STORES Magazine -August 2017 - 24

n

HOT 100 RETAILERS

continued from page 22
families, but found grocery shopping
and menu planning burdensome, timeconsuming and expensive.
Since then, the company has delivered
more than 150 million meals to
households, representing about 25
million paid orders. In addition to meal
ingredients and cooking instructions,
Blue Apron also sells wine, kitchen
tools and gadgets, and pantry staples
frequently used in recipes. Though
the company has yet to make money,
it is working on cutting costs, such as
lowering the costs of goods sold as a
percentage of net revenue from 77.3
percent in 2015 to 67 percent
last year.
Blue Apron's annual sales were $77.8
million in 2014, $340.8 million in

2015 and $795.4 million last year. The
company currently operates in all 48
contiguous states, with major fulfillment
centers in California, New Jersey and
Texas, and believes it still has opportunity
to grow.
U.S. grocery sales totaled $781.5
billion last year, according to a
Euromonitor study cited by Blue
Apron - $9.7 billion, 1.2 percent, was
generated online. Restaurant sales were
$543.1 billion in 2016, 2.2 percent of
which were online.
"We believe that our business is
poised to capture share from the grocery
and restaurant markets and to benefit
from shifts in consumer experience
over goods, and increasing interest by
consumers in where their food comes
continued on page 26

Company

2015 sales
(000)

2016 sales
(000)

2015 market
share

2016 market
share

Gain in
basis points

Starbucks

$14,124,000

$15,775,000

2.3%

2.4%

13

Panda Express

$2,302,000

$2,979,000

0.4%

0.5%

8

Domino's Pizza

$4,810,000

$5,335,000

0.8%

0.8%

4

Source: Kantar Retail

RESTAURANTS

Restaurants have been offering delivery and engaging in price wars to build business and drive
traffic, but they are battling some strong headwinds. Lunchtime traffic at restaurants dropped 2
percent last year, according to NPD Group, translating into 433 million fewer midday visits and $3.2
billion in lower sales.
"We fundamentally believe food at home is our number one competitor," says Kurt Kane, chief
concept and marketing officer at Wendy's.
"Restaurant delivery is a $100 billion market and it's exploding," says Lucy Brady, head of corporate
strategy and business development for McDonald's, which now offers delivery from more than 2,000 U.S. locations.
Only three companies appear on this year's Hot 100 restaurant chart, the fewest ever: Starbucks, Domino's and Panda Express, the largest Asian food
chain in America.
When Howard Schultz announced he was stepping aside as chief executive and turning the reins over to Kevin Johnson, he pledged that growth would
return to historic levels. For more than six years, Starbucks' quarterly same-store sales increased 5 percent or more; when the transition was announced,
common stock shares tumbled dramatically.
After a few technology issues, Johnson says the company is ready to focus on expansion. "Over the next five years, we've projected building 12,000
additional stores globally, taking us to 37,000 stores," he says; more than half will be in the United States and China.
Domino's has delivered six consecutive years of growth and appears headed for another with a 10.2 percent sales increase in the first quarter of the
current fiscal year. The company changed the pizza recipe after the lean years following the 2008 financial crisis, adding bolder spices to the sauce,
flavoring the crust with garlic and herbs, introducing new cheese combinations and improving the quality of toppings ingredients.
CEO J. Patrick Doyle also oversaw technology developments that have resulted in more than 60 percent of the company's orders coming via
digital platforms.
"We fundamentally believe that voice is a far more effective and efficient way for people to interact with technology," Doyle says of the company's
voice-ordering app. "What we do with it is going to be refined over time, but we need to get into this and start learning."

