Patrons of Minden’s Stage Store may be wary that the local retailer is closing. A banner stating a “Store Closing Sale” is spread across the front facade seems to indicate a closure. However, that is only partially true.
The store is, in fact, closing as a Stage Store, but according to a press release from Stage Stores, Inc. (SSI) it will reopen as an “off-price” Gordmans.
The Houston-based company announced earlier this month plans to convert substantially all its stores to off-price. Based on the success of the conversion strategy thus far, the company plans to begin converting its remaining department stores in February of 2020, and expects to be operating approximately 700 predominantly 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 release read. “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.”
An off-price store business model would put Gordmans in the same category as TJ Maxx, Marshall’s, or Ross Dress For Less.
“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.
“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.”