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JoAnn Hems Q2 Loss

HUDSON, OH-After posting significant Q2 losses, JoAnn Stores Inc. prepares to open 19 additional superstores by year-end.

By Dana Dubriwny | Updated on August 16, 2005

HUDSON, OH-Despite reporting losses in the company’s second quarter, national fabric and craft retailer Jo-Ann Stores Inc. remains on track to deliver a 4% to 5% full-year increase in square footage by the fourth quarter.

Keeping on target, JoAnn opened six superstores and one traditional store in the second quarter and closed nine traditional stores, and just in the last week, JoAnn opened four additional superstores. Year-to-date, the company has opened 21 superstores and two traditional stores, while closing 27 traditional units. For the balance of the year, the company expects to open 19 superstores, two traditional stores, and close 25 to 30 traditional units.

While the superstores are the primary key to the company’s growth, executive vice president and CFO Brian Carney told investors during Monday’s earnings call that new traditional store openings will better serve specific markets. Discarding the 14,600-sf format of the conventional fabric store, JoAnn will open larger traditional stores, or “mini-superstores,” at 25,000 sf,that embrace the racetrack design of the larger units. These stores are planned for scenarios in which leases have expired and the retailer plans to relocate, as well as areas where the surrounding demographics cannot support the average 35,000-sf superstore.

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