24

STORES August 2017

STORES.ORG


http://www.STORES.ORG

Table of Contents for the Digital Edition of STORES Magazine -August 2017

Editor’s Page
President’s Page
Retail Politics
NRF News
Trends
Retail People
Hot 100 Retailers
Forward Thinkers
Personalized Pricing
C2W
Q&A
Store Operations
Omnichannel
Marketing
Online
Finance
Business Operations
Startup Spotlight
Security
Fraud
STORES at 100
NRF Communities Update
End Cap
STORES Magazine -August 2017 - intro
STORES Magazine -August 2017 - cover1
STORES Magazine -August 2017 - cover2
STORES Magazine -August 2017 - 3
STORES Magazine -August 2017 - 4
STORES Magazine -August 2017 - 5
STORES Magazine -August 2017 - Editor’s Page
STORES Magazine -August 2017 - 7
STORES Magazine -August 2017 - President’s Page
STORES Magazine -August 2017 - 9
STORES Magazine -August 2017 - Retail Politics
STORES Magazine -August 2017 - NRF News
STORES Magazine -August 2017 - Trends
STORES Magazine -August 2017 - 13
STORES Magazine -August 2017 - 14
STORES Magazine -August 2017 - 15
STORES Magazine -August 2017 - Retail People
STORES Magazine -August 2017 - 17
STORES Magazine -August 2017 - 18
STORES Magazine -August 2017 - Hot 100 Retailers
STORES Magazine -August 2017 - 20
STORES Magazine -August 2017 - 21
STORES Magazine -August 2017 - 22
STORES Magazine -August 2017 - 23
STORES Magazine -August 2017 - 24
STORES Magazine -August 2017 - 25
STORES Magazine -August 2017 - 26
STORES Magazine -August 2017 - 27
STORES Magazine -August 2017 - 28
STORES Magazine -August 2017 - 29
STORES Magazine -August 2017 - 30
STORES Magazine -August 2017 - 31
STORES Magazine -August 2017 - 32
STORES Magazine -August 2017 - 33
STORES Magazine -August 2017 - 34
STORES Magazine -August 2017 - 35
STORES Magazine -August 2017 - Forward Thinkers
STORES Magazine -August 2017 - 37
STORES Magazine -August 2017 - 38
STORES Magazine -August 2017 - 39
STORES Magazine -August 2017 - Personalized Pricing
STORES Magazine -August 2017 - 41
STORES Magazine -August 2017 - 42
STORES Magazine -August 2017 - C2W
STORES Magazine -August 2017 - Q&A
STORES Magazine -August 2017 - 45
STORES Magazine -August 2017 - Store Operations
STORES Magazine -August 2017 - 47
STORES Magazine -August 2017 - Omnichannel
STORES Magazine -August 2017 - 49
STORES Magazine -August 2017 - Marketing
STORES Magazine -August 2017 - 51
STORES Magazine -August 2017 - Online
STORES Magazine -August 2017 - 53
STORES Magazine -August 2017 - Finance
STORES Magazine -August 2017 - 55
STORES Magazine -August 2017 - Business Operations
STORES Magazine -August 2017 - Startup Spotlight
STORES Magazine -August 2017 - 58
STORES Magazine -August 2017 - Security
STORES Magazine -August 2017 - 60
STORES Magazine -August 2017 - Fraud
STORES Magazine -August 2017 - 62
STORES Magazine -August 2017 - 63
STORES Magazine -August 2017 - STORES at 100
STORES Magazine -August 2017 - NRF Communities Update
STORES Magazine -August 2017 - End Cap
STORES Magazine -August 2017 - cover3
STORES Magazine -August 2017 - cover4
http://www.nxtbook.com/naylor/NRFK/NRFK0318
http://www.nxtbook.com/naylor/NRFK/NRFK0218
http://www.nxtbook.com/nxtbooks/nrf/STORES_bigshowdaily20180116
http://www.nxtbook.com/nxtbooks/nrf/STORES_bigshowdaily20180115
