Warrendale-based rue21 plans to open 3 new stores amid pandemic
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Warrendale-based rue21 found a way to make it through a trying time for retailers during the coronavirus pandemic.
While some specialty stores filed for bankruptcy or closed, rue21 will open brick-and-mortar stores in South Carolina, Tennessee and Texas this month, according to a press release.
The company sells casual apparel from jeans to T-shirts and dresses to bathing suits as well as accessories for women and men at 673 locations in 45 states.
In March, rue21 temporarily closed stores and furloughed most of its staff, but continued to provide health benefits.
In May, the retailer began reopening 180 stores, with touchless payment technology and other 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.
“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 was named interim CEO in February, said the store openings had been planned pre-covid 19. When the National Basketball Association shut down on March 12, he said it got him thinking about what might happen in the future because if a professional sports league was suspending play it had to be for a good reason. She he met with his team to devise a plan and by March 20 decided to close all stores for eight weeks and furlough 8,000 people.
The original shut down time was thought to be two weeks, but Fleming was anticipating a longer time.
His decision of extra closure time gave his workers the opportunity to collect unemployment and the stimulus money all with continued healthcare benefits. That gave the company time to concentrate on its e-commerce site and making changes in the stores to get them ready for whenever the reopening would be, Fleming said.
When it was time to reopen stores those that were in more competitive areas did better, he said.
Fleming turned down compensation throughout the furlough period, the release said. He led the company in finding ways to address the uncertain back-to-school season, and provide inventory such as fashion-print masks and plus-size apparel.
Get ready for a BIG closet refresh – our back to school collection is hitting local rue21 stores THIS WEEK! ? #backtoschool #newstyles #rue21 https://t.co/1U2BlWtyoo pic.twitter.com/077kNGxybN
— rue21 (@rue21) July 19, 2020
“Speed to market continues to be a laser focus,” he said. “Trends are changing faster than ever before, and we’re determined to consistently meet our loyal customers’ demands. We serve young style conscious consumers who need the latest trends and want them at the prices they love.”
Fleming said one of the biggest challenges has been the back-to- school plan because there has been so much fluctuation in what will happen with learning this fall, whether it will be don’t remotely or in person. He did see a need for face masks early on and they will have both online and stores ready for holiday shopping.
The retailer offers a reward program in which customers get 10 points for every $1 dollar spent or a $5 dollar reward for every $75 spent.
“Unlike many retailers, we are in a better position today then we were before the global pandemic,” he said. “We are energized to build off of this incredible momentum and provide our customers with a seamless, personalized and safe shopping experience.”