Store Closings Coming for Ulta Beauty & Tailored Brands
Retailers Ulta Beauty and Tailored Brands, parent of Men's Wearhouse and Jos. A. Bank, have announced upcoming store closings.
Tailored Brands has identified up to 500 stores for closure “over time” and plans to eliminate around 20% of its corporate positions by the end of its fiscal Q2.
“Unfortunately, due to the COVID-19 pandemic and its significant impact on our business, further actions are needed to help us strengthen our financial position so we can navigate our current realities,” said Tailored Brands president and CEO Dinesh Lathi. “It is always difficult to eliminate jobs and say farewell to our friends and colleagues. I want to thank our teammates affected by these changes as well as those who continue to help us meet the challenges currently facing our industry and who remain dedicated to serving our customers.”
The company also announced that EVP, CFO and treasurer Jack Calandra will leave Tailored Brands as of July 31. In the near term, Calandra’s responsibilities will be divided between Lathi and Holly Etlin, a managing director at AlixPartners who has been appointed to the newly created role of chief restructuring officer, reporting directly to Lathi. Etlin brings more than 30 years of restructuring experience and a deep expertise in retail, and has been working closely with the executive team and board as an advisor since late March.
“Jack and I have been discussing a transition and, with a full appreciation of both the challenges to be solved and the opportunities to be realized in the next phase of the company’s journey, we both agree this is the right time for a change,” said Lathi.
Ulta Beauty said it plans to close 19 stores in its second and third quarter of 2020. The retailer plans to reassign affected store and salon associates where possible. In addition, due to disruption created by COVID-19, the company expects to open approximately 30 new stores in fiscal 2020. Earlier this year it said it expected to open about 75 net new stores for 2020. New store activity was temporarily paused in the first quarter due to COVID-19, but openings are expected to resume in August 2020. As new store opening plans are finalized for fiscal 2021, the company said it anticipates opening additional new stores in the U.S. and in mid-2021 will make its entry to Canada with a number of stores.
“Our differentiated operating model, strong brand, dedicated associates, and engaging guest experiences continue to reinforce our optimism in long-term opportunities to increase market share and expand our retail footprint over time,” said Ulta CEO Mary Dillon. “We anticipate COVID-19 will influence longer-term market shifts and create new real estate opportunities, supporting our ambition to ultimately operate between 1,500 to 1,700 Ulta Beauty stores in the U.S. To do so, we are proactively optimizing our real estate portfolio and have made strategic decisions to temporarily reduce new store openings and close a limited number of stores this year.”