AUGUST/SEPTEMBER 2009
The recent economic shock has left the industry with fewer players, smaller fl eets and weakened
offers. Faced with a whole new playing fi eld, retailers are struggling to replace outmoded
thinking with relevant new strategies.
2A chainstoreage.com CHAIN STORE AGE, AUGUST/SEPTEMBER 2009
TABLE OF CONTENTS
3A Reset. The New Forces At Play Stores are confronted with new shopper behavior and expectations.
5A Have People Changed for Good? The jury is split, making it hard to plan future strategies.
6A Getting the Store Back on Track Driven off course by short-term tactics, stores are regrounding
themselves in the basics.
7A Enhanced Store Experiences Add Value Insight into what the shopper wants from the brand guides the
experience design.
8A What’s It Worth? The value equation isn’t just price, it’s value plus reason.
10A New Retail Plays A look across the retail landscape fi nds new concepts
and acquisitions.
13A The Rise of Shopper Marketing The study of how shoppers behave in the store is enabling
designers to create improved retail experiences.
14A Analytics, Insights and Design A well-understood target shopper leads to better design
and merchandising.
15A A Retail Experience Is the Sum of Its Touchpoints Retailers continue to underestimate the number and importance
of their touchpoints.
16A A Balancing Act for Private Brands Private labels and national brands need to collaborate, not
battle for space.
17A We’ve Got the Crisis. Where’s the Innovation? They may not change the game, but these small innovations
are having a big impact.
18A Reset or Renaissance? Brand is the business case for change.
20A 2009 Chain Store Age 100: Top U.S. Retailers
26A Alphabetical Listing of the Top 100
27A Retail Conglomerates
28A Chain Performance
32A Acknowledgments
CHAIN STORE AGE, AUGUST/SEPTEMBER 2009 chainstoreage.com 3A
The length and severity of the downturn has forced companies to confront basic assumptions about the way they’ve traditionally done business ... it’s about time.
The thing about change is it’s always overdue.
According to many reports, for the past several
years people have been losing interest in shopping.
Year-over-year comp-store numbers have been
generally lackluster. Companies have tried to
compensate for middling numbers by opening
new store concepts, and now many of those
are struggling.
It’s taken a crisis — an emotional, social and
economic reset of the current environment — to
move executives away from the kind of thinking that
often leads to mediocrity. Strategies used in the
past may not work going forward. Growth will be
harder to fi nd. The high cost of capital has in-
creased the importance of leveraging current
assets. The changed consumer and a new empha-
sis on brand experiences present challenge but
opportunity as well.
This year, our State of the Industry report examines
the new forces affecting the marketplace and takes
a look at how retailers are fi nding ways to profi t in
the downturn.
RESET. THE NEW FORCES AT PLAY
4A chainstoreage.com CHAIN STORE AGE, AUGUST/SEPTEMBER 2009
Willingness to ChangeOf all the new forces brought on by economic
upheaval, the fi rst and foremost is retail’s greater
willingness to change. One of the most common
barriers to growth in any economy is resistance to
doing things a new way. The volatile market means
radical change is needed now, and the best retailers
aren’t wasting time. This is the moment to reap the
advantages of recent technologies, reinvent broken
systems and get back in touch with the reasons our
stores were built in the fi rst place.
Higher Expectations for StoresIn addition, there’s been a change in the general
perception of what makes a retail brand. It’s no
longer a store, it’s an experience with multiple
touchpoints. Customers expect their retail experi-
ence to be accessible anytime anyplace. Jumping
gas prices have encouraged online and catalog
buying. With traffi c down at stores, retailers are
bringing solutions to the shopper. Non-traditional
retail sites include airports, casinos, cruise ships
and college campuses with interruptive formats,
such as kiosks, vending machines, mini-formats
and pop-up stores.
Have Consumers Changed? Of course the most challenging of all new factors is
the current lack of consumer confi dence. Consumers
are shopping more for needs than wants. They are
far less interested in endless choices and have less
patience with clutter. While they are less inclined to
add shopping trips or risk disappointment in new
item trials, they still enjoy fi nding or experiencing
something new. Retailers are learning to reframe
their offerings according to this emergent mind-set.
Consumers have also reframed their idea of “value.”
While price still enters into it, value doesn’t always
mean least expensive. There are other pretexts to
purchase — or not. The challenge for the store is to
understand and articulate these reasons in relation
to their brand.
Analytic Tools Aid Marketing Now that the consumer is immediately and digitally
connected to his or her own network of information,
purchase decisions are being made largely beyond
the reach of controlled marketing messages. New
shopper marketing techniques, aided by specialized
analytic tools, allow retailers to take a deeper dive
into shopper behavior. The resulting insights can
focus the store’s investments only on the things that
matter to the customer. Design teams can then
create store and shelf principles to improve the
brand experience and infl uence purchase. The high
potential return on investment for shopper market-
ing has captured retail’s attention.
Brand is Central to Change and InnovationIf there’s any silver lining to the downturn, it’s that
retailers once securely on the path to mediocrity
have had to stop short and re-imagine their busi-
nesses. Brand thinking is coming to the forefront.
Mining a retail brand for its competitive power and
point of difference is essential if a store wants to lift
itself above commodity status and develop a
winning retail proposition. Brand is also central to
the discovery of profi table creativity and innovation.
The era of expansion fueled by cheap-debt is over.
The economic reset has left the industry with fewer
players, smaller fl eets and weakened offers. The
way to growth is innovation and productivity in the
aisles. Those retailers that look through the eyes of
the shopper are going beyond “survival mode” to
fi nd effi cient, effective ways to make the brand
experience work harder.
CHAIN STORE AGE, AUGUST/SEPTEMBER 2009 chainstoreage.com 5A
Yes. Frugality is here to stay.
The loss of jobs and household assets has been a
wake-up call for Americans, 16% of whom are living
on reduced pay and 5.7 million out of work. Lee
Scott, former president and CEO of Wal-Mart
Stores asserted that people have indeed changed
and have no desire to go back to the debt-driven
consumption that imperiled their livelihoods.
Procter & Gamble chairman A.G. Lafl ey believes
that spending patterns have been altered forever.
Long after the recession, people will continue to
repair instead of replace, dine at home instead of
eating out, and continually revalidate their brand
experiences according to value or sustainability.
That will especially be true for the younger genera-
tion whose habits are being formed during a time of
fi nancial insecurity.
No. Americans spend to enjoy life.
Experts in public affairs and psychology point to the
fact that although most of the population has been
truly frightened by the economic crisis, they’re not
in a trauma state. Some aversion to debt will
remain, but it’s human nature to adjust to context
very, very quickly. Behaviorists believe that a
couple years discomfort isn’t going to make people
resist the purchases that they perceive will help
them enjoy life and social status. After all, people
are riding out the recession with fl at screen TVs,
iPhones and Wiis. There is a lot of money currently
sitting on the sidelines that will fl ow with the return
of consumer confi dence.
At least for the short term, customers are no
longer on auto-pilot. They are examining their
brand loyalties and narrowing their decision
criteria. The change in their choice behavior
means every decision is an opportunity to steal
market share. The retailer who responds with the
strongest proposition has the best chance to win.
HAVE PEOPLE CHANGED FOR GOOD?It’s still about winning their hearts and minds.
6A chainstoreage.com CHAIN STORE AGE, AUGUST/SEPTEMBER 2009
Driven off course by
short-term tactics,
stores are regrounding
themselves in the basics
of a great shopping
experience.
You would think that with all the belt tightening,
price competition and lack of trust, we’d fi nd
ourselves in an era of reduced expectations for
the store. In fact, it’s just the opposite. With
everyone competing fi ercely on price, consumers
can afford to become more particular. And they
are much less tolerant of poor service and
indifferent shopping experiences.
The Home Depot views the economic downturn
as an opportunity to create a more engaging brand
experience. It’s investing $3 billion to develop new
systems, improve stores and hire skilled associ-
ates. This is one of the rare times when a company
as large as this home improvement giant is willing
to push for change. The risk is low, and the upside
is clear. The plan is to renovate stores for easier
navigation and add more training to fi x Home
Depot’s reputation for poor customer service.
When customers fi nally begin to feel the effects
of a recovery, they will fi nd knowledgeable service
and the merchandise they want in stock. CEO
Frank Blake believes a downturn is a terrible thing
to waste.
Macy’s CEO Terry Lundgren concurs. “There’s no
resistance to trying new things; everyone is anxious
to stimulate sales and get the customer shopping
again.” Macy’s has been using the time to test and
refi ne its localization initiative, a program that
caters its department store offerings to local
shoppers’ tastes. The revamped stores, each with
a different layout, will be “prototypical instead of
a prototype.”
Budget-conscious customers are no longer looking
for endless choices. They are also sticking to
familiar brands. There is less patience for clutter,
and a stronger desire to simplify their lives and
consolidate their shopping trips. Retailers who’ve
picked up on this new dynamic have realized that
“less is more.” Some merchants are expected to
slice SKUs by at least 15%. A few of the largest
retailers, such as Walgreens and Walmart, are
responding by reducing assortments in favor of
those that are most relevant, a strategy that is
lifting overall sales.
GETTINGTHE STOREBACK ON TRACK
CHAIN STORE AGE, AUGUST/SEPTEMBER 2009 chainstoreage.com 7A
Giving the shopper what she really needs:inspiration.
Arts and crafts retailer Michaels is seeing a
pronounced impact from an engaging new store
experience designed to spark the shopper’s
imagination. By mapping the shopper journey and
asking shoppers why they purchased, not just what,
when and how much, the craft retailer discovered
their need went beyond crafting materials to a
desire for inspiration and fun. The store’s brand
positioning became “Where Creativity Happens.”
Brand and shopper insights enriched the new
design of Michaels from the category level all the
way through to the shelf.
The company concentrated its efforts on fi ve store
categories with the highest business potential. The
jewelry section is one of the fi ve seeing the most
dramatic reaction from shoppers. Design, mer-
chandising and staffi ng gave it a boutique feel;
shelf organization has more relevant breakups,
fl ow and SKU placement. Crafters are delighted,
and blogs are buzzing about the fun and inspiration
to be found in the new design.
Almost any retailer can fi nd a way to add value to
the experience by auditing the store. Year after
year, the most common criticism leveled against
stores is that they are hard to shop. Supermarkets
and big boxes in particular have been known to fi ll
aisles with pallets and displays for shoppers to
dodge. Customers have even come to expect
out-of-stocks.
In any downturn, the tendency is to add more
promotional messaging than is really needed.
Things tend to creep onto the sales fl oor that have
nothing to do with the retail brand and no relevance
to the target segment. Only the most determined
brands refuse to let the economy force them into
clutter or opportunistic buying. A fresh look at the
space and new insights into how customers want
the brand to serve them are working for Michaels.
ENHANCED STORE EXPERIENCES ADD VALUE
8A chainstoreage.com CHAIN STORE AGE, AUGUST/SEPTEMBER 2009
The defi nition of value is fl uid. Despite the recession, price is only part of it.
By now most people are familiar with the
Radiohead story. The band offered their album
online for download, which resulted in 1.5 million
downloads in the fi rst week and an estimated $10
million in profi ts, more than the sales of their fi rst
three albums combined. Remarkable because fans
were allowed to set their own price for the album,
including zero. Radiohead essentially asked the
customer at transaction time, “What is this worth
to you?” The fact that they paid on average $8 per
album clearly demonstrates how value has moved
from the company to the customer.
