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Major consolidations impact department store rankings

By Furniture Today Staff -- Furniture Today, August 24, 2003

New York — Department store rankings for furniture and bedding sales in 2002 were skewed by the corporate consolidations of several major players, including Robinsons-May and Meier & Frank, and Filene's and Kaufmann's.

Despite these moves, department stores in the Top 15 increased furniture and bedding sales by a slim 0.2% to $2.3 billion in '02, with JCPenney again heading the list. The group, however, saw its Top 15 market share in 2002 edge down from 3.6% to 3.5%.

Penney's furniture and bedding sales were impacted by the closing of unprofitable full-line stores and furniture departments within remaining stores as well as a substantial drop in its giant catalog business.

The rankings changed as a result of the May-Meier consolidation, with the new Robinsons-May/Meier & Frank combination now in fifth place. The slot was previously held by Target Corp.'s Marshall Field's division, which now is in sixth place.

Individually, Robinsons-May was in seventh place in 2001, while Meier & Frank ranked No. 19.

Similarly, Filene's alone in 2001 ranked No. 16, and Kaufmann's was No. 14. Together they are in the No. 7 position for 2002.

The largest department store gains were at Macy's East, the New York-based division of Federated that posted an 18.1% increase. This division has expanded its rug/bedding/recliner presence in those full-line stores that don't have full furniture departments to a total of 29. As a result, the chain benefited from the synergies provided in presentation, delivery and sales help for these three product segments.

On the down side, The Bon, the Seattle-based Federated division, dropped 6.6% to a total of $89 million in furniture and bedding for 2002.

Among all the Top 15 department stores for 2002, nine had sales gains, five registered declines and one was flat compared to 2001.

The May Co. consolidations combined North Hollywood, Calif.- based Robinsons-May with Portland, Ore.-based Meier & Frank, and Filene's, Boston, with Kaufmann's, Pittsburgh.

Saks Department Stores, whose Milwaukee-based Carson Pirie Scott division previously included Bergner's, Peoria, Ill., last year added Younkers of Des Moines, Iowa, which runs five furniture departments.

