Written by Brady Whalen, Jack Trautz and Dan Terwilliger - Mid-America Real Estate - Minnesota
To outsiders looking in, the surprising announcements of bankruptcy filings and store closures from large brands like Toys “R” Us and Bon-Ton seem to indicate the doom of brick and mortar retail as we know it. For others, the news of these brands vacating space suggests opportunity and dollar signs$$$. With not only masses of vacant space being left behind, but also the exodus of large market shareholders in their respective industries, smaller, new-age brands like the ones listed below are coming out in droves to grow their brick and mortar presence. Look out for these retailers in the coming years as you are out shopping:
Concept: Men’s apparel company focused on the sale of casual shirts that are designed not to be tucked into pants
Founder: Chris Riccobono & Aaron Sanandres
HQ: New York City, NY
Revenue: $100 Million
Number of Locations: 35
Number of New Locations Planned in US: 15+
Reason for Expansion: UNTUCKit began as an online startup company. Eighty percent of their business is still done online, but all 35 physical stores have proven to be profitable. While other online retailers have had more gradual brick and mortar expansion, Riccobono believes there is no reason to slow down their successful store openings and not have their foot on the gas.
Concept: Obsessively engineered mattress and sleep products sold at shockingly fair prices
Founder: Philip Krim
HQ: New York City, NY
Revenue: ~$300 Million
Number of Locations: 18
Number of New Locations Planned in US: 200+
Reason for Expansion: Casper’s announcement for their expansion came shortly after Mattress Firm Executive said the company plans to close about 200 stores over the next 18 months and is considering filing for bankruptcy.
3. Darden Restaurants
Concept: American multi-brand restaurant operator with brands such as fine dining restaurant chain The Capital Grille and casual chain Olive Garden
Founder: Bill Darden
HQ: Orlando, FL
Revenue: $2.1 Billion
Number of Locations: 1,500+
Number of New Locations Planned in US: 45-50
Reason for Expansion: The news of Darden’s expansion came as Darden reported strong fourth-quarter earnings, one in a series of favorable earnings reports. Profits hit $174.5 million in the quarter ending May 27, compared with $123.8 million in the same period last year when sales rose 10.3% to $2.13 billion.
Concept: Clothing Consignment
Founder: James Reinhart, Chris Homer, Oliver Lubin
HQ: San Francisco, CA
Revenue: $20 million+
Number of Locations: 2
Number of New Locations Planned in US: 100
Reason for Expansion: ThredUp, the largest online consignment store in the world, has recently begun opening brick and mortar stores, beginning with one in Austin, Texas, in 2017 and another in its hometown of San Francisco in 2018. It was listed as one of Forbes’ 50 most promising companies in the US in 2015 and has continued to grow since then. While most companies are battling the rising tide of returned items, ThredUp sees additional opportunity in a growing online clothing consignment industry, which is projected to top $25 billion by 2025.
Concept: An award-winning national retailer offering fun, unique, and interactive products whose success is greatly due to cashing in on the hottest trends. The world’s largest “As Seen on TV” retailer.
HQ: Brampton, Ontario
Number of Locations: 108 in Canada; 9 in the USA and expanding
Number of New Locations Planned in US: 100 stores across the US by 2020
Reason for Expansion: After much success in their home country of Canada, Showcase is rumored to be in the midst of rolling out their first group of pilot stores in the Northeast – in Connecticut, Delaware, New Jersey, New York, and Pennsylvania.