Price is part, but not all, of the value message
today. During the pre-recession bubble, value
propositions went far away from price to fashion-
able aspirations. Once the downturn hit, most
retailers went straight to the sticker. But price
competition is not sustainable because the
defi nition of value is fl uid.
It includes ideas around purchase such as occasion,
quality, convenience, experience, current fi nances,
time, reputation, availability or rarity, taste,
comfort and simplicity. When a shopper is at the
shelf, the question he is most likely to ask himself
is not, “Is it the least expensive?” but “Is it worth
the price?” And “worth” has come to mean “value”
plus “reason.”
It’s retail’s challenge to articulate the reason to
buy. The solution is a balanced value proposition
unique to the brand. Crucial, because without it a
brand’s power to create demand is diluted.
Retailers are delivering value or “worth” in many
ways. For example, people are dining out less. This
allows a grocer the chance to boost its category by
fi lling a different role, such as providing sugges-
tions on how to make a great dining experience in
the home. With consumer creativity, choice and
self-suffi ciency at an all-time high, value must
have a reason.
WHAT’S IT WORTH?
chainstoreage.com
CAN LUXURY SURVIVE THE ECONOMY?The new role of luxury is to help people feel comfortable with wealth.
Jewelry, autos, designer clothing — the whole point of extravagance is delight in its
display, which at the moment may appear insensitive. Many wealthy consumers have
scaled back their spending, and those who haven’t are being more discreet. Analysts
report that spending at luxury retailers is down a staggering 30%.
Apparel retailers forced to slash prices so drastically to get rid of inventory left people
questioning how much things should really cost. Venerable brands, such as Tiffany &
Co. and Hermes, are wooing shoppers with messages of fine craftsmanship, history and
heritage. Others are adding simpler, smaller versions of indulgent items to their mix in
order to make their customers feel comfortable.
Experts predict the global luxury market will begin stabilizing in the second half of the
year, resulting in a net decline of 10% overall for cosmetics, fragrances, apparel, jewelry,
watches and accessories. On the up side, a recent study reveals a trend among luxury
shoppers to remain loyal to their top-of-mind brands even though they are currently
switching to lower-price-point items.
VALUE STORES ENJOY THE SPOTLIGHTGaining sales through price and accelerating growth through a better experience.
Extreme-value retailers and dollar stores are happily stealing share from all channels,
attracting consumers across all income level with their low, low prices. The value players
are taking advantage of the opportunity to serve a wider swath of thrifty customers by
investing in the shopping experience with things such as wider aisles, better lighting
and improved signage.
The collapse of real estate rents and remodeled stores are allowing these largely
urban/rural/strip mall players to move into better suburban locations. Closeout
retailer Big Lots has added branded consumables to its mix, remodeled its store for
improved merchandise display and put in place a new organizational system for
getting deals quickly and easily onto the floor. It plans to open more stores in 2009
than it has in the last three years combined.
Discount giant Walmart is attracting more affluent consumers. Seventeen percent
of the company’s store traffic comes from new households who are spending 40%
more than the average Walmart customer. Problems associated with navigation
and checkout lines are being addressed in newly remodeled stores, and future
discretionary dollars will be wooed with an enhanced portfolio of brands and an
improved overall shopping experience.
CHAIN STORE AGE, AUGUST/SEPTEMBER 2009 9Achainstoreage.com
10A chainstoreage.com CHAIN STORE AGE, AUGUST/SEPTEMBER 2009
Even though resources are limited and tension is high, there are signs of entrepreneurship and creativity.
“Is anybody buying anything except food?”
That was the plaintive question asked by one retail
expert who noted that food retailing seems to be the
only recession-proof category. Consumables were
the strongest performers for supercenters, ware-
house clubs and dollar stores. Target is expanding
its groceries to include about 90% of the SKUs found
in traditional supermarkets.
Convenience is still king.Maybe emperor.
Stop & Shop is counting on technology in the form
of handheld scanners to improve the customer
shopping experience. The device calls out sale
prices, provides a running total and reduces time
spent in checkout. Drug chains are on the conve-
nience forefront: CVS/pharmacy has 500 retail-
based MinuteClinic units — open 7 days a week,
some even for 24 hours — integrated into its
pharmacy care services. It is currently enhancing its
CVS.com offering, working through Google Health to
allow customers to better store, organize and
manage their prescription history online.
Is it bad timing or good strategy for high-end deals?
Procter & Gamble moves into prestige retail via
the acquisition of the 36-store men’s grooming
chain, The Art of Shaving, a destination that offers,
among other items, $150 razors. It will be interest-
ing to see if P&G keeps the chain small to preserve
its cachet. Even
though Staples’
same-store sales
dropped 8% in a
recent quarter, the
offi ce products
superstore just
introduced 25
exclusive co-branded
offi ce products from
OXO Good Grips that
cost up to fi ve times
more than the store’s own brand. The exclusive
arrangement may yield strategic gains by differenti-
ating Staples from its rivals.
Strength lies in fl exibility.
Who knew the current climate was hospitable to
high-priced yoga pants? Vertically integrated
Lululemon Athletica is thriving with 113 stores and
plans for slow but steady expansion, thanks to its
success in an underserved market in women’s
athletic wear.
NEWRETAILPLAYS
Continued on page 12A
APPAREL CONCEPTS STUMBLESpecialty apparel isn’t special enough.
Fashion retail is the most challenging of all categories, since predicting the style
whims of the population comes with significant risk. Weak brand propositions are
being culled from the herd. Jones Apparel Group will shutter 225 units, Ann Taylor
plans to close 163 stores, Abercrombie & Fitch is abandoning its 29 Ruehl stores,
and Pacific Sunwear closed its d.e.m.o. and One Thousand Steps divisions.
Companies such as Zumiez, American Eagle Outfitters and Aéropostale are eyeing
opportunities in the volatile market, although American Eagle’s 28-unit apparel
concept, Martin + Osa, may not survive. Aéropostale closed Jimmy’Z but launched a
tween concept, P.S. from Aéropostale with a reported potential for 500 locations.
A concept like the Limited Group’s playful Pink brand resonates with its target more
effectively than many of the intimate apparel entries at the malls. Perhaps because
there are more aesthetic, rational and emotional dimensions associated with it.
Failure of many of the fashion retail concepts is being blamed on failure of niche
segmentation and the current squeeze on credit cards. The 2009 Most Valuable
U.S. Retail Brands report from Interbrand Design Forum suggests that there’s
not enough differentiation or defensible identity among brands. When you have
little to spend, there’s no reason to buy the high-priced polo shirt instead of a
lower-priced version with the right value equation.
11A chainstoreage.comCHAIN STORE AGE, AUGUST/SEPTEMBER 2009
12A chainstoreage.com CHAIN STORE AGE, AUGUST/SEPTEMBER 2009
Used Lululemon items have high
resale value on eBay, where even
its shopping bags, free in the store,
sell for $5.
Less continues to be more.
Some retail experts are advising
chains to close 5% to 20% of their
stores and invest those resources in keeping the remainder
of the fl eet healthy. For the past three years, Offi ceMax
has been slowing the pace of its expansion but recently
opened three new smaller-concept stores called Ink Paper
Scissors. Its 2,000-sq.-ft. format is cheaper, requires less
inventory and fewer employees. Downsized concept stores
not only allow companies to enter new markets, they feel
more personal, especially now when there is such a thing
as too much variety.
Big ideas are often small.
Opening stores during the downturn comes with a
risk, but when done carefully and strategically positions
retailers for success when the economy turns. The
Whopper Bar is a brand innovation for Burger King with
a hip youthful fl air. The intimate and fun concept offers
the chain new opportunities because of its ability to adapt
to smaller footprints in non-traditional retail areas.
You are known by the company you keep ...or acquire.
Amazon.com purchased online shoe retailer Zappos for
$807 million to bolster its offering in apparel. T-Mobile
teamed up with RadioShack, now rebranding itself as The
Shack, to sell phones and services in more than 4,000 of
RadioShack’s stores where it joins Alltel, AT&T Mobility and
Sprint Nextel. Toys “R” Us is now associated with a
premium brand through its purchase of FAO Schwarz. It
also acquired eToys.com, babyuniverse.com and ePreg-
nancy.com to conquer more of the market and become the
No. 3 toy retailer after Walmart and Target.
GIVE MY REGARDS TO BROADWAYJCPenney is in Herald Square.
Top retail talent has transformed J.C. Penney from its image
as a quality-and-value clothing store to a style destination with
exclusive fashionable private brands. One of Penney’s latest, the
“Joe” by Joseph Abboud men’s label, will be found exclusively at
the Manhattan store ahead of a nationwide launch. The flagship
expects to do big business for the retailer, potentially $90 million
annually once it hits its stride, providing healthy competition for
Macy’s across the square.
Continued from page 10A
CHAIN STORE AGE, AUGUST/SEPTEMBER 2009 chainstoreage.com 13A
Advertising is broken. PR and
digital reign. The economy
is anemic and shoppers wary.
What’s a marketing team
to do?
Back when shopping was still offl ine and all media
was mass, marketers considered the store just a
tactical channel for price and value promotions.
No one looked beyond the day’s receipts and
traditional marketing surveys to measure what
was going on in the store.
Now that the digital revolution has given media
power to the consumer, too many things are vying
for her attention, and too many media platforms
make it diffi cult for her to narrow her focus.
Shoppers need help fi nding, simplifying and
justifying their decisions. That’s why, in addition
to its traditional role as a builder of awareness,
marketing has become by necessity a form of
listening and facilitation.
Shopper marketing is the study of how shoppers
behave in the store, where the majority of purchase
decisions still take place. The insights are applied
to the creation of high-performing stores through
merchandise planning, adjacencies, shelf strate-
gies and packaging. New plans can be modeled
and measured to control cost and manage out-
comes, making it one of the most effi cient and
effective marketing tools available today.
Economic pressure is leading to big shopper-
centered changes. Even though the retail
investment in shopper marketing is currently
low, the search for growth will spur greater
adoption of its principles.
THE RISE OF SHOPPER MARKETING
14A chainstoreage.com CHAIN STORE AGE, AUGUST/SEPTEMBER 2009
Consumer and Shopper are not one and the same. The behavior is different, and so is the segmentation.
Retailers now know that shopper differences
abound by category, by brand and by mission, and
they can only be revealed by a study of the shopper.
“Shopper” is the word used to describe the
consumer once they’re inside the store actively
making decisions.
Research has discovered that people alternate
between two mind-sets when they experience
brands. In consumer-mode, we passively receive
the media message about the brand. As we move
through the store, we work through decision
criteria right up to the point where we’re standing
at the shelf.
This shopper mind-set is where more of the smart
marketing budgets are going — the exploration of
what the shopper needs from the store experience
to make a choice. Specialized research and retail
analytics can now uncover her choice drivers,
purchase-decision hierarchy and sources of
dissatisfaction — that’s exciting, because those
sources of dissatisfaction are the opportunities
for innovation and growth.
Applied shopper insights result in a more effective selling space.
Marketers often misunderstand their customers,
believing they shop in a manner opposite to what
they really do once inside the store. For example,
say a small-format beauty store has used a
traditional consumer segmentation approach to
slot its customers into four categories: Sensible,
Fussy, Vain and Perfect. The shelves are set
assuming they all share one similar shopping style.
Shopper behavior study reveals that the four
segments exhibited two different shopping styles.
Sensible and Perfect are “purposeful” shoppers
after particular products. Vain and Fussy are
“thrill me” shoppers looking for a reason to stop
and select. Drilling down further reveals that once
the purposeful shopper makes her selection,
she switches to thrill-me mode, with no urgency to
leave the store. And what they both need/want is
education about the benefits of a new regimen and
possible creative product combinations.
