Top 100 US Speciality Retailers

THE DEFINITIVE RANKING 2OO5

A S P E C I AL AL R E P O RT RT S P O N SO SO R E D B Y A L L I AN AN C E D AT AT A S Y S T E MS MS

StORES

®

Trusted by over 1 million members

Try Scribd FREE for 30 days to access over 125 million titles without ads or interruptions! Start Free Trial Cancel Anytime.









THE NATION’ NATION’S S BIGGEST BIGGEST

SPECIALTY CHAINS BY DAVID DAVID P. P. SCHULZ

S

hakeouts and consolidations in other retailer segments — department, drug and grocery stores, in particular — are expanding the possibilities for specialty stores as both suppliers and consumers seek new outlets for merchandise. Specialty retailers, once dismissed as “satellites” meant to fill up mall space between department store anchors, are now a major force in retailing, whether in the context of shopping centers or as freestanding freestanding entities.One factor boosting specialty retail is the growth of so-called lifestyle shopping sho pping centers. Though the configurations differ, these centers generally are mixed-use facilities incorporating some combination of residential and recreational/entertainm recreational/entertainment ent usage with retail stores. The tenor, or lifestyle aspect, is created by the retail tenants, which typically do not include a department store or large general merchandise retailer. Specialty store operators are themselves playing the “lifestyle” card. Big box retailers, such as Best Buy and Bed Bath & Beyond, are using 1 smaller, more intimate locations with narrowly focused offerings to penetrate niche markets. Best Buy, which once again tops the STORES Top 100 Specialty Retailers chart, is using both concept stores and service









13

7

A

lliance Data Systems is proud once again to sponsor the

STORES magazine special report on the nation’s Top 100

Specialty Retailers. These companies represent the biggest and best in specialty retail. It’s a pleasure for us to be able to work in this diverse and dynamic industry, and to provide integrated credit and database marketing services to more than a few members of this year’s list. Information is power. That’s why informative resources like the STORES report are so valuable. It’s a thorough resource on the prime movers in the industry, with plenty of insight and analysis from the STORES editorial staff. It’s information you’ll use again and again. And while all information is valuable, the right information can be invaluable. It can make you smarter, more aware and better prepared. Whether you’re selling toys or tires, knowing the customer and delivering a product, service or experience that is responsive to his or her needs and expectations is the only way to compete in a marketplace with more choice than ever before. At Alliance, our programs are centered on delivering the “right” information to retailers. We gather and analyze critical data and use that information to help our clients drive sales. We deliver the customer insights and customized solutions that create a deeper relationship between a retailer’s customer and their brand, and turn casual shoppers into dedicated customers. It’s all about learning and adapting to a moving marketplace — a skill these Top 100 companies likely learned long before they earned a coveted spot on this enviable list. So congratulations to this year’s Top 100. And when you’re looking for definitive information about America’s premier









TOP 1OO

SPECIALTY SPECIAL TY RET RETAILERS AILERS

4

borhood, or “communi- Always trying to stay ty-centric,” concepts Stu- connected to their dio D and Escape to customers, both reach consumers who are Office Depot and Gap intimidated intimidated or otherwise have unveiled new uncomfortable uncomfortable shopping store designs in the in one of its 500-plus last 12 months. warehouse-sized warehouse-sized stores. Studio D, in Naperville, Ill., has the feel of a fashion boutique and is clearly appealing to women who make consumer electronics buying decisions. The store has an area for consultation and instruction, which may result in recommendations WHAT’S SO SPECIAL for purchasing items at a ABOUT THEM? large Best Buy store. Among the activities that Can’t figure out why some companies are take place at Studio D









TOP 1OO SPECIA SPECIAL LTY RET RETAILERS AILERS To the extent that it is available, STORES gathers performance data from the annual reports of publicly traded retail companies. The Top 100 companies for which STORES has made sales estimates are, in descending order: CompUSA, IKEA, Bass Pro Shops, Hobby Lobby, P.C. Richard, Eddie Bauer, Crate & Barrel, Academy Sports, KB Toys, Fry’s Electronics, Modell’s, J&R Music World and Computer World, BrandsMart USA, Forever 21. k n a R

