hot 1OO
retailers
2015
The nation’s
fastest-growing
retailers
A special report sponsored by
n
hot 100 retailers
Acknowledgements & Methodology
hot 1OO
retailers
2015
what makes them hot?
The Hot 100 Retailers section is the
definitive annual ranking of the nation’s
fastest-growing retail companies.
Rankings are determined by increases in
domestic sales between 2013 and 2014;
all retail companies with domestic sales
in excess of $300 million were eligible.
Hot 100 retailers averaged year-overyear domestic sales growth of 13.2
percent, which outpaced the 2013 Hot
100 growth rate of 12.4 percent.
This year, the list was compiled for
STORES by global research firm Kantar
Retail. Kantar Retail estimates privately
held companies, franchise sales and
domestic sales when the figures are
not self-reported. This methodology
is particularly important because it
removes the impact of companies’
investments in overseas operations
from the growth rankings to give a true
perspective on the situation in the U.S.
retail market.
nrf.com/stores
For over three decades, Island Pacific has been a global leader in
retail merchandising and store operations software solutions. Its team
is passionate about finding ways to strengthen your relationships with
your customers and seeking opportunities for you to drive revenue
from new sources. Today, it has grown to be a thought leader in retail
software solutions, and has developed a reputation for consistently
delivering high-quality, high-reliability software to retailers across
the U.S., U.K., Australia, New Zealand and Asia. To meet an ever
more mobile and demanding consumer’s expectations, Island Pacific
SmartSuite helps retailers ensure they have the right product range
at the right time across all retail touchpoints. Its strong forecasting,
merchandise and assortment planning, allocation, event planning,
replenishment and merchandising solutions allow retailers to drive sales
and profitability across all channels without compromising customer
experience. Island Pacific has built a team that is highly skilled at
developing, implementing and integrating a suite of retail technology
solutions and professional services.
Founded in 1972, MagTek is a leading manufacturer of electronic
systems for the reliable issuance, reading, transmission and security
of cards, checks, PINs and identification documents. Leading
with innovation and engineering excellence, MagTek is known for
quality and dependability. Its products include secure card reader/
authenticators, token generators, EMV contact, contactless and NFC
reading devices, encrypting check scanners, PIN pads and distributed
credential personalization systems for secure magstripe and EMVenabled cards. These products are used worldwide by financial
institutions, retailers and processors to provide secure and efficient
payment and identification transactions.
Today, MagTek continues to innovate. Its MagneSafe™ Security
Architecture leverages strong encryption, secure tokenization,
dynamic card authentication and device/host validation enabling users
to assess the trustworthiness of credentials and terminals used for
online identification, payment processing and high-value electronic
transactions.
MagTek is headquartered in Seal Beach, Calif. For more information,
please visit www.magtek.com.
We are the retail and shopper specialists. We are a leading retail and
shopper insight, consulting and analytics and technology business,
part of Kantar Group, the data investment management division of
WPP. We work with leading brand manufacturers and retailers to help
them sell more effectively and profitably. At Kantar Retail, we track
and forecast over 1,000 retailers globally and have purchase data on
over 200 million shoppers. Among our market-leading reports are the
annual PoweRanking survey and the Digital Power Study. Kantar Retail
works with over 400 clients and has 26 offices in 15 markets around
the globe.
STORES August 2015 S3
n
hot 100 retailers
Hot 1OO
Retailers
Differentiation is key for the nation’s
fastest-growing retailers
by DAVID P. SCHULZ
H ot retailers come in a lot of flavors, but one
thing the upper echelon of the 2015 STORES Hot
100 Retailers have in common is that they all do
things a little differently. Chart-topper Hudson’s
Bay is there because at least one man in retailing — aside
from Macy’s CEO Terry Lundgren — thinks there is still a
place in the world for the traditional department store.
Hudson’s Bay Executive Chairman Richard Baker, who
purchased Lord & Taylor nine years ago, has assembled
a conglomerate that will soon be operating in three
countries on two continents.
Join @STORESMedia
for a live
#STORESHot100
Twitter chat on
Thursday, August 6,
at 2 p.m. EDT.
S4
STORES August 2015
Runner-up NoMoreRack.com, founded in
November 2010 offering deep discounts on an
array of general merchandise, was rebranded
as Choxi earlier this year after Nordstrom
objected to its name (due to possible confusion
with its Nordstrom Rack off-price division).
The new moniker is said to be a mash-up of
“chock full” and “choice” that is not a real
word in any language — the better to assist the
company in expanding globally.
No. 3 Zulily has elevated the flash sale model
to new heights. The company’s early strength
was in infant clothing, toys and accessories with
a no-returns policy; in May Zulily began a test
program that allows some customers to return
some brands of apparel and home linens.
“The Hot 100 is a mix of companies that
have balance sheets that allow them to make
acquisitions or grow organically,” explains
Bryan Gildenberg, chief knowledge officer at
Kantar Retail, providers of the Hot 100 data.
“Hot 100 retailers grow quickly because they
understand why people are buying. … They
understand the dynamics of their audience.”
Among those following the acquisition trail
are No. 4 G-III Apparel Group and No. 5
Wayfair. G-III is a softgoods vendor to major
department and specialty stores, though it also
operates stores under the Wilsons Leather,
Bass, G.H. Bass & Co., Vilebrequin and Calvin Klein Performance banners.
Wayfair is the umbrella for five e-commerce
brands offering home furnishings and décor.
The company had a particularly good holiday
nrf.com/stores
Sponsored by
H&M is not resting on its
laurels; plans to keep U.S.
investments coming include
opening larger quarters on
New York City’s Fifth Avenue.
2
13
selling season last year, with the number of
active customers in its direct retail business
reaching 3.2 million at year’s end, up 54 percent from a year earlier.
Two years ago, No. 7 Office Depot purchased a major rival in OfficeMax and not
too long afterward put itself in position to be
taken over by Staples, potentially reducing the
nrf.com/stores
L Brands 49
number of office supply superstore operators
to just one. If the Staples takeover clears regulatory hurdles, Wall Street analysts have said
they expect at least 1,000 office supply stores
to be closed around the country.