But the real breakthrough is realizing the impor-
tance of a well-understood target shopper and the
impact that deep insights have on store design and
merchandising decisions.
ANALYTICS, INSIGHTS AND DESIGN
CHAIN STORE AGE, AUGUST/SEPTEMBER 2009 chainstoreage.com 15A
Retailers continue to underestimate the number and importance of their brand’s touchpoints. Mobility and the Internet have exploded the
traditional structures of retail. Shoppers are
assembling their own experiences from online,
catalog and digital tools to build the store they
want. In reaction, companies are exploring ways
to create communities around their brands through
the use of social networks, word of mouth, Web
2.0 tools such as Twitter, pop-up stores and
branded events.
The store is becoming more of a relationship
than a destination — more of a community of
interest around the things being offered by the
business. Now that the tools are available to do
so, forward-thinking stores are co-creating
with their customers, giving them opportunity
to engage.
Ikea devotees find the store experience, the catalog
and the online experience to be filled with inspira-
tion, serene style and beauty — not to mention
affordability — even though they have to haul the
flatpacks home and assemble the furniture
themselves. The touchpoints are so effective, they
forget about the pain points. And Ikea fans will be
further enraptured by the company’s investment in
renewable energy, and its commitment to water
and energy conservation. It has even recently
launched a pay-as you-go mobile service.
U.K. retailer Marks & Spencer raised eyebrows
recently when it terminated its in-store ordering
and pickup service, justifying its removal by saying
that shoppers can order online or by phone for
delivery. The thinking seems to be at odds with the
trend toward enhancing service in the downturn.
The economy has called on consumers to research,
budget, manage time and evaluate options, which
they do via a complex network of information. Every
point in the network could become the means of a
better shopper relationship.
A RETAIL EXPERIENCE IS THE SUM OF ITS TOUCHPOINTS
THE HUMAN TOUCHPOINTSMore stores emphasize brand engagement.
The reason retailers need to devote attention and resources to their people and
culture? These individuals are empowered touchpoints who can keep shoppers
coming to the store — even when everything in the store is available elsewhere.
To make sure they’re true ambassadors of the brand, The Cheesecake Factory
holds daily meetings and tests its staffers regularly on their menu knowledge. Job
applicants are quizzed on Cheesecake culture before they are hired. Workers are
well trained and generously compensated. The goal is to have employee enthusi-
asm bubble up into customer enthusiasm. It must be working. The Cheesecake
Factory has become a billion-dollar chain, and part of its success can be attributed
to its brand engagement program.
16A chainstoreage.com
In a shopper-centered landscape, more private labels are vying with national brand names for shelf space.
Spurred by penny-pinching consumers, 2008 saw
a 9.3% increase in private and value labels
compared with a 4.5% rise for name brands.
Hundreds more private-label items have flooded
onto shelves this year alone, particularly in food.
And some mass retailers have found that strategi-
cally cutting inventory can lift sales and profits,
opening more shelf space for house brands.
A rush to react to the new marketplace dynamics
could lead both manufacturers and retailers to
make decisions that may weaken their respective
brand equities. For example, a strictly copycat
house brand may only borrow momentum from
the famous name beside it on the shelf, rather
than build equity for its retailer. CPG companies
may think the answer is brand extension, when
product innovation might be the best way to
grow distribution.
Today’s shrinking economy is opening the door
for more collaboration between retailers and their
manufacturing partners to find a rationalized mix
that will increase share, save marketing/trade
money and make life easier for the customer.
Department stores have carried their own brands
for years as a method of relevant differentiation
and increased margins. This summer, Saks Fifth
Avenue devoted a corner window to the store’s
own line of menswear in place of the designer
collection that would normally occupy that spot.
Bloomingdale’s will put its moniker on a new line
for men, affordable but still upscale, aiming to
attract a new customer. Despite the backlash
against designer goods now perceived as over-
priced, luxury department stores still need the
mystique of European labels. The optimum balance
of national, exclusive and owned brands has
never been more urgent and challenging.
A BALANCING ACT FOR PRIVATE BRANDS
“Cans are hot!” declared Brandweek magazine in
July. For the first time in five years, consumers are
turning their attention from the supermarket’s fresh
and frozen perimeters to the main aisles where
non-perishables are stacked on “shelves and
facings ad nauseum.” There’s not a lot of reason
to shop it when you can afford not to.
As grocery experts point out, the center store
hasn’t changed in 100 years. A total re-think is a
century overdue. How can that space work better
for the customer and the store brand rather
than just the vendors?
The fact that Amazon.com and Peapod have
experienced an increase in online ordering
and delivery of basic, mundane “replenishment”
products has prompted some experts to predict,
or perhaps just hope, that center store will
disappear, creating a double value-add
experience for the consumer.
PREDICTION: THE CENTER STORE WILL DISAPPEAR Shoppers are going online for commodities.
CHAIN STORE AGE, AUGUST/SEPTEMBER 2009
CHAIN STORE AGE, AUGUST/SEPTEMBER 2009 chainstoreage.com 17A
History indicates that game-changing technologies or business models appearduring downturns.
Where are all the fl ying cars, personal jet packs and
robot housemaids promised by modern technology
and downturns? As for innovation in the store, the
last game-changer was the self checkout. Are
there any new ideas?
Yes, but they fall more into the category of “small
and meaningful” than “revolutionary.” Instead of
waiting for the next iPhone to come over the horizon,
retailers are gaining ground through small ideas
with big impact.
Service touches are earning Zappos.com a loyal
following. Sending an e-mail or calling to say the
shoes you want are now in stock in your size, or
secretly upgrading delivery to overnight is
delighting Zappos customers.
Walmart has a “site to store express” for its online
orders that allows unlimited free shipping to the
store of your choice with a small annual fee.
American Apparel is enjoying positive results from
its adoption of item-level RFID tagging. Inventory
accuracy means being able to keep the retailer’s
sales fl oors stocked, which helps boost sales, in
one store by an
estimated 15%.
Sunglass Hut
introduced a new
retail concept called
SocialSun, where
customers snap
photos of themselves
trying on sunglasses,
post them or send
them to friends. It’s
clear the idea is
engaging, as it is encouraging the retailers’
20-something customers to return
to the store.
Some great ideas have come out of company
operations, such as Trader Joe’s ability to continu-
ally source new inexpensive and interesting food.
Making it easier and simpler for your customers to
be environmentally responsible, appealing to their
social concerns, is a small idea with a potentially
big return for the right brand. Patagonia tracks its
goods from design to distribution to determine
WE’VE GOTTHE CRISIS.WHERE’S THEINNOVATION?
18A chainstoreage.com CHAIN STORE AGE, AUGUST/SEPTEMBER 2009
environmental impact and posts the results on its
Web site. It measures water consumption as well as
energy consumption, waste, carbon emissions
and distance traveled for some products — perhaps
starting a trend that other vertical
retailers will follow.
And for the urban dweller, Best Buy,
the store that never stops innovat-
ing, will begin selling the Brammo
electric motorcycle in a few of its
West Coast stores this year.
Apple sends its receipts by e-mail,
which not only saves paper but
allows an additional touchpoint after the sale
transaction. The store has also dispensed with
fixed registers and has given all its staff handheld
registers so customers don’t need to stand in the
dreaded line.
To encourage savings, Bank of America has a “Keep
the Change” check card program, which rounds up
purchases to the nearest dollar and transfers the
difference to the customer’s savings account.
There are many societal issues caught up in retail
today. The credit crunch has people questioning the
wisdom of their devotion to fast fashion and cool
consumer electronics. Analysts speculate that the
retail innovations that appear over the next decade
will have to respond to a different set of criteria:
localization, lower margins, lifestyle shopping and
sustainable consumption.
RESET OR RENAISSANCE?Brand is the business case for change.
They say you can’t learn from success. So if the
recession has accelerated the failure of mediocrity,
that’s arguably a good thing. It means there’s a lot
of learning going on right now.
Those retailers still battling fear and inertia can
look to brand to help them build a business case for
change. Latent competitive advantages often lie in a
retailer’s most important business asset — the
heart, name and face of the company.
An understanding of how your own brand works
helps determine the way forward in good times and
bad. Its animating principles can help improve
functional alignment. The ideas around a brand that
inspire and endure can become the source of
innovation — and deliver measurable business
results to boot.
Brand can lead the way to a new attitude or a new
design that signals a change in the way business is
being conducted. In a departure from the chain
mentality that has robbed it of some of its cachet in
CHAIN STORE AGE, AUGUST/SEPTEMBER 2009 chainstoreage.com 19A
recent years, Starbucks is looking to blend in better
with its local environs. The chain is testing a
format whereby stores will be named for their
surrounding neighborhood, with the Starbucks
name nowhere to be found. The prototype, called
15th Avenue Coffee & Tea, is in Seattle and has
a rustic look. The design is eclectic and raw,
featuring locally sourced and reused materials
that are one-of-a-kind.
In the same vein, a group of 13 department stores
in Italy is being redesigned in a way that speaks
perfectly to the power of brand. La Rinascente,
whose name appropriately means rebirth, has
undergone a makeover from “clunky contessa
to chic chick.” The first store to be reborn is the
Milan location right next to the recently restored
Duomo cathedral.
The transformation is inspiring on every level.
The department store fills a gap in the market-
place, as Italy has little to offer between the
extremely high end and the low cheap-and-
cheerful retailers; La Rinascente occupies the
middle ground. Its merchandise mix is hip and
exciting, a perfect match for the fresh contempo-
rary pulse of Milano.
It took great courage to gut the building’s 150-year-
old interior and reorient the traffic flow, in a way
that encourages shoppers to explore and experi-
ment without pressure, and be inspired by the
store’s merchan-
dising creativity.
Most importantly,
the brand ideals of
La Rinascente led
to the creation of a
highly individual
identity, one that’s
vivacious and able
to engage its
patrons who enjoy
life and beautiful design.
And because the Mediterranean culture is strong
on socializing, conviviality is encouraged by the
food hall and stunning restaurants with windows
overlooking the Duomo’s spires. Adding to the
beauty: sales are up 30%.
Predictions set the number of U.S. store closures
this year at 4,600 on top of almost 7,000 last year.
In a smaller landscape with tougher competition
for share of wallet, there’s no hiding mediocrity.
Remaining stores must work harder and stay
focused on brand experience, which does not
require mountains of capital or undue risk. The
good news is creativity, innovation and meaningful
change are more possible — and more likely to be
appreciated by the shopper.
