Struggling Bon-Ton sees good start to holiday shopping season
Struggling retailer Bon-Ton Stores Inc. said Tuesday it is off to a good start to the holiday shopping season, with November sales up from the same month a year ago.
Bon-Ton, the parent company of Boston Store and Younkers, said sales increased 3.1% at stores open at least a year in the four weeks ended Saturday, and that total sales rose 1.9%, to $280.6 million from $275.3 million.
“We are very pleased with our November sales results and our strong start to the holiday season,” Bill Tracy, president and chief executive officer of Bon-Ton Stores, said in a statement. “We were well positioned heading into Black Friday weekend, and our new merchandising and marketing initiatives continue to generate positive initial results.”
In addition, Tracy said, “We experienced instore traffic that was better than industry regional trends, particularly on Black Friday, and our investments in our online and mobile shopping experience are resonating with customers.”
Bon-Ton was among retailers open on Thanksgiving Day, kicking off the Black Friday weekend by welcoming shoppers at 11 a.m. Thursday — earlier than most merchants — and handing out free gift cards to the first 200 people in line at each store.
Bon-Ton began offering some of its door buster merchandise on its website 11 days before Black Friday.
“We continue to execute with a sense of urgency and remain focused on a successful holiday season,” Tracy said.
Earlier this month, Bon-Ton said it plans to close at least 40 more stores by the end of 2018, about a sixth of its locations in the United States.
The company, which has dual headquarters in Milwaukee and York, Pa., has lost money for the past six years. Through the first three quarters of
“We are very pleased with our November sales results and our strong start to the holiday season. We were well positioned heading into Black Friday weekend, and our new merchandising and marketing initiatives continue to generate positive initial results.” Bill Tracy Bon-Ton Stores president and chief executive officer
its 2017 fiscal year, Bon-Ton lost $135.4 million, and it is projecting a loss for this year overall.
In August, a report by Morningstar Inc. that looked at Bon-Ton’s financial condition said loans backed by Bon-Ton’s stores at Southridge Mall in Greendale and shopping centers in Grand Chute and Plover were among 37 “loans of concern” for the retailer.
Bon-Ton runs more than two dozen stores in Wisconsin and is an anchor tenant in most major shopping malls in the state. Like many retailers, Bon-Ton has struggled amid competition from online merchants and reduced visits to malls by consumers.
Altogether, Bon-Ton operates 260 stores, including nine furniture galleries and four clearance centers, in 24 states. Its other brand names are Bon-Ton, Bergner’s, Carson’s, Elder-Beerman and Herberger’s.
The company said Thursday it wasn’t yet releasing details on November sales, such as how much was generated in stores or online, and what categories of merchandise were selling particularly well.
Bon-Ton said it will provide additional details when it reports its results for the fourth quarter and fiscal 2017 periods ending Feb. 3.