EXCLUSIVE
Lord & Taylor is gearing up for a fresh growth spurt.
In a bold move that defies years of stagnation in the department store sector, the New York-based retail chain plans to open three new stores in the coming year, sources told The Post.
Two locations are slated to open in March -- an 80,000-square-foot store at Ridge Hill, a lifestyle center in Yonkers, and a 120,000-square-foot store in Rockingham, NH, at a shopping mall owned by Simon Property Group.
In fall 2012, Lord & Taylor will open an 80,000-square-foot store in Boca Raton, Fla., at Mizner Park, bringing the total number of full-priced Lord & Taylor stores to 50.
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Lord & Taylor CEO Brendan Hoffman
The privately owned retailer, which also operates three lower-price outlet stores, is in preliminary talks with landlords to open still more locations during the next several years in additional states, including California, according to sources close to the company.
That’s despite the fact that Lord & Taylor’s Canada-based owner, Hudson’s Bay Co., this month called off plans to launch an initial public offering this fall on the Toronto Stock Exchange.
“The IPO was shelved solely for market reasons,” according to a source close to the retailer, referring to recent stock market jitters that have been fueled by fears of a double-dip recession and the European debt crisis.
While Hudson’s Bay doesn’t need the cash, its owner and chairman, Richard Baker -- a New York real estate mogul who had originally bought Lord & Taylor as a property investment -- is nevertheless angling to launch the IPO next year, sources said.
“To pull off an IPO, they do need to show some growth,” says Charles Grom, a retail analyst at Deutsche Bank Securities.
“Given that they’re still relatively small, adding three stores is actually pretty significant.”
With shopping mall construction having ground to a near-standstill during the past decade, the department store sector has largely stopped expanding, too, Grom notes.
Business at Lord & Taylor -- whose future had been in doubt less than a decade ago -- is booming under the direction of CEO Brendan Hoffman, a former Neiman Marcus exec who has won praise for his hands-on management style.
Year to date, Lord & Taylor has posted high single-digit increases in same-store sales, or sales at stores open at least a year, despite tough comparisons with torrid growth rate a year earlier, in which it racked up same-store sales gains of more than 12 percent.
“They’re exploiting the widening gap between Macy’s and Saks,” according to a source close to Lord & Taylor.
“They’re still carrying Theory, Juicy Couture and Tahari, but they also have Jockey underwear and Gold Toe socks.”
jcovert@nypost.com
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