Ascena Retail Group may be pursuing a store expansion plan, but clearly seems to be following the trend toward expanding its focus on menswear – young menswear.
While its tween-oriented Justice brand struggles along with that entire sector, the company plans to open 30 more Brothers boutiques, which sells apparel for tween boys, inside Justice this year, in addition to 189 existing units with both brands.
“We continue to see high-single-digit incremental sales with no significant decline in the girls business,” Ascena President and CEO David Jaffe said at the company's fourth quarter conference call. Plans also call for eight net new Justice stores, seven of them in Canada.
Overall, Ascena plans to open around 40 net new stores next year, with capital expenditures to drop from $480 million this year to approximately $350 million next, and less than $300 million in future years. Last year the company had a total of 37 net new stores. Lane Bryant will see a total of five net new stores, while Maurices will open 15 net new stores this fall. The dressbarn division will have seven net new stores. And Ascena is beginning to think about opening new Catherines units.
“We are not looking to reduce our stores or reduce the number of stores, because fashion apparel is still about that touch and feel,” Jaffe said. “As we add omni-channel capabilities, they become fulfillment centers. Across all of our brands that there is going to be an ongoing need for the store.”
E-commerce continues constitutes about 10 percent of Ascena's sales, vs. 9 percent last year. Brick and mortar comps declined 4 percent year over year.
Could Brothers be yet another standalone brand for Ascena?
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