Both No. 8 Signet Jewelers and No. 9 Men’s
Wearhouse acquired major rivals in Zale and
Jos. A. Bank, respectively: Signet has put toSTORES August 2015 S5
n
hot 100 retailers
hudson’s Bay 1
men’s Wearhouse 9
No. 1
Hudson’s Bay
thinks there is
still a place in
the world for
the traditional
department
store.
S6
STORES August 2015
gether the only national group of mall-based
popular-priced jewelry stores, while Men’s
Wearhouse has achieved pretty much the same
status among men’s apparel retailers after turning the tables on Jos. A. Bank, which initially
tried to take over Men’s Wearhouse.
Uncommon goods
Good fortune pops up in other areas of the
Hot 100 Retailers, with chains operating in
hot segments — supermarkets and apparel
stores account for nearly half of the Hot 100
entries.
Most of the Hot 100 supermarkets have
“core categories that are growing very quickly,” Gildenberg says, such as an emphasis on
natural and organic foods or a storeful of ethnic products.
Larger grocers in the Hot 100 include No.
50 Kroger, which is “very successful for a
whole host of reasons,” he says, pointing to
its two-tier management model that gives a
high degree of centralization on one level, but
plenty of discretionary judgment afforded to
regional, district and store-level management.
Holding up the tradition of ethnic grocers
expanding fast enough to achieve Hot 100
Retailer status is No. 29 Grupo Comercial
Chedraui, the Mexico-based majority owner
of Bodega Latina in Paramount, Calif., which
operates 49 supermarkets under the El Súper
banner in Nevada and California. El Súper
may be challenged to remain among the ranks
of the Hot 100 Retailers after this year, however: The retailer is dealing with a labor dispute and boycott involving seven stores where
employees, members of the United Food and
Commercial Workers union, have been without a contract since September 2013.
Presenting a variation on “know your customer” are apparel retailers, where there has
nrf.com/stores
Sponsored by
2015 hot 100 Retailers
Rank Company Headquarters/
USA SalesWorldwide USA % 2014Growth u.S. HeadquartersRetail SalesGrowthRetail SalesWorldStores (’14 v ’13)
(000) (’14 v ’13)
(000)
Sales
1
Hudson’s BayOntario, Canada
2
Choxi.com (formerly NoMoreRack.com)New York
3
ZulilySeattle
4
G-III Apparel GroupNew York
5
Wayfair
Boston
6
AT&T Wireless
Dallas
7
Office Depot
Boca Raton, Fla.
6,587,000
54.0
8,106,000
81.3
1,745
60.2
8
Signet Jewelers
Akron, Ohio
5,251,000
49.3
6,312,000
83.2
2,868
95.0
9
Men’s Wearhouse
Houston
2,790,000 44.1
3,040,00091.81,623 61.8
10
Northern Tool and Equipment
Burnsville, Minn.
1,410,000
41.3
1,410,000 100.0
97
14.1
11
Verizon Wireless
Basking Ridge, N.J.
10,959,000
35.1
10,959,000 100.0
7,024
-2.6
12
Bluestem Brands
Horsham, Pa.
1,071,000
27.7
13
H&MNew York
2,670,000
27.3
14
Five Below
15
99 Cents Only StoresCommerce, Calif.
1,882,000
26.6
1,882,000 100.0
383
11.7
16
Michael Kors HoldingsNew York
1,656,000
25.6
4,371,000
37.9
343
19.1
17
Conn’sThe Woodlands, Texas
1,118,000
23.7
1,118,000 100.0
90
13.9
18
Amazon.comSeattle
19
Sprouts Farmers Market
Phoenix
2,967,000
21.7
2,967,000100.0
191 14.4
20
Ulta Salon Cosmetics & Fragrance
Bolingbrook, Ill.
3,066,000
21.4
3,066,000 100.0
774
21
Charming Charlie
Houston
22
JustFabEl Segundo, Calif.
23
Restoration Hardware HoldingsCorte Madera, Calif.
24
Ace HardwareOak Brook, Ill.
25
Boot Barn Holdings
Philadelphia
Irvine, Calif.
$5,174,000
689,000
254.1%
102.6
1,182,000 73.3
499,000
67.5
1,035,000 65.3
12,960,000
680,000
55.3
27.0
$7,937,000
65.2%
165
689,000 100.0N.A.
236.7%
0.0
1,200,00098.5N.A. 0.0
499,000 100.0
423
-0.7
1,102,00094.0N.A. 0.0
12,960,000100.0 2,156 -0.2
1,071,000 100.0N.A.
23,008,000
11.6
680,000100.0
356
0.0
16.7
366 20.4
49,353,000 22.6 83,391,00059.2N.A. 0.0
14.7
502,000 21.4
522,00096.2 348 17.2
415,000
20.3
469,000
1,707,000
19.6
14,299,000
18.7
403,000
16.4
88.5
6
0.0
1,707,000 100.0
62
-4.6
99.7
4,251
1.9
403,000 100.0
169
11.2
14,345,000
N.A. Not available or not applicable.
Notes on Methodology:
USA = 50 states and District of Columbia; sales in Puerto Rico, the U.S. Virgin Islands, and Guam have been estimated and
removed if reported as part of the U.S. business segment for that company.
All retail sales estimates exclude wholesale and non-retail services (not sold at store); but include online retail sales.
Fuel sales are included, except where revenues of fuel exceed 50% of average store revenues; in this case sales are reported
exclusive of fuel sales.
All figures are estimates based on Kantar Retail research and company reports.
nrf.com/stores
STORES August 2015 S7
n
hot 100 retailers
been a major changing of the guard over the
last 12 to 18 months, at least among teenoriented brands. “It doesn’t mean teens have
stopped buying clothes,” Gildenberg says.
“They’re not going naked — they are buying
clothes somewhere else.” He uses as an example Abercrombie & Fitch, where chief executive Mike Jeffries left abruptly last December.
