If you’re in the mood for a road trip, why not do a little cross-border shopping? With so many American retailers opening locations here in Canada, it can seem pointless to drive two hours just to spend your hard earned cash. However, there are still some stores that us Canadians don’t have the luxury to shop when at home.
Here are 6 American stores worth crossing the border for!
Trader Joe’s
In case you’ve been living under a Canadian rock, allow me to introduce you to Trader Joe’s. This grocery chain is known for its own delicious brand of foods and not only that, but the prices are right, too. Whether you’re looking for actually really good frozen foods, seasonings, organic produce, addictive snacks, and more, TJ’s has you covered.
Target
Now I know that Target used to have a home here in Canada, but let’s be real: we all miss it. From its stylish yet affordable clothes and shoes, to activewear and jewellery, Target had it all. Not to mention you could also do your grocery shopping, stock up on home goods, and electronics.
Ulta
Even though there are rumours swirling that beauty superstore Ulta will be coming to Canada, I still look forward to shopping when I’m in the U.S. Not only can you find more obscure drugstore brands and the brands we all know and love, but it’s the only bricks and mortar store where you can find Kylie Cosmetics.
Sur La Table
Attention all foodies and kitchenware addicts. Sur La Table needs to be on your radar if you have a kitchen, and love shopping for it. While you can shop online if you’re shipping within the United States, there are some actual stores that aren’t too far of a drive away. It’s here that you’ll be able to find everything and anything you could ever want for your kitchen including dinnerware, cutlery, glassware, bakeware, and more.
Primark
A U.K. staple, Primark opened its doors in the U.S. a few years back and ever since, us Canadians have been mighty jealous. The store is known for it’s wicked affordable apparel, shoes, accessories, cosmetics, jewellery, and even skincare. Right now the closest stores are in New York and Boston, but here’s hoping the chain will cross the border into Canada soon!
Neiman Marcus
While we aren’t without our fair share of luxury retailers and department stores here in Canada, one American store we’re missing is Neiman Marcus. Shop all the latest from your fave designers including shoes, apparel, beauty, accessories, and more. Not down to pay designer prices? Neiman Marcus also has a great selection from contemporary brands like FRAME, Vince, Alice + Olivia, and Jonathan Simkhai to name a few.
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Amazon and e-commerce are taking over, consumers are spending less on things and more on experiences, billions of dollars in debt are coming due soon. This leaves less money to invest in retail businesses, and off-price stores and discounters are pushing middle-tier names to the limit. And while 2017 set record numbers for retail bankruptcies, executives expect 2018 to keep pace or increase.
While six retailers have already filed for bankruptcy in 2018, including Bon-Ton Stores, other struggling companies are also susceptible. CreditRiskMonitor, a service which predicts the risks of companies with publicly traded stock or bonds going bankrupt, uses data to come up with which companies could go bankrupt within 12 months. They use a “FRISK” score to weigh the probability of bankruptcy, with a score of one meaning a 9.99%-50% chance, and a score of two indicating a 4%-9.99% chance.
Below are CreditRiskMonitor’s FRISK scores of one or two in the first quarter of 2018:
J. Crew
FRISK score: 1
As the company expanded and tried to go upscale, consumers changed both tastes and spending habit. Sales declined, and the long-time CEO departed, leaving a $2 billion debt. Net losses for 2017 increased from $23.5 million to $125 million.
Neiman Marcus
FRISK score: 1
Neiman Marcus has $4.8 billion in debt, but has performed better in recent quarters. Job cuts and a “Digital First” strategy to attract customers are paying off. However, their IPO never happened, acquisition talks with Hudson’s Bay ended, and there’s been changes at the CEO and CFO levels. Their next major debt payment is due in 2020, but they still have a total liquidity of $843 million as of January 2018.
Sears Holdings
FRISK score: 1
Sales have been declining for 10 years, and there have been store closures, asset sales, layoffs, and cost cuts. have been declining for nearly a decade. Years of cost cuts, store closures, asset sales and layoffs have, in most prior quarters, done little beyond slowing the loss of money. Ties were cut off with Whirlpool. Loans from CEO Eddie Lampert’s hedge fund has helped avoid bankruptcy, but comparable sales dropped 15%. However, 4th quarter had a profit, and the company got turnaround time and cash with a distressed debt exchange.