http://www.nxtbook.com/nxtbooks/nrf/STORES_bigshowdaily20180114
http://www.nxtbook.com/nxtbooks/nrf/STORES2018_preview
http://www.nxtbook.com/naylor/NRFK/NRFK0118
http://www.nxtbook.com/naylor/NRFK/NRFK0917
http://www.nxtbook.com/naylor/NRFK/NRFK0817
http://www.nxtbook.com/naylor/NRFA/NRFA0017
http://www.nxtbook.com/naylor/NRFA/NRFA0317
http://www.nxtbook.com/naylor/NRFK/NRFK0717
http://www.nxtbook.com/naylor/NRFK/NRFK0617
http://www.nxtbook.com/naylor/NRFK/NRFK0517
http://www.nxtbook.com/naylor/NRFK/NRFK0417
http://www.nxtbook.com/naylor/NRFK/NRFK0317
http://www.nxtbook.com/naylor/NRFK/NRFK0217
http://www.nxtbook.com/nxtbooks/nrf/STORES_bigshowdaily20170117
http://www.nxtbook.com/nxtbooks/nrf/STORES_bigshowdaily20170116
http://www.nxtbook.com/nxtbooks/nrf/STORES_bigshowdaily20170115
http://www.nxtbook.com/naylor/NRFK/NRFE0017
http://www.nxtbook.com/naylor/NRFK/STORES2017_Preview
http://www.nxtbook.com/nxtbooks/nrf/STORES0117
http://www.nxtbook.com/nxtbooks/nrf/STORES1216
http://www.nxtbook.com/nxtbooks/nrf/STORES1116
http://www.nxtbook.com/nxtbooks/nrf/STORES1116v2
http://www.nxtbook.com/nxtbooks/nrf/STORES1016_esri
http://www.nxtbook.com/nxtbooks/nrf/STORES1016_radial
http://www.nxtbook.com/nxtbooks/nrf/STORES1016
http://www.nxtbook.com/nxtbooks/nrf/STORES0916_customcontent
http://www.nxtbook.com/nxtbooks/nrf/STORES0916
http://www.nxtbook.com/nxtbooks/nrf/STORES0816
http://www.nxtbook.com/nxtbooks/nrf/STORES0716_jestacustomcontent
http://www.nxtbook.com/nxtbooks/nrf/STORES0716
http://www.nxtbook.com/nxtbooks/nrf/STORES0616
http://www.nxtbook.com/nxtbooks/nrf/STORES_sourcebook2016
http://www.nxtbook.com/nxtbooks/nrf/STORES0516
http://www.nxtbook.com/naylor/NRFK/NRFE0416
http://www.nxtbook.com/nxtbooks/nrf/STORES0416
http://www.nxtbook.com/nxtbooks/nrf/STORES0316_visualsearch
http://www.nxtbook.com/nxtbooks/nrf/STORES0316
http://www.nxtbook.com/nxtbooks/nrf/STORES0216
http://www.nxtbook.com/nxtbooks/nrf/STORES2016_20160119
http://www.nxtbook.com/nxtbooks/nrf/STORES2016_20160118
http://www.nxtbook.com/nxtbooks/nrf/STORES2016_20160117
http://www.nxtbook.com/naylor/NRFK/NRFE0016
http://www.nxtbook.com/nxtbooks/nrf/STORES2016_Preview
http://www.nxtbook.com/nxtbooks/nrf/STORES0116
http://www.nxtbook.com/naylor/NRFK/NRFC1215
http://www.nxtbook.com/nxtbooks/nrf/STORES1215
http://www.nxtbook.com/nxtbooks/nrf/STORES1115_buyersguide
http://www.nxtbook.com/nxtbooks/nrf/STORES1115
http://www.nxtbook.com/naylor/NRFK/NRFE1015
http://www.nxtbook.com/naylor/NRFK/NRFC1015
http://www.nxtbook.com/naylor/NRFK/NRFE0915
http://www.nxtbook.com/naylor/NRFK/NRFM0016
http://www.nxtbook.com/naylor/NRFK/NRFE0815
http://www.nxtbook.com/naylor/NRFK/NRFE0715
http://www.nxtbook.com/naylor/NRFK/NRFE0615
http://www.nxtbook.com/naylor/NRFK/NRFD0015
http://www.nxtbook.com/naylor/NRFK/NRFS0015
http://www.nxtbook.com/naylor/NRFK/NRFE0515
http://www.nxtbook.com/naylor/NRFK/NRFC0315
http://www.nxtbook.com/nxtbooks/nrfe/STORES0415
http://www.nxtbook.com/nxtbooks/nrfe/STORES0315
http://www.nxtbook.com/nxtbooks/nrfe/STORES0215
http://www.nxtbook.com/naylor/NRFK/NRFG0115
http://www.nxtbook.com/nxtbooks/nrfe/STORES0115
http://www.nxtbook.com/nxtbooks/nrfe/STORES1214
http://www.nxtbook.com/naylor/NRFK/NRFG1114
http://www.nxtbook.com/nxtbooks/nrfe/STORES1114