2009 CHAIN STORE AGE 100TOP U.S. RETAILERS
new pie chartto come
20A chainstoreage.com CHAIN STORE AGE, AUGUST/SEPTEMBER 2009
Company/ 2008 2007 2008 2007 StoresMain Retail Segments/ Revenues Revenues Profits Profits 2008Fiscal Yearend (000) (000) (000) (000) 2007 Comments
1 Wal-Mart Stores Inc. $405,607,000 $378,476,000 $13,400,000 $12,731,000 7,873Bentonville, AR 7,239(SC, DS, WC, I, E) 1/31/09
2 The Kroger Co. 76,000,000 70,235,000 1,249,000 1,181,000 3,550Cincinnati, OH 3,662(S, CV, HS, SC) 1/31/09
3 Costco 72,483,020 64,400,155 1,282,725 1,082,772 512Issaquah, WA 488(WC, I, E) 8/31/08
4 The Home Depot✝ 71,288,000 77,349,000 2,312,000 4,210,000 2,274Atlanta, GA (HC, I) 2/1/09 2,234
5 Target Corp. 64,948,000 63,367,000 2,214,000 2,849,000 1,682Minneapolis, MN 1,591(DS, SC, E) 1/31/09
6 Walgreen Co. 59,034,000 53,762,000 2,157,000 2,041,000 6,934Deerfield, IL 5,997(DR) 8/31/08
7 CVS Caremark Corp.** 48,989,900 45,086,500 3,483,700 2,691,300 6,923Woonsocket, RI 6,301(DR) 12/31/08
8 Lowe’s Cos. 48,230,000 48,283,000 2,195,000 2,809,000 1,649Mooresville, NC 1,534(HC, I) 1/30/09
9 Sears Holdings 46,770,000 50,703,000 53,000 826,000 3,918Hoffman Estates, IL 3,847(D, DS, C, I, E)1/31/09
10 Best Buy 45,015,000 40,023,000 1,003,000 1,407,000 3,914Richfield, MN 1,314(HS, E, I,) 2/28/09
Pressing its suppliers to be more eco-friendly.Supports an employer mandate for employee health-care benefits.
Automated DVD rental kiosks will be added to 2,600supermarkets and convenience stores within the nextyear.
Closed its two furniture stores, but started a consumer electronics trade-in and recycling program.
As part of turnaround effort, closed doors on HomeDepot Expo.
Expanding fresh food and produce mix in 100 storesthis year. Launched a new employee wellness initia-tive. Defeated proxy battle for board seats waged byhedge fund Pershing Square.
After a 35-store pilot program, will expand a customer-centric store “reinvention” chainwidethrough 2010.
Acquired Longs Drug Stores, continues to expand itsMinute Clinic in-store healthcare subsidiary.
Scaling back expansion in 2010 to 35-45 stores.
Testing 20 in-store mini-toy shops. Scored a big hitwith holiday lay-away and numerous online initiativestransforming interaction with customers.
Acquired more than 2,400 stores in Europe. Rollingout 40 freestanding U.S. mobile-phone stores.
* Estimate ** Retail operations only; operating income reported *** Pro forma results DNA = Does not apply✝ Continuing operations NA = Not available
AS = Apparel Specialty D = Department E = Electronic HS = Hard Lines Specialty SC = SupercenterC = Catalog DS = Discount GM = General Merchandise I = International SH = Shoe StoreCV = Convenience Store DR = Drug Store HC = Home Center S = Supermarket WC = Warehouse Wholesale ClubSource: Company reports/Chain Store Age research/Chain Store Guides
DRUG STORES7.7%
ELECTRONIC RETAILING 2.9%
HARD LINES STORES10.4%
HOME CENTER7.4%
INTERNATIONAL OPERATIONS7.9%
MAIL ORDER0.7%
MILITARY EXCHANGES1.1%
SHOE STORES0.5%
SUPERMARKETS17.9%
SUPERCENTERS15.5%
APPAREL STORES2.4%
WAREHOUSE CLUBS
7.5%
CONVENIENCE STORES4.4%
DEPARTMENT STORES6.4%
DISCOUNT STORES7.3%
$1,732,317,025*
*Total revenue for the top 100 retailers
CHAIN STORE AGE, AUGUST/SEPTEMBER 2009 chainstoreage.com 21A
Company/ 2008 2007 2008 2007 StoresMain Retail Segments/ Revenues Revenues Profits Profits 2008Fiscal Yearend (000) (000) (000) (000) 2007 Comments
11 Safeway $44,104,000 $42,286,000 $965,300 $888,400 1,739Pleasanton, CA 1,743(S, E, I) 1/3/09
12 Supervalu** 34,664,000 34,341,000 –2,315,000 1,550,000 2,421Eden Prairie, MN 2,474(S) 2/28/09
13 Rite Aid 26,289,268 24,326,846 –2,915,420 –1,078,990 4,901Camp Hill, PA 5,059(DR) 2/28/09
14 Macy’s 24,892,000 26,313,000 –4,803,000 893,000 847Cincinnati, OH 853(D,E, C) 1/31/09
15 Publix Super Markets 24,109,584 23,193,590 1,089,770 1,183,925 993Lakeland, FL 926(S, CV) 2/27/09
16 Staples 23,083,775 19,372,682 805,264 995,670 2,218Framingham, MA 2,038(HS, I,E) 1/31/09
17 Ahold USA** 21,835,000 20,996,000 934,000 875,000 711Chantilly, VA 705(S, E) 12/28/08
18 Delhaize America** 19,222,000 18,293,000 996,321 957,511 1,594Salisbury, NC 1,570(S) 12/31/08
19 Amazon.com 19,166,000 14,835,000 645,000 476,000 DNASeattle, WA DNA(E,I) 12/31/08
20 TJX Cos. 18,999,505 18,336,726 880,617 771,750 2,652Framingham, MA 2,529(AS, HS, I) 1/31/09
21 J.C. Penney✝ 18,486,000 19,860,000 567,000 1,105,000 1,093Plano, TX 1,067(D, E, C) 1/31/09
22 Kohl’s Department Stores 16,389,000 16,474,000 885,000 1,084,000 1,004Menomonee Falls, WI 929(D) 1/31/09
23 Alimentation Couche-Tard 15,781,100 15,370,000 3,900 189,300 5,443Laval, Quebec 5,119(CS) 4/26/09
24 7-Eleven* 15,000,000 12,800,000 NA NA 5,680Dallas, TX 5,333(CV) 12/31/08
25 Gap Inc. 14,526,000 15,763,000 967,000 833,000 3,149San Francisco, CA 3,167(AS, E, I) 1/31/09
26 H.E. Butt Grocery Co. 14,500,000 13,500,000 NA NA 338San Antonio, TX 310(S,I) 10/31/08
27 Office Depot 14,495,544 15,527,537 –1,478,938 395,615 1,429Delray Beach, FL 1,370(HS, I, E) 12/27/08
Initiating everyday low pricing program across chainafter starting it in Northern California region.
Remodels planned for 75 to 80 stores this year, butthat’s down about 50% from last year.
Refinanced most of the debt that was to come duein September 2010.
My Macy’s program of tailoring stores to match localtastes is central to strategy to turn performancearound.
Bulking up its enterprise data warehouse to keeppace with company’s growth and more complex analytical needs.
To enhance supply chain productivity, will use work-force management software to support nearly 1,500DC workers.
Stop & Shop and Giant Food are expanding customeruse of mobile handheld self-scanning devices.
Added a space-optimization tool to improve categoryand shelf performance chainwide.
Buying online shoe retailer Zappos.com for $840 million.
Sold off Bob’s Stores last year. Agreed to multi-million dollar settlement of data-theft investigations.
Company returns to Manhattan, this time with anelectronic queuing system to handle the HeraldSquare crowds in store.
Close to 90 stores have or are slated to have solar-energy generation power.
In April agreed to acquire ExxonMobil’s 450-unit On the Run franchised c-store chain as well as 43 company owned stores.
200 new stores planned this year. Southern Californiatargeted for 100 new units over next three years.
As part of its resuscitation plan, will remodel 50 OldNavy stores.
Placed bill-payment and financial-services kiosksin 26 of its Texas-based stores.
North American retail division sales percentage contribution dropped for third year in a row, whileinternational’s went up.
* Estimate ** Retail operations only; operating income reported *** Pro forma results DNA = Does not apply✝ Continuing operations NA = Not available
AS = Apparel Specialty D = Department E = Electronic HS = Hard Lines Specialty SC = SupercenterC = Catalog DS = Discount GM = General Merchandise I = International SH = Shoe StoreCV = Convenience Store DR = Drug Store HC = Home Center S = Supermarket WC = Warehouse Wholesale ClubSource: Company reports/Chain Store Age research/Chain Store Guides
Company/ 2008 2007 2008 2007 StoresMain Retail Segments/ Revenues Revenues Profits Profits 2008Fiscal Yearend (000) (000) (000) (000) 2007 Comments
22A chainstoreage.com CHAIN STORE AGE, AUGUST/SEPTEMBER 2009
28 Meijer* $13,900,000 $14,420,000 NA NA 186Grand Rapids, MI 181(SC) 1/31/09
29 Toys “R” Us 13,724,000 13,794,000 $218,000 $153,000 1,559Wayne, NJ 1,560(HS, I, E) 1/31/09
30 Military Exchange System 12,725,592 12,400,000 NA NA 4,028Arlington, VA (GM) 1/31/09 3,815
31 Dell Computer** 11,529,000 10,378,000 143,000 2,000 DNARound Rock, TX DNA(C,E) 1/30/09
32 Dollar General 10,457,700 9,495,300 108,200 –12,800 8,362Goodlettsville, TN 8,194(DS) 1/30/09
33 BJ’s Wholesale Club 10,027,366 9,014,465 134,583 122,861 180Natick, MA (WC) 1/31/09 177
34 Apple** 9,655,000 6,611,000 NA NA 247Cupertino, CA 197(HS, E, I) 9/27/08
35 A&P✝ 9,516,186 6,401,130 –86,151 86,980 436Montvale, NJ 447(S) 2/28/09
36 Limited Brands 9,043,000 10,134,000 220,000 718,000 3,014Columbus, OH 2,926(AS, C, E, I) 1/31/09
37 The Pantry 8,995,626 6,911,163 31,783 26,732 1,653Sanford, NC (CV) 9/25/08 1,644
38 GameStop Corp. 8,805,897 7,093,962 398,282 288,291 6,207Grapevine, TX 5,264(HS, I, E) 1/31/09
39 QuikTrip* 8,700,000 8,400,000 NA NA 501Tulsa, OK (CV) 4/30/09 494
40 Nordstrom 8,573,000 9,080,000 401,000 715,000 169Seattle 156(D, AS, C, E) 1/31/09
41 OfficeMax 8,267,000 9,082,000 –1,657,900 207,400 1,022Naperville, IL 976(HS, E, I) 12/27/08
42 Menards* 8,100,000 8,000,000 NA NA 250Eau Claire, WS (HC) 1/31/09 235
43 Liberty Media** 8,079,000 7,802,000 1,555,000 1,684,000 6Englewood, CO 6(E, I, GM) 12/31/08
44 CDW Corp. 8,071,000 8,145,000 NA NA DNAVernon Hills, IL DNA(C, E) 12/31/08
45 Giant Eagle* 8,000,000 7,100,000 NA NA 366Pittsburgh, PA 359(S, CV) 6/30/09
46 Whole Foods Market 7,953,912 6,591,773 114,524 182,740 275Austin, TX 276(S) 9/28/08
Will build a smaller 102,000-sq.-ft. format, grocery-focused store in the Chicago suburbs. The store is roughly half the size of a typical Meijer.
Buying spree this year — acquired FAO Schwarz, and Web sites eToys.com, BabyUniverse.com andePregnancy.com.
Includes Army, Air Force, Navy, Marine, Coast Guardand Veterans retail services.
Segment revenues comprised 19% of total corporatevolume, up from 17% a year ago.
After announcing a chainwide remodeling program,word has spread that the company may go public.
Signed a five-year agreement to receive IT data center and applications-management services.
Average store sales increased to $29.9 million from$23.1 million a year earlier.
In need of cash to repay borrowings and invest instores, received added investment from Yucaipa Cos.and The Tengelmann Group, A&P’s German-basedmajority owner.
Lighting retrofit at five DCs in Columbus, Ohio, expected to save $775,000 annually in energy and maintenance costs.