“A&F’s whole model was built on aspira-
tional marketing … their message was ‘If you
don’t wear these clothes, you won’t look like
this,’” he says. “That was okay for a while but
it’s a different era now, and the teens are shopping at places like H&M where the message is,
‘We’ll help you be the best you can look. We’ll
help you be the best version of yourself.’ It
taps into a different vision.”
No. 13 H&M is not resting on its laurels;
Hardgoods
Both AT&T Wireless and Verizon Wireless expanded market share during a year in which one of
the hottest pieces of merchandise was the iPhone. After being introduced last September, nearly
75 million iPhone 6 and iPhone 6 Plus units were sold in the fourth quarter. AT&T and Verizon
Wireless unbundled the phone cost from that of monthly phone service: Customers could either
pay for phones upfront or in monthly
Company
2014 Sales 2013 Sales 2014 Market 2013 MarketGain in
installments.
(000)
(000)ShareShare
Basis Points
In spite of that, “The reality is that the
AT&T Wireless
$12,960,000$8,347,000 1.87% 1.25% 627
phone base in the U.S. isn’t really grow10,959,0008,111,000 1.58 1.21
373
Verizon Wireless
ing much, so pretty much all the growth
Office Depot
6,587,0004,276,000 0.95 0.64
314
these companies are going to get will
Ace Hardware
14,299,00012,050,000 2.07 1.80
268
come from things other than phones,”
Apple Stores / iTunes
28,380,00026,648,000 4.10 3.98
123
says Jan Dawson, chief analyst at Jackdaw
Sherwin-Williams
7,047,0006,223,000 1.02 0.93
89
Tractor Supply Co.
5,820,0005,165,000 0.84 0.77
70
Research. This observation is evident in
Northern Tool and Equipment1,410,000 998,000 0.20 0.15
55
AT&T’s new retail prototype store, where
O’Reilly Automotive
7,216,0006,649,000 1.04 0.99
50
a substantial number of products are such
Restoration Hardware Holdings1,707,000 1,427,000 0.25
0.21
34
items as smartwatches, fitness wearables
Conn’s
1,118,000 904,0000.16 0.13
27
and home security.
680,000 535,0000.10 0.08
18
Five Below
Verizon launched its new retail protoAdvance Auto Parts
4,379,0004,118,000 0.63 0.61
18
type last year. Divided into six interactive
Bass Pro Shops
2,774,0002,596,000 0.40 0.39
13
“lifestyle zones,” the new Destination
Gander Mountain
1,322,0001,194,000 0.19 0.18
13
Stores feature merchandise ranging from
Rural King Supply
751,000 657,0000.11 0.10
10
headphones and smartphone cases perHobby Lobby Stores
2,563,0002,413,000 0.37 0.36
10
sonalized with photos to tech toys, fitness
Leslie’s Poolmart
703,000 656,0000.10 0.10
4
wearables and smart-home accessories.
Source: Kantar Retail
Office Depot 7
S8
STORES August 2015
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Sponsored by
2015 hot 100 Retailers
Rank Company Headquarters/
USA SalesWorldwide USA % 2014Growth u.S. HeadquartersRetail SalesGrowthRetail SalesWorldStores (’14 v ’13)
(000) (’14 v ’13)
(000)
Sales
26
Bi-Lo
27
Skechers USAManhattan Beach, Calif.
28
Jacksonville, Fla.
16.4% $10,362,000 100.0%
800
19.8%
535,000
16.2
80.6
362
12.8
Stripes Convenience StoresCorpus Christi, Texas
1,239,000
16.2
1,239,000 100.0
642
10.7
29
Grupo Comercial ChedrauiMexico City, Mexico
1,285,000
16.1
5,617,000
22.9
49
8.9
30
The Fresh Market
Greensboro, N.C.
1,753,000
16.0
1,753,000 100.0
169
11.9
31
Lululemon Athletica
Vancouver, Canada
1,250,000
15.4
1,654,000
75.6
211
23.4
32
Lunds Food HoldingsEdina, Minn.
572,000
15.0
572,000 100.0
26
18.2
33
Overstock.comSalt Lake City
1,472,000
14.8
34
Rural King SupplyMattoon, Ill.
751,000
14.3
751,000 100.0
77
13.2
35
National Stores
918,000
13.5
918,000 100.0
302
17.5
36
Sherwin-WilliamsCleveland
7,047,000 13.2
7,360,00095.83,764 2.1
37
Academy
Katy, Texas
3,616,000
13.1
3,616,000 100.0
190
10.5
38
Tractor Supply Co.
Brentwood, Tenn.
5,820,000
12.7
5,820,000 100.0
1,382
8.3
39
Rue 21
Warrendale, Pa.
1,214,000
12.6
1,214,000 100.0
1,077
8.2
40
Care Pharmacies Cooperative
Linthicum, Md.
458,000
12.4
458,000 100.0
85
13.3
41
Casey’s General Stores
Ankeny, Iowa
2,503,000
11.6
2,503,000 100.0
1,883
4.1
42
Francesca’s
Houston
43
Rouse’s EnterprisesThibodaux, La.
44
Gilt GroupeNew York
45
Gander Mountain Co.St. Paul, Minn.
46
Kirkland’s
Brentwood, Tenn.
47
Grocery Outlet
Berkeley, Calif.
48
Oxford Industries
Atlanta
49
L BrandsColumbus, Ohio
50
The Kroger Co.Cincinnati
Gardena, Calif.
$10,362,000
377,000
11.0
664,000
1,472,000 100.0N.A.
377,000100.0
539 19.5
1,116,000
10.8
660,000
10.8
1,322,000
10.7
1,322,000 100.0
150
18.1
505,000
10.7
505,000 100.0
344
6.2
1,660,000
10.5
1,660,000 100.0
218
7.9
547,000 10.4
10,303,000
103,033,000
10.2
1,116,000 100.0
0.0
45
660,000 100.0N.A.
12.5
0.0
998,00054.8 164 12.3
10,966,000
94.0
2,685
10.1 103,033,000100.0 3,730
1.4
5.9
N.A. Not available or not applicable.
