The nationwide expansion and conversion represent the largestpush in years for the 61-year-old company, Jeff Fink, vicepresident of real estate for Jo-Ann Stores Inc., tells GSR. By theend of its fiscal year 2005, which closes at the end of January,the chain will have opened 29 superstores this year. Next year, theplan calls for 40 superstores, of which seven sites already arelocked down in the southwestern states of Arizona, Colorado, NewMexico, Nevada, Texas and Utah with "several more under activenegotiation," Fink says. "Additionally we have two locationsapproved for 2006 (Southwest) with many more under negotiation orconsideration....I've prioritized the Southwest over three of thelargest marketplaces in America." The five-year plan calls for 60superstore openings nationwide in 2006 and 75 in 2007.

"We are closing 1.3 small stores for every large store that weopen," Fink explains of a strategy to replace its smaller stores,which have a 40,000-item inventory, with superstores offering70,000 items for shoppers. "If it's older and it's 10,000 to 14,000square feet, it's slated one day to go away," he says. "It's veryrare for a retailer to expand from 14,000 sf to 35,000 sf and alsoincrease performance." Jo-Ann's now has 863 stores of all sizes in47 states, of which 115 are in Southwest.

In the Southwest, the team is scouting superstore sites inDallas/Fort Worth, Phoenix, Denver, Las Vegas and Salt Lake City.And the one-time mall retailer is again looking at those kind oflocations, leaning toward leased space in out-parcel buildings,explains Steven A. Lieberman, CEO of Dallas-based RetailConnection, who's steering the initiative in Texas and surroundingstates.