Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
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sales (e-commerce included) fell by 4 percent for the first nine months of last year — entailing a 14 percent decline in compa- rable-store sales versus a 10.8 percent increase on its e-commerce side. "We continue to modernize and elevate our product assort- ments, and this modernization will spread to our store design and other areas, like our marketing and e-commerce efforts," said Cunningham. "These initiatives will ultimately drive traffic." KeyBanc Capital Markets analyst Edward Yruma says he sees signs that the effort is gaining traction, and KeyBanc rates Vera Bradley stocks a buy. Yruma noted in a December report that Vera Bradley is seeing positive results from new product offerings, which include the addition of solid-colored mer- chandise made from microfiber, leather and faux leather to the company's traditional cotton-quilted products. With regard to its aggressive store expansion, the company opened 13 full-line stores and 13 factory-outlet stores last year. Vera Bradley has announced plans to open about 25 full-line stores per year going forward, at least in the short term, with a goal of having about 300 in total. "We currently have a very small store base, and there are key geographies where we are not represented," said Cunningham. "New stores will expose our wonderful brand to even more potential customers." The company plans to keep fleshing out its factory-outlet channel at a rate of roughly 15 stores per year, with an ultimate goal of about 100 in total. "We are evolving our outlet stores to factory-outlet stores, and we launched several factory-exclusive styles in 2014, which were well received by our consumers," said Cunningham. Vera Bradley also sells through Dillard's and Von Maur stores, and last year the company formed part- nerships with Macy's and Belk that will create further depart- ment store opportunities in the future. The typical Vera Bradley full-line store measures about 1,800 square feet; the factory-outlet stores measure roughly 3,000 square feet. The retailer prefers to locate its full-line stores inside popular malls and lifestyle centers. "However, we love to think outside of the box, and we are open to looking at retail trends and new ideas moving forward," said Cunningham. Outside the U.S. the company's focus is squarely on Japan. Several years ago the company noticed that a meaningful por- tion of sales in its Hawaii store came from Japanese tourists, so entering the Japan market seemed a logical step, Cunning- ham says. Through a local franchise partner Vera Bradley has opened two stores so far and expects to open about 25 more there over the next five years. S C T 14 S C T / M a r c h 2 0 1 5 r e T a i l i n g T o d a y