Company Comment

Headquarters

2004 Revenues Y/Y (000) Change

2004 Earnings (000)

Y/Y Change

No. of Stores

Y/Y Change

1

Best Buy Minneapolis $27,433,000 11.8% $984,000 39.6% 830 8.2% In reversal of usual claims, Best Buy says recommendations recommendations from store associates drives online sales; testing in-store restaurant in Chicago’s Lincoln Park neighborhood neighborhood

2

Gap

San Francisco 16,267,000 2.6 1,150,000 11.6 2,994 -0.9 Moving to strengthen balance sheet and focus on capital structure with moves such as retiring debt ahead of schedule and spending $2.5 billion to repurchase shares

3

Staples Framingham, Mass. 14,448,378 11.4 708,388 44.5 1,680 7.8 Ten Ten stores open in Chicago, home market for its Quill mail order division; 24 stores expected by end of next year and perhaps double that number by the end of 2007

4

Office Depot

Delray Beach, Fla. 13,564,699 9.8 338,159 22.4 1,190 8.3 As part of drive to open 100 new stores by the end of next year, 1,000th North American unit bowed in June in Countryside, Ill.; domestic division generates 44% of volume

5

OfficeMax Itasca, Ill. 13,270,196 60.9 173,058 913.5 935 Sam Duncan, late of ShopKo, takes chair/CEO/president reins of company SEC is investigating over accounting issues involving vendor allowances

6

Toys “R” Us

Wayne, N.J. 11,100,000 -4.0 252,000 186.4 1,499 -0.1 Shareholders OK buyout by private firms; chairman/CEO John Eyler, COO Christopher Kay promptly announce resignations, taking with them $65 million and $14 million, respectively

7

Circuit City Richmond, Va. 10,472,364 6.2 61,658 -169.1 612 2.2 Some executive shuffling after Q1 results were released showing net loss widening to $13 million from $6 million a year ago; SGA expenses rose on inventory write-downs

8

Limited

Columbus, Ohio 9,408,312 5.3 637,272 9.2 3,779 -3.4 Apparel moves to support role as founder Leslie Wexner says, “We’ve r einvented ourselves completely. completely. We are now predominantly a personal care, beauty and lingerie company.”

9

Blockbuster Dallas 6,053,200 2.4 (1,256,100) 43.5 9,000 0.0 Even with financier Carl Icahn on board as a director, rumors continue to fly about a possible takeover bid, with private equity firms prominently mentioned as candidates

-4.1

10

Memphis, Tenn. 5,637,025 3.3 539,893 5.3 3,483 8.2 Overall sales sagged and same-store sales dropped 5% in Q3 ended in May; margins improved 91 basis points and income rose 3.2%; opened net of 31 stores in the period

11

Foot Locker New York 5,355,000 12.1 293,000 41.5 3,967 9.9 Operates stores in 17 countries under various Foot Locker names as well as Champs Sports; acquired 11 locations in Ireland last fall to give it nearly 500 units in Europe

12

Bed Bath & Beyond

AutoZone

Union, N.J. 5,147,678 15.0 504,964 26.4 663 14.1 With 20% average annual earnings growth, company is Wall Street favorite, particularly among hedge fund managers; rolling Christmas Tree shops beyond Northeast

Barnes & Noble New York 4,873,595 11.5 143,376 -5.5 820 -2.6 13 As big as it is, a new Harry Potter book due out in July raises hopes for Q2 improvement; divestiture of Game Stop is making year-over-year year-over-year financial comparisons easier

14

Fort Worth, Texas 4,841,200 4.1 337,200 13.0 6,834 -2.4 Cut the ribbon on StoreOne, part of Riverfront headquarters headquarters campus in Fort Worth; 10,000-sq.-ft. store is an interactive, hands-on technology education experience for customers

15

Big Lots Columbus, Ohio 4,375,072 4.8 25,682 -68.4 1,502 4.9 Struggling in first half: cut back advertising, which hurt sales, led to markdowns to move inventory and depressed margins; KB Toys bankruptcy ramifications still down the road

16

Ross Stores

Pleasanton, Calif. 4,239,990 8.1 168,541 -25.3 639 12.5 Menswear has underperformed leading to disappointing disappointing Father’s Day sales in June; seasonal merchandise has also been below plan so earnings forecasts have been lowered a notch

17

CompUSA Dallas 4,175,000* 0.6 N.A. — 225 0.0 CompUSA/Good Guy megastores (16 in all) opened in June in Seattle, Los Angeles, San Francisco, Sacramento and Portland, Ore.; still has 50 Good Guys, 230 CompUSA CompUSA stores

18

Borders Group

RadioShack

Ann Arbor, Mich.