In June bought 38 convenience stores from HerndonOil Corp.
European stores nearly doubled in the last year to1,201.
Implementing back-office check conversion.
Entry into Manhattan market will come via aNordstrom Rack in spring 2010.
Retail operations equaled 47.9% of sales versus52.1% for contract segment.
First Kansas store slated for community 80 milesnorth of Wichita.
HSN’s $7.3 billion comprised the bulk of revenues,which include contributions from Provide Commerce,Backcountry.com, Bodybuilding.com andBuySeasons.com.
Will rebound when IT investments rebound.
New 87,500-sq.-ft. store design in WesternPennsylvania unveiled, as well as Pittsburgh expansion of 13,500-sq.-ft. Giant Eagle Express, the mini-grocery/c-store/pharmacy hybrid.
Topped U.S. Environmental Protection Agency’sGreen Power Partnership list of retailers that purchase the most renewable energy.
* Estimate ** Retail operations only; operating income reported *** Pro forma results DNA = Does not apply✝ Continuing operations NA = Not available
AS = Apparel Specialty D = Department E = Electronic HS = Hard Lines Specialty SC = SupercenterC = Catalog DS = Discount GM = General Merchandise I = International SH = Shoe StoreCV = Convenience Store DR = Drug Store HC = Home Center S = Supermarket WC = Warehouse Wholesale ClubSource: Company reports/Chain Store Age research/Chain Store Guides
CHAIN STORE AGE, AUGUST/SEPTEMBER 2009 chainstoreage.com 23A
Company/ 2008 2007 2008 2007 StoresMain Retail Segments/ Revenues Revenues Profits Profits 2008Fiscal Yearend (000) (000) (000) (000) 2007 Comments
Computer-generated ordering system will automateorders, optimize inventory and reduce out-of-stocks,and new POS scanners speed up checkout processand age-verification compliances when scanningshoppers’ driver’s licenses.
One sign that consumer spending remains difficult —first-quarter 2009 coupon redemptions were up.
4,000-sq.-ft. c-store carries more than 4,000 SKUs.
This year off to a better start in first quarter fromimproved inventory management, expense reductionand cash conservation.
Tough economic times driving more consumers to its stores, so third-quarter profits jumped 36% over a year ago.
Bucking the trend, earnings up 5.8% through the firstthree quarters of this year on a 6.3% sales gain.
Continues to take advantage of huge buying opportunities for closeout merchandise.
Plans to open 80 stores this year including its first in New York City.
A move into Wisconsin is under way.
Ranked second-best supermarket chain by ConsumerReports, and second in customer service by MSNMoney, but Greenpeace unhappy with its sustainableseafood policy.
Stores in the East record sales about 20% higherthan their western counterparts.
Will rent and sell movies and TV shows throughTiVo’s digital video recorders in the second half ofthis year.
Brought in Ken Hicks, J.C. Penney’s president andchief merchandising officer, to become its presidentand CEO.
To improve inventory control and customer satisfaction, added predictive analysis software.
Even as it scales back store openings, advances digital platform with plans for free WiFi in all stores,a new e-book store and an application for the AppleApp Store.
Using an open-source database to manage the time-and-attendance application for its more than 20,000employees.
Slowing expansion — will open 40 to 42 retail storesand 20 PetsHotels this year.
Almost 29% of the company is owned by workersthrough an Employee Stock Ownership Program.
47 Winn-Dixie✝ $7,281,000 $7,201,000 $13,000 $280,000 521Jacksonville, FL 520(S) 6/25/08
48 Bed Bath & Beyond 7,208,340 7,048,942 425,123 562,808 1,037Union, NJ 971(HS) 2/28/09
49 Racetrac Petroleum* 7,000,000 5,800,000 NA NA 533Smyrna, GA 525(CV) 12/31/08
50 Dillard’s 6,988,440 7,370,806 –241,065 53,761 315Little Rock, AR 326(D) 1/31/09
51 Family Dollar Stores 6,983,628 6,834,305 233,073 242,854 6,571Charlotte, NC 6,430(DS) 8/30/08
52 AutoZone 6,522,706 6,169,804 641,606 595,672 4,240Memphis, TN 4,056(HS, I) 8/30/08
53 Ross Stores 6,486,139 5,975,212 305,441 261,051 956Pleasanton, CA 890(AS) 1/31/09
54 Aldi* 6,250,000 6,000,000 NA NA 1,000Batavia, IL (S) 1/31/09 900
55 Hy-Vee 6,200,000 5,600,000 NA NA 224West Des Moines, IA 224(S, DR) 9/30/08
56 Trader Joe’s* 6,000,000 5,400,000 NA NA 305Monrovia, CA 297(S) 6/30/09
57 Defense Commissary Agency 5,813,245 5,537,505 NA NA 273Fort Lee, VA 277(S) 9/30/08
58 Blockbuster 5,287,900 5,542,400 –374,100 –73,800 7,405Dallas 7,830(HS. I, E) 1/4/09
59 Foot Locker✝ 5,237,000 5,437,000 –79,000 43,000 3,641New York, NY 3,785(SH, AS, I, E, C) 1/31/09
60 Advance Auto Parts 5,142,255 4,844,404 238,038 238,317 3,368Roanoke, VA (HS) 1/3/09 3,261
61 Barnes & Noble 5,121,804 5,286,674 75,920 135,799 778New York, NY 798(HS, E) 1/31/09
62 Save Mart* 5,100,000 4,600,000 NA NA 245Modesto, CA 248(S) 3/31/09
63 PetSmart 5,065,293 4,672,656 192,670 258,684 1,112Phoenix, AZ 1,008(HS, E) 2/1/09
64 WaWa* 5,050,000 5,000,000 NA NA 569Media, PA 576(CV) 12/31/08
* Estimate ** Retail operations only; operating income reported *** Pro forma results DNA = Does not apply✝ Continuing operations NA = Not available
AS = Apparel Specialty D = Department E = Electronic HS = Hard Lines Specialty SC = SupercenterC = Catalog DS = Discount GM = General Merchandise I = International SH = Shoe StoreCV = Convenience Store DR = Drug Store HC = Home Center S = Supermarket WC = Warehouse Wholesale ClubSource: Company reports/Chain Store Age research/Chain Store Guides
Company/ 2008 2007 2008 2007 StoresMain Retail Segments/ Revenues Revenues Profits Profits 2008Fiscal Yearend (000) (000) (000) (000) 2007 Comments
24A chainstoreage.com CHAIN STORE AGE, AUGUST/SEPTEMBER 2009
65 Albertsons LLC* $5,000,000 $6,100,000 NA NA 260Boise, ID (S) 2/26/09 325
66 Sheetz 4,900,000 3,900,000 NA NA 350Altoona, PA (CV) 9/30/08 339
67 Sherwin Williams** 4,830,000 4,955,000 647,900 766,000 3,346Cleveland, OH 3,325(HS, I) 12/31/08
68 Wegmans Food Markets 4,800,000 4,400,000 NA NA 73Rochester, NY 71(S) 12/31/08
69 Casey’s General Store 4,687,895 4,828,793 85,690 84,891 1,478Ankeny, IA 1,454(CV) 4/30/09
70 Big Lots Inc. 4,645,283 4,656,302 151,547 158,461 1,339Columbus, OH 1,353(DS) 1/31/09
71 Dollar Tree 4,644,900 4,242,600 229,500 201,300 3,591Chesapeake, VA 3,411(DS) 1/31/09
72 Neiman Marcus Group 4,600,500 4,390,100 142,800 111,900 69Dallas 60(D, C, HS, E) 8/2/08
73 Luxottica Group** 4,572,621 4,431,926 428,663 495,859 6,255Port Washington, NY 6,407(HS, I) 12/31/08
74 RadioShack 4,224,500 4,251,700 192,400 236,800 6,752Fort Worth, TX 6,670(HS, E, I) 12/31/08
75 Dick’s Sporting Goods 4,130,128 3,888,422 –35,094 155,036 487Pittsburgh, PA 434(HS) 12/31/08
76 WinCo Foods* 4,000,000 3,500,000 NA NA 65Boise, ID (S) 3/30/09 62
77 Roundy’s 4,000,000 4,000,000 NA NA 152Milwaukee, WS 153(S) 12/31/08
78 Michaels Stores 3,817,000 3,862,000 –5,000 –32,000 1,170Irving, TX 1,129(HS, E) 1/31/09
79 Stater Bros. Markets 3,741,254 3,674,427 40,630 49,395 165San Bernardino, CA 164(S) 9/28/08
80 Harris-Teeter** 3,664,804 3,299,377 177,765 154,083 176Matthews, NC 164(S) 9/28/08
81 Bass Pro Shops* 3,600,000 3,200,000 NA NA 54Springfield, MO 49(HS, E, C, I) 12/31/08
82 O’Reilly Automotive 3,576,553 2,522,319 186,232 193,988 3,285Springfield, MO 1,830(HS) 12/31/08
Remodeling 25 stores in the Dallas-Fort Worthmarket.
Incorporating contactless-payment technology in its stores.
Opened 100 stores, closed 79 last year.
Plans to open two stores in Virginia and one inPennsylvania this year.
Comp-store sales of prepared foods totaled 9.1% inlast fiscal year compared with 5.9% for merchandiseand 1.0% for gallons of gasoline sold.
Plans to open 45 stores in 2009, more than the pastthree years combined, including units in moreupscale locations.
Good times keep rolling during bad economic times — this year’s second-quarter comp-store salesincreased 6.8%.
Internet sales accounted for three-quarters of all direct marketing revenues.
Its Sunglass Hut division opened for business inIndia last year.
Though not changing its corporate name, it’s re-branding itself as “The Shack” with a new television, print and digital campaign.
Looking to take over six Oregon sites from defunctJoe’s Sports, Outdoor & More.
Expanding into Utah with two stores this year.
Implemented an enterprise-wide scheduling solution to smooth inventory replenishment.
Named ex-Wal-Mart executive Jon Menzer as its new CEO after CEO Brian Cornell left to head up Wal-Mart’s Sam’s Club.
Rolling out store-level program to turn organic wasteinto compost that can be sold to area farmers.
New stores are smaller, by about 7%, at 48,330 sq. ft.
Database of more than 28 million customers receivemore than 170 pieces of literature a year.
Last July bought CSK and its 1,342 stores to open in 12 new states.
