Store openings will likely outpace store closings for a third consecutive year as 2024's midpoint approaches, per data provided by Coresight Research.

Why it matters: New locations are an indicator of the industry's overall health, Richard writes.

The big picture: Despite digital advances, retailers recognize the necessity of brick-and-mortar for fulfillment and online returns, says John Mercer, Coresight's global research head.

By the numbers: As of May 17, U.S, retailers opened 3,749 locations but closed 3,234.

While the pace of store openings has been steady, store closings spiked by several hundred between weeks 10 and 11 of this year.

Zoom in: Dollar stores continue to drive new locations — but they're also behind many new store vacancies, Mercer tells Axios.

"It may be the first time we've seen them lead closures," he says.

Family Dollar is planning to close 620 locations this year, while bankrupt 99 Cents Only Stores is likely to close 371 locations.

Apparel retailers Rue 21 and Express, which both filed for bankruptcy, are expected to close 543 stores and 105 stores, respectively, per Coresight.

Yes, but: Dollar General is projected to open 819 locations, while Five Below has 227 new stores in its future.

Apparel discounters Burlington Stores, The TJX Cos., and Ross Stores are also still aggressively opening stores, with 140, 99, and 83 openings, respectively.

Meanwhile, 7-Eleven and CVS are among the top chains closing and opening stores.

7-Eleven is opening 273 while closing 272; CVS is closing 315 while opening 219.

Along with CVS, Rite Aid has 165 slated for closure.

Reality check: Discounters have been the slowest to move online, Mercer says, by luring shoppers into their stores with bargains.

1 big thing: Store openings on track to exceed closings

Illustration of a strip mall dominated by Dollar General signs

Red Lobster, a seafood restaurant that helped define upscale casual dining for the middle class, filed for Chapter 11 protection.

Why it's the BFD: It's one of the largest restaurant bankruptcies in recent years, Richard writes.

Zoom in: The Chapter 11 filing includes a stalking-horse agreement that sees the company selling its business to an entity formed and controlled by its existing term lenders, per the Wall Street Journal.

The company will also receive $100 million in debtor-in-possession financing from its existing lenders.

"The support we've received from our lenders and vendors will help ensure that we can complete the sale process quickly and efficiently while remaining focused on our employees and guests," CEO Jonathan Tibus said in a statement.

By the numbers: Red Lobster said its estimated liabilities were between $1 billion and $10 billion, per its bankruptcy filing.

Catch up quick: Even before the filing in Florida, Red Lobster had to close dozens of locations and lay off hundreds of employees.

The pandemic and inflation tied to rising food and labor costs compounded Red Lobster's challenges.

The big picture: Casual dining as a subsector fared poorly last year, beaten out by fast food, fast casual and family dining.

Flashback: Red Lobster was founded in 1968 by restaurant legend Bill Darden, the namesake for Darden Restaurants.

In 1970 it attracted financial backing from food conglomerate General Mills, enabling it to expand nationwide.

It would go on to introduce popcorn shrimp in 1974, Lobsterfest in 1984 and Cheddar Bay Biscuits in 1992.

In 1995, General Mills spun off its restaurant holdings as a publicly traded company under the name Darden Restaurants.

Darden Restaurants sold Red Lobster in 2014 to private equity firm Golden Gate Capital for $2.1 billion.

Golden Gate parted with its remaining stake in the chain in 2020, selling to Thai Union Group.

2. The BFD: Red Lobster files for bankruptcy

A Red Lobster sign advertising fresh fish and live lobster.

Photo: Luke Sharrett/Bloomberg via Getty Images

Cocktail Courier, a cocktail kit provider, acquired alcohol e-commerce platform Thirstie, Thirstie CEO Maxim Razmakhin tells Kimberly exclusively.

Why it matters: Alcohol prices have increased 2% since last year, per the April Consumer Price Index, and other data shows consumers are willing to drink more at home to save some bucks.

Zoom out: "There's always a segment of customers that like mixing their own cocktails," Razmakhin says.

It makes a more personal gift than sending a bottle, he adds.

Zoom in: Cocktail Courier paid for most of the transaction in equity "with some cash components," Razmakhin says, declining to share financial terms.

What's happening: Cocktail Courier, also known as ShakeStir, will now be able to bundle the alcohol brands' bottles with its cocktail kits.

This creates a unique delivery offering from DoorDash, Instacart or Uber Eats, Razmakhin says.

Thirstie will retain its brand but it will integrate within Cocktail Courier's capabilities.

How it works: Thirstie helps alcohol brands build a U.S. regulatory-compliant e-commerce platform letting consumers buy products from their websites.

With the branded storefront, customers are technically purchasing from a licensed nearby retailer that can deliver this product, Razmakhin says.

"We took a huge effort in developing this proprietary and compliant technology," he says, adding Thirstie can help process payments, route orders, and calculate shipping fees using retailers' shipping accounts.

"It's just a great way for brands to build a stronger community online and collect that data because the more data they collect, the more business they effectively can facilitate on Thirstie's network," Razmakhin says.

3. Cocktail Courier acquires Thirstie

Illustration of a cocktail glass with a dollar-sign-shaped orange twist

Toy company KidKraft's U.S. and Canadian affiliates have filed for Chapter 11 bankruptcy in the U.S. and plans to begin bankruptcy proceedings in Canada.