3,903,000

4.6

131,900

14.5

1,209

-1.3









TOP 1OO


35

With its modernistic glass- Suggestive images and-metal decor, Escape is de- push product at signed for young adult city- Abercrombie & Fitch, whi while le Pep dwellers who are already Fitch, conversant with consumer Boys rev sales with electronic technology. The lo- more traditional cation, in Chicago’s Lincoln sales engines. Park neighborhood, offers the newest gadgets and latest editions of games, which can be tested on consoles installed in booths. The consoles can be rented by the hour and can also be networked for group playing. “We are in the process of reinventing what Best Buy means to its customers,” says CEO Brad H. Anderson, adding that the company is “finding new ways to serve diverse customer groups.” Whether these concept stores are rolled out as chains is another question, however, since profitability is an is-











TOP 1OO SPECIA SPECIAL LTY RET RETAILERS AILERS k n a R

Company Comment

Headquarters


2004 Earnings (000)

Y/Y Change

No. of Stores

Y/Y Change

PETsMART Phoenix $3,360,000 12.1% $171,100 22.6% 726 12.9% 21 Americans are fond of their pets and willing to spend on them as results show in both top and bottom lines; now trying to bolster share price with stock buyback

22

3,171,000 11.9 N.A. — 362 3.7 With Monroe Milstein, chairman/CEO of family-run firm now 77, company brings in Goldman Sachs to explore strategic alternatives; Wall Street applauds move

23

Williams-Sonoma San Francisco 3,136,931 13.9 180,087 14.6 552 7.8 Store openings include recycling Pottery Barn locations into Hold Everything stores; CEO Ed Muller says, “West Elm, over time, has the potential to become our largest brand.”

Burlington Coat Factory Burlington, N.J.

Luxottica Retail Cincinnati 2,892,712 27.8 386,857 20.9 5,500 5.8 24 After spending $500 million for Cole National, former head offices in Twinsburg, Ohio, have been closed and everything moved to Lenscrafters HQ in southern part of state

Linens ‘n Things Clifton, NJ 2,661,469 11.1 63,142 -15.6 492 11.8 25 After forecasting losses for this year’s Q2, company pins hopes on successful back-to-school season and fall launch of 600-sku collection collection by Oprah’s Nate Berkus

26

Topeka, Kan. 2,656,500 -0.2 (2,000) — 4,640 -8.4 Matthew Rubel, former executive vice president at J. Crew and CEO at Nike’s Cole-Haan division, takes CEO post in Topeka after Steve Douglas vacates both CEO and chairman posts in July

27

2,601,000 12.5 163,000 -1.2 370 0.8 Berkshire-Hathaway Retail Omaha Though Warren Buffett prefers to take a low-profile approach with chains, Kansas City-based Helzberg Diamonds wants to ramp up attention with new creative communications agency

Payless ShoeSource

Sports Authority Englewood, Colo. 2,435,863 38.4 34,150 108.7 392 2.1 28 After a two-year incubation, positive results start to flow from Gart merger as sales begin to build and margins rise; is Dick’s growing enough to challenge for top spot in segment?

