. Oyster Bay Road
Hicksville, NY 11801
(713) 651-2049
fax: (713) 921-4053
(301) 682-8504
fax: (301) 831-4672
(216) 265-7700
(918) 615-7700
fax: (918) 615-7335
(314) 984-1000
Jamie Campbell
Real Estate
(770) 431-7600
fax: (678) 503-1262
Kurt Buehler
Real Estate Manager
[email protected]
North Central Region
Mike Reed
Real Estate Director
Mike.Reed @supervalu.com
Northeast Region
Wayne D. Kirk
Real Estate Director
[email protected]
South Central Region
David A. Fabian
Real Estate Director
[email protected]
Southeast Region
Alex Garcia
[email protected]
West Region
Jeff Dierck
Real Estate Director
[email protected]
John Key
Director, Real Estate
[email protected]
Greg Aguirre
Real Estate
[email protected]
(714) 736-7941
fax: (714) 523-2980
Andrew Pittel
Real Estate Director
[email protected]
(314) 264-7854
(314) 264-7854
(314) 264-7854
(314) 264-7854
(314) 264-7854
(763) 551-7000
fax: (763) 694-3386
(916) 751-4300
fax: (916) 75-4500
(516) 844-8800
Continued on Next Page
Quotation not permitted. Material may not be reproduced in whole or in part in any form whatsoever. Copyright © 2012 Crittenden Research Inc.
For use by original recipient only. It is illegal to forward or otherwise distribute without permission. To report violations call (800) 421-3483.
Page 6
Company (Parent Company)
Starbucks Coffee Co.
(Starbucks Corp.)
http://www.starbucks.com
Trader Joe’s
(Trader Joe’s Inc.)
http://www.traderjoes.com
Valu Land,
(Spartan Stores Inc.)
http://www.spartanstores.com
Wawa
(Wawa, Inc.)
http://www.wawa.com
Zzz’s By Ashley
(The Ashley Cos.)
http://www.ashleyfurnitire.com
Crittenden’s Retail Space™
CONTACTS
Continued from Previous Page
Address
Julius M. Feinblum Real Estate
25 Fairchild Ave.
Suite 500
Plainview, NY 11803
P.O. Box 34067
Mail Stop S-RE3
Seattle, WA 98124
P.O. Box 5049
Monrovia, CA 91016
117 Kendrick St.
Suite 700
Needham, MA 02494
P.O. Box 8700
Grand Rapids, MI 49518
260 W. Baltimore Pike
Media, PA 19063
1 Ashley Way
Arcadia, WI 54612
Contact/E-Mail
Richard Kornblatt
Real Estate Representative
[email protected]
Phone/Fax
(516) 844-8890
fax: (516) 844-8895
Linda Feinblum
Real Estate Representative
[email protected]
Julius Feinblum
Real Estate Representative
[email protected]
Cliff Burrows
President, Starbucks Americas
(516) 844-8890
fax: (516) 844-8895
Doug Yokomizo
VP, Real Estate
[email protected]
Brandt Sharrock
VP, Real Estate
[email protected]
Clliff Sasfy
Director of Real Estate
[email protected]
DE. MD, PA. VA
Susan Bratton
Senior Regional Real Estate Mgr.
[email protected]
FL
Brian Pomykacz
Real Estate Manager
[email protected]
FL
Alex Czopek
Divisional Real Estate Manager
[email protected]
MD, VA, Washington. D.C
Bruce Rice
Divisional Real Estate Manager
[email protected]
NJ
Dave McDonald
Divisional Real Estate Manager
[email protected]
NJ
Patrick Cerrone
Divisional Real Estate Manager
[email protected]
PA
June Spring
Senior Real Estate Manager
[email protected]
Ben Thorud
VP, Retail Store Operations
(626) 599-3771
fax: (626) 599-3871
(516) 844-8890
(206) 447-1575
(781) 455-7322
fax: (781) 455-7372
(616) 878-2000
fax: (616) 878-8664
(610) 812-7288
fax: (610) 358-6865
(407) 429-8297
fax: (407) 382-9928
(813) 541-2541
fax: (610) 358-6865
(410) 823-4363
fax: (410) 825-4061
(610) 358-6865
fax: (610) 358-6865
(856) 742-1749
fax: (856) 742-0868
(610) 793-2582
fax: (610) 358-6865
(618) 323-3377
C-STORE LEADER TO GROW COAST-TO-COAST
Convenience store leader 7-Eleven returns to Wisconsin with the acquisition of most of the Open Pantry
Food Mart stores in Milwaukee. Look for 7-Eleven to run the Open Pantry stores as company-operated
locations first, before changing them over to franchised locations. The company did have 15 stores in
Wisconsin at one time, but pulled out in 1996. Look for 7-Eleven to add at least 630 locations in the U.S.
and Canada this year, after adding 600 in 2011; stores measure 2,400 to 3,200 s.f. The added stores will
come through a combination of new builds, acquisitions or conversions of other businesses. The Dallasbased chain has 9,200 stores in North America and finished last year with global sales of almost
$76.6 billion.