Top 15 U.S. department stores
Rank			Estimated furniture and bedding sales in $ millions				Total number of units
2002	2001	Company, home base, notes	2002	2001	Percent change 2001 to 2002	Furniture and bedding sales as a percent of total company sales 2002	2002	2001
NR = Not ranked R = Revised All sales information, except for that supplied by publicly held companies which break out furniture and bedding sales, are Furniture/Today market research estimates. All data are for calendar 2002 and 2001, unless otherwise noted. Source: Furniture/Today market research
1	1	JCPenney, Plano, Texas	$588.0	$630.0	-6.7%	3.3%	1,049	1,075
Independent. Fiscal year ended Jan. 25. Operated 167 stores with furniture and bedding and nine with bedding only at year end. Opened three units last year and closed 34. Added wood furniture back into assortment after a hiatus to resolve logistical challenges. Sales per gross square foot were $140 in 2002, up from $133 in 2001. Comp-store sales increased 2.6% over 2001. Department store sales of $15.1 billion increased 1.9%, and catalog sales decreased by 22% to $2.6 billion. Internet sales (included in the catalog figures) were up 17.8% to $381 million. Total 2002 sales were $17.7 billion, down 2.5% from $18.2 billion in 2001.
2	2	Macy's East, New York	$221.0	$187.1	18.1%	4.4%	105	116
Federated. Fiscal year ended Feb. 1. Operated at fiscal year end 10 furniture galleries, including the flagship Herald Square store that is considered a gallery because of its size; four free-standing bedding stores; 16 mall stores with furniture, including one clearance center; and 29 mall stores with bedding, recliners and rugs. As part of rebranding efforts to more fully leverage its Macy's brand, all Rich's and Macy's stores in metro Atlanta have been integrated as Rich's-Macy's stores and now operate as part of the Rich's division. Four Macy's stores in metro Atlanta will be closed and two others will be redesigned and reopened as Bloomingdale's later this year. Also closed stores in Birmingham, Ala., and Augusta, Ga. this spring. Plans to open a new store in Wheaton, Md., a suburb of Washington, in 2005. Federated's largest division had 2002 total sales of $5.02 billion, an increase of 0.1% from $5.01 billion in 2001.
3	3	Macy's West, San Francisco	$193.0	$182.5	5.8%	4.6%	141	138
Federated. Fiscal year ended Feb. 1. At fiscal year-end, operated seven free-standing stores with furniture, bedding and rugs; 5 free-standing home stores; and 14 in-store furniture departments and 16 mattress departments in full-line stores without furniture, including three in Hawaii. Acquired two former J.C. Penney sites that will open as Macy's stores in Maui and Hilo, Hawaii this fall. Plans to open a new 110,000-square-foot store in Antioch, Calif., east of San Francisco, in 2004. Also plans to open a new unit in Simi Valley, Calif. in 2005. As part of Federated's 2002 "reinvent the department store" campaign, Macy's West opened four new "reinvented" units and remodeled 11 stores for holiday 2002. The San Francisco-based division's 2002 sales were $4.16 billion, down 0.2% from $4.17 billion in 2001.
4	4	Rich's Lazarus Goldsmith's, Atlanta	$165.0	$164.8	0.1%	8.1%	75	76
Federated. Fiscal year ended Feb. 1. Operated seven free-standing furniture galleries, 33 in-store furniture departments, 21 mattress departments in full-line stores without furniture. Announced in January its strategic integration of Rich's and Macy's stores in metro Atlanta, rebranding 28 stores as Rich's-Macy's stores in February, including the Northlake-Atlanta Macy's store, as well as all Rich's stores in Atlanta, Birmingham, Ala.; Athens, Augusta, Columbus, Macon and Savannah, Ga.; and Columbia and Greenville, S.C. All Rich's-Macy's stores now operate as part of the Rich's division. Effective Aug. 1, the 42 Lazarus locations operate as Lazarus-Macy's and the five Goldsmith's stores in Tennessee operate as Goldsmith's-Macy's. Closing a Lazarus store in Bloomington, Ind. and a Goldsmith's store in Memphis, Tenn., this year. Total 2002 sales for the Atlanta-based division were $2.04 billion, down 2% from $2.08 billion in 2001.
5	NR	Robinsons-May/Meier & Frank, North Hollywood, Calif	$156.0	$146.0	6.8%	6.3%	72	71
May. Fiscal year ended Feb. 1. Portland, Ore.-based Meier & Frank combined with the Los Angeles-based Robinsons-May division last August. The two stores operate in 15 markets, including Los Angeles/Orange County; Riverside/San Bernardino, Calif.; Phoenix; San Diego; Las Vegas; Portland/Vancouver Metro; and Salt Lake City. Robinsons-May opened one of May's three new lifestyle-designed stores last year in Irvine, Calif. At 140,000 square feet, these new compact stores can be opened in smaller retail developments. Store features a contemporary design, with flexible merchandise presentations. Plans for 2003, include opening a Meier & Frank lifestyle-designed store in Ogden, Utah.
6	5	Marshall Field's, Minneapolis	$145.0	$155.0	-6.5%	5.4%	64	64
Target Corp. Fiscal year ended Feb. 1. Operates units in Michigan, Illinois, Minnesota, Wisconsin, Ohio, North Dakota, Indiana and South Dakota. Sold two Columbus, Ohio units to May Department Stores during the first quarter. Plans to open "some" new stores this year. This Target division last opened stores in 1999. Began a major overhaul of its flagship store in downtown Chicago in February, including the addition of Designers Guild — a home fashions boutique. Comp-store sales for 2002 were down 3.7%. Revenues per square foot in 2002 were $180, down from $186 in 2001. Total 2002 sales were $2.7 billion, down 3.1% from $2.8 billion in 2001.
7	NR	Filene's/Kaufmann's, Boston	$123.0	$121.0	1.7%	4.0%	97	96