29

Charming Shoppes Bensalem, Pa. 2,332,334 2.0 67,242 65.5 2,221 -0.3 Good last year, looking for more this year; acquisition of Crosstown Traders enhances multi-channel multi-channel capabilities as Lane Bryant margins rise and Catherine’s posts double-digit comps

30

Zale

Dallas 2,304,440 4.2 106,473 — 2,235 Direct sourcing has led to improved margins during FY ended in July; company also imposed “operating disciplines” disciplines” to bolster bottom line, says CEO Mary L. Forte Forte

31

Pep Boys Philadelphia 2,272,896 6.5 23,579 — 595 0.0 With 130 remodels done in two largest markets, 46 had grand r e-openings e-openings in Philadelphia Philadelphia in June; stores remerchandise and there’s new emphasis on service offerings

32

Tiffany New York 2,204,831 10.2 304,299 41.2 150 6.4 Indicative of historic Atlantic City’s new-found panache, panache, Tiffany plans opening at The Pier at Caesar’s next year; also growing in Pacific Rim with new store in Brisbane, Australia

33

Dick’s Corapolis, Pa. 2,109,399 43.4 66,909 26.7 234 43.6 Sported 3.2% same-store sales gains in Q1 2005, but real challenge comes from improving performance of Galyan units acquired last year; if not, Wall Street will turn quickly

34

Sterling Jewelers Akron, Ohio 2,060,000 9.9 274,000 7.7 1,156 4.8 Largest unit of UK-based Signet, Sterling’s Kay Jewelers chain opened its first New York City store in June in the vicinity of Macy’s flagship Herald

0.0









TOP 1OO


57

tions in California, the Geek Squad is being expanded over the next 12 to 18 months to as many as 50 stand-alone sites. These 1,500sq.-ft. units won’t carry any merchandise, but will serve as launching pads from which tech-










Company Comment

Headquarters


2004 Earnings (000)

Y/Y Change

No. of Stores

Y/Y Change

41

TJX U.S. Specialty Framingham, Mass. $1,835,123 38.8% ($5,264) — 378 34.5% Flagship HomeGoods HomeGoods topped $1 billion in sales for first time last year but overall performance was disappointing; still planning rollout of freestanding HomeGoods next to T.J. Maxx, Marshalls

42

Jo-Ann Stores

Hudson, Ohio 1,812,400 4.5 46,200 15.2% 850 -4.7 Superstores, now generating nearly 40% of total volume and out performing traditional units; 40 of the larger stores opening this year as 14 smaller stores have been shuttered

43

Petco Animal Supplies San Diego 1,812,145 12.5 83,673 29.3 335 -48.8 Back in Nasdaq's good graces after delay in filing annual, quarterly reports almost resulted in delisting this spring; company can now concentrate on upgrading communications infrastructure

1,782,364 5.9 71,288 -11.0 2,006 4.5 Hollywood Entertainment Portland, Ore. 44 As with so much of what Hollywood is about, been searching for partner with deep pockets: first Leonard Green & Partners, then Blockbuster, before settling on Movie Gallery

45

O’Reilly Automotive Springfield, Mo. 1,721,241 13.9 146,050 45.9 1,249 12.6 Operating with co-presidents Greg Henslee and Ted Wise as O’Reilly family establishes succession plan for company with stores from Carolinas to Kansas; Gulf to Great Lakes

46

Talbots

Hingham, Mass. 1,697,843 4.5 96,396 -7.9 1,049 6.4 Competitors step up pressure by also targeting 40-something women; Talbots Talbots responds with more flair and trend among its classic offerings; plans to open 50 stores this year

47

Retail Brand Alliance New York/Enfield,Conn. 1,650,000 10.0 N.A. — — — Closed 84-unit August Max and put both Casual Corner chain and Carolee Designs up for sale; more profitable Brooks Bros. grows internationally and gets more attention

48

CSK Auto

Phoenix 1,577,460 0. 0.0 36,881 241.6 1,134 In cost-cutting mode to “provide us with operating leverage as our same-store sales improve,” says Chairman and CEO Maynard Jenkins, company is opening 50 new stores

49

Cabela’s Sidney, Neb. 1,555,974 11.7 97,215 14.5 10 11.1 Less than a third of sales come at retail in segment that includes Bass Pro Shops and Gander Mountain; opened opened stores in Fort Worth and Austin, Texas, markets this year

50

Men’s Wearhouse

Houston 1,546,679 11.1 71,032 35.8 707 2.0 Performance has been improving along with the nation’s economy (demand for men’s suits increased during this period) and the formalwear rental business is along for the ride

