2016 Hot 100 Retailer Highlights

HOT 100RETAILERS

2016

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The solid six return for another appearance as Sustained Sizzlers, so hot they have appeared on the Hot 100 list every year. Employing a combination of strategic acquisitions and organic growth, these retailers have a keen sense of what their customers want.

Amazon.com boosted its retail revenues when it acquired online shoe seller Zappos; it accounts for a third of all domestic e-commerce transactions. Dollar Tree maintains its sizzlingstatus as a result of its takeover of Family Dollar Stores.

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SUSTAINED SIZZLE

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Company2010 Sales

(000)2015 Sales

(000)Change

Average Annual Growth

Amazon.com $18,526,000 $61,619,000 233% 27.20%Dollar Tree $5,801,000 $19,930,000 244% 28%Ross Stores $7,860,000 $11,930,000 52% 8.7%O’Reilly Automotive $5,398,000 $7,967,000 48% 8.1%Dick’s Sporting Goods $4,414,000 $7,257,000 64% 10.5%Tractor Supply Co. $3,639,000 $6,227,000 71% 11.3%

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SUSTAINED SIZZLE

Source: Kantar Retail

https://nrf.com/resources/annual-retailer-lists/hot-100-retailers

Softgoods aren’t just for apparel retailers anymore, though they still dominate the category as measured by gain in market share. Joining clothing stores are department stores, sporting goods dealers, footwear and accessories stores and an extreme value variety chain.

In spite of the success of TJX and Ross Stores, fast fashion has been the primary story in apparel retailing. Sweden-based H&M pioneered the concept in this country and has stayed at the head of the pack. H&M showed a 0.4 percent share of market gain last year, but its competitors are again more promotional and the company said it had to take higher markdowns on spring merchandise.

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SOFTGOODS



Company2014 Sales

(000)2015 Sales

(000)2014 Market

Share2015 Market

Share

Gain in Basis

PointsTJX $21,807,000 $23,557,000 8.8% 9.3% 50H&M $2,670,000 $3,938,000 1.1% 1.5% 48Hudson’s Bay / Saks Fifth Avenue $5,194,000 $6,293,000 2.1% 2.5% 39Ross Stores $11,032,000 $11,930,000 4.4% 4.7% 26Academy $3,859,000 $4,513,000 1.6% 1.8% 22L Brands $10,303,000 $10,967,000 4.1% 4.3% 17Torrid N.A. * $410,000 0.0% 0.2% 16Dick’s Sporting Goods $6,811,000 $7,257,000 2.7% 2.9% 12The Men’s Wearhouse (Tailored Brands) $2,705,000 $2,996,000 1.1% 1.2% 9Ralph Lauren $2,517,000 $2,773,000 0.1% 1.1% 8Lululemon Athletica $1,250,000 $1,453,000 0.5% 0.6% 7Boot Barn Holdings $403,000 $564,000 0.2% 0.2% 6Kate Spade & Co. $608,000 $764,000 0.2% 0.3% 6Five Below $680,000 $832,000 0.3% 0.3% 5Express $2,066,000 $2,243,000 0.8% 0.9% 5American Eagle Outfitters $2,883,000 $3,076,000 1.2% 1.2% 5Forever 21 $2,197,000 $2,365,000 0.9% 0.9% 5National Stores (Fallas Paredes) $918,000 $1,028,000 0.4% 0.4% 4Skechers USA $535,000 $627,000 0.2% 0.2% 3Oxford Industries $513,000 $586,000 0.2% 0.2% 2Francesca’s $377,000 $438,000 2.0% 0.2% 2Rue 21 $1,133,000 $1,210,000 0.5% 0.5% 2Kirkland’s $505,000 $561,000 0.2% 0.2% 2Charming Charlie $502,000 $546,000 0.2% 0.2% 1Destination XL Group $413,000 $442,000 0.2% 0.2% 1

* Private equity-owned, hence historical data not available.

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SOFTGOODS



The fastest-growing hardgoods retailers deal in electronic devices and merchandise for consumers’ homes and cars. The lone exception is outdoor retailer Bass Pro Shops, which added 13 stores last year.