Circle K, which competes nationwide with the leader, also uses a combination of acquisitions and
conversions of other chains to add locations. Through the end of the third quarter on Jan. 29, the chain had
acquired 179 company-operated stores and opened, constructed or enlarged a total of 23 locations.
Continued on Next Page
Quotation not permitted. Material may not be reproduced in whole or in part in any form whatsoever. Copyright © 2012 Crittenden Research Inc.
For use by original recipient only. It is illegal to forward or otherwise distribute without permission. To report violations call (800) 421-3483.
Crittenden’s Retail Space™
Page 7
C-STORE LEADER TO GROW COAST-TO-COAST…
Continued from Previous Page
Parent company Couche-Tard has signed agreements to acquire 227 company-operated locations and
another 243 to be run by independent operators over the next year-plus. The No.2 convenience store chain
had 5,817 stores at the end of the third quarter.
While 7-Eleven and Circle K grow mostly through acquisitions and conversions of other chains,
convenience store chains in the South and Southeast do at least as many, if not more, new builds. Casey’s
General Stores, Kum & Go, QuikTrip and RaceTrac will add 30 to 45 stores each this year. This pace
makes the region one of the most active in the country. Wawa, traditionally in the North and Northeast,
also enters the Southeast next month with its first block of stores in Florida. Meanwhile, The Pantry,
which is closing more stores than it is opening, is showing signs of improvement with back-to-back
quarters of positive comps.
New States for Casey’s
Casey’s will enter its 13th state this fall with an opening in Dyersburg, Tenn. Construction will begin this
month. And the regional chain will also enter Kentucky this year with its first three locations. The
Kentucky debut will open later this summer in Cadiz, with locations in Paducah and Henderson to be built
later in the year. The company is also looking to add stores in Arkansas. Casey’s finished its fiscal year in
late April with a total of 65 additional locations, on 30 new builds and 35 acquired stores. The company
has improved same-store sales with its larger 3,800 s.f. stores. Comps for prepared food and fountain sales
were up 12.6 percent in the third quarter while same-store sales in grocery and other merchandise were up
6.3 percent year over year. Casey’s finished the third quarter with 1,686 stores.
Kum & Go is also a future player in Arkansas, with a total of 20 to 25 planned openings throughout the
central part of the Razorback State over the next five years. The convenience store chain will follow this
year’s 30 new stores with 20 to 25 per year, starting in 2013. The latest design is 5,000 s.f., compared to
the previously preferred 3,400 s.f. footprint. The larger stores have more food selections. Kum & Go is the
fifth-largest privately-held convenience store chain, with a total of 430 stores in 11 states.
QuikTrip projects 44 to 45 new stores for 2012, a potential eight to nine-store increase over 2011. The cstore chain will open four stores in the Kansas City market, starting with next month’s opening in Shawnee.
Others will follow between September and October in Independence, Merriam and Overland Park.
QuikTrip opened its 600th store in March in Claremore, Okla., in the Tulsa market. The stores also expand
their footprint to 5,700 s.f. to add more food items.
Racing Away
RaceTrac will open 45 stores this year and affiliate RaceWay plans another 20. Company-operated
RaceTrac stores need 5,000 to 6,000 s.f. The first two 6,000 s.f. stores opened in January in Acworth, Ga.,
and in February in Gainesville, Fla., both to better-than-expected sales. RaceTrac will add stores in its
familiar markets in Florida, Georgia, Louisiana and Texas. The RaceWay stores need 2,500 s.f. RaceWay
stores are run by licensed operators.
Wawa will enter Florida with its first six locations in the Orlando market and one in Tampa. The 600-store
chain will also consider familiar markets in its familiar turf of Delaware, Maryland, New Jersey and
Pennsylvania. The convenience stores need a 4,600 s.f. building.
Meanwhile, The Pantry, most of whose stores operate as Kangaroo Express, is coming off two
consecutive quarters of positive comps. The comps for the second quarter ending March 29 were a positive
4.8 percent, more than double the positive comps of 2 percent for the first quarter. Kangaroo Express will
likely open a few stores this year. However, its emphasis is on closings. The Pantry closed 38 through the
end of the second quarter and plans to close 100 locations stores over the next three years as part of its
renegotiation of leases. The company also had a net loss of $9.7 million for the second quarter. The Pantry
operated a total of 1,607 locations in 13 states as of the end of the second quarter. The convenience stores
do business as Pantry, Golden Pantry, Corner Pantry and Handy Pantry in addition to Kangaroo
Express. The stores take 3,200 s.f.