51

Guitar Center Westlake Village, Calif. 1,513,172 18.7 63,425 72.1 138 The country’s largest retailer of musical instruments — not that there’s much competition — saw sales and earnings grow by double digits in Q1 this year; acquiring Music & Arts Center

52

IKEA

Plymouth Meeting, Pa. 1,500,000* 7.1 N.A. — 22 22.2 Stepping up pace of North American expansion to 4-5 new stores a year while looking at new markets such as Atlanta, Dallas and Phoenix; also targeting small business customers

53

Stein Mart Jacksonville, Fla. 1,459,607 8.0 37,973 1, 1,625.3 261 0.0 Selling more goods at full price, with ladies’ apparel, accessories and menswear menswear all showing strength this year; closed five stores in Q1 and pushing some openings back to 2006

54

General Nutrition Centers Pittsburgh

1.8

11.3

1,344,700 -5.9 — — 2,642 -3.9 Since director Robert J. DiNicola (late of Zale’s jewelers) took over as interim chairman in December, company company has made several short-term









TOP 1OO


3

based PrairieStone Pharmacy and Park Nicollet Health Services into wellness and health care electronic gadget retailing — everything from air purifiers to sphygmomanometers. All of this comes amidst a push by Best Buy to grow to as many as 1,200 stores in North America and begin opening stores in China










Company Comment

Headquarters


2004 Earnings (000)

Y/Y Change

No. of Stores

Y/Y Change

61

Claire’s Stores Pembroke Pines, Fla. $1,279,407 12.9% $143,124 24.4% 2,840 1.1% Costume jewelry and accessories offerings were str ong last year and have continued to show well early in 2005; European stores, emulating U.S. trends, also sport positive comps in first half

62

Goody’s Family Clothing Knoxville, Tenn.

1,266,993 3.3 15,653 -11.4 358 6.9 Exited Charlotte, N.C., market in January with first store closings in more than a year, though it still has 46 units in Tar Tar Heel state with another outlet opening this fall

63

Stage Stores Houston 1,243,851 27.9 53,676 -2.4 528 1.9 7 of 10 new stores opened this year are Peebles units as division outperforms Beall’s and Stage stores; distribution functions moved from Knoxville, Tenn., to South Hill, Va.

64

Pacific Sunwear

Anaheim, Calif. 1,229,762 18.1 105,892 32.6 990 12.9 Planning a larger prototype (8,000 sq. ft. vs. current 3,600 sq. f t.) for surf-and-skate styles with an eye on 1,400 stores and $2 billion in sales by the end of 2007

65

Finish Line Indianapolis 1,166,767 18.3 61,263 29.6 605 13.9 Q1 earnings up 24%, sales 13% as selling space grew 12%; new prototype for Man Alive chain — now 38 stores strong — selling men’s and ladies’ hip hop fashions

66

Children’s Place

Secaucus, N.J. 1,157,546 45.1 43,264 88.5 1,056 Bought 313 Disney Stores last fall with commitment to spend $100 million upgrading them and paying licenses to Disney; now the chain is expanding into outlet shopping centers

67

P.C. Richard Ric hard Farmingdale, N.Y. 1,125,000* 7.1 N.A. — 49 4.3 Largest of the country’s family-owned-and-operated retailers selling major appliances and consumer electronics; service, repairs and contractor sales also part of equation

68

Genesco

Nashville 1,112,681 32.9 48,401 -83.2 1,618 55.6 Journeys is the best performer among the footwear chains, while Hat World continues to dazzle with 7% comps in Q1, even up against a 23% same-store sales rise in prior year

69

Chico’s FAS Fort Myers, Fla. 1,066,882 38.8 141,206 40.9 668 21.2 Grew from $250 million volume in 2000 to more than $1 billion last year; CEO Scott Edmonds sees the next billion coming even faster, faster, starting with 100 new stores this year

70

New York & Co.