Home-oriented retailers are a diverse lot within their own segment, including the sprawling presentations of Nebraska Furniture Mart and America’s favorite neighborhood hardware store, Ace Hardware. Ace has fi nished atop the Home Improvement Retailer Satisfaction study conducted by J.D. Power and Associates each of the past 10 years; customersmost like store facilities in general, and staff and service in particular.

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HARDGOODS



Company2014 Sales

(000)2015 Sales

(000)2014 Market

Share2015 Market

Share

Gain in Basis

PointsVerizon Wireless $10,959,000 $16,924,000 0.7% 1.0% 31Apple Stores / iTunes $28,380,000 $34,949,000 1.7% 2.0% 28The Home Depot $74,203,000 $79,297,000 4.5% 4.6% 4O’Reilly Automotive $7,216,000 $7,967,000 0.4% 0.5% 2Nebraska Furniture Mart $1,057,000 $1,399,000 0.1% 0.1% 2AutoZone $7,795,000 $8,483,000 0.5% 0.5% 1Fry’s Electronics $2,788,000 $3,169,000 0.2% 0.2% 1Ace Hardware $14,299,000 $15,343,000 0.9% 0.9% 1Tractor Supply Co. $5,712,000 $6,227,000 0.3% 0.4% 1Bass Pro Shops $2,774,000 $3,094,000 0.2% 0.2% 1AT&T Wireless $12,960,000 $13,868,000 0.8% 0.8% 1Restoration Hardware Holdings $1,728,000 $1,926,000 0.1% 0.1% 1At Home Stores $498,000 $622,000 0.0% 0.0% 1

Company2014 Sales

(000)2015 Sales

(000)2014 Market

Share2015 Market

Share

Gain in Basis

PointsVerizon Wireless $10,959,000 $16,924,000 0.7% 1.0% 31Apple Stores / iTunes $28,380,000 $34,949,000 1.7% 2.0% 28The Home Depot $74,203,000 $79,297,000 4.5% 4.6% 4O’Reilly Automotive $7,216,000 $7,967,000 0.4% 0.5% 2Nebraska Furniture Mart $1,057,000 $1,399,000 0.1% 0.1% 2AutoZone $7,795,000 $8,483,000 0.5% 0.5% 1Fry’s Electronics $2,788,000 $3,169,000 0.2% 0.2% 1Ace Hardware $14,299,000 $15,343,000 0.9% 0.9% 1Tractor Supply Co. $5,712,000 $6,227,000 0.3% 0.4% 1Bass Pro Shops $2,774,000 $3,094,000 0.2% 0.2% 1AT&T Wireless $12,960,000 $13,868,000 0.8% 0.8% 1Restoration Hardware Holdings $1,728,000 $1,926,000 0.1% 0.1% 1At Home Stores $498,000 $622,000 0.0% 0.0% 1

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HARDGOODS



Market share gainers in the food-drug-mass segment are topped by Dollar Tree, no surprise in light of its 2014 takeover of Family Dollar. Dollar General responded to the challenge by opening more of its own locations.

Food retailers are the largest single group on this year’s chart; grocers include Publix, which eschews acquisitions in favor of opening its own stores, and Aldi and sibling Trader Joe’s, which keep opening stores at what amounts to breakneck speed in the supermarket segment.

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FOOD, DRUG, MASS MERCHANTS



Company2014 Sales

(000)2015 Sales

(000)2014 Market

Share2015 Market

Share

Gain in Basis

PointsDollar Tree $8,390,000 $19,930,000 0.5% 1.2% 68CVS Health $67,955,000 $72,151,000 4.2% 4.3% 16Haggen $480,000 $2,038,000 0.0% 0.1% 9Publix Super Markets $30,560,000 $32,633,000 1.9% 2.0% 8Aldi $21,116,000 $22,781,000 1.3% 1.4% 7Dollar General $18,910,000 $20,369,000 1.2% 1.2% 6Whole Foods Market $13,662,000 $14,849,000 0.8% 0.9% 5Sprouts Farmers Market $2,967,000 $3,593,000 0.2% 0.2% 3Health Mart Systems $8,107,000 $8,669,000 0.5% 0.5% 2Smart & Final $2,514,000 $2,874,000 0.2% 0.2% 2Casey’s General Stores $2,576,000 $2,906,000 0.2% 0.2% 2Grupo Comercial Chadraui $1,285,000 $1,579,000 0.1% 0.1% 2WinCo Foods $5,872,000 $6,267,000 0.4% 0.4% 2K-VA-T Food Stores $1,838,000 $2,129,000 0.1% 0.1% 1Minyard Food Stores (RLS Supermarkets) $156,000 $324,000 0.0% 0.0% 1Demoulas Super Markets $3,320,000 $3,522,000 0.2% 0.2% 1Kwik Trip $1,120,000 $1,253,000 0.1% 0.1% 1Fred’s $1,969,000 $2,121,000 0.1% 0.1% 1SpartanNash Co. $2,205,000 $2,360,000 0.1% 0.1% 1Gelson’s Markets $478,000 $573,000 0.0% 0.0% 1