Notes on Methodology:
USA = 50 states and District of Columbia; sales in Puerto Rico, the U.S. Virgin Islands, and Guam have been estimated and
removed if reported as part of the U.S. business segment for that company.
All retail sales estimates exclude wholesale and non-retail services (not sold at store); but include online retail sales.
Fuel sales are included, except where revenues of fuel exceed 50% of average store revenues; in this case sales are reported
exclusive of fuel sales.
All figures are estimates based on Kantar Retail research and company reports.
nrf.com/stores
STORES August 2015 S9
n
hot 100 retailers
58
E-commerce
Company
Amazon.com
Wayfair
Choxi.com
Bluestem Brands
Overstock.com
Gilt Groupe
Evine Live
Newegg
FreshDirect
Source: Kantar Retail
S10
plans to keep U.S. investments coming include
opening larger quarters on New York City’s
Fifth Avenue and letting one or more of its sister brands — COS, & Other Stories, Weekday,
Monki and Cheap Monday — take over the
vacated locations on the same street.
The strong dollar has made expansion in
the U.S. more expensive, but the push will
continue, vows chief executive Karl-Johan
Persson. “Although these long-term investments currently involve costs, we see them as
necessary in order to build an even stronger
H&M,” he says. “Among other things, these
investments enable us to be a natural part
of our customers’ increasingly digital world,
where the boundary between shopping online
and in physical stores is becoming more and
more seamless.”
(continued on page S14)
Amazon remains the
hottest of the hot retailers doing business exclusively online. The surprise
is at the bottom of the list:
After nearly two decades
of trying, online grocers
are starting to heat up.
FreshDirect made its first
delivery 13 years ago and
has since grown to serve all
of New York City, Westchester County and surrounding areas on Long Island,
northern New Jersey and
Connecticut, as well as parts of Pennsylvania and Delaware.
In the $600 billion food and beverage industry, only about 1 percent of the sales occur online,
according to Business Insider Intelligence, though another study from the University of Michigan Ross School of Business indicates that grocery e-commerce is growing about 15 percent a
year. The turning point could be the rise of
same-day delivery services being rolled out by
2014 Sales 2013 Sales 2014 Market 2013 MarketGain in
(000)
(000)ShareShare
Basis Points
Google, eBay and Amazon.
$49,353,000$40,250,00010.82% 9.33%1,496
Amazon is moving quickly into the grocery
1,035,000 626,0000.23
0.15
82
business, having expanded into the New
689,000 340,0000.15
0.08
72
York City metropolitan area. The service is
1,071,000 839,0000.23
0.19
40
also available in Philadelphia and this spring
1,472,000 1,282,0000.32
0.30
26
it expanded to northern New Jersey. In May,
660,000 596,0000.14
0.14
7
Amazon indicated it might be moving into
700,000 640,0000.15
0.15
5
house-brand groceries by applying for trade2,878,000 2,710,0000.63
0.63
3
mark protection for numerous food product
332,000 313,0000.07
0.07
0
categories using its Elements private label.
STORES August 2015
nrf.com/stores
18
Sponsored by
2015 hot 100 Retailers
Rank Company Headquarters/
USA SalesWorldwide USA % 2014Growth u.S. HeadquartersRetail SalesGrowthRetail SalesWorldStores (’14 v ’13)
(000) (’14 v ’13)
(000)
Sales
51
Brookshire Brothers
Lufkin, Texas
52
Festival Foods
Vadnais Heights, Minn.
53
Dick’s Sporting GoodsCoraopolis, Pa.
54
Whole Foods Market
Austin, Texas
55
Rue La La
Boston
56
Evine LiveEden Prairie, Minn.
57
$1,436,000
9.9%
$1,436,000 100.0%
137
29.2%
692,000
9.8
692,000 100.0
19
11.8
6,811,000
9.7
6,811,000 100.0
695
8.3
13,642,000
9.7
381
9.8
14,060,000
97.0
450,000
9.7
450,000100.0N.A. 0.0
700,000
9.4
700,000 100.0N.A.
Dollar TreeChesapeake, Va.
8,390,000
9.4
8,596,000
97.6
5,157
7.2
58
Forever 21
Los Angeles
2,194,000
9.0
2,901,000
75.6
489
6.1
59
The Finish Line
Indianapolis
1,821,000
9.0
1,821,000100.0
708
2.2
60
Tops Markets
Williamsville, N.Y.
2,456,000
8.9
2,456,000 100.0
163
1.9
61
Ralph LaurenNew York
2,665,000
8.6
2,833,000
94.1
252
2.9
62
O’Reilly AutomotiveSpringfield, Mo.
7,216,000
8.5
7,216,000 100.0
4,366
4.8
63
Harp’s Food StoresSpringdale, Ark.
967,000
8.5
967,000 100.0
82
2.5
64
GenescoNashville, Tenn.
2,211,000
8.4
2,733,000
80.9
2,508
8.7
65
The Vitamin ShoppeNorth Bergen, N.J.
1,224,000
8.2
1,233,000
99.3
751
9.0
66
WawaMedia, Pa.
1,146,000
8.2
1,146,000 100.0
675
7.1
67
Trader Joe’sMonrovia, Calif.
9,388,000
8.1
37,606,000
447
5.9
68
Dollar General
Goodlettsville, Tenn.
18,910,000
8.0
18,910,000 100.0 11,789
5.9
69
RaceTrac Petroleum
Atlanta
70
Ross Stores
Pleasanton, Calif.
71
WinCo Foods
Boise, Idaho
72
Ikea North America ServicesConshohocken, Pa.
73
Citi TrendsSavannah, Ga.
74
75
1,517,000
8.0
25.0
1,517,000100.0
11,032,000
7.9
11,042,000
5,872,000
7.9
4,611,000
7.9
671,000
7.8
CST BrandsSan Antonio, Texas
1,371,000
7.8
1,632,000
Demoulas Super MarketsTewksbury, Mass.
3,320,000
7.6
722
0.0
4.3
99.9
1,361
6.7
5,872,000 100.0
98
6.5
12.0
40
5.3
671,000 100.0
511
1.2
84.0
1,185
14.4
3,320,000 100.0
73
2.8
38,437,000
N.A. Not available or not applicable.
