Citi Trends, a US specialty retailer of clothing, accessories and home trends, opened 27 new stores in its 2021 fiscal year.
Its sales are focused on clients with a much lower cost, mainly for African-American and Latino families in the United States.
In general, Citi Trends merchandise offerings are designed to appeal to the fashion and trend preferences of value-conscious customers.
Its stores are located at the crossroads of low to moderate income households and serve as a “one stop shop” for the entire family.
Additionally, Citi Trends stores average approximately 11,000 square feet of selling space and are typically located in open-air community malls in a variety of urban, suburban and rural markets.
As of January 29, 2022, the company operates 609 stores in 33 states.
Its goal is to be the leading specialty value retailer of clothing, accessories and home trends for African American and Latino families with a median annual household income of approximately $40,000.
The company seeks to prioritize investments in opportunities to profitably grow its business and maintain current operations, then return excess cash to shareholders through its buyback programs.
Its cash and cash equivalents balance at the end of the year was $49.8 million compared to $123.2 million at the end of last year.
Additionally, on March 14, 2022, the company entered into an agreement to consummate a sale and leaseback transaction for its Darlington, South Carolina, distribution center and, at its discretion, its Roland, Oklahoma distribution center.
The sale of the Darlington property is expected to generate net proceeds (after taxes and transaction-related costs) of approximately $37 million.
The sale of the Roland property, if so chosen by the company, is also anticipated to generate net proceeds of approximately $32 million.
Likewise, the sale of the Roland property is subject to due diligence and other customary closing conditions.
The principal measures of competition in the retail business are fashion, assortment, pricing and presentation. The company believes it have a competitive advantage in its offering of fashion and trends at everyday low prices, and its strategy of focusing on African American and Latinx customers puts Citi Trends in a unique competitive position.