* Estimate ** Retail operations only; operating income reported *** Pro forma results DNA = Does not apply✝ Continuing operations NA = Not available
AS = Apparel Specialty D = Department E = Electronic HS = Hard Lines Specialty SC = SupercenterC = Catalog DS = Discount GM = General Merchandise I = International SH = Shoe StoreCV = Convenience Store DR = Drug Store HC = Home Center S = Supermarket WC = Warehouse Wholesale ClubSource: Company reports/Chain Store Age research/Chain Store Guides
CHAIN STORE AGE, AUGUST/SEPTEMBER 2009 chainstoreage.com 25A
Company/ 2008 2007 2008 2007 StoresMain Retail Segments/ Revenues Revenues Profits Profits 2008Fiscal Yearend (000) (000) (000) (000) 2007 Comments
83 Burlington Coat Factory $3,542,000 $3,393,000 NA NA 433Warehouse Corp. 397Burlington, NJ (AS, HS) 5/30/09
84 Abercrombie & Fitch 3,540,276 3,749,847 $272,255 $475,697 1,125New Albany, OH 1,035(AS, C, E, I) 1/31/09
85 Belk 3,499,423 3,824,803 –212,965 95,740 307Charlotte, NC (D) 1/31/09 303
86 Raley's* 3,450,000 3,400,000 NA NA 140West Sacramento, CA 138(S) 6/30/09
87 Collective Brands 3,442,000 3,035,400 –68,700 42,700 4,877Topeka, KS 4,892(SH, I) 1/31/09
88 Price Chopper/Golub Corp.* 3,400,000 3,200,000 NA NA 115Schenectady, NY 116(S) 4/28/09
89 Williams-Sonoma 3,361,472 3,944,934 30,024 195,757 627San Francisco 600(HS, E, C) 2/1/09
90 Borders Group 3,275,400 3,597,400 –186,700 –157,400 1,021Ann Arbor, MI 1,064(HS, I, E) 1/31/09
91 Ingles Markets 3,238,046 2,851,593 52,123 58,638 197Black Mountain, NC 197(S) 9/27/08
92 Bon-Ton Stores 3,225,415 3,468,569 –169,930 11,562 281York, PA 280(D) 1/31/09
93 The Sports Authority 3,160,000 3,000,000 NA NA 462Englewood, CO 424(HS, E) 1/28/09
94 Berkshire Hathaway** 3,104,000 3,397,000 163,000 274,000 361Omaha, NE (HS) 12/31/08 379
95 Ikea U.S.* 3,100,000 2,700,000 NA NA 34Conshohocken, PA 31(HS, C, E) 8/31/08
96 Systemax 3,032,961 2,779,875 52,843 69,481 16Port Washington, NY 0(E, I, HS) 12/31/08
97 Saks Inc.✝ 3,029,743 3,224,076 –122,767 50,687 104New York, NY 102(D, E) 1/31/09
98 Tractor Supply Co. 3,007,949 2,703,212 81,930 96,241 855Brentwood, TN 764(GM) 12/27/08
99 Susser Holdings** 2,880,584 1,655,969 NA NA 512Corpus Christi, TX 504(CV) 12/28/08
100 HSN 2,823,593 2,908,242 –2,390,888 164,804 DNASt. Petersburg, FL DNA(E, I, C) 12/31/08
EBITDA through nine months was up 1.5% on a revenue gain of 4.4%.
Closing down Ruehl division but opened EpicHollister flagship store in Manhattan.
Turning to technology to better manage private-labelgoods and to control markdowns.
Second company in nation to earn Gold Level certification from EPA’s GreenChill Partnership forgreen refrigeration technology.
U.S. Payless stores contributed 63.6% of total revenue, down from 75.7% as Stride Rite’s contribution increased.
Expanding deployment of labor-management applications.
All sales down 14.8% but Internet dropped the least, at 6.4%.
After cutting HQ executives earlier this year, back onhiring road with new execs in charge of marketingrevenue, technology, e-commerce systems and non-book merchandising.
Profits tumble because of costs associated with store openings and remodels.
Cut more than 1,000 jobs, 2008 senior executivebonuses and 2009 merit-based raises to cope withslumping sales.
Will begin accepting contactless payments at all locations in the United States.
Even the magic touch of Warren Buffett couldn’tstave off lower sales and earnings.
Ten percent of Ikea's global sales come from U.S.customers.
Primarily a direct marketer of technology products,Systemax bought CompUSA’s e-commerce and 16 of its retail leases.
Discontinued Club Libby Lu in January; created one of the more frenzied holiday sales periods by drastically discounting designer fashions.
Sees opportunity for some 600 more stores in theUnited States.
Claims to be largest non-refinery c-store operator in Texas based on store count. Also has stores inNew Mexico and Oklahoma.
Spun off from IAC/InterActiveCorp in May 2008.
* Estimate ** Retail operations only; operating income reported *** Pro forma results DNA = Does not apply✝ Continuing operations NA = Not available
AS = Apparel Specialty D = Department E = Electronic HS = Hard Lines Specialty SC = SupercenterC = Catalog DS = Discount GM = General Merchandise I = International SH = Shoe StoreCV = Convenience Store DR = Drug Store HC = Home Center S = Supermarket WC = Warehouse Wholesale ClubSource: Company reports/Chain Store Age research/Chain Store Guides
26A chainstoreage.com CHAIN STORE AGE, AUGUST/SEPTEMBER 2009
* Estimate ** Retail operations only *** Pro forma results ✝ Continuing operationsSource: Company reports/Chain Store Age research/Chain Store Guides
2008 Revenues 2008Company (000) Rank
2008 Revenues 2008Company (000) Rank
CHAIN STORE AGE 100ALPHABETICAL LISTING BY COMPANY NAME
A&P✝ $9,516,186 35Abercrombie & Fitch 3,540,276 84Advance Auto Parts 5,142,255 60Ahold USA** 21,835,000 17Albertsons LLC* 5,000,000 65Aldi* 6,250,000 54Alimentation Couche-Tard 15,781,100 23Amazon.com 19,166,000 19Apple** 9,655,000 34AutoZone 6,522,706 52Barnes & Noble 5,121,804 61Bass Pro Shops* 3,600,000 81Bed Bath & Beyond 7,208,340 48Belk 3,499,423 85Berkshire Hathaway** 3,104,000 94Best Buy 45,015,000 10Big Lots Inc. 4,645,283 70BJ’s Wholesale Club 10,027,366 33Blockbuster 5,287,900 58Bon-Ton Stores 3,225,415 92Borders Group 3,275,400 90Burlington Coat Factory Warehouse Corp. 3,542,000 83Casey’s General Store 4,687,895 69CDW Corp. 8,071,000 44Collective Brands 3,442,000 87Costco 72,483,020 3CVS Caremark Corp.** 48,989,900 7Defense Commissary Agency 5,813,245 57Delhaize America** 19,222,000 18Dell Computer** 11,529,000 31Dick’s Sporting Goods 4,130,128 75Dillard’s 6,988,440 50Dollar General 10,457,700 32Dollar Tree 4,644,900 71Family Dollar Stores 6,983,628 51Foot Locker✝ 5,237,000 59GameStop Corp. 8,805,897 38Gap Inc. 14,526,000 25Giant Eagle* 8,000,000 45H.E. Butt Grocery Co. 14,500,000 26Harris-Teeter** 3,664,804 80The Home Depot✝ 71,288,000 4HSN 2,823,593 100Hy-Vee 6,200,000 55Ikea U.S.* 3,100,000 95Ingles Markets 3,238,046 91J.C. Penney✝ 18,486,000 21Kohl’s Department Stores 16,389,000 22The Kroger Co. 76,000,000 2Liberty Media** 8,079,000 43
Limited Brands 9,043,000 36Lowe’s Cos. 48,230,000 8Luxottica Group** 4,572,621 73Macy’s 24,892,000 14Meijer* 13,900,000 28Menards* 8,100,000 42Michaels Stores 3,817,000 78Military Exchange System 12,725,592 30Neiman Marcus Group 4,600,500 72Nordstrom 8,573,000 40Office Depot 14,495,544 27OfficeMax 8,267,000 41O’Reilly Automotive 3,576,553 82The Pantry 8,995,626 37PetSmart 5,065,293 63Price Chopper/Golub Corp.* 3,400,000 88Publix Super Markets 24,109,584 15QuikTrip* 8,700,000 39Racetrac Petroleum* 7,000,000 49RadioShack 4,224,500 74Raley’s* 3,450,000 86Rite Aid 26,289,268 13Ross Stores 6,486,139 53Roundy’s 4,000,000 77Safeway 44,104,000 11Saks Inc.✝ 3,029,743 97Save Mart* 5,100,000 62Sears Holdings 46,770,000 97-Eleven* 15,000,000 24Sheetz 4,900,000 66Sherwin Williams** 4,830,000 67The Sports Authority 3,160,000 93Staples 23,083,775 16Stater Bros. Markets 3,741,254 79Supervalu** 34,664,000 12Susser Holdings** 2,880,584 99Systemax 3,032,961 96Target Corp. 64,948,000 5TJX Cos. 18,999,505 20Toys “R” Us 13,724,000 29Tractor Supply Co. 3,007,949 98Trader Joe’s* 6,000,000 56Walgreen Co. 59,034,000 6Wal-Mart Stores Inc. 405,607,000 1WaWa* 5,050,000 64Wegmans Food Markets 4,800,000 68Whole Foods Market 7,953,912 46Williams-Sonoma 3,361,472 89WinCo Foods* 4,000,000 76Winn-Dixie✝ 7,281,000 47
CHAIN STORE AGE, AUGUST/SEPTEMBER 2009 chainstoreage.com 27A
Source: Company reports/Chain Store Age research * Estimate DNA: Does not apply
2008 Sales 2008Company (000 omitted) Stores
2008 Sales 2008Company (000 omitted) Stores
Abercrombie & Fitch $3,540,276 1,125Abercrombie & Fitch 1,531,480 356Hollister 1,514,204 515Abercrombie 420,518 212RUEHL 56,218 28Gilly Hicks 17,856 14
Ahold USA $21,835,000 711Stop & Shop/Giant Landover 17,097,000 563Giant-Carlisle/Tops 4,738,000 148
Best Buy $45,015,000 3,942Best Buy-U.S., Best Buy Mobile, Pacific Sales,
Magnolia Audio Video, Geek Squad 35,070,000 1,107Best Buy-Europe, Canada, China, Mexico,
Mobile Canada, Future Shop, Five Star 9,945,000 2,835
Charming Shoppes $2,474,900 2,301Lane Bryant 1,111,900 892Fashion Bug 843,800 897Catherines 312,100 463Petite Sophisticate 24,300 49
Chico’s FAS $1,582,405 1,076Chico’s/Soma and outlet stores 1,074,939 731White House/Black Market and outlet stores 436,875 345Catalog/Internet 70,591 DNA
Barnes & Noble $5,121,804 778Barnes & Noble 4,525,020 726B. Dalton 67,525 52Barnes & Noble.com 466,082 DNAColdwater Creek 1,024,221 348Retail and outlet stores 751,352 348Internet 211,300 DNACatalog 61,600 DNA
Gap $14,526,000 3,149Old Navy North America 5,232,000 1,067Gap North America 4,169,000 1,193Banana Republic North America 2,367,000 573Gap International (Europe/Asia) 1,728,000 316Internet 1,030,000 DNA
J. Crew $1,428,000 300J. Crew stores 974,300 300Internet 338,200 DNACatalog 70,700 DNA
Limited Brands $9,043,000 3,014Victoria’s Secret stores 3,590,000 1,043Bath & Body Works 2,374,000 1,638Victoria’s Secret Direct 1,523,000 DNALa Senza 491,000 322
Military Exchange System $12,725,592 4,028Army/Air Force (AAFES) 8,876,580 3,100Navy (NEXCOM) 2,648,317 543Marine Corps (MCX) 885,626 151Veterans Canteen Service (VCS) 180,000 172Coast Guard (CGES) 135,069 62
Neiman Marcus Group $4,600,500 41Neiman Marcus/Last Call 3,275,500 64Bergdorf Goodman 580,000 2Internet 562,000 DNACatalog 182,000 DNA
Borders Group $3,242,100 1,021Borders Superstores 2,625,400 515Waldenbooks 480,000 386International 136,700 120
Sears Holdings $46,770,000 3,918Sears (U.S.) 25,315,000 2,162Kmart 16,219,000 1,368Sears (Canada) 5,236,000 388
Target Corp. $62,884,000 1,682Target* 50,000,000 1,443SuperTarget* 12,800,000 239
TJX Corp. $18,999,505 2,652MarMaxx (T.J. Maxx/Marshalls) 12,362,122 1,680T.K. Maxx (Europe) 2,242,057 242Winners/Home Sense (Canada) 2,139,443 277HomeGoods 1,578,286 318A.J. Wright 677,597 135
Toys “R” Us $13,724,000 1,559Toys “R” Us (U.S. stores) 5,900,000 584Toys “R” Us (International stores) 5,244,000 713Babies “R” Us 2,580,000 262
Wal-Mart $401,244,000 7,873Supercenters (U.S.) 220,000,000 2,612International 98,600,000 3,615Discount Stores (U.S.) 32,400,000 891Sam’s Club 46,900,000 602Neighborhood Markets 3,300,000 153
Williams-Sonoma $3,361,472 627Stores 1,962,498 627Internet 1,033,400 DNACatalog 365,574 DNA
RETAIL CONGLOMERATESDIVISION BREAKOUTS
28A chainstoreage.com CHAIN STORE AGE, AUGUST/SEPTEMBER 2009
FAMILY APPAREL STORES Fiscal 2008 % % Change Operating Average % Change OperatingYear Sales Change Operating Income as % Sales per Comp- Income as % of
Company End (000) Sales Income of Sales Store Stores Total AssetsGap 1/31/09 $14,526,000 –7.9% 17.7% 10.7% $4,599,747 –12.0% 20.5%J. Crew* 1/31/09 974,284 6.5 NA NA 3,479,586 –4.0 NAPolo Ralph Lauren* 3/28/09 1,936,500 1.3 –47.0 5.6 6,013,975 –5.2 11.2Stage Stores 1/31/09 1,515,820 –1.9 –42.2 3.4 2,115,590 –6.1 6.8Stein Mart 1/31/09 1,326,469 –9.0 DNA DNA 4,771,471 –10.9 DNAComposite 2008 20,279,073 –6.1 1.6 7.9 4,265,238 — 16.5Notes: Operating income is defined as sales less cost of goods sold less selling, general and administrative expenses and store opening/closing expenses.Average store sales is computed by dividing sales by the average number of stores open at the beginning and end of the fiscal year. * Store operations onlySource: Company reports/Chain Store Age research NA = Not available DNA: Does not apply because of a negative result in either 2008 or 2007.