Notes on Methodology:
USA = 50 states and District of Columbia; sales in Puerto Rico, the U.S. Virgin Islands, and Guam have been estimated and
removed if reported as part of the U.S. business segment for that company.
All retail sales estimates exclude wholesale and non-retail services (not sold at store); but include online retail sales.
Fuel sales are included, except where revenues of fuel exceed 50% of average store revenues; in this case sales are reported
exclusive of fuel sales.
All figures are estimates based on Kantar Retail research and company reports.
nrf.com/stores
STORES August 2015 S11
n
hot 100 retailers
When it comes to restaurants, you can never have too much market share. Sitting right at the
top is Chipotle Mexican Grill, which has mined the country’s concerns over health, fitness and
overall wellness for marketing fodder. The chain has removed genetically modified foods from
the menu and is working to rid its offerings of artificial ingredients.
Starbucks’ recent activities include the opening of the first of five express units in New York
Hot restaurants
City, starting with a 530-square-foot store across the street from the New York Stock Exchange.
are tapping into
Deliveries are another priority for Starbucks, with pilot projects underway this summer in
technology,
Seattle and New York. And while many restaurant
changing
operators are looking to expand into breakfast,
lifestyles
Starbucks is working on ways to increase revenues
later in the day: The company has announced a
plan to have the Starbucks Evening experience
available at some 25 percent of its U.S. stores by
the end of 2019. The company estimates it will add
approximately $1 billion to annual revenues, part
of a campaign to double U.S. food revenue to $4
billion over the next five years.
Chick-fil-A, riding high as it opens its first
restaurant in New York City (other than a limitedmenu dining hall option at New York University),
is planning to enter the Nevada market next
year with locations in and around Las Vegas. The
starbucks
Georgia-based
Company (Parent Company)
2014 Sales 2013 Sales
2014 Market
2013 MarketGain in
chicken purveyor was
(000)
(000)ShareShare
Basis Points
named the nation’s
Chipotle Mexican Grill
$4,069,000 $3,182,000 0.71% 0.59%120
favorite chain in the
Starbucks
10,604,000 9,341,0001.84
1.72 119
latest edition of the
Chick-fil-A
5,936,000 5,191,0001.03
0.96 74
American Customer
Panda Express
2,246,000 1,990,0000.39
0.37 23
Satisfaction Index,
1,258,000 1,073,0000.22
0.20 20
Zaxby’s
receiving the highest
Whataburger
1,801,000 1,588,0000.31
0.29 20
score in the 5,020
Little Caesars
3,405,000 3,100,0000.59
0.57 20
Domino’s Pizza
4,116,000 3,770,0000.71
0.69 20
surveys conducted
Popeyes Louisiana Kitchen
2,156,000 1,942,0000.37
0.36 16
this year.
525,000 406,0000.09
0.07 16
Jersey Mike’s Subs
Domino’s is the
Wingstop (Roark Capital Group)
664,000
540,000
0.12
0.10
16
second-largest pizza
Firehouse Subs
544,000 436,0000.09
0.08 14
chain in the country
Culver’s
1,036,000 906,0000.18
0.17 13
behind Pizza Hut and
Yard House (Darden Restaurants)
478,000
395,000
0.08
0.07
10
saw a 14.5 percent
Raising Cane Chicken Fingers
415,000 336,0000.07
0.06 10
domestic same-store
Bojangles’ (Advent International)
1,033,000
923,000
0.18
0.17
9
sales increase in the
Dairy Queen (Berkshire Hathaway)
3,192,000
2,960,000
0.55
0.55
9
first quarter. The
Hardee’s (Roark Capital Group)
2,117,000
1,953,000
0.37
0.36
8
pizza chain is also
Moe’s Southwest Grill (Roark Capital Group)
571,000
498,000
0.10
0.09
7
Qdoba Mexican Grill (Jack in the Box)
667,000
592,000
0.12
0.11
7
one of the more
Papa John’s
2,673,000 2,488,0000.46
0.46 5
tech-savvy restaurant
El Pollo Loco
723,000 658,0000.13
0.12 4
operators: Earlier this
Tim Hortons (Restaurant Brands International)
650,000
590,000
0.11
0.11
4
year, the company
Auntie Anne’s (Roark Capital Group)
493,000
447,000
0.09
0.08
3
unveiled mobile orMcAlister’s Deli (Roark Capital Group)
505,000
459,000
0.09
0.08
3
dering via Twitter
Dunkin’ Donuts (Dunkin’ Brands Group)
7,720,000
7,256,000
1.34
1.34
3
and followed that by
Papa Murphy’s
842,000 780,0000.15
0.14 2
adding the capabilThe Capital Grille (Darden Restaurants)
405,000
372,000
0.07
0.07
2
ity to order with an
In-N-Out Burger
751,000 698,0000.13
0.13 2
emoji by text.
Steak ‘n Shake (Biglari Holdings)
952,000
891,000
0.17
0.16
1
Eating
It Up
Source: Kantar Retail
S12
STORES August 2015
nrf.com/stores
Sponsored by
2015 hot 100 Retailers
Rank Company Headquarters/
USA SalesWorldwide USA % 2014Growth u.S. HeadquartersRetail SalesGrowthRetail SalesWorldStores (’14 v ’13)
(000) (’14 v ’13)
(000)
Sales
76
Smart & FinalCommerce, Calif.
$2,706,000
7.6%
$2,706,000 100.0%
77
Aldi
11,728,000
7.6
53,522,000
78
NordstromSeattle
13,259,000
7.5 13,280,00099.8 283 8.8
79
Sephora (LVMH)San Francisco
1,561,000
7.5
3,142,000
49.7
304
4.5
80
Petco Animal SuppliesSan Diego
3,510,000
7.4
3,511,000
99.9
1,383
6.4
81
The Cato Corp.Charlotte, N.C.
969,000
7.4
969,000 100.0
1,346
2.0
82
Hibbett Sports
Birmingham, Ala.