52.8

New York 1,040,028 8.1 18,106 8.7 477 1.7 Former Limited Inc. chain was sold to Bear Stearns Capital II and then taken public last year; strong accessories sales helped boost comps 7.2% during 2004

Eddie Bauer Redmond, Wash. 1,000,000* -43.5 N.A. — 418 -7.5 71 All that’s left of Spiegel Inc.; the venerable catalog is no more, and former owner Michael Otto is out of the post-bankruptcy picture; home division shut stores

72

New York 964,212 31.2 84,112 55.0 561 21.4 18-year-old chain charging along in value-priced apparel for teens segment as fashion-follower able to get trends into stores quickly; lot of room to grow in Calif., Fla. and Texas

73

Crate & Barrel Northbrook, Ill. 925,000* 5.7 N.A. — 130 Gordon Segal wants to stay “entrepreneurial” “entrepreneurial” as website gets high marks for its shopping experience; opened a fourth The Land of Nod kids’ furniture and accessories location location

74

Cost Plus

Aeropostale

2.4

Oakland, Calif. 908,560 13.3 30,221 -7.5 236 13.5 Q1 was tough as comps dipped 1.9%, but new store openings are on schedule and overall sales continue to grow; CEO search on to succeed











TOP 1OO


46

ports, they rose 4 per-

Women’s apparel










Company Comment

Headquarters


2004 Earnings (000)

Y/Y Change

No. of Stores

Y/Y Change

81

Dothan, Ala. $791,177 14.3% $49,488 0.1% 2,482 15.0% Picked up where Blockbuster left off in bidding for rival Hollywood Entertainment; Entertainment; acquisition gives company West Coast base and moves it out of rural, small-town markets

82

Haverty Furniture Atlanta 784,162 5.3 22,754 -10.2 118 Results have been upbeat so far this year, with total sales up 8.1% in first half and same-store sales up 3.5% as management looks for more and a strong finish to 2005

83

Jones Apparel Retail

Movie Gallery

New York 780,300 13.8 N.A. — 1,037 4.7 Cognescenti suggesting acquisition acquisition of Barneys New York signals rapid growth for t he retailer and a major directional shift for apparel maker in light dust-up with Ralph Lauren

Big 5 Sporting Goods El Segundo, Calif. 778,905 9.7 34,259 30.3 309 5.5 84 Athletic footwear was star performer as company posted 37th consecutive quarter of positive same-store sales results; opening 16-20 new stores this year in western markets

85

Charlotte, N.C. 773,809 5.7 34,607 10.3 1,177 6.8 Consolidating house-brand house-brand apparel under the Cato label while focusing on emerging fashion trends and colors; reorganizing product development and sourcing functions

86

Tweeter Home Ent. Canton, Mass. 771,553 -2.0 (11,662) 0.0 176 1.1 Quit franchise deal with Bang & Olufsen; opened prototype architecture unit in Las Vegas last January that includes offerings of supplier/partners Hewlett Packard, Microsoft

87

Sharper Image

San Francisco 760,003 17.4 14,650 -36.6 175 17.4 Rough start to 2005 — a “transition year,” says CEO Richard Thalheimer — but high expectations for new merchandise lines being unveiled unveiled this fall, including MP3 devices

88

KB Toys Avon/Pittsfield, Mass. 750,000* -10.0 — — 900 -18.2 Planning to emerge from Chapter 11 bankruptcy protection in time for this year’s holiday selling season; has closed 600 stores since filing bankruptcy petition in January 2004

89

Dress Barn

Suffern, N.Y. 754,903 6.8 30,141 274.7 776 0.5 $350 million acquisition of 470-store Maurices chain in January depressed depressed earnings, but adds about $200 million in annual sales for FY ended July 30, 2005

90

Fry’s Electronics Palo Alto, Calif. 700,000* 2.9 — — 28 Legendary Silicon Valley old-timer stays on cutting edge to meet demands of loyal customer base and innovative merchandise buying and presentations

Cato

3.7

4.4









TOP 1OO


A Q UA R T ER - C E NT U RY OF

SPECIALTY STORE GROWTH 1981 Com Company pany (Hea (Headq dqua uart rter ers) s)

1980 1980 Sales ales (000)

Num Number ber of Stores

Petrie Stores (Secaucus, N.J.)

