STORES Magazine -August 2017 - 26

n

HOT 100 RETAILERS

continued from page 24
from," Blue Apron said in its initial public
offering in June.
Blue Apron faces competition in meal kits from
traditional supermarkets as well as rival online
subscription services such as HelloFresh, Purple
Carrot and Sun Basket.
Analysts also suggest that the market for
subscription-fee meal kits is close to saturation:
Nearly three-quarters of new subscribers cancel
their subscriptions within the first year, finds
Cardlytics, a payment card analytics firm that
tracked 45,000 people who first bought meal
kit subscriptions in January 2016; 23 percent of
subscribers give up after a month and 52 percent
quit within six months.
Wayfair holds the runner-up spot on the Hot
100 chart, another ecommerce business that has
been publicly held for nearly three years. The

company has maintained a torrid growth pace
as it expands its online catalog to include even
greater price and quality ranges.
On the No. 4 rung is Chewy.com, a company
in its sixth year of operation after being founded
in the suburbs of Fort Lauderdale by Ryan Cohen
and Michael Day.
"I always wanted to do something with pets,
but I couldn't figure out how to monetize it,"
says Cohen, who serves as the company's chief
executive. After going to the pet store he realized
the online market was "really under-penetrated,"
he says.
Plus, "I understand the customer because it's
myself, so we built the company."
Build they did, ringing up $26 million in sales
in the first year, which grew to $900 million
last year. Projections for this year were for sales
continued on page 28

HARD GOODS

Home improvement retailers are making good use of omnichannel
2015
Company
sales
strategies, helping to propel The Home Depot and Lowe's to the top of
(000)
the list of hard goods retailers reaping the largest market share gains
The Home Depot
$79,312,000
last year.
Lowe's Companies
$57,529,000
The rebound in house prices and construction hasn't hurt, either.
Dick's Sporting
"We're finally at the stage of housing recovery where homeowners
$7,271,000
Goods
are taking on larger projects," says Brad Hunter, chief economist at
Bass Pro Shops
$3,291,000
HomeAdvisor. "Home improvement is the shining star within retail."
O'Reilly Auto Parts
$7,967,000
HomeAdvisor, a web service connecting homeowners with
Tractor Supply Co.
$6,227,000
contractors and handymen, reports that homeowners spent an average
Sherwin-Williams
$7,014,000
of $5,157 on home projects last year, up from $3,288 in 2015.
Source:
Kantar
Retail
Both The Home Depot and Lowe's are capitalizing on the clickand-collect model where customers order online and pick up the
merchandise at the store. The Home Depot says more than 45 percent
of its online orders are picked up, while Lowe's says 60 percent.
"Because we've seen such a huge uptick in the amount of orders that are flowing through the
stores, it's a constant evolution of how associates pick them and where we store them," says
Stephanie Smith, The Home Depot's vice president of direct fulfillment and delivery.
The company has increased the number of stores available for online orders and equipped sales
personnel with its smartphone app. "We wanted all of our store associates to have ... all the
information that our customers have," Smith says.
"The number one and two reasons people come to our site are to check price and see
availability for a local location," says Gihad Jawhar, vice president of digital for Lowe's. "If you
look at our iOS app, we'll show you not only the particular store but the closest three to five. If
you've ever shopped another store, it will show you that store as well."
Digital tools are used throughout the store, says Eric Hanson, Lowe's director of digital
experience, product management and omnichannel integration. "We have six different apps that
our store associates use," he says. "If a customer comes in with dimensions, we can run quick
calculations and show how much product they need."
One area where the home improvement rivals diverge is financial performance. The Home
Depot exceeded Wall Street expectations early this year, including a 5.5 percent jump in samestore sales, while Lowe's disappointed with earnings that were lower than the previous year and
same-store sales edging up just 1.9 percent, even though sales rose 10.7 percent.
26

STORES August 2017

2016
sales
(000)

2015
market
share

2016
market
share

Gain in
basis
points

$85,086,000

13.6%

14.1%

45

$60,409,000

9.9%

10.0%

11

$7,922,000

1.3%

1.3%

6

$3,786,000

0.6%

0.6%

6

$8,593,000

1.4%

1.4%

5

$6,780,000

1.1%

1.1%

5

$7,580,000

1.2%

1.3%

5

STORES.ORG


http://www.Chewy.com 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
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http://www.nxtbook.com/nxtbooks/nrfe/STORES0414
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