913,000
7.2
913,000 100.0
988
6.6
83
Recreational Equipment Inc.
Kent, Wash.
1,607,000
7.1
1,607,000 100.0
138
4.5
84
Leslie’s Poolmart
Phoenix
861
5.4
85
Foot LockerNew York
5,239,000
7.0
7,267,000
72.1
2,369
-2.1
86
Houchens Industries
Bowling Green, Ky.
1,359,000
7.0
1,359,000 100.0
258
4.9
87
Burlington Coat Factory
Burlington, N.J.
4,707,000
6.9
4,761,000
530
4.1
88
General Nutrition Centers
Pittsburgh
2,292,000
6.9
2,829,00081.04,334 4.5
89
Bass Pro ShopsSpringfield, Mo.
2,774,000
6.9
2,818,000
90
Destination XL GroupCanton, Mass.
413,000
6.8
91
Costco
79,694,000
6.6
111,530,000
92
Williams-SonomaSan Francisco
4,591,000
6.6
4,682,000
93
BJ’s Wholesale Club
13,811,000
94
Apple Stores / iTunesCupertino, Calif.
95
Lucky Brand
96
Advance Auto PartsRoanoke, Va.
97
WakeFern / ShopRite
98
Sheetz
99
Batavia, Ill.
703,000
7.1
21.9
703,000100.0
98.9
201
1,376
6.9%
3.6
98.4
67
4.7
413,000 100.0
352
-1.7
71.5
464
3.8
98.1
594
2.2
6.5
13,811,000 100.0
210
4.5
28,380,000
6.5
32,879,000
86.3
259
2.0
690,000
6.4
690,000 100.0
221
3.8
4,379,000
6.4
99.4
4,098
1.9
Keasbey, N.J.
14,985,000
6.3
14,985,000 100.0
330
5.4
Altoona, Pa.
721,000
6.3
721,000 100.0
493
7.2
Shoe CarnivalEvansville, Ind.
940,000
6.3
940,000 100.0
400
6.4
100 Hobby Lobby StoresOklahoma City
2,563,000
6.2
2,563,000 100.0
638
6.2
Issaquah, Wash.
Westborough, Mass.
Los Angeles
4,406,000
N.A. Not available or not applicable.
Notes on Methodology:
USA = 50 states and District of Columbia; sales in Puerto Rico, the U.S. Virgin Islands, and Guam have been estimated and
removed if reported as part of the U.S. business segment for that company.
All retail sales estimates exclude wholesale and non-retail services (not sold at store); but include online retail sales.
Fuel sales are included, except where revenues of fuel exceed 50% of average store revenues; in this case sales are reported
exclusive of fuel sales.
All figures are estimates based on Kantar Retail research and company reports.
nrf.com/stores
STORES August 2015 S13
n
hot 100 retailers
ikea 72
“Hot 100
retailers
grow quickly
because they
understand
why people
are buying.
… They
understand
the dynamics
of their
audience.”
— Bryan Gildenberg,
Kantar Retail
S14
STORES August 2015
(continued from page S10)
No. 16 Michael Kors is on the
Hot 100 chart for a fourth year,
but the prospects for another appearance aren’t so bright. “The
problem is, it is popping up everywhere,” notes Neil Saunders,
managing director of retail consulting firm Conlumino. “The
brand’s become a bit too common and that erodes its value. It’s having to
discount to get consumers interested to buy.”
By the time its fiscal year ended March 28,
Michael Kors could see the handwriting on
the wall. “While we were faced with a number
of headwinds in the fourth quarter, we were
pleased with the strong performance across
our segments and geographies,” notes John D.
Idol, chairman and CEO. Coming off a year
in which U.S. same-store sales fell almost 7
percent in the three months ended in March,
Michael Kors forecast double-digit percentage
decreases in the first three months of the new
fiscal year.
“The seductive thing about the Kors type
of ‘hot’ trajectory is in the initial delight of
consumers,” writes Robin Report blogger
Robin Lewis. But after that, “in a nano-split
second, the largely young and trend-fickle consumer base wakes up and realizes the brand
5
is slapped on everything and is being worn by
everybody, everywhere.”
In contrast, newcomer No. 42 Francesca’s
looks like it could stay hot for a while. The
chain’s stores are designed and merchandised
to give the feel of an independently owned
and operated shop. Apparel accounts for only
about half the sales, with the rest going to
jewelry, accessories and gifts. The boutiques,
which average 1,350 square feet, carry what
the company calls “trend-right, high-quality
merchandise at attractive prices.” The assortment is broad but shallow, with little backup
inventory for any item.
Francesca’s opened 179 locations over the
last two years and management says there may
be opportunities to open another 400 to 450
over the next five or six years. Stores are evenly
divided between mall and non-mall sites such
(continued on page S18)
nrf.com/stores
Sponsored by
Food / Drug / Mass
Kroger’s
two-tier
management
model gives a
high degree of
centralization
on one level,
but plenty of
discretionary
judgment
afforded to
regional, district
and store-level
management.
Kroger 50
Some of the oldest retail companies are demonstrating their ability to grow market share at
a good clip. Kroger started in 1883 and today enjoys sales in excess of $100 billion as one of the
top five or so retailers in the world. Ever since completing the acquisition of Harris Teeter supermarkets early last year, Kroger has been on a roll — in June, the company raised its forecast for
2015 same-store sales.
Company
2014 Sales 2013 Sales
2014 Market 2013 MarketGain in
Walgreen dates to 1901
(000)
(000)ShareShare Basis Points
and now has stores in all 50
The Kroger Co.
$103,033,000$93,598,000
7.37% 6.95%420
states, Puerto Rico and the
79,694,00074,740,000 5.70 5.55 151
Costco
U.S. Virgin Islands. Thanks to
Walgreen
72,671,00068,688,000 5.20 5.10 98
Bi-Lo
10,362,0008,905,000 0.74 0.66 80
its merger with Alliance Boots,
Dollar General
18,910,00017,504,000 1.35 1.30 53
Walgreen has extended its
Whole Foods Market
13,642,00012,434,000 0.98 0.92 52
reach to Europe and beyond.