It plans to sell all of its assets to Backyard Products and 1903 Partners, an affiliate of Gordon Brothers, has agreed to provide $10.5 million of new debtor-in-possession financing. Both moves are subject to court approval.

Its European and Asian-Pacific operations won't be a part of the restructuring process, the company said in a release.

Remembering Bruce Nordstrom: Known for his lead-by-family-consensus management style, Nordstrom and his family took a small chain of shoe stores in the Pacific Northwest to greater heights to become a global fashion retail juggernaut. He died on Saturday at 90.

4. Retail therapy

illustration of a white plastic shopping bag with the words "retail therapy" printed on it 

Want more retail deals? Go deeper into our full database in the Axios Pro Deals Tracker.

• Pepper, a B2B food e-commerce company, raised $30m in Series B funding led by ICONIQ Growth. axios.link/3wB1ZEm

• GoodShip, a Nashville-based platform for freight network orchestration and procurement, raised $8m in Series A funding. Bessemer Venture Partners led, and was joined by 53 Stations, Ironspring Ventures, Chicago Ventures, FUSE VC, and Cercano Management. goodship.io

• BEYOBO, a B2B cross-border e-commerce platform, raised ₹6.7 crore in pre-Series A2 funding led by Indian Angel Network. axios.link/3wpcxGF 

• GoodDay Software, a provider of enterprise resource planning (ERP) software to emerging brands on Shopify, has raised a $6m seed from FirstMark, Ridge Ventures and Flex Capital, among others.

• Commercial Bakeries, a Canadian portfolio company of Graham Partners, acquired Imagine Baking, a Sandusky, Ohio, maker of better-for-you products. commercialbakeries.com

• Quadrant Private Equity is looking to sell Darrell Lea, an Australian chocolate and licorice maker that could fetch nearly A$1b, per Bloomberg. axios.link/3K9kzXc

• Roark Capital is looking to sell Primrose Schools, an Atlanta early childhood education firm that could fetch nearly $2b (including debt), per Reuters. axios.link/4bjlK2n

• The Chernin Group has invested over $35m in Manchester, U.K.-founded soccer apparel company Classic Football Shirts. https://axios.link/3V4o1c3

• GrubMarket, a food marketplace valued by VCs at over $2b, acquired Butter, a food distribution SaaS that had raised around $12m from Gradient Ventures, Outbound Ventures, Uncommon Capital, CoFound Partners, Notation Capital, Collide Capital, Quint Capital, RSLP Ventures, Amino Capital, and Jack Altman. axios.link/44N7Oez

• MBK Partners is looking to sell Shanghai Siyanli Industrial, a Chinese spa and beauty clinic chain, per Bloomberg. axios.link/4aqDYhd

• SPS Commerce, a retail cloud network provider, acquires retail cloud provider Traverse Systems for $29m in cash and stock. https://axios.link/3WO7ES5

• Encore Consumer Capital acquired Chalet Desserts, a Sacramento, Calif., maker of frozen bakery desserts and baked good inclusions. chaletdesserts.com

• Azenco Outdoor, a luxury outdoor living brand, acquired window covering industry Hunter Douglas, a portfolio of 3G Capital. https://axios.link/3KthTnL

• Leonard Green & Partners is targeting $1.5b for its first continuation fund-of-funds, per Bloomberg. axios.link/3K4ChLG

5. Retail transactions

• Glenn Murphy, CEO of FIS Holdings, was appointed executive chairman of the board of directors at Petco Health and Wellness Co. (Nasdaq: WOOF). axios.link/4aomCS1

• Lenny Blyukher and Amy Holland joined consumer insights platform Azira Technology as SVP of technology and SVP of product, respectively. axios.link/3yf9Asy

• David Schröder will replace co-founder David Schneider as co-CEO of Zalando. Robert Gentz, also co-founder and co-CEO, will continue to focus on the B2C business. axios.link/4akpDTw

• Nadhim Zahawi, co-founder of polling website YouGov, was appointed non-executive chair of digital retail company The Very Group. axios.link/4bxYDRX

• Richard Shetliffe was named CEO of the British Footwear Association, replacing Lucy Reece-Raybould who departed in January. axios.link/3WGE3tF 

• Andrew Cron, former SVP and chief scientist at 84.51˚, joined grocery store platform Invafresh as chief data officer. axios.link/4blJIKj 

• Vinod Goel was named regional CEO of East Africa at the online shopping platform Jumia. axios.link/4bTXB2r 

• Nicolas Bos, CEO of Van Cleef & Arpels, will be named to the re-established role of CEO of Richemont, effective June 1. Bram Schot will be named non-executive deputy chairman of the board, effective Sept. 11. https://axios.link/3KeUcPz

6. It's Personnel

📺 What we're watching: Kim started Netflix's dark comedy thriller "Bodkin," which is about a journalist and a true-crime podcaster who investigate decades-old mystery disappearances in a small Irish town.

✏️ Big thanks to newsletter editor Claire Rychlewski and copy editor Mickey Meece for today's edits.

Axios

Retail Deals

May 20, 2024

1 big thing: Store openings on track to exceed closings