Listening To Customers' Demand For Accessible Fashion, rue21 Announces New Store Openings

Specialty retailer rebounds during global pandemic with record uptick in comparable sales after reopening in stores in May, despite national comparable sales down 15% over same time period

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rue21

Jul 17, 2020, 08:30 ET

WARRENDALE, Pa., July 17, 2020 /PRNewswire/ -- While specialty clothing retailers nationwide have announced bankruptcy or permanent closing, r21 Holdings, Inc. (rue21), announced today that it will open three new brick-and-mortar locations this July. The retailer -- who has experienced a business uptick since emerging from the Covid-19 shutdown outperforming every metric including sales, comparative year-over-year sales and EBITDA, plans to open three new stores in South Carolina, Tennessee and Texas, bringing its store count to 673 in 45 states.

Like many retailers, rue21 responded to the global pandemic in March by shuttering its stores and furloughing most staff, pausing scheduled incentive bonuses, but continuing to provide employee healthcare benefits. When some states began to reopen in May, the retailer safely opened 180 stores, electively erecting behind-the-counter "sneeze shields", installing touchless payment technology and training staff on stringent safety protocols.

"During this unprecedented time, belts were tightened -- but the executive team continued to strategize and collaborate in order to prepare for pent up customer demand," said interim CEO John Fleming, whose retail experience includes leadership roles at Walmart, Uniqlo, Bed Bath and Beyond, StitchFix and Untuckit, among others. "We fully expected all areas of commerce to take a hit, but to our surprise, our customers were anxious to purchase affordable, fashion-forward pieces that fit into their new way of life. As a result, we beat out last year's comparables with a record June in terms of gross margin."

Fleming, who became interim CEO at the beginning of 2020, turned down compensation throughout the furlough period. Under his leadership, he directed a more streamlined approach toward promotions, store operations and management structures, focusing on speed to market and inventory velocity. As the retailer prepares for an uncertain back-to-school season, it will prioritize the timely supply of trend-setting inventory, such as its fashion-print facemasks, and plus-size rue+ offerings, which continue to be a market differentiator.

"Speed to market continues to be a laser focus. Trends are changing faster than ever before and we're determined to consistently meet our loyal customers' demands," said Fleming.

In addition, the retailer doubled down on its customer loyalty strategy, launching rue rewards online in April and across all stores on July 9. The free reward program -- rue21's first -- gives customers 10 points for every $1 dollar spent -- or a $5 dollar reward for every $75 spent -- and includes exclusive member offers.

"Unlike many retailers, we are in a better position today then we were before the global pandemic. We are energized to build off of this incredible momentum and provide our customers with a seamless, personalized and safe shopping experience," said Fleming.

About rue21
rue21 is a fashion destination that promises to give customers quality styles at accessible prices. We offer the largest selection of products, sizes and trends that fit every personality and budget.

Headquartered just north of Pittsburgh, Pennsylvania in Warrendale, they operate over 673 stores in 45 states and online at www.rue21.com.

Contact:

Joanna Doven
Premo Consultants
[email protected]
724-420-0870

SOURCE rue21