30,560,00028,917,000 2.18 2.15 39
Publix Super Markets
Now, however, the chain has
Ulta Salon Cosmetics & Fragrance3,066,000 2,525,000 0.22 0.19 32
ended its relentless growth;
Sprouts Farmers Market
2,967,0002,438,000 0.21 0.18 31
this year it will open only
8,390,0007,670,000 0.60 0.57 31
Dollar Tree
about as many stores as it
Aldi
11,728,00010,898,000 0.84 0.81 30
closes, as it focuses on shorTrader Joe’s
9,388,0008,684,000 0.67 0.64 27
ing up domestic operations
13,811,00012,965,000 0.99 0.96 25
BJ’s Wholesale Club
prior to pushing further onto
WakeFern / ShopRite
14,985,00014,100,000 1.07 1.05 25
the world stage in operating
99 Cents Only Stores
1,882,0001,487,000 0.13 0.11 24
WinCo Foods
5,872,0005,441,000 0.42 0.40 16
drug stores and distributing
The Fresh Market
1,753,0001,512,000 0.13 0.11 13
pharmaceuticals. Walgreen has
Casey’s General Stores
2,503,0002,242,000 0.18 0.17 13
been active online since 1999,
Wegmans Food Market
7,405,0006,999,000 0.53 0.52 10
and the merger with Alliance
Grupo Comercial Chedraui
1,285,0001,107,000 0.09 0.08 10
Boots brought together two of
Stripes Convenience Stores
1,239,0001,066,000 0.09 0.08 9
the world’s biggest players in
Demoulas Super Markets
3,320,0003,084,000 0.24 0.23 8
the e-commerce pharmacy and
Petco Animal Supplies
3,510,0003,268,000 0.25 0.24 8
drug store arena.
Tops Markets
2,456,0002,255,000 0.18 0.17 8
Alimentation Couche-Tard
5,167,0004,868,000 0.37 0.36
8
Source: Kantar Retail
nrf.com/stores
STORES August 2015 S15
n
hot 100 retailers
Sustained Sizzle
A number of factors go into being a Hot 100 Retailer year after year. Being aggressive store
openers and/or acquirers helps, as in the case of Dick’s Sporting Goods.
“Dick’s probably has two or three more years of growing the way it has for the last decade,
in part because it has been nimble enough not to let competition grow where it is weak,” says
Bryan Gildenberg, chief knowledge officer of Kantar Retailer. “Dick’s digs deeper to involve itself
in its customers lives.”
Families make multiple store visits as sports seasons change, he says, and the model works well.
“Customers want to see and touch and get a notion of what they’re buying, something they
Amazon leads
can’t do online. Dick’s has taken this nationally and has been able to co-opt or otherwise prevent
the half-dozen
competition from growing into this space.”
retailers that
A loyal customer base is also necessary for sustaining sizzle, and no retailer has a more loyal
have appeared
base than Amazon.com and its millions of Prime members. They make purchases 74 percent of
in every Hot 100
the time they visit Amazon, a Millward Brown study in June reported, versus 6 percent on other
websites.
Want more evidence? The average Prime
member purchases about $1,500 worth of goods
annually on Amazon, more than twice as much
as the average non-Prime shopper, according to
Consumer Intelligence Research Partners. Amazon
works hard for its most loyal customers, tossing in
all sorts of perks with Prime membership, including
free streaming video and music and free same-day
delivery to members in 14 major metropolitan
areas across the country.
Hot retailers are measured by year-over-year
sales gains, and Amazon has consistently signaled
that it is more interested in growing sales than
in making money. Amazon maintains Prime loses
money, primarily because of shipping costs. There
are also significant expenses in digital content delivery — Amazon says it spent $1.3 billion on video
content alone last year.
The company constantly tests diversity in its promotions, proprietary devices, general merchandise
offerings and delivery systems. It has had its share
of flops along the way, though many observers like
that Amazon keeps trying.
“Amazon has the knack of not being one thing
to all people,” says Ed Rosenbaum of Rainmaker
Solutions. “They have become the go-to source for
anything one wants or thinks they need. We have
dick’s Sporting Goods 53
to be impressed [that] they are not sitting on their
laurels waiting for the world to catch up.”
Company
2014 Sales 2005 Sales
ChangeAverage
Amazon’s success “is due in large measure to
(000)
(000)Annual Growth
a relentless focus on exploiting weaknesses in
Amazon.com
$49,353,000 $4,617,0001069%
30%
market offerings on a category-by-category basis
O’Reilly Automotive 7,216,000 2,045,000353
15
and then creating an offering that addresses that
Tractor Supply Co. 5,820,000 2,066,000282
12
weakness in a way that at least appears to advance
Dick’s Sporting Goods6,811,000 2,625,000 259
11
significant customer benefits,” says Ryan Mathews
Dollar Tree
8,390,000 3,394,000247
11
Ross Stores
11,032,000 5,198,000212
9
of Black Monk Consulting. “One could argue that
the disintermediation that Amazon has wrought
Source: Kantar Retail
in several categories … has revolutionized the way
many consumers shop.”