DRUG STORES Fiscal 2008 % % Change Operating Average % Change OperatingYear Sales Change Operating Income as % Sales per Comp- Income as % of
Company End (000) Sales Income of Sales Store Stores Total AssetsCVS Caremark Corp. 12/31/08 $48,989,900 8.7% 29.4% 7.1% $7,409,241 4.5% 12.3%Duane Reade 12/27/08 1,774,029 5.2 12.2 3.7 7,196,872 4.2 9.2Rite Aid 2/28/09 26,289,268 8.1 DNA DNA 5,278,969 0.8 DNAWalgreen 8/31/08 59,034,000 9.8 9.2 5.8 9,130,616 4.0 15.4Composite 2008 136,087,197 9.0 10.9 5.0 7,434,834 — 11.3Notes: Operating income is defined as sales less cost of goods sold less selling, general and administrative expenses and store opening/closing expenses.Average store sales is computed by dividing sales by the average number of stores open at the beginning and end of the fiscal year.Source: Company reports/Chain Store Age research DNA: Does not apply because of a negative result in either 2008 or 2007.
CONVENIENCE STORES Fiscal 2008 % % Change Gross Margin Average Sales % ChangeYear Sales (000) Change Sales Gross Margin % of Sales per Store Comp-store SalesEnd Merchandise Merchandise Merchandise Merchandise Merchandise Merchandise
Company Only Only Only Only Only OnlyCasey’s General Store 4/30/09 $1,010,018 7.1% 8.4% 33.5% $688,962 5.9%The Pantry 9/25/08 1,636,700 3.9 1.6 36.4 992,842 –1.7Speedway SuperAmerica 12/31/08 2,838,000 1.5 1.6 25.2 1,744,851 NASusser Holdings 12/28/08 729,857 64.3 73.4 34.3 1,436,726 6.6Valero-U.S. 12/31/08 1,097,000 7.1 7.9 29.9 1,117,677 NAComposite 2008 7,311,575 7.8 8.6 30.5 1,173,513 —Notes: Operating income is defined as sales less cost of goods sold less selling, general and administrative expenses and store opening/closing expenses.Average store sales is computed by dividing sales by the average number of stores open at the beginning and end of the fiscal year. NA = Not availableSource: Company reports/Chain Store Age research
DEPARTMENT STORES Fiscal 2008 % % Change Operating Average % Change OperatingYear Sales Change Operating Income as % Sales per Comp- Income as % of
Company End (000) Sales Income of Sales Store Stores Total AssetsBelk 1/31/09 $3,499,423 –8.5% –40.9% 3.5% $11,473,518 –8.7% 4.8%Bon-Ton 1/31/09 3,129,967 –7.0 –58.8 2.0 11,158,528 –7.4 3.4Dillard’s 1/31/09 6,830,543 –5.2 –97.1 0.1 21,312,147 –7.0 0.2J.C. Penney 1/31/09 18,486,000 –6.9 –33.0 8.2 17,116,667 –8.5 12.7Macy’s 1/31/09 24,892,000 –5.4 –41.6 4.9 29,284,706 –4.6 5.5Neiman Marcus* 8/2/08 4,600,500 4.8 –0.2 13.5 71,325,581 1.7 NAComposite 2008 61,438,433 –5.4 –36.9 5.8 21,182,014 — 7.1Notes: Operating income is defined as sales less cost of goods sold less selling, general and administrative expenses and store opening/closing expenses.Average store sales is computed by dividing sales by the average number of stores open at the beginning and end of the fiscal year. *Department stores only NA = Not availableSource: Company reports/Chain Store Age research
CHAIN PERFORMANCE
FULL-LINE DISCOUNT STORES Fiscal 2008 % % Change Operating Average % Change OperatingYear Sales Change Operating Income as % Sales per Comp- Income as % of
Company End (000) Sales Income of Sales Store Stores Total AssetsDuckwall-ALCO 2/1/09 $490,021 1.7% –56.8% 1.2% $1,956,172 –5.1% 2.9% Kmart 1/31/09 16,219,000 –6.0 –37.9 2.0 11,795,636 –6.1 5.4 Target* 1/31/09 62,884,000 2.3 –1.6 9.4 38,425,909 –2.9 13.4 Wal-Mart** 1/31/09 255,700,000 6.8 7.1 7.3 70,968,637 3.5 22.2 Composite 2008 335,293,021 5.2 3.9 7.4 48,840,935 — 18.6 Notes: Operating income is defined as sales less cost of goods sold less selling, general and administrative expenses and store opening/closing expenses.Average store sales is computed by dividing sales by the average number of stores open at the beginning and end of the fiscal year.*Discount stores and supercenters **Discount stores, supercenters and neighborhood marketsSource: Company reports/Chain Store Age research
CHAIN STORE AGE, AUGUST/SEPTEMBER 2009 chainstoreage.com 29A
HARD LINES STORES Fiscal 2008 % % Change Operating Average % Change OperatingYear Sales Change Operating Income as Sales per Comp- Income as % of
Company End (000) Sales Income % of Sales Store Stores Total AssetsBest Buy* 2/28/09 $35,070,000 5.2% –12.1% 5.0% $33,753,609 –1.3% 19.4%HH Gregg 3/31/09 1,396,678 11.1 6.6 6.2 13,897,294 –8.3 24.6 RadioShack 12/31/08 4,224,500 –0.6 –15.3 9.8 629,489 –0.6 18.1 Rex Stores 1/31/09 162,404 –16.6 –89.2 0.7 1,584,429 –10.3 1.4 Composite 2008 40,853,582 4.7 –12.4 5.5 5,136,877 — 19.2 Big 5 Sporting Goods 12/28/08 864,650 –3.8 –47.9 3.2 2,324,328 –7.0 7.1 Cabela’s ** 12/27/08 1,283,148 23.3 10.8 11.0 45,826,714 –3.7 14.3 Dick’s Sporting Goods 12/31/08 4,130,128 6.2 –27.6 4.7 8,968,790 –4.8 9.9 Gander Mountain 12/31/08 1,064,569 9.8 DNA 0.9 9,217,048 –5.6 1.6 Hibbett Sporting Goods 1/31/09 564,188 8.4 3.2 11.0 787,422 0.5 26.5 Sport Chalet 3/29/09 372,652 –7.4 DNA DNA 7,031,170 –12.4 DNAComposite 2008 7,414,685 8.7 –14.8 5.2 5,398,387 — 9.8 Advance Auto Parts 1/3/09 5,142,255 6.2 –0.4 8.1 1,551,442 1.5 14.0 AutoZone 8/30/08 6,522,706 5.7 6.5 17.2 1,572,494 0.4 21.4 O’Reilly Automotive 12/31/08 3,576,553 41.8 10.0 9.4 1,398,457 1.5 8.0 Pep Boys 1/31/09 1,927,788 –9.8 DNA DNA 3,430,228 –8.0 DNAComposite 2008 17,169,302 9.5 6.3 10.8 1,622,501 — 13.3 Bed Bath & Beyond 2/28/09 7,208,340 2.3 –19.6 9.3 7,179,622 –2.4 15.8 HomeGoods (TJX Cos.) 1/31/09 1,578,286 6.6 –44.4 2.7 5,296,601 –3.0 9.3 Composite 2008 8,786,626 3.0 –21.7 8.2 6,720,173 — 15.2 A.C. Moore 1/3/09 534,665 –4.5 –534.5 DNA 4,050,492 –9.0 DNABuild-A-Bear Workshop 1/3/09 467,861 –1.4 –80.8 1.4 1,402,882 –14.0 2.1 Jo-Ann Stores 1/31/09 1,901,100 1.2 6.4 5.0 2,472,172 0.5 16.8 Composite 2008 2,903,626 –0.3 –39.5 2.7 2,352,066 — —Cost Plus 1/31/09 1,000,434 0.5 DNA DNA 3,368,465 –2.6 DNAPier 1 Imports 2/28/09 1,320,700 –12.6 DNA DNA 1,195,204 –9.2 DNAWilliams-Sonoma** 2/1/09 1,962,498 –14.0 –59.9 7.2 3,198,856 –17.2 13.4 Composite 2008 4,283,632 –10.6 –110.1 –0.6 2,125,345 — —
Notes: Operating income is defined as sales less cost of goods sold less selling, general and administrative expenses and store opening/closing expenses.Average store sales is computed by dividing sales by the average number of stores open at the beginning and end of the fiscal year.Source: Company reports/Chain Store Age research DNA: Does not apply because of a negative result in either 2008 or 2007. *U.S. stores only **Retail stores only
JUNIOR APPAREL STORES
Fiscal 2008 % % Change Operating Average % Change OperatingYear Sales Change Operating Income as % Sales per Comp- Income as % of
Company End (000) Sales Income of Sales Store Stores Total AssetsAbercrombie & Fitch* 1/31/09 $1,531,480 –6.6% NA NA $4,283,860 –8.0% NAAeropostale 1/31/09 1,885,531 18.5 19.7% 13.2 2,164,789 8.0 37.7%American Eagle Outfitters 1/31/09 2,988,866 –2.2 –38.8 14.5 2,867,018 –10.0 22.1Buckle 1/31/09 792,046 27.8 48.0 20.5 2,098,135 20.6 34.9Charlotte Russe 9/27/08 823,252 11.1 –37.6 4.1 1,791,626 –1.5 8.7Hollister (A&F)*** 1/31/09 1,514,204 –4.7 NA NA 3,138,247 –17.0 NAHot Topic 1/31/09 761,074 4.5 26.9 4.0 905,501 1.0 8.3Pacific Sunwear of California 1/31/09 1,254,886 –3.9 DNA DNA 1,330,738 –5.2 DNAUrban Outfitters** 1/31/09 1,724,558 22.0 35.7 17.3 6,399,102 7.8 NAWet Seal 1/31/09 592,960 –3.0 52.3 6.4 1,197,899 –8.5 14.7Zumiez 1/31/09 408,669 7.2 –36.8 6.0 1,301,494 –6.5 10.5Composite 2008 14,277,526 4.4 –17.1 8.5 2,212,712 — 24.6Notes: Operating income is defined as sales less cost of goods sold less selling, general and administrative expenses and store opening/closing expenses.Average store sales is computed by dividing sales by the average number of stores open at the beginning and end of the fiscal year.*A&F division only **Retail operations only ***Hollister division only NA = Not available DNA: Does not apply because of a negative result in either 2008 or 2007.Source: Company reports/Chain Store Age research
30A chainstoreage.com CHAIN STORE AGE, AUGUST/SEPTEMBER 2009
LIMITED-ASSORTMENT DISCOUNT STORES Fiscal 2008 % % Change Operating Average % Change OperatingYear Sales Change Operating Income as % Sales per Comp- Income as % of
Company End (000) Sales Income of Sales Store Stores Total AssetsBig Lots 1/31/09 $4,645,283 –0.2 2.6% 7.2% $3,451,176 0.5% 23.3%Dollar General 1/30/09 10,457,700 10.1 71.1 5.9 1,263,312 9.0 6.9Dollar Tree 1/31/09 4,644,900 9.5 10.8 7.9 1,326,735 4.1 18.0Family Dollar 8/30/08 6,983,628 2.2 –6.0 5.2 1,074,322 1.2 13.7Fred’s 1/31/09 1,798,840 1.0 17.0 2.9 2,702,990 1.8 9.7Composite 2008 28,530,351 5.6 19.6 6.1 1,406,059 — 11.1Notes: Operating income is defined as sales less cost of goods sold less selling, general and administrative expenses and store opening/closing expenses.Average store sales is computed by dividing sales by the average number of stores open at the beginning and end of the fiscal year.Source: Company reports/Chain Store Age research