$479,000

697

U.S. Shoe Apparel (Cincinnati)

373,700

620

Gap Stores (San Bruno, Calif.)

369,800

472

Limited Stores (Columbus, Ohio)

265,300

322

Miller-Wohl (Secaucus, N.J.)

201,700

268

Edison Bros. Apparel (St. Louis)

185,900

772

Melville Retail Apparel (Rye, N.Y.) 171,000 Brooks Fashion Stores (New York) 148,200 W.R. Grace Retail Apparel (New York) 139,000

527 401 204

Charming Shoppes (Bensalem, Pa.)

202

126,100

73

care generated 30 percent and lingerie 41 percent. A decade earlier, apparel accounted for 71 percent of sales, intimate apparel 25 percent and personal care products just 4 percent. More telling is the fact that in 2004, roughly two-thirds of

Crate & Barrel gives nod to kidsfocused concept, while "operat while "operating ing disciplines" have bolstered the bottom line at Zale.









TOP 1OO


S P E C I A L T Y S T O R E G R O W T H (continued)

1985 Com Company pany (Hea (Headq dqua uart rter ers) s)

1984 1984 Sale Sales s (000)


Mervyn’s (Hayward, Calif.)

$2,141,000

126

Radio Shack (Fort Worth, Texas)

2,133,000

4,717

Toys “R” Us (Rochelle Park, N.J.)

1,702,000

203

Marshalls (Woburn, Mass.)

1,190,000

209

Nordstrom (Seattle) Petrie Stores (Secaucus, N.J.)

983,000 951,000

39 1,360

Saks Fifth Avenue (New York)

815,000

40

Levitz Furniture (Miami)

761,000

92

Neiman-Marcus (Dallas)

725,000

21

Lerners (New York)

700,000

800

T

he fifth edition of the Top 100 Specialty Store Retailers

30

years now, a period that has seen the departure of Mickey Drexler (who later resurfaced at J. Crew) and the dawn of the Paul Pressler era. Mistakes have been made, as Pressler readily admitted to securities analysts in May.

showcased both hardline and softline specialists, includ-

ing many operators that were not primarily mall-based chains. Thus, fashion stores such as Nordstrom, NeimanMarcus and Saks Fifth Avenue were included, even though they looked like department stores and competed with department stores but weren’t considered department stores because they didn’t have furniture, toys, sporting goods,









TOP 1OO



1990 Com Company pany (Hea (Headq dqua uart rter ers) s)

1989 1989 Sale Sales s (000)


Toys “R” Us (Rochelle Park, N.J.)

$4,788,000

404

The Li Limited (Columbus, Ohio)

4,648,000

3,188

Kinney Shoe (New York) Radio Shack (Fort Worth, Texas)

3,042,000 2,940, 000

3,604 4,821

Circuit City (Richmond, Va.) Marshalls (Woburn, Mass.)

2,097,000 1,939,000

149 347

T.J. Maxx (Framingham, Mass.)

1,677,000

352

Gap (San Bruno, Calif.)

1,587,000

960

Petrie St Stores (S (Secaucus, N. N.J.)

1,258,000

1,569

U.S. Shoe Apparel (Cincinnati)

1,234,000

1,721

B

y the 10th year, the Top 100 Specialty Store Retailers

ranking was taking on an appearance that would be recognizable to today’s readers, with names such as Toys “R” Us, Limited, Radio Shack and Gap clustered near the top of the chart. Conglomerates were represented by their components rather than as entities themselves; thus U.S. Shoe’s apparel stores — led by Casual Corner — rested in the 10th spot, while the shoe divisions were ranked in the 71st posi-