Still
Cookin’
S16
STORES August 2015
nrf.com/stores
Sponsored by
Softgoods
Nordstrom 78
Company
Hudson’s Bay
Signet Jewelers
2014 Sales (000)
2013 Sales 2014 Market 2013 MarketGain in
(000)ShareShare
Basis Points
$5,174,000$1,461,000 2.08%
0.60% 1,483
1.44
674
8.58
346
2,790,0001,935,000 1.12
0.79
331
L Brands
10,303,0009,349,000 4.14
3.82
321
Nordstrom
13,259,0002,330,000 5.33
5.04
292
Ross Stores
11,032,00010,221,000 4.44
4.18
258
TJX
Men’s Wearhouse
5,251,0003,518,000 2.11
22,206,00021,000,000 8.93
H&M
2,670,0002,097,000 1.07
0.86
216
Dick’s Sporting Goods
6,811,0006,207,000 2.74
2.54
202
Zulily
1,182,000 682,0000.48
0.28
196
Academy
3,616,0003,197,000 1.45
1.31
147
Michael Kors Holdings
1,656,0001,319,000 0.67
0.54
127
Ikea North America Services 4,611,0004,275,000 1.85
1.75
107
Foot Locker
5,239,0004,895,000 2.11
2.00
106
Burlington Coat Factory
4,707,0004,402,000 1.89
1.80
93
Williams-Sonoma
4,591,0004,306,000 1.85
1.76
86
499,000 298,0000.20
0.12
79
Ralph Lauren
2,665,0002,454,000 1.07
1.00
69
Forever 21
2,194,0002,012,000 0.88
0.82
60
Lululemon Athletica
1,250,0001,084,000 0.50
0.44
60
Genesco
2,211,0002,041,000 0.89
0.83
55
The Finish Line
1,821,0001,670,000 0.73
0.68
49
Rue 21
1,214,0001,078,000 0.49
0.44
48
918,000 809,0000.37
0.33
39
Recreational Equipment Inc. 1,607,0001,500,000 0.65
0.61
33
Charming Charlie
502,000 414,0000.20
0.17
33
Skechers USA
535,000 460,0000.22
0.19
27
JustFab
415,000 345,0000.17
0.14
26
The Cato Corp.
969,000 903,0000.39
0.37
21
Boot Barn Holdings
403,000 346,0000.16
0.14
21
G-III Apparel Group
National Stores
This is the year of the “haves,” and
established national retailers are dominating the softgoods market. Sitting
at No. 3 is the largest retailer on the
chart, T.J. Maxx and Marshall’s parent
TJX. This should come as no surprise
as T.J. Maxx is “the most consistent,
most powerful apparel retailer in the
United States,” according to industry
watcher Howard Davidowitz.
As an off-price current season
retailer, TJX makes opportunistic buys
and merchandises stores so consumers
have to wend their way through to
see what’s new and where the bargains are. This so-called treasure-hunt
approach, coupled with the weekly
influx of new goods rather than the
monthly rotation employed by many
competitors, creates a “scarcity”
mentality among consumers who are
afraid items they might want to buy
could be unavailable in a few days.
Among other soft goods market
share gainers, Nordstrom has been
demonstrating its proficiency in
e-commerce to lure in omnichannel
shoppers, while Dick’s Sporting Goods
has been exploiting its soft side by
increasing apparel sales.
Ross Stores, a no-frills operation
with no window displays, no mannequins and not much in-store visual
merchandising, is on a hot streak that
has continued into the first quarter of
2015, when the chain grew its store
count by 37 units to 1,399 stores.
Source: Kantar Retail
nrf.com/stores
STORES August 2015 S17
n
hot 100 retailers
Sponsored by
Dollar General 68
(continued from page S14)
as lifestyle centers, strip centers and outlet locations. The company expects to open some 80
boutiques this year, spending around $31 million to do so, and grow sales to around $418
million in the current fiscal year.
If anything
distinguishes
successful
c-store
operators,
it is food.
S18
STORES August 2015
Shifting dynamics
Omnichannel may be the retail buzzword of
the moment, but some uni-channel retailers
made the chart behind segment leaders in the
top 20, including subscription merchant JustFab (22), flash sale site Gilt Groupe (44) and
members-only retailer Rue La La (55). There
are a pair of other non-store retailers on Hot
100 list: direct-mail oriented Bluestem Brands
(12), parent of Fingerhut, Gettington.com and
Paycheck Direct, where consumers can make
purchases and have installments deducted from
their regular paychecks; and Evine Live (56), a
broadcast shopping retailer that started life a
quarter-century ago as ValueVision.
Traditional discount stores aren’t particularly
hot, though several small-format value retailers
are listed, starting with Five Below (14) and
15th-ranked 99 Cents Only Stores. Actually,
the only national chains not on the list are
Family Dollar Stores, which was acquired by
Dollar Tree last month, and Big Lots, which
has closed more stores than it’s opened over
the last two years.
The convenience store segment, where fuel is
not among the merchandise categories included
in Hot 100 total sales figures, has six companies on the list, although not the industry leaders by store count, 7-Eleven or Circle K.
The number of convenience stores among
the Hot 100 is surprising, since “The c-store
as a channel isn’t growing,” Gildenberg says.
Instead, the hot retailers are those “who are
winning market share. There is a lot of consolidating going on in this channel.”
The dynamics of c-store retailing are shifting
as a result of what is happening with tobacco
sales: The general population is cutting back
on smoking, and major retailers such as CVS
are exiting tobacco sales altogether even as
dollar stores are entering the category.
If anything distinguishes successful c-store
operators, it is food. “The big oil companies
haven’t done very much with their c-stores,”
Gildenberg says. “The best operators have
done a really nice job of expanding their food
sector, increasing their gross dollars per store.”
That certainly describes the highest-ranking
c-store on the chart, No. 28 Stripes. Food offerings at more than 400 locations are handled
by subsidiary Laredo Taco Co., which prepares
Mexican cuisine to order.
Another observation from Gildenberg about
the Hot 100 Retailers involves the number of
non-urban retailers on the list, starting with
No. 10 Northern Tool and Equipment and
farm stores Rural King Supply (34) and Tractor Supply Co. (38).
This orientation is also reflected in the number of outdoor recreational retailers — No.
45 Gander Mountain, No. 83 REI and No. 89
Bass Pro Shops — and the absence of indoor
recreation and entertainment retailers with the
sole exception of No. 100 Hobby Lobby.
Gildenberg’s short explanation was that indoor recreation has gone electronic, whether
it is game playing, e-reading or social media.
“Everything goes to the iPhone and Amazon.
That’s what people are doing,” he says. “It’s
digital recreation.”
As for retailers on the Hot 100 list catering
to non-urban and outdoor activities, “You’re
not going to buy a kayak online. You want the
experience of seeing it, touching it, maybe even
hefting it. And you certainly don’t want to
have it shipped — it’s too big and awkward.”
David P. Schulz has been writing for STORES since 1982
and is the author of several non-fiction books.
nrf.com/stores