STORES Magazine - July 2008 - (Page T6)

2OO8 • TOP 1OO retailers Sponsored by counts for 21.7 percent of aggregate Top 100 sales. Change is afoot, however, as CVS has vaulted into the No. 3 spot as a result of its acquisition of Caremark, reflecting the evolution of the health and wellness industry as served by drug stores. Home Depot managed to hold on to the No. 2 spot despite the depressed state of the housing market, while Kroger, the supermarket leader, slipped one place to No. 4. Mass merchants are well represented in the Top 10, with warehouse club operator Costco Wholesale ranking fifth, POWER PLAYERS Target sixth and Sears Holdings — parent of Sears, Kmart and several chains of hardware and home furnishings stores — in the eighth position. No. 7 Walgreen has been displaced as the volume leader among drug store companies, though it has been beefing up via acquisitions. Rounding out the Top 10 is SUPERVALU, which this year has its wholesale and distribution business included in total revenues. As a group, the Top 100 Retailers rang up sales of $1.74 trillion last year, in part by tapping into the trends coursing through the economy. As Experian Consumer Re- • DEPARTMENT stores regional operators lacking a broadbased cost structure to ride out a downturn. Thirty years ago, there were 65 department store companies, he says. “Now, we have a couple of solid competitors that we respect.” It’s difficult to predict what the future holds for Sears. 18 Amid quarterly losses, management changes and sagging sales, investors are growing impatient. Dillard’s is battling choppy waters, too, having admitted to entering some markets it shouldn’t have and announcing plans to rein in costs. The company will continue closing stores; six are slated to close this year. 2007 Revenues Comparable(000) Store Sales $27,845,000 26,313,000 19,860,000 16,473,700 8,828,000 7,370,800 4,390,076 3,824,800 3,467,650 3,282,640 3,000,000 -4.3% -1.3 even 0.5 3.9 -5.0 6.7 -1.1 -6.5 4.9 N.A. Sales per Store $13,354,000 30,847,596 18,612,933 17,732,723 56,229,299 22,609,815 70,806,677 12,458,631 12,428,885 32,182,745 17,142,857 acy’s is rethinking at least portions of its approach to homogenization; JCPenney proclaims its national identity is a plus; Sears Holdings keeps shuffling its deck in the hope of producing a winning hand. “What the consumer wants in the Saint Louis Galleria is different from what the consumer wants in State Street Chicago or wants in Portland, Ore.,” says Macy’s CEO Terry Lundgren, who wants 15 percent of the merchandise in each of the chain’s stores to reflect local tastes. This, M 13 Company Sears* Macy’s even as the company has mandated that each Macy’s store should have a toy department operated by F.A.O. Schwarz. With $2 billion in cash and manageable debt, Penney is in good shape to weather any rough going in the economy, according to chairman and CEO Myron E. Ullman. Nationally, he says, “there’s more spending power above us than below us, so we’re well positioned between the upscale department stores and the discount stores to take advantage of it.” The ones to worry about are T6 STORES / JULY 2008 JCPenney Kohl’s Nordstrom Dillard’s Neiman Marcus Belk Bon-Ton Saks Mervyns(e) * Includes specialty stores (e) Estimate N.A. Not available WWW.STORES.ORG http://WWW.STORES.ORG

Table of Contents Feed for the Digital Edition of STORES Magazine - July 2008

STORES Magazine - July 2008 Contents Executive Editor's Page President's Page Dearth of Retail Creativity What Shoppers Think Wow, Is That a Wawa? 10 Things You May Have Missed Numbers Worth Counting Full Price/Markdown Retail People Merchandising Strategy Concept2Watch Point of Sale Outsourcing Human Resources Top 100 Retailers Store Design RFID IT Operations Systems Managements LP Vantage Point Newsbeat Cover Story Emergency Response Systems Background Checks LOEB Retail Letter Point of View NRF News Retail Crossword Retail Industry Calendar Last Laugh

STORES Magazine - July 2008

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