99 Cents Only
FRISK score: 1
With other low-margin stores competing, such as Dollar General and Walmart, 99 Cents Only Stores is in an ongoing battle for market share. Ares Management, the Canadian pension fund, and a private family bought the 35 year old chain in 2012. With a new CEO, the company has had positive same-store sales for a few quarters, though it is still losing money, about $72 million. Last December, it completed a distressed debt exchange that somewhat improved their liquidity.
GNC
FRISK score: 1
A leader in the growing and competitive supplements business, it has faced financial and operational issues. Revenues fell 3.4% in 2017 from 2016 to about $2.5 billion. $2.5 billion. At the end of 2016, they briefly closed all its stores to rebrand, and the CEO has been replaced twice. Loyalty programs and extended debt agreements are positive factors, and in February, a Chinese pharma offered to buy 40% of GNC and sell and manufacture the products in China. The deal will close before the end of 2018.
Fred’s
FRISK score: 1
Fred’s Pharmacy, with 600 stores, is 70 years old. Plans to expand failed and the CFO resigned, as the company thinks about selling its specialty pharmacy business. Sales fell 4.5% from 2016 to 2017, and net loss expanded to $51.8 million.
Destination Maternity
FRISK score: 2
With more than 1,000 locations, Destination Maternity claims to be the largest designer and retailer of maternity apparel. Last year sales fell more than 7%, and sales declined 6.3% in 2017, but had a smaller net loss of $21.6 million than in 2016. E-commerce is helping to improve sales.
Ascena Retail
FRISK score: 2
With a net loss of $1 billion in 2017, Ascena will close 250 stores, or 25% of its stores, by the end of 2019, and hired a new chief for Dress Barn. Sales fell 8% at Ann Taylor and 1% at Loft.
Stein Mart
FRISK score: 2
Stein Mart is making progress by improving merchandise, getting rid of inventory, cutting costs and testing new services. Sales have stabilized and digital sales grew by 47% in October. Losses fell about 10% over the previous year, but still had a $23.4 million net loss, and comparable sales fell 6.2% in 2017. Starting with one store in 1902, it now has 300 stores. The company has hired advisors to improve performance, and paid off a $50 million term loan in March.
J.C. Penney
FRISK score: 2
Along with other department stores, J. C. Penney has been under pressure for a long time. The company got rid of most of its women’s inventory, fired more than 1,000 people, closed a distribution center, and ended with $116 in net income. It still has a total debt of $4.2 billion, a huge financial risk, which also prevents adapting to changes in retail.
Office Depot
FRISK score: 2
2018 is a big year of transition. Emphasis will shift from retail sales to business services after a merger with Staples was blocked. So far, results have been favourable. It is investing in B2B operations and acquired IT services firm CompuCom last fall. However, sales decreased 7% in 2017 to $10.2 billion, and the company has $1.3 billion in long-term debit and almost $4 billion in total obligations.
Vitamin Shoppe
FRISK score: 2
With its new subscription service, the company has increased its e-commerce penetration. However, like GNC, it is suffering from decreases in mall traffic and fierce competition in the supplement industry. Sales fell 8.5% last year, with a net loss of about $252 million. The company is trying to turn around its business with products to appeal to in-store “health enthusiasts” and “grass roots” events, delivery service, and its loyalty program.
Would you be sad to see these retailers go? Let us know in the comments.
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The CBC is reporting that Hudson’s Bay is in talks with Neiman Marcus, who as of late has been considered a struggling retailer.
CBC reports that Hudson’s Bay is looking to acquire Neiman Marcus’ assets, but would do so in a way that would avoid also taking on Neiman’s debt.
As a matter of company policy Hudson’s Bay does not discuss speculative business deals, however, Hudson’s Bay as a holding company is a master of acquisition. Hudson’s Bay lead by Governor and Executive Chairman Richard Baker strategically focuses on acquiring retailers that have a strong real estate footprint. By getting the most out of coveted retail real estate, Hudson’s Bay has been successful at maximizing the potential of established retail chains.
We will keep you posted as this story develops.
Source: CBC News