STORES Magazine - August 2008 - (Page 10)

CONSIDER THIS / EXECUTIVE EDITOR’S PAGE StORES® Sustaining the Sizzle BY SUSAN REDA STORES Magazine 325 7th St. NW, Suite 1100 Washington, D.C. 20004 202/626-8101 t’s no secret: buffeted by slumps in the housing and stock markets and rising fuel and energy prices, consumers have cut back on spending. How long will the economic angst continue? If I thought my crystal ball was reliable, I’d hazard a guess. But the last time I consulted it I ended up buying an SUV — and, clearly, that’s not looking like the best decision these days. While retailers work to stave off shoppers’ malaise and endure the current round of economic punches, it’s worth calling attention to the fact that this industry continues to produce its share of high-flying growth companies. STORES launched its annual Hot 100 Retailers feature in 2006, and 40 businesses have managed to remain on the list for all three years. The three-year revenue growth rates of these retailers average 45.1 percent – particularly impressive when viewed against the backdrop of today’s spending crunch. Some of the dramatic revenue growth enjoyed by these retail companies over the last three years can be linked to acquisitions. The CVS/Caremark deal yielded enormous revenue gains; The Pantry beefed up its figures by buying other convenience store chains, and Dress Barn’s acquisition of maurices lifted its revenues. But it’s the companies that have managed to grow organically that earn another level of respect in my eyes. Amazon.com has three-year revenue growth of 114.3 percent; Urban Outfitters has grown 82.1 percent over that same period. And the list goes on, including familiar names like J.Crew and American Eagle Outfitters and less-common ones like O’Reilly Automotive and Big Dog Holdings. Sure, the current economic climate is tough, but it’s not as if the past few years were big growth times for businesses generally. For Blue Nile, an online jewelry retailer, to post three-year revenue growth of 88.6 percent is phenomenal. Remember all the dot-com doomsayers who claimed shoppers would never buy a diamond online? The company sold more than 60,000 of them last year. There are a few characteristics that most (if not all) of these high-growth retailers share. One is clarity of vision. If you look at the chart (see “Sustained Sizzle” on page H17), it includes retailers with a keen focus on their current mission and their target customer. These are companies whose executives are willing to plan ahead and recognize that what works today may not work tomorrow. They’re comfortable with innovation — in product, store design and marketing strategy — and they’re not afraid to tinker with the blueprint when times call for change. A toast, then, to all the companies that appear on the Hot 100 Retailers list, and a special tip of the cap to those that have managed to sustain their pacesetting growth. I RICK GALLAGHER Publisher Vice President 202/626-8103 FAX: 866/640-8136 E-mail: publisher@nrf.com SUSAN PATTERSON Assistant Publisher 202/626-8102 FAX: 202/661-3042 E-mail: pattersons@nrf.com EDITORIAL SUSAN REDA Executive Editor 516/437-1245 FAX: 866/640-8138 E-mail: editor@nrf.com HARRY LISTER Managing Editor 202/626-8199 FAX: 866/640-8137 E-mail: listerh@nrf.com EMINE BEHNAM Production Manager 202/661-3047 FAX: 866/235-1939 E-mail: behname@nrf.com MARY ALICE ELMER Copy Editor LUCY D. REDDAWAY Creative Director ADVERTISING & MARKETING MIKE GRIBBIN Advertising Director 410/893-8003 Kim Daniele Molly Deise Therese Draddy Dan McClure Tim O’Connell Executive Publishing Inc. 900A Main St., Suite 103 Bel Air, MD 21014 410/893-8003 FAX: 410/893-8004 E-mail: advertising@stores.org CIRCULATION ELENA CAIOLA Senior Director, Circulation and Information Management 202/626-8146 FAX: 866/640-8139 E-mail: circulation@nrf.com DORIS MASON Circulation Assistant 202/626-8172 FAX: 866/640-8140 For article reprints, including e-prints, please contact our Reprint Coordinator at Wright's Reprints 877-652-5295 or STORESreprints@wrightsreprints.com. editor@nrf.com At STORES, we appreciate hearing our readers’ thoughts and comments. Please address your correspondence to editor@nrf.com, or contact me at (516) 437-1245. 10 STORES / AUGUST 2008 WWW.STORES.ORG http://Amazon.com http://WWW.STORES.ORG

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

STORES Magazine - August 2008 Contents Executive Editor's Page President's Page The Lure of Free Shipping Walmart’s New Look What Shoppers Think Will Widgets Work for Wheat Bread and Wasabi? 10 Things You May Have Missed Numbers Worth Counting Full Price/Markdown Retail People Store Design Industry Economics Hot 100 Retailers Concept2Watch Mobile Technology Small Store Technology Website Optimization Site Selection Mobile Payments Recycling Merchandising: Cool Sells Merchandising: Merchandising in Mexico Store Construction & Development Human Resources Loyalty Programs Mobile Marketing Loeb Retail Letter Arts Update Point of View NRF News Retail Crossword Retail Industry Calendar Last Laugh

STORES Magazine - August 2008

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