New York — Wal-Mart extended its reach as the top U.S. furniture and bedding retailer with a 10.9% sales gain in 2003.
The Bentonville, Ark.-based behemoth pulled ahead of No. 2 Rooms To Go by a larger dollar amount than in 2002, when it displaced the No. 1 conventional furniture retailer at the top of the heap. In 2003, buoyed in part by 123 net new stores, Wal-Mart widened its lead by $64 million.
Rooms To Go saw sales increase 6.2% to $1.3 billion in 2003, with the same number of stores as in the prior year — 95.
Fast-growing newcomer
Zooming onto the Top 25 for the first time is Ashley Furniture HomeStores, ranked No. 17. The manufacturers' gallery store network recorded the highest sales increase in the Top 25, a 71.7% jump that reflected the addition of 19 new stores, bringing its total to 121 units.
Other changes in the rankings include the Berkshire Hathaway furniture division, which moved up to No. 5 from No. 9; La-Z-Boy Furniture Galleries, which dropped from No. 5 to No. 7; Office Depot, which dropped from No. 6 to No. 8; and Staples, which moved up to No. 10 from No. 11. Lowe's moved up to No. 20 from No. 23 and Big Lots rose to No. 22 from No. 24. Thomasville Home Furnishings Stores dropped three slots to No. 25.
Beyond its new stores, Wal-Mart's increase also was due in large measure to its increased emphasis on furniture and bedding, both in its stores and on the Internet.
Wal-Mart's sales results do not include its Sam's Club warehouse membership club division, which also ranks on the Top 25 in the No. 4 spot. Sam's rose three slots from 2002, when it was No. 7. Sam's 2003 furniture and bedding sales of $960 million were up 12.9% compared with 2002 sales of $850 million. Sam's added 13 units during 2003.
If the two company divisions' furniture and bedding sales were combined, the total for 2003 would be $2.3 billion.
At No. 3 in both years is Ethan Allen, which recorded a sales decline of 3.6% for 2003 to $970 million, with one less store than in 2002.
Collectively, the Top 25 saw furniture and bedding sales in 2003 increase 6.8% to $19 billion, compared with $17.8 billion in 2002. The Top 25 also edged up to 27% of the industry's total retail sales, compared with 26% in 2002.
Overall, 18 companies among the Top 25 had sales increases last year in furniture and bedding; six companies had sales declines and one company remained flat with 2002.
In addition to Ashley Furniture HomeStores, retailers with the highest sales increases for 2003 were Staples with a gain of 18.5%, Lowe's with an increase of 16.1%, Big Lots with a gain of 15.6% and the Berkshire Hathaway furniture division, with a 13.6% increase.
On the minus side, the biggest loser was Kmart, followed by smaller declines at Ethan Allen with a 3.6% drop, Office Max with a 3% decline, Rhodes with a drop of 1.9%, Federated Department Stores with a drop of 1.6% and Art Van with a 0.9% dip.
Channeling the sales gains
Analyzing the Top 25 by channels of distribution, home improvement warehouses recorded the highest sales gain at 16.1%, followed by closeout retailers at 15.6% and warehouse membership clubs at 13.1%.
Manufacturers' gallery stores as a group moved up 8.8%, followed by office superstores with a gain of 6.7% and full-line furniture stores with an increase of 5.8%. Department stores increased 4.2%, and discount department stores edged up 0.5%.
Overall in the Top 25, full-line furniture stores lost share, from 38% in 2002 to 37% in 2003. Closeout retailers were the only channel to gain market share from 2002 to 2003, edging up from 2% to 3%. Big Lots is the only closeout merchant in the Top 25.
The Top 5 on the list held their own with 29% of the Top 25's total furniture and bedding sales, and the Top 5 also edged up slightly to capture 8% of total industry retail sales.
As for the Top 10, their share of the Top 25's furniture and bedding sales edged up to 53% in 2003 from 52% in 2002. The Top 10's share of total industry sales also rose, to 14% last year from 13% in 2002.
| Top 25 U.S. furniture retailers | |||||||
|---|---|---|---|---|---|---|---|
| Rank | Estimated furniture and bedding sales in $ millions | Total number of units | |||||
| 2003 | 2002 | Company, home base, notes | 2003 | 2002 | Percent change 2002 to 2003 | 2003 | 2002 |
| 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 2003 and 2002, unless otherwise noted. Source: Furniture/Today market research |
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| 1 | 1 | Wal-Mart, Bentonville, Ark. | $1,375.0 | $1,240.0 | 10.9% | 2,949 | 2,826 |
| Fiscal year ended Jan. 31. Sales and store counts are for U.S. stores only, including discount, supercenter stores and neighborhood markets and exclude Sam's Club locations. Offers an expanded assortment and higher price points online at www.walmart.com. Sells Simmons bedding exclusively online. Bedding sales, including futons, totaled $65 million in 2003 and $60 million in 2002. In 2003, opened a net of 40 discount stores and 213 supercenters, including 130 discount store conversions. Plans to open 230 to 240 supercenters this year, with 150 as discount conversions. Hardgoods 2003 sales, including furniture, were $34.8 billion, up 10.9% from $31.4 billion in 2002. Total 2003 sales were $174.2 billion, up 10.9% from $157.1 billion in 2