OFF-PRICE APPAREL STORESFiscal 2008 % % Change Operating Average % Change OperatingYear Sales Change Operating Income as % Sales per Comp- Income as % of
Company End (000) Sales Income of Sales Store Stores Total AssetsCitiTrends 1/31/09 $488,202 11.6% 25.8% 8.1% $1,444,385 0.0% 16.3%Marmaxx (TJX)* 1/31/09 12,362,122 3.3 –0.2 9.3 7,485,390 0.0 32.7Men’s Wearhouse 1/31/09 1,972,418 –6.6 –60.4 4.6 1,536,750 –9.0 7.6Ross Stores 1/31/09 6,486,139 8.6 17.6 7.6 7,027,236 2.0 21.0Syms 2/28/09 242,000 –9.4 –61.2 1.6 7,682,540 –7.9 1.8A.J. Wright (TJX) 1/31/09 677,597 7.1 DNA 0.4 5,133,311 4.0 1.2Composite 2008 22,228,478 3.9 –3.2 8.0 5,549,838 — 23.0Notes: Operating income is defined as sales less cost of goods sold less selling, general and administrative expenses and store opening/closing expenses.Average store sales is computed by dividing sales by the average number of stores open at the beginning and end of the fiscal year.Source: Company reports/Chain Store Age research * Marshalls and T.J. Maxx only DNA: Does not apply because of a negative result in 2008 or 2007.
CHAIN PERFORMANCE
CHAIN STORE AGE, AUGUST/SEPTEMBER 2009 chainstoreage.com 31A
WHOLESALE CLUBSFiscal 2008 % % Change Operating Average % Change OperatingYear Sales Change Operating Income as % Sales per Comp- Income as % of
Company End (000) Sales Income of Sales Store Stores Total AssetsBJ’s Wholesale Club 1/31/09 $10,027,366 11.2% 13.2% 2.2% 56,175,720 9.4% 10.9%Costco 8/31/08 70,977,484 12.5 22.4 2.8 141,954,968 8.0 9.5Sam’s Club 1/31/09 46,854,000 5.6 –0.5 3.4 78,548,198 4.8 13.0Composite 2008 127,858,850 9.8 11.0 3.0 100,281,451 — 10.8Notes: Operating income is defined as sales less cost of goods sold less selling, general and administrative expenses and store opening/closing expenses.Average store sales is computed by dividing sales by the average number of stores open at the beginning and end of the fiscal year.Source: Company reports/Chain Store Age research
WOMEN’S APPAREL STORES Fiscal 2008 % % Change Operating Average % Change OperatingYear Sales Change Operating Income as % Sales per Comp- Income as % of
Company End (000) Sales Income of Sales Store Stores Total AssetsAnn Taylor 1/31/09 $2,194,559 –8.4% –97.8% 0.2% $2,354,677 –14.8% 0.4%Caché 12/27/08 265,728 –3.2 DNA DNA 896,216 –4.3 DNACato Corp. 1/31/09 845,676 1.4 9.5 6.6 650,770 –1.0 12.9Charming Shoppes* 1/31/09 2,292,106 –11.5 –51.5 4.8 973,293 –12.0 15.0Chico’s FAS 1/31/09 1,582,405 –7.7 DNA DNA 1,497,072 –15.1 DNAChristopher & Banks 2/28/09 530,742 –5.4 –71.1 3.1 642,545 –12.0 5.8Coldwater Creek* 1/31/09 751,352 –3.1 –60.3 4.0 2,089,992 NA NADress Barn 7/26/08 1,444,165 1.2 –19.9 11.1 985,442 –2.9 15.7New York & Company 1/31/09 1,139,853 –4.6 DNA DNA 1,953,476 –8.6 DNAComposite 2008 11,046,586 –6.1 –64.9 3.1 1,204,053 — 6.5Notes: Operating income is defined as sales less cost of goods sold less selling, general and administrative expenses and store opening/closing expenses.*Retail store operations only NA = Not available DNA: Does not apply because of a negative result in either 2008 or 2007Source: Company reports/Chain Store Age research .
SUPERMARKETS Fiscal 2008 % % Change Operating Average % Change OperatingYear Sales Change Operating Income as % Sales per Comp- Income as % of
Company End (000) Sales Income of Sales Store Stores Total AssetsA&P 2/28/09 $9,516,186 48.7% DNA DNA $21,554,215 2.0% DNAAhold USA-Stop&Shop/Giant Landover 12/28/08 17,097,000 2.4 5.9% 4.1% 30,448,798 2.1 8.7%Ahold USA-Giant Carlisle 12/28/08 4,738,000 10.0 9.4 4.9 32,341,297 5.4 14.0Delhaize America 12/31/08 19,222,000 5.1 4.1 5.2 12,150,442 2.5 10.1Harris-Teeter 9/28/08 3,664,804 11.1 15.4 4.9 21,557,671 2.9 13.6Ingles Markets 9/27/08 3,238,046 13.6 –0.6 3.8 16,436,782 13.5 8.8Nash Finch* 1/3/09 602,457 1.8 13.8 4.7 10,387,189 0.1 28.4Penn Traffic 1/31/09 926,700 –7.4 –8.9 3.2 9,964,516 –1.7 15.3Publix 12/27/08 23,929,064 4.0 –5.6 5.8 24,939,097 1.3 17.1Safeway 1/3/09 44,104,000 4.3 4.5 4.2 25,332,567 1.5 10.6Stater Bros. 9/28/08 3,741,254 1.8 –6.9 4.5 22,743,185 2.5 13.2Supervalu* 2/28/09 34,664,000 0.9 DNA DNA 14,163,023 –1.2 DNAVillage Super Markets 7/26/08 1,127,762 7.8 12.3 4.7 46,990,083 2.5 17.3Weis Markets 12/27/08 2,422,361 4.5 –9.8 2.8 13,165,005 4.3 8.0Whole Foods Market 9/28/08 7,953,912 20.7 –20.6 3.0 28,870,824 4.9 7.0Winn-Dixie 6/25/08 7,281,000 1.1 DNA 0.3 13,988,473 0.9 1.4Composite 2008 184,228,546 5.9 –50.4 2.0 19,258,681 — 5.0Notes: Operating income is defined as sales less cost of goods sold less selling, general and administrative expenses and store opening/closing expenses.Average store sales is computed by dividing sales by the average number of stores open at the beginning and end of the fiscal year.*Retail operations onlySource: Company reports/Chain Store Age research DNA: Does not apply because of a negative result in either 2008 or 2007.
chainstoreage.com CHAIN STORE AGE, AUGUST/SEPTEMBER 200932A
ACKNOWLEDGMENTS
For more than 30 years we have been creating retail brand experiences for companies around the world.
Interbrand Design Forum’s talent for game-changing innovation spurred us to create a business model that integrates analytics-based strategy into what began as a design and architecture group — the first and only company with such a comprehensive offering. This unique ability to address retail’s growing complexity led many of the world’s top companies to our doorstep and propelled Interbrand Design Forum to the forefront of the industry.
In 2008, we added Interbrand to our Design Forum name to reflect our place in the world’s largest branding consultancy; we have been part of Interbrand since 2002. Today, we have 1,200 associates in almost 40 offices around the globe and a practice that brings together a diverse team of insightful right- and left-brain thinkers. This deep talent pool makes our business both rigorously analytic and highly creative.
As a result, we have changed the dialogue, defined the meaning of brand management, and continue to lead the debate around brand as a valuable business asset and what that means to retailers. By making brand central to our clients’ strategic business goals, we help them create, manage and grow the value of their brands.
For information about Interbrand Design Forum, visit www.interbranddesignforum.com or contact: Lee Carpenter, CEO, [email protected] Bruce Dybvad, COO/President, [email protected] Lynn Gonsior, CMO/Executive Vice President, [email protected] Scott Smith, Senior Vice President/Executive Consultant, [email protected] The mailing address is: 7575 Paragon Road, Dayton, Ohio, 45459, 937-439-4400
Chain Store Age is the leading publication serving retail headquarters management. Its reach and coverage extends across the entire spectrum of the industry, from discount stores and apparel stores to department stores and hard lines stores to multi-site restaurants and shopping center owners and developers.
A trusted source of news, information and analysis for more than 80 years, Chain Store Age reports and analyzes trends and developments in the following areas:
• Corporate strategies • Store planning and design • Technology • Facilities management • E-commerce • Construction • Supply chain • Real estate development and leasing • Operations Online, chainstoreage.com covers the industry 24/7, with daily retail news updates, breaking news, interactive media, detailed reports, expert analysis and category-specific e-newsletters, including TechTalk Tuesday, SiteTalk and SPECS Talk, as well as a weekly news roundup.
Chain Store Age produces the annual SPECS conference, the industry’s premier event dedicated to store planning and design, construction and facilities management (specsshow.com). It also produces Executive SPECS, a management development and networking event for senior-level executives involved in store planning, construction, facilities, operations and real estate, and the Retail Store of the Year design competition.
For more information on Chain Store Age, contact Gary Esposito, associate publisher, 212-756-5118, [email protected]. The mailing address is: Chain Store Age, 425 Park Avenue, New York, NY, 10022.