Amid speculation that it might declare bankruptcy a second time, Tuesday Morning has made a deal with Intalytics, a company that offers real estate analytics.
Bloomberg first reported rumors about Tuesday Morning considering restructuring alternatives including a second spell in bankruptcy. In the meantime, the retailer jointly released a press release with Intalytics, which will provide customized location intelligence solutions.
In the deal, Tuesday Morning will gain access to an Intalytics sales forecasting model that can help it refine its brick-and-mortar strategy. Tuesday Morning also gets access to SiteIntel, a proprietary analytics platform developed by Intalytics. Among other things, SiteIntel gives Tuesday Morning the ability to generate sales forecasts and cannibalization estimates for any proposed new store opening under consideration. It also provides analytical capabilities such as spatial data visualization, custom reporting and peer site analysis tools to evaluate the potential of a location.
“With the dramatic shifts in consumer behavior and retail real estate over the last 24 months, our team sought out best-in-class tools to ensure that our store location strategy contributes to increasing the profitability of Tuesday Morning,” said Phil Hixon, the retailer’s executive vp of store operations and real estate. “We see tremendous potential in the future of our company and know that engaging Intalytics as our location intelligence partner will help us realize that potential.”
In a research note, Pulse Ratings noted that since emerging from bankruptcy in 2020, Tuesday Morning has failed to meet its sales and EBITDA projections, which has pressured liquidity and prompted the company to secure additional financing and covenant relief. In a challenging retailing environment, Tuesday Morning may not be able to survive another bankruptcy, Pulse Ratings warns, while stating that it would continue monitoring the situation.
Tuesday Morning operates 490 stores in 40 of the United States.