http://www.nxtbook.com/nxtbooks/nrfe/STORES1014
http://www.nxtbook.com/naylor/NRFK/NRFM0015
http://www.nxtbook.com/nxtbooks/nrfe/STORES0914
http://www.nxtbook.com/nxtbooks/nrfe/STORES0814
http://www.nxtbook.com/nxtbooks/nrfe/STORES0714
http://www.nxtbook.com/nxtbooks/nrfe/STORES0614
http://www.nxtbook.com/nxtbooks/nrfe/STORES0514
http://www.nxtbook.com/nxtbooks/nrfe/STORES_sourcebook2014
http://www.nxtbook.com/nxtbooks/nrfe/STORES0414
http://www.nxtbook.com/nxtbooks/nrfe/STORES0314
http://www.nxtbook.com/nxtbooks/nrfe/STORES0214
http://www.nxtbook.com/naylor/NRFK/NRFG0114
http://www.nxtbook.com/nxtbooks/nrfe/STORES0114
http://www.nxtbook.com/nxtbooks/nrfe/STORES1213
http://www.nxtbook.com/nxtbooks/nrfe/STORES1113_buyersguide
http://www.nxtbook.com/nxtbooks/nrfe/STORES1113
http://www.nxtbook.com/nxtbooks/nrfe/STORES1013
http://www.nxtbook.com/nxtbooks/nrfe/STORES_mediakit2014
http://www.nxtbook.com/nxtbooks/nrfe/STORES0913
http://www.nxtbook.com/nxtbooks/nrfe/STORES0813
http://www.nxtbook.com/nxtbooks/nrfe/STORES0713
http://www.nxtbook.com/nxtbooks/nrfe/STORES0613
http://www.nxtbook.com/nxtbooks/nrfe/STORES0513
http://www.nxtbook.com/nxtbooks/nrfe/STORES0413
http://www.nxtbook.com/nxtbooks/nrfe/STORES0313
http://www.nxtbook.com/nxtbooks/nrfe/STORES0213
http://www.nxtbook.com/nxtbooks/nrfe/STORES2013_20130115
http://www.nxtbook.com/nxtbooks/nrfe/STORES2013_20130113
http://www.nxtbook.com/nxtbooks/nrfe/STORES2013_20130114
http://www.nxtbook.com/nxtbooks/nrfe/STORES2013_preview
http://www.nxtbook.com/nxtbooks/nrfe/STORES0113
http://www.nxtbook.com/nxtbooks/nrfe/STORES1212
http://www.nxtbook.com/nxtbooks/nrfe/STORES1112
http://www.nxtbook.com/nxtbooks/nrfe/STORES1012
http://www.nxtbook.com/nxtbooks/nrfe/STORES_mediakit2013
http://www.nxtbook.com/nxtbooks/nrfe/STORES0912
http://www.nxtbook.com/nxtbooks/nrfe/STORES0812
http://www.nxtbook.com/nxtbooks/nrfe/STORES0712
http://www.nxtbook.com/nxtbooks/nrfe/STORES0612
http://www.nxtbook.com/nxtbooks/nrfe/STORES0512
http://www.nxtbook.com/nxtbooks/nrfe/STORES0412
http://www.nxtbook.com/nxtbooks/nrfe/STORES0312
http://www.nxtbook.com/nxtbooks/nrfe/STORES0212
http://www.nxtbook.com/nxtbooks/nrfe/STORES2012_preview
http://www.nxtbook.com/nxtbooks/nrfe/STORES0112
http://www.nxtbook.com/nxtbooks/nrfe/STORES1211
http://www.nxtbook.com/nxtbooks/nrfe/STORES1111
http://www.nxtbook.com/nxtbooks/nrfe/STORES1011
http://www.nxtbook.com/nxtbooks/nrfe/STORES_mediakit2012
http://www.nxtbook.com/nxtbooks/nrfe/STORES0911
http://www.nxtbook.com/nxtbooks/nrfe/STORES0811
http://www.nxtbook.com/nxtbooks/nrfe/STORES0711
http://www.nxtbook.com/nxtbooks/nrfe/STORES0611
http://www.nxtbook.com/nxtbooks/nrfe/STORES0511
http://www.nxtbook.com/nxtbooks/nrfe/STORES0411
http://www.nxtbook.com/nxtbooks/nrfe/STORES0311_v2
http://www.nxtbook.com/nxtbooks/nrfe/STORES0311
http://www.nxtbook.com/nxtbooks/nrfe/STORES0211
http://www.nxtbook.com/nxtbooks/nrfe/STORES0111
http://www.nxtbook.com/nxtbooks/nrfe/stores1210
http://www.nxtbook.com/nxtbooks/nrfe/stores_mediakit2011
http://www.nxtbook.com/nxtbooks/nrfe/stores1110
http://www.nxtbook.com/nxtbooks/nrfe/stores1010
http://www.nxtbook.com/nxtbooks/nrfe/stores0910
http://www.nxtbook.com/nxtbooks/nrfe/stores0810
