Discounters, Supercenters Dominate Top 50
By Carole Sloan -- Home Textiles Today, 7/20/2009 12:00:00 AM
New York —
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 |
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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 ChartsAll 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 MethodologyThe 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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