Pittsburgh, PA-based specialty apparel retailer, American Eagle Outfitters (NYSE:
AEO), is shuttering its MARTIN + OSA banner, including its 28 stores and online business. The company expects to conclude the liquidation of the MARTIN + OSA stores, which are typically 6,500 to 7,500 square feet, by the end of this July.
In a statement, management said the concept performed better in fiscal 2009 than it did in 2008; however, MARTIN + OSA still generated an after-tax loss of $44 million in 2009, so the company deemed the brand as "not achieving performance levels that warrant further investment."
"Closing MARTIN+OSA was a difficult decision, particularly in light of the progress that was made over the past year. Creating new brands is never an easy endeavor. The valuable lessons and experiences we gained will serve us well, as we continue to develop and launch new lifestyle brands," said Jim O'Donnell, chief executive officer. The company opened the first MARTIN + OSA stores, which carried sportswear and casual apparel for men and women age 25 to 40, in fall 2006.
American Eagle said it would turn its efforts and resources to its other brands -- American Eagle, aerie, and 77kids. It currently operates 939 American Eagle stores and 137 aerie stores. Its 77kids brand, a moderately-priced concept targeted at children ages 2 to 10, was launched online during 2008.
During 2009, American Eagle closed 16 net American Eagle stores, but also opened 21 new aerie stores. This year, American Eagle is planning to open 14 new, but close between 15 to 25 American Eagle stores; as well as open 20 new aerie stores and five stand-alone 77kids stores. The average new aerie store is 4,200 square feet, while the company has been opening new and remodeling existing AE stores to 7,000 square feet.
Following is the list of current MARTIN + OSA store locations:
- VILLAGE AT CORTE MADERA, 1604 REDWOOD HIGHWAY, CORTE MADERA, CA
- AMERICANA AT BRAND, 867 AMERICANA WAY, GLENDALE, CA
- CENTURY CITY, 10250 SANTA MONICA BLVD #185, LOS ANGELES, CA
- FASHION ISLAND MALL, 923 NEWPORT CENTER DRIVE, NEWPORT BEACH, CA
- WESTFIELD SAN FRANCISCO CENTRE, 865 MARKET STREET, SAN FRANCISCO, CA
- VALLEY FAIR, 2855 STEVENS CREEK BLVD, SANTA CLARA, CA
- CHERRY CREEK, 3000 EAST FIRST AVE, #289, DENVER, CO
- DANBURY FAIR, 7 BACKUS AVE., DANBURY, CT
- WESTFARMS, 419 WESTFARMS MALL, FARMINGTON, CT
- PERIMETER MALL, 4400 ASHFORD DUNWOODY RD., ATLANTA, GA
- WOODFIELD SHOPPING CENTER, 5 WOODFIELD MALL, SCHAUMBURG, IL
- OLD ORCHARD, 4999 OLD ORCHARD DR, SKOKIE, IL
- OXMOOR, 7900 SHELBYVILLE RD., LOUISVILLE, KY 40222
- WESTFIELD ANNAPOLIS MALL, 2430 ANNAPOLIS MALL, #1805, ANNAPOLIS, MD
- MALL AT COLUMBIA, 10300 LITTLE PATUXENT PARKWAY, COLUMBIA, MD
- TOWSON CENTER, 825 DULANEY VALLEY RD., TOWSON, MD
- NATICK MALL, 1245 WORCESTER ST., NATICK, MA
- BURLINGTON MALL, 75 MIDDLESEX TURNPIKE # 2300, BURLINGTON, MA
- TWELVE OAKS MALL, 27980 NOVI RD, #E223, NOVI, MI
- MALL OF AMERICA, 214 SOUTH AVENUE, BLOOMINGTON, MN
- CRABTREE VALLEY MALL, 4325 GLENWOOD AVE #2116, RALEIGH, NC
- TOWN SQUARE LAS VEGAS, 6605 LAS VEGAS BLVD SOUTH, LAS VEGAS, NV
- THE WESTCHESTER, 125 WESTCHESTER AVE. #3500, WHITE PLAINS, NY
- ROSS PARK MALL, 1000 ROSS PARK MALL DRIVE, PITTSBURGH, PA
- THE DOMAIN, 11410 CENTURY OAKS TERRACE, AUSTIN, TX
- NORTHPARK CENTER, 8687 NORTH CENTRAL EXPRESSWAY, DALLAS, TX
- BELLEVUE SQUARE, 2062 BELLEVUE SQUARE, BELLEVUE, WA
- TYSONS CORNER CENTER, 8014L TYSONS CORNER CENTER, MCLEAN, VA
This article appears in CoStar's Retail News Roundup: Mar. 14 - 20, 2010
This week in the Retail Roundup, CoStar reports on
expansions or new concepts at Urban Outfitters and Genesco;
closings, cutbacks, bankruptcy, default, receivership or foreclosure news at French Connection, Men's Wearhouse, American Eagle and Williams-Sonoma;
acquisition, merger, loan, sale, or IPO activity at General Growth, Tommy Hilfiger, CKE Restaurants and Ahold;
new retail development news in DE, FL and TX;
personnel or corporate announcements at Taubman Centers, Hanley Investment Group, APR Investment Group and Lincoln Harris;
sustainability and green building news at Home Depot; and more.