Mervyns to open new stores, launch Web site

HAYWARD, Calif. Mervyns said it plans to open five new stores in its core markets in 2009. This brings the total number of new Mervyns stores to 17 since the company was acquired by its private equity owners three years ago, and reflects its commitment to maintaining a dominant real estate position in California and the Southwest. Concurrently, Mervyns reported it has engaged DJM Realty, LLC, one of the nation’s leading real estate advisory firms, to sell 5-10 underperforming, but high real-estate-value, stores. The real estate portfolio transition is expected to generate $25 to $50 million in cash to fund operations and new growth initiatives.

The company also announced it will launch a fully integrated e-commerce Web site in the fourth quarter of 2008.  Mervyns said the e-commerce Web site presents a new growth vehicle and multi-channel opportunity for existing and new customers nationwide, and forecasts that the online platform could quickly grow into a $50 million business. Mervyns will partner with a nationally recognized provider of turnkey order entry and fulfillment services in launching its Web site.

Ceo John Goodman commented, "We have a plan that centers around our consumer and her needs, and we are putting the capital and people resources behind it to not only overcome the current difficult retail climate, but to gain market share and reinvigorate the Mervyns brand."