Gap has launched Gapbody, offering personal care, beauty, fragrance and lingerie. Eleven Gapbody units are slated to open this year. Office supply stores are a small but strong niche, claiming three of the first five spots on the Top 100 Specialty Retailers chart. Ranked third, fourth and fifth, Staples is the largest, Office Depot is a rung below and the extensively restructured OfficeMax — bulked with former Boise Cascade operations — is a close third in sales volume. As with all the office supply dealers, Staples is really a conglomerate with direct-selling and small-business operations, as well as a presence in several regions re gions around the globe. Even with its base of small- and home-business customers, however, Staples addresses lifestyle issues in many of its efforts. A test of selling office supplies in supermarket aisles was so successful that it began rolling out the concept in July to more than 550 Stop & Shop stores on the East Coast. Earlier this year, Staples opened its first stores in the Chicago area, where it plans to have 20 units in operation by December and as many as 50 within the next nex t two or three years. The Chicago stores are of the “Back to Brighton” type, named for the Massachusetts town where the concept was unveiled four years ago. The model in-











TOP 1OO



W

ith Rick Gallagher

now editor and publisher of STORES, a lot was new about the 15th edition of the Top 100 Specialty Stores. Along with the NRF,

Electronics, office supply stores rise to prominence

STORES had moved from New York’s garment district to Washington, D.C. Retail conglomerates with specialty store operations were listed by total volume. No. 3 Melville, for example, sported an impressive portfolio that included Marshalls, Wilsons House

66

of Leather, Bob’s Stores, Footaction, Thom McAn, Kay-Bee Toys (as it was known then), Linens ’n Things and This End Up, among others.









TOP 1OO


THE ECONOMY

WILL IMPROVING CONSUMER CONFIDENCE BOOST SALES?

nflation may or may not be on the move, but don’t count

I

cerns remaining relatively steady, there is little reason to

on Alan Greenspan and the Federal Reserve to provide

expect a dramatic shift in consumer spending.”

rate 0.25 percent on June 30, but didn’t provide a lot of

the year — actually declining in May for the first time in 10

explanation for the move, much less enlightenment as to

months — while the economy as a whole has exhibited

where the economy might be headed for the second half of this year.

slow-but-steady growth. While most observers feel the Fed will continue to raise

any clear guidance. The board raised the federal funds

For retailers who watch what shoppers are doing, how-

Consumer prices have moderated since the beginning of

the funds rate (perhaps to 4 percent by the end of the

ever, the news is that consumer confidence hit a three-year

year), how this impacts consumer spending and retailers’

high in June, moving up to 105.8 on the monthly index

prospects for the second half of 2005 is the question of the

developed by the Conference Board, a New York-based economic research organization. The June uptick came on

moment. “Despite fears that consumers are finally throwing in the

the heels of a rise to 103.1 in May.

towel, [June’s] [June’s] results show that consum consumers’ ers’ desire to

“The improvement improvement in consumers’ mood suggests that

shop remains intact,” says Steve Spiwak, an economist









TOP 1OO SPECIA SPECIAL LTY RET RETAILERS AILERS COMPANY

HEADQUARTERS

RANK

Abercrombie & Fitch

New Albany, Ohio

35

Hot Topic

City of Industry, Calif.

97

Academy Sports

Houston

77

IKEA

Plymouth Meeting, Pa.

52

Advance Auto Parts

Roanoke, Va.

19

J&R Music/Computer World New York

92

Aeropostale

New York

72

J. Crew

New York

79

American Eagle Outfitters

Warrendale, Pa.

38

Jo-Ann Stores

Hudson, Ohio

42

AnnTaylor

New York

39

Jones Apparel Retail

New York

83

AutoZone

Memphis, Tenn.

10

KB Toys

Avon/Pittsfield, Mass.

88

Barnes & Noble

New York

13

L.L. Bean

Freeport, Maine

56

Bass Pro Shops

Springfield, Mo.

55

Limited

Columbus, Ohio

8

Bed Bath & Beyond

Union, N.J.

12

Linens ‘n Things

Clifton, NJ

25

Berkshire-Hathaway Retail

Omaha

27

Luxottica Retail

Cincinnati

24

Best Buy

Minneapolis

Men’s Wearhouse

Houston

50

Big 5 Sporting Goods

El Segundo, Calif.

84

Michaels Stores

Irving, Texas

20

Big Lots

Columbus, Ohio

15

Modell’s

New York

91

Blockbuster

Dallas

Movie Gallery

Dothan, Ala.

81

1

9

COMPANY

HEADQUARTERS

RANK









impulse

Top 100 US Speciality Retailers

Recommend Documents