STORES Magazine - August 2008 - (Page 42)

Hood, who had been national brand restaurant consultant for Google. Denver-based Chipotle, which split from McDonald’s in 2006, experienced explosive growth before and after the alliance, even though some quick-serve conventional wisdom has been cast aside. For one thing, the company operates its own restaurants and doesn’t franchise; for another, it eschews TV advertising. Chipotle is the brainchild of Steve Ells, whose approach is to marry the pedestriAverage an burrito with ingredients such as freshYOY revenue growth ly chopped cilantro and beefsteak mariof the Hot 100 retailers nated for 12 hours, ideas worthy of some- 14.4% 44 HOTTEST PROFIT RATIO GROWTH Apparel retailers went through a long stretch of depressed sales, which no doubt helped hone inventory management strategies so as to position them to reap the rewards when sales picked up last year. Half of the retailers with the hottest profit ratios are apparel specialty store operators. Category leader REX Stores runs small consumer electronics and appliance stores in communities ranging in size from 20,000 to 300,000 in population. REX Stores is not following a pure retail strategy and helped its profit ratio by selling off stores to invest in ethanol production and other alternative energy efforts. Last year, for example, the company completed a $74.5 million cash deal involving the sale of 86 stores and lease-back provisions for 40 of the locations. As a merchandise category, apparel sales increased about 3 percent last year, according to research firm NPD Group. The hottest-profit-ratio group of apparel retailers, however, sported sales jumps ranging from 9.3 percent for American Eagle Outfitters to 23.1 percent for Urban Outfitters. American Eagle and Abercrombie & Fitch have been going head-to-head for years and both prospered last year while expanding multiple formats. AEO boosted its 20-unit Martin + Osa with an e-commerce site. aerie, the intimate apparel brand that began opening freestanding stores in 2006, is expected to have 100 units in operation by the end of this year. Also in the works is the launch of a brand extension aimed at 2- to10-year-olds called 77kids by American Eagle, starting with a website this year and H8 STORES / AUGUST 2008 70 bricks-and-mortar locations next year. A&F counters with its namesake stores, plus ’tween-and-teen favorite Hollister, the urban sophisticate Ruehl, kids-oriented abercrombie and the newly-launched “underwear not lingerie” brand Gilly Hicks, with five stores in operation. The Buckle, where denim accounts for nearly half the volume, has extended its hot streak into 2008 with doubledigit same-store sales increases, while bebe Stores hews its own trail while selling contemporary women’s apparel and accessories in more than 300 locations. Urban Outfitters, which also operates Anthropologie and Free People units, this year acquired a chain of nurseries and relaunched it as a garden center concept called Terrain. COMPANY 2007 REVENUES 2007 EARNINGS RATIO REX Stores Abercrombie & Fitch The Buckle bebe Stores Urban Outfitters McDonald’s Ark Restaurants Tiffany AutoZone $223,975 3,749,847 619,888 670,912 1,507,724 22,786,600 124,207 2,938,771 6,169,804 $33,867 400,019 475,697 75,247 77,278 160,231 2,395,100 13,013 303,772 595,672 15.12% 13.09 12.69 12.14 11.52 10.63 10.51 10.48 10.34 9.65 American Eagle Outfitters 3,055,419 All dollar figures in thousands WWW.STORES.ORG 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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