Roots set to expand U.S. store count

Canadian retailer Roots announced on Monday the opening of two U.S. retail locations in the Greater Washington, D.C. area and plans to open two other stores in the country by the end of the summer.

"We believe the U.S. represents a minimum 100-store market opportunity for us, which is an important long-term growth driver," said Jim Gabel, President and Chief Executive Officer of Roots, in a news statement.

"We will have four new stores open by the end of the summer, moving us well down the path toward our target of 10 to 14 new U.S. retail locations by the end of 2019.

To date, the clothing and accessories retailer has confirmed a 3,550-square-foot store on M Street, in the Georgetown neighbourhood. The store will embrace Roots latest retail concept format, 'Enhanced Experience', where customers can not only shop products, but customize a selection of leather bags and jackets, as well as enjoy a heritage wall, customer lounge and other design features that will add to the in-store shopping experience.

Meanwhile, a second 3,200-square-foot store is expected to open in Pentagon City, a Super Regional Mall in Arlington, V.A.

The two stores are expected to open this August.

The company currently operates just three company retail stores in the United States, while they have 116 company retail stores in Canada and 110 partner-operated stores in Taiwan and 32 in China.

Its been working on modernizing the Roots brand and transforming the business since Fiscal 2016.

In its first full year results announced since completing an initial public offering in October, the 45-year-old apparel brand saw sales reach $326.1 million for the full year ended February 3, 2018.

By the end of fiscal 2019, the Canadian retailer expects sales of $410 million to $450 million, adjusted EBITDA of $61 million to $68 million and adjusted Net Income of $35 million to $40 million.

Roots set to expand U.S. store count

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