May. Fiscal year ended Feb. 1. Effective August 2002, Pittsburgh-based Kaufmann's was combined with Boston-based Filene's. The division operates in 39 markets, including Boston metro; Pittsburgh; Cleveland and Columbus, Ohio; southern Connecticut; Hartford, Conn.; Providence, R.I. metro; Buffalo and Rochester, N.Y. Filene's opened one of the three lifestyle-design stores in Leominster, Mass. last year and a Kaufmann's in Cleveland. In 2003, has opened two former Marshall Field's department stores as Kaufmann's in Columbus, Ohio and a Filene's in Brockton, Mass. Also, plans to open a Kaufmann's lifestyle-designed store in Pittsburgh.
8	8	Hecht's, Arlington, Va.	$118.0	$112.0	5.4%	5.0%	80	80
May. Fiscal year ended Feb. 1. This division operates under the names Hecht's and Strawbridge's in 19 markets, including Washington, D.C. metro; Philadelphia metro (Strawbridge's); Baltimore, Md.; Norfolk and Richmond, Va.; Nashville, Tenn.; and Charlotte, Greensboro and Raleigh, N.C. Opened a Hecht's in Raleigh, N.C. and one of May's lifestyle-designed stores in Greensboro, N.C last year. Also, closed two stores in 2002.
9	6	Dillard's, Little Rock, Ark.	$112.0	$120.0	-6.7%	1.4%	333	338
Independent. Fiscal year ended Feb. 1. Furniture and bedding carried in 63 units during 2002, down from 64 in 2001. Opened four new stores and closed nine during 2002. Plans to close seven under-performing stores this year: two in Louisville, Ky. and one each in Mobile, Ala.; North Randall, Ohio; Memphis, Tenn.; and Columbia and Greenville, S.C. Sales in the home category were down by 4% last year. Home accounted for 8.9% of 2002 total sales, the same as in 2001 and down from 9.2% in 2000. Total 2002 company sales were $7.9 billion, down 3% from $8.2 billion in 2001.
10	10	Foley's, Houston	$97.0	$95.0	2.1%	4.9%	66	65
May. Fiscal year ended Feb. 1. Foley's operates stores in 21 markets, including Houston; Dallas/Fort Worth; Denver; San Antonio and Austin, Texas; and Oklahoma City. Opened two Foley's last year — in Beaumont and El Paso, Texas. Also closed one store. Foley's opened a new store in Houston in March of this year. Two additional stores are scheduled to open this month - one in Dallas and one in Lake Charles, La. May's home store offerings reflect three lifestyles — modern, elegant and casual.
11	11	Carson Pirie Scott, Milwaukee	$96.0	$95.0^R	1.1%	NA	145	147
Saks. Fiscal year ended Feb. 1. Operates stores under the following nameplates — Carson Pirie Scott, Bergner's, Boston Store, Younkers and Herberger's. Furniture is offered in 12 department stores as well as in five free-standing furniture gall7eries — four Carson's in Illinois and one Boston store in Milwaukee. The 41-unit Herberger's does not carry furniture. Younkers, which operates five furniture departments, consolidated its operations into Carson's at the end of the fiscal year. Plans for 2003 include a Bergner's replacement store in Peoria, Ill., a Younkers unit in Lansing, Mich. — opening in September — and one in the metropolitan Green Bay, Wis. area — opening this month. Also closed one of the Milwaukee-Boston stores this past March.
12	12	Bloomingdale's, New York	$93.0	$86.9	7.0%	5.3%	31	26
Federated. Fiscal year ended Feb. 1. At year-end, operated 15 full-line stores with furniture departments and one free-standing home store in Las Vegas. Will open six new stores this year, including two full-line stores in Atlanta, a full-line store in the New York's SoHo district, a home store in downtown Chicago (opened in February), a home store in Oakbrook, Ill. and a 65,000-square foot freestanding furniture store in Garden City, N.Y. Two former Macy's stores in Atlanta are being redesigned and reopened as Bloomie's stores this year. Bloomingdale's by Mail division was folded back into Bloomingdale's division this year. The New York-division had 2002 total sales of $1.75 billion, up 4.1% from $1.68 billion in 2001.
13	9	The Bon Marche, Seattle	$89.0	$95.3	-6.6%	9.2%	48	47
Federated. Fiscal year ended Feb. 1. Operated six free-standing furniture galleries, seven furniture departments in full-line stores, eight mattress departments in full-line stores with no furniture and two home stores at year end. As part of Federated's rebranding effort, all units operate as The Bon-Macy's beginning Aug. 1. Will open a new store in Redmond, Wash., and a new 50,000-square-foot furniture gallery in Tacoma, Wash., this year. Also plans to remodel its Tacoma Mall furniture department to expand its mattresses, tabletop and home textile collections. Its Tukwila and Kenenwick, Wash., stores were upgraded to the company's "reinvent the department store" strategy in time for holiday 2002. Total 2002 sales for the Seattle-based division were $963 million, down 0.4% from $967 million in 2001.
14	13	Burdines, Miami	$82.0	$82.8	-1.0%	6.0%	56	55
Federated. Fiscal year ended Feb. 1. Operated seven free-standing furniture galleries, two in-store furniture galleries, two in-store furniture and bedding departments, two home stores and 38 in-store bedding departments in full line stores without furniture at year-end. Operates exclusively within Florida. Effective Feb. 1, all units operate as Burdines-Macy's and Burdines has assumed responsibility for the seven Macy's stores operating in Florida. Four stores in Orlando, Tampa, Hialeah and Miami were chosen to be part of Federated's "reinvent the department store" renovations last fall. Total 2002 sales for the Miami-based division were $1.36 billion, down 2.2% from $1.39 billion in 2001.
15	15	Famous-Barr, St. Louis	$56.0	$56.0	0.0%	4.9%	43	43
May. Fiscal year ended Feb. 1. Operates stores under the names Famous-Barr, L.S. Ayres and The Jones Store in 24 markets, including metro St. Louis; metro Kansas City (The Jones Store); and Indianapolis (L.S. Ayres). Opened a Jones Store in Kansas City last year. Plans to open a Famous-Barr lifestyle-designed store in Columbia, Mo., this year.

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