Quotation not permitted. Material may not be reproduced in whole or in part in any form whatsoever. Copyright © 2012 Crittenden Research Inc.
For use by original recipient only. It is illegal to forward or otherwise distribute without permission. To report violations call (800) 421-3483.
Page 8
Crittenden’s Retail Space™
COFFEE GIANT TO JOLT EXPANSION OF ARTISAN CAFÉ
Starbucks Coffee Co. will open additional La Boulange Café & Bakery locations as part of the gourmet
coffee and tea leader’s acquisition of La Boulange parent company Bay Bread Co., its bakery facilities and
retail stores. While best known for its gourmet beverages, Starbucks’ food sales have more than doubled in
the last two fiscal years, reaching $1.5 billion. In addition, one-third of all Starbucks’ transactions include
food items. The acquisition of Bay Bread, La Boulange, and its 19 locations, will be approved between
next month and late September, the end of Starbucks’ fiscal year.
La Boulange competes with similar format, but much larger, bakery/restaurant chains Panera Bread, The
Corner Bakery Café and Au Bon Pain. However, La Boulange will compete more effectively with
Starbucks’ commitment to build the brand-name, artisan baked goods into a national brand, first by adding
the goods inside Starbucks location and then ramping up the expansion of the retail bakery/cafes. The first
Boulange brand products will appear in Starbucks locations early in 2013. Cliff Burrows, President of
Starbucks North America, will be in charge of the integration and expansion of La Boulange.
Look for Panera Bakery to open 115 to 120 locations this year. The bakery/cafe chain will finish this year
with positive comps of 4.5 to 5.5 percent and weekly net sales at $40,000 to $42,000. Panera Bread
finished the first quarter with 22 new locations and 1,562 nationwide.
Meanwhile, Corner Bakery Café expects to double its current 130 locations within three years. The
café/bakery will finish this year with 148 units. Franchise agreements have been signed for
22 locations in Connecticut and Rhode Island over the next eight years; another five locations will open in
the Kansas City market over the next five years. The first location in the market will open early next year
in Overland Park, Kan. Corner Bakery Café looks to add locations over the next three to four years in
Indianapolis, Milwaukee and St. Louis, as well as Louisville, Ky.; Columbus, Ohio; Charlotte, N.C.; and
Nashville, Tenn.; in addition to Northern California, Central and Northern Florida, and Metropolitan New
York.
Au Bon Pain looks to add locations in Milwaukee, Pittsburgh, and St. Louis, as well as West Palm Beach
and Fort Pierce, Fla.; Cedar Rapids, Iowa; Grand Rapids, Mich.; Albany, Buffalo, Erie and Utica, N.Y.;
Toledo, Ohio; and Knoxville, Memphis and Nashville, Tenn. The chain takes 3,000 to 3,500 s.f. in malls
and lifestyle centers. Any mall needs to be least 1 million s.f. (GLA). Lifestyle centers can be 400,000 s.f.
(GLA) and larger, and should be anchored by Nordstrom, Macy’s and Crate & Barrel. The bakery cafes
can trim down to 2,500 s.f. for openings in office buildings, hospitals, universities and transportation
centers.
Customer Service
Tel: (800) 421-3483 Fax: (619) 923-3518
E-mail: [email protected]
Newsroom Fax: (415) 475-1576
Crittenden Retail Space™ is published by Crittenden Research, Inc., 45 Leveroni Court, Suite 204, Novato, CA 94949. Send address changes to
Crittenden Retail Space™, P.O. Box 1150, Novato, CA 94948-1150. Contents copyright © 2012 Crittenden Research, Inc. Sample reports may be
requested online at www.crittendenonline.com.
Crittenden publishes The Apartment Report™, The Crittenden Report on Real Estate Financing™, Crittenden Real Estate Buyers™, and Crittenden
Retail Space™. For more information on our reports go to www.crittendenonline.com.
Crittenden Retail Space™ is protected by copyright. It is illegal under federal law to make and distribute copies of this report in any form without
permission, including without limitation, photocopies, faxes, e-mails, digital scans and postings on an intranet site. Violators risk criminal penalties
and up to $100,000 in damages per offense. Please contact our customer service department at (800) 421-3483 for information regarding site
licenses, to request reprints of articles or to inquire about permission to make copies.
Crittenden makes every effort to ensure the accuracy of the information published in Crittenden Retail Space™. Crittenden uses only those sources
it determines are accurate and reliable, but no guaranty or warranty with regard to the information is made or implied. Information in Crittenden
Retail Space™ is subject to change. Crittenden does not accept fees nor is it a business partner with any companies or firms mentioned in this
publication.
Quotation not permitted. Material may not be reproduced in whole or in part in any form whatsoever. Copyright © 2012 Crittenden Research Inc.