http://www.nxtbook.com/nxtbooks/nrfe/stores0710
http://www.nxtbook.com/nxtbooks/nrfe/stores0610
http://www.nxtbook.com/nxtbooks/nrfe/stores0510
http://www.nxtbook.com/nxtbooks/nrfe/stores0410
http://www.nxtbook.com/nxtbooks/nrfe/stores0310
http://www.nxtbook.com/nxtbooks/nrfe/stores0210
http://www.nxtbook.com/nxtbooks/nrfe/store_bigshow2010_post
http://www.nxtbook.com/nxtbooks/nrfe/stores_bigshow_20100112
http://www.nxtbook.com/nxtbooks/nrfe/stores_bigshow_20100111
http://www.nxtbook.com/nxtbooks/nrfe/stores_bigshow_20100110
http://www.nxtbook.com/nxtbooks/nrfe/stores0110
http://www.nxtbook.com/nxtbooks/nrfe/store_bigshowpreview2010
http://www.nxtbook.com/nxtbooks/nrfe/stores1209
http://www.nxtbook.com/nxtbooks/nrfe/stores1109
http://www.nxtbook.com/nxtbooks/nrfe/stores1009
http://www.nxtbook.com/nxtbooks/nrfe/stores0909
http://www.nxtbook.com/nxtbooks/nrfe/stores0809
http://www.nxtbook.com/nxtbooks/nrfe/stores0709
http://www.nxtbook.com/nxtbooks/nrfe/stores0609
http://www.nxtbook.com/nxtbooks/nrfe/stores0509
http://www.nxtbook.com/nxtbooks/nrfe/stores0409
http://www.nxtbook.com/nxtbooks/nrfe/stores0309
http://www.nxtbook.com/nxtbooks/nrfe/stores0209
http://www.nxtbook.com/nxtbooks/nrfe/stores0109
http://www.nxtbook.com/nxtbooks/nrfe/stores1208
http://www.nxtbook.com/nxtbooks/nrfe/stores1108
http://www.nxtbook.com/nxtbooks/nrfe/stores1008
http://www.nxtbook.com/nxtbooks/nrfe/stores0908
http://www.nxtbook.com/nxtbooks/nrfe/stores0808
http://www.nxtbook.com/nxtbooks/nrfe/stores0708
http://www.nxtbook.com/nxtbooks/nrfe/stores0608
http://www.nxtbook.com/nxtbooks/nrfe/stores0508
http://www.nxtbook.com/nxtbooks/nrfe/stores0408
http://www.nxtbook.com/nxtbooks/nrfe/stores0308
http://www.nxtbook.com/nxtbooks/nrfe/stores0208
http://www.nxtbook.com/nxtbooks/nrfe/stores-globalretail08
http://www.nxtbook.com/nxtbooks/nrfe/stores0108
http://www.nxtbook.com/nxtbooks/nrfe/stores1207
http://www.nxtbook.com/nxtbooks/nrfe/stores1107
http://www.nxtbook.com/nxtbooks/nrfe/stores1007
http://www.nxtbook.com/nxtbooks/nrfe/stores0907
http://www.nxtbook.com/nxtbooks/nrfe/stores0807
http://www.nxtbook.com/nxtbooks/nrfe/stores0707
http://www.nxtbook.com/nxtbooks/nrfe/stores0607
http://www.nxtbook.com/nxtbooks/nrfe/stores0507
http://www.nxtbook.com/nxtbooks/nrfe/stores0407
http://www.nxtbook.com/nxtbooks/nrfe/stores0307
http://www.nxtbook.com/nxtbooks/nrfe/stores0207
http://www.nxtbook.com/nxtbooks/nrfe/stores-globalretail07
http://www.nxtbook.com/nxtbooks/nrfe/stores0107
http://www.nxtbook.com/nxtbooks/nrfe/stores1206
http://www.nxtbook.com/nxtbooks/nrfe/stores1106
http://www.nxtbook.com/nxtbooks/nrfe/stores1006
http://www.nxtbook.com/nxtbooks/nrfe/stores0906
http://www.nxtbook.com/nxtbooks/nrfe/stores0806
http://www.nxtbook.com/nxtbooks/nrfe/stores0706
http://www.nxtbook.com/nxtbooks/nrfe/stores0606
http://www.nxtbook.com/nxtbooks/nrfe/stores0506
http://www.nxtbook.com/nxtbooks/nrfe/stores0406
http://www.nxtbook.com/nxtbooks/nrfe/stores0306
http://www.nxtbook.com/nxtbooks/nrfe/stores0206
http://www.nxtbook.com/nxtbooks/nrfe/stores0106-globalretail
http://www.nxtbook.com/nxtbooks/nrfe/stores0106
http://www.nxtbook.com/nxtbooks/nrfe/stores1205
http://www.nxtbook.com/nxtbooks/nrfe/stores1105
http://www.nxtbookMEDIA.com