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Discounters, Supercenters Dominate Top 50

Carole Sloan -- Home Textiles Today, July 20, 2009

Discount stores and supercenters continued to dominate the home textiles retail world in 2008, due in large measure to the economy and the drive by the dollar stores segment of the channel to expand into every nook and cranny of the United States because of the retail meltdown.

This channel increased a scant 1% to 42% of the Top 50 Retailing Giants in 2008, while the specialty stores and department stores channels in No. 2 and No.3 positions respectively among seven channels analyzed in the annual Home Textiles Today Top 50 report, just held their own market share for 2008 versus 2007.

Specialty stores and department stores claimed 25% and 19% market share, respectively, of the Top 50 for both 2007 and 2008. And while these three distribution segments were dominant, they suffered along with the other four with significant sales declines.

While these two channels claim differentiation from their more conventional price-driven competitors, 2008 proved to be a year defying conventional definitions of distribution channels, with such high-end department stores like Neiman Marcus, Saks Fifth Avenue and Bloomingdale's often leading the promotional pricing parade.

Specialty stores held on to the 25% share of the Top 50 that they had in '07. Department stores were at 19% of the group.

Two segments had double-digit dollar sales declines — direct-to-consumer and "other" with drops of 14% and 10.3%, respectively, though sales by channel held to '07 levels of 9% and 2%. "Other" includes Sears, Ashley Furniture HomeStores and Army, & Air Force Exchange Service.

Direct-to-consumer had the largest channel drop in terms of dollar sales, down 14% to $2,005 million from $2,331 million in '07. The economy obviously played a role in the decline, but other factors came into play including the shift by a number of retailers from their standard print format where they not only scaled back frequency but also selection to the web and other formats.

Warehouse clubs held on to the fifth slot with a 2% market share of the Top 50 and a 0.2% sales decline.

Home improvement centers were the only segment with a market share percentage drop to 1% from 2% in '07, and a revenue decline to $377 million from $397 million in '07, a 5.0% dollar decline.

Top 5: Home Textiles Discounters

TOP 50 RANK COMPANY 2008 2007 PERCENT CHANGE 2008 2007
HOME TEXTILES SALES* STORES
1. Includes sales from supercenters
*sales in millions of dollars
Source: Home Textiles Today market research
1 Wal-Mart 1 $3,540 $3,810 -7.1% 3,503 3,418
4 Target 1 $2,650 $2,710 -2.2% 1,682 1,591
6 Kmart 1 $875 $949 -7.8% 1,368 1,382
9 T.J. Maxx/Marshalls $610 $620 -1.6% 1,680 1,623
11 Family Dollar $396 $402 -1.5% 6,643 6,509

Top 5: Home Textiles Department Stores

TOP 50 RANK COMPANY 2008 2007 PERCENT CHANGE 2008 2007
HOME TEXTILES SALES* STORES
1. Department store sales only
*sales in millions of dollars
Source: Home Textiles Today market research
3 JCPenney 1 $1,826 $2,018 -9.5% 1,093 1,067
5 Kohl's $1,157 $1,163 -0.5% 1,004 929
7 Macy's Home Store $840 $890 -5.6% 807 813
29 Bloomingdale's $150 $172 -12.8% 40 40
33 The Bon-Ton Stores $132 $142 -7.0% 281 280

Top 5: Home Textiles Specialty Retailers

TOP 50 RANK COMPANY 2008 2007 PERCENT CHANGE 2008 2007
HOME TEXTILES SALES* STORES
Source: Home Textiles Today market research
*sales in millions of dollars
2 Bed Bath & Beyond $3,092 $3,100 -0.3% 993 930
8 Linens 'n Things $670 $980 -31.6% 0 551
12 IKEA $387 $355 9.0% 35 31
16 Anna's Linens $335 $345 -2.9% 260 254
17 Luxury Linens $298 $304 -2.0% 409 378

Top 5: Home Textiles Direct-to-Consumer

TOP 50 RANK COMPANY 2008 2007 PERCENT CHANGE HOME TEXTILES % OF SALES**
HOME TEXTILES SALES*
1. Includes catalog and internet sales only
*sales in millions of dollars
** home textiles as a percentage of total retailer sales
Source: Home Textiles Today market research
3 JCPenney 1 $849 $1,040 -18.4% 4.6%
10 Williams-Sonoma 1 $208 $244 -14.8% 6.2%
24 Hanover Direct $200 $225 -11.1% NA
25 QVC $175 $185 -5.4% 3.6%
28 Cornerstone Brands $154 $181 -14.9% 17.8%

Top 10: Home Textiles Retailers By % Sales Growth

RANK COMPANY (TOP 50 RANK) TYPE 2008 2007 PERCENT CHANGE NET CHANGE*
HOME TEXTILES SALES*
* in millions of dollars
Source: Home Textiles Today market research
1 IKEA (12), Conshohocken, Pa. SP $387 $355 9.0% 32
2 Ross Stores (14), Pleasanton, Calif. DC $385 $355 8.5% 30
3 Sam's Club (21), Bentonville, Ark. W $212 $205 3.4% 7
4 HSN (45), St. Petersburg, Fla. DTC $64 $62 3.2% 2
5 HomeGoods (19), Framingham, Mass. SP $239 $235 1.7% 4
6 Bed Bath & Beyond (2), Union, N.J. SP $3,092 $3,100 -0.3% (8)
7 Kohl's (5), Menomonee Falls, Wis. DP $1,157 $1,163 -0.5% (6)
8 Dollar General (35), Goodlettsville, Tenn. DC $119 $120 -0.8% (1)
9 Family Dollar (11), Matthews, N.C. DC $396 $402 -1.5% (6)
10 T.J. Maxx/Marshalls (9), Framingham, Mass. DC $610 $620 -1.6% (10)

Top 10: Home Textiles Retailers By Net Sales Growth

RANK COMPANY (TOP 50 RANK) TYPE 2008 2007 PERCENT CHANGE NET CHANGE*
HOME TEXTILES SALES*
* in millions of dollars
Source: Home Textiles Today market research
1 IKEA (12), Conshohocken, Pa. SP $387 $355 9.0% 32
2 Ross Stores (14), Pleasanton, Calif. DC $385 $355 8.5% 30
3 Sam's Club (21), Bentonville, Ark. W $212 $205 3.4% 7
4 HomeGoods (19), Framingham, Mass. SP $239 $235 1.7% 4
5 HSN (45), St. Petersburg, Fla. DTC $64 $62 3.2% 2
6 Dollar General (35), Goodlettsville, Tenn. DC $119 $120 -0.8% (1)
7 Crate & Barrel (34), Northbrook, Ill. SP $131 $134 -2.2% (3)
8 Army & Air Force Exchange Service (42), Dallas PX $69 $72 -4.2% (3)
9 Shopko (37), Green Bay, Wis. DC $96 $100 -4.0% (4)
10 Lowe's (20), Mooresville, N.C. HIC $222 $227 -2.2% (5)

Top 10: Home Textiles Retailers By % Unit Growth

RANK COMPANY (TOP 50 RANK) TYPE 2008 2007 PERCENT CHANGE NET CHG. (UNITS)
NUMBER OF STORES
Source: Home Textiles Today market research
1 Cornerstone Brands (28), Waltham, Mass. DTC 12 10 20.0% 2
2 IKEA (12), Conshohocken, Pa. SP 35 31 12.9% 4
3 Ashley Furniture HomeStores (47), Arcadia, Wis. FS 390 353 10.5% 37
4 Garden Ridge (48), Houston SP 43 39 10.3% 4
5 HomeGoods (19), Framingham, Mass. SP 318 289 10.0% 29
6 Luxury Linens (17), Burlington, N.J. SP 409 378 8.2% 31
7 Kohl's (5), Menomonee Falls, Wis. DP 1,004 929 8.1% 75
8 Ross Stores (14), Pleasanton, Calif. DC 956 890 7.4% 66
9 Bed Bath & Beyond (2), Union, N.J. SP 993 930 6.8% 63
10 Lowe's (20), Mooresville, N.C. HIC 1,627 1,528 6.5% 99

Top 10: Home Textiles Retailers By Net Unit Growth

RANK COMPANY (TOP 50 RANK) TYPE 2008 2007 PERCENT CHANGE NET CHG. (UNITS)
NUMBER OF STORES
* in millions of dollars
Source: Home Textiles Today market research
1 Dollar Tree (50), Chesapeake, Va. DC 3,591 3,411 5.3% 180
2 Dollar General (35), Goodlettsville, Tenn. DC 8,362 8,194 2.1% 168
3 Family Dollar (11), Matthews, N.C. DC 6,643 6,509 2.1% 134
4 Lowe's (20), Mooresville, N.C. HIC 1,627 1,528 6.5% 99
5 Target (4), Minneapolis DC/SC 1,682 1,591 5.7% 91
6 Wal-Mart (1), Bentonville, Ark. DC/SC 3,503 3,418 2.5% 85
7 Kohl's (5), Menomonee Falls, Wis. DP 1,004 929 8.1% 75
8 Ross Stores (14), Pleasanton, Calif. DC 956 890 7.4% 66
9 Bed Bath & Beyond (2), Union, N.J. SP 993 930 6.8% 63
10 T.J. Maxx/Marshalls (9), Framingham, Mass. DC 1,680 1,623 3.5% 57

 

2008 Store Breakout By Type


Percentage of Top 50 Sales By Distribution Channel

Discount Stores & Supercenters gained 1% of share from 2007, while Home Improvement Centers lost 1%.

2008 Top 50 Total: $23.38 Billion

2007 Top 50 Total: $25.00 Billion

Top 50 overall % change over 2007: 6.4%

Source: Home Textiles Today market research

About the Charts


All home textiles sales information, except for publicly held companies that break out line-of-business sales for home textiles, are Home Textiles Today market research estimates. All data is for calendar year ending Dec. 31, fiscal-year end or trailing 12 months closest to that date.

Store type:

DTC: direct-to-consumer; DP: department store

DC: discount department store; FC: furniture chain

HIC: home improvement center; SC: supercenter

SP: specialty store; W: warehouse club

Methodology


The accompanying listings of Home Textiles Today's fastest growing retailers are derived from the exclusive Top 50 Retailing Giants rankings (starts on page 14.)

The rankings cross all formats of home textiles retailing, including: discount department stores; specialty stores; department stores; national chains, such as Sears; non-store retailers, such as catalogs and internet retailers; warehouse clubs; military exchanges; home improvement centers and furniture chains that carry a significant proportion of home textiles merchandise; and supercenters, which sell both food and general merchandise in their merchandise mix

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