Stage Stores Announce Conversion of Bealls Retail to Gordmans
13 Oct 2019
Announcement Specific to Giddings Location: " Stage is excited to announce it will convert the Bealls located in Giddings, TX to a Gordmans’ off-price retailer in 2020. The majority of the Stage nameplates will convert to Gordmans beginning in early 2020. A few stores may continue to operate under their current nameplate.
Shoppers are responding positively to Gordmans’ off-price concept, which means Gordmans has a wide array of popular brand name merchandise for the entire family at the lowest possible prices compared to department stores. Gordmans, which has been delighting shoppers for more than 100 years, has fresh new merchandise deliveries arriving weekly; there will always be something new to discover when it comes to popular name brand apparel, home décor, footwear, gifts, accessories, fragrances and more for the entire family. Guests can use their Stage-brand private label credit card, Style Circle Rewards and Stage-brand gift cards at Gordmans.
The Bealls store is planned to close in the days leading up to the Gordmans grand opening in 2020. The conversion from Bealls to Gordmans takes less than two weeks. During the transition of our stores to Gordmans, our associates at these stores will be offered jobs at Gordmans. We will provide you with additional details as the plans progress. To learn more about Gordmans, visit gordmans.com" - Blakeley Graham, Stage Stores Manager, Brand Publicity
HOUSTON, TX, September 17, 2019 – Stage Stores, Inc. (NYSE: SSI) today announced plans to convert substantially all its stores to off-price. Based on the success of the conversion strategy, the Company plans to begin converting its remaining department stores in February of 2020, and expects to be operating approximately 700 predominately small-market Gordmans off-price stores by the third quarter of fiscal 2020. A limited number of stores may continue to operate under their existing department store nameplates until closure is permitted by lease. The Company plans to close approximately 40 stores during fiscal 2020. Capital spend in fiscal 2020, inclusive of all conversion activities, is expected to be approximately $30 million.
“We are excited about our future as we fully transition to an off-price business model,” said Michael Glazer, Chief Executive Officer. “Since 2018, we have converted 98 department stores to off-price, including 17 small market conversions which are grand opening today in Michigan, Pennsylvania, Ohio, Kentucky, and Tennessee. Compared to their performance as a department store, off-price conversions have consistently delivered higher sales with less inventory, similar retail margins, and lower SG&A. Additionally, with the success of our recent tests of lower cost conversions, we are able to execute our fiscal 2020 conversion strategy while maintaining our capital spend in line with fiscal years 2018 and 2019.
The performance of our converted stores clearly demonstrate that this strategy is working, as evidenced by our positive second quarter comparable sales momentum which has accelerated during the third quarter. Our future is bright and we are grateful to our dedicated associates and vendor partners for their continued support during our transformation. We believe this pivot from department stores to off-price will increase shareholder value and drive sustainable growth.”