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FOOD, DRUG, MASS MERCHANTS



Forrester Research says e-commerce in general is slated to grow to $523 billion by 2020; Amazon.com is getting an ever-bigger piece of the pie, increasing its market share by 1.69 percentage points.

Evine Live says e-commerce accounted for 48.8 percent of sales in this year’s fi rst quarter, while Hudson’s Bay stepped in at the beginning of this year and paid about a quarter of what Gilt Groupe had once been worth for the fl ash retailer. “We’ve begun to utilize them quite heavily for other banners with their skill in personalization and mobile technology,” said Hudson’s Bay chief executive Jerry Storch.

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E-COMMERCE



* Private equity-owned, hence historical data not available.

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E-COMMERCE


Company2014 Sales

(000)2015 Sales

(000)2014 Market

Share2015 Market

Share

Gain in Basis

PointsAmazon.com $50,076,000 $61,619,000 11.0% 12.7% 169QVC $6,055,000 $7,618,000 1.3% 1.6% 24Wayfair $1,035,000 $1,943,000 0.2% 0.4% 17Evine Live N.A. * $693,000 0.0% 0.1% 14Bluestem Brands (Capmark Capital) $1,071,000 $1,720,000 0.2% 0.4% 12Groupon Goods $1,075,000 $1,258,000 0.2% 0.3% 2Overstock.com $1,497,000 $1,658,000 0.3% 0.3% 1FreshDirect $502,000 $593,000 0.1% 0.1% 1Gilt Groupe $660,000 $730,000 0.1% 0.2% 1


The fast food industry is projected to grow only about 2 percent annually over the next fi ve years, according to IBIS World. A major challenge is presenting menu off erings for price-sensitive diners who want healthy options.

Price competition was evident in the fast food world last year, with promotions that off ered consumers menu items at $1 each if bought in combinations of, say, two for $2. “It’s price wars,” says Warren Solochek, head of NPD Group’s food service practice.

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QUICK SERVICE RESTAURANTS



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QUICK SERVICE RESTAURANTS


Company2014 Sales

(000)2015 Sales

(000)2014 Market

Share2015 Market

Share

Gain in Basis

PointsJimmy John’s $1,263,000 $3,194,000 0.2% 0.5% 29Burger King Worldwide $8,517,000 $10,342,000 1.5% 1.7% 18Starbucks $12,521,000 $14,124,000 2.2% 2.3% 10Domino’s Pizza $4,116,000 $4,810,000 0.7% 0.8% 6Long John Silver’s $555,000 $719,000 0.1% 0.1% 2Zaxby’s $1,258,000 $1,470,000 0.2% 0.2% 2Bojangles’ $1,033,000 $1,197,000 0.2% 0.2% 1Jersey Mike’s Subs $525,000 $648,000 0.1% 0.1% 1White Castle $528,000 $648,000 0.1% 0.1% 1WingStop $640,000 $765,000 0.1% 0.1% 1Raising Cane’s Chicken Fingers $415,000 $513,000 0.1% 0.1% 1Five Guys $1,208,000 $1,362,000 0.2% 0.2% 1Firehouse Subs $544,000 $643,000 0.1% 0.1% 1Chipotle Mexican Grill $4,069,000 $4,450,000 0.7% 0.7% 1Popeyes Louisiana Kitchen $2,156,000 $2,380,000 0.4% 0.4% 1


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The Magazine of NRFAUGUST 2016

STORES_1.indd 1 7/11/16 2:25 PM

See the full list and read more about STORES Magazine’s Hot 100 Retailers of 2016.


2016 Hot 100 Retailer Highlights

Retail

Transcript of 2016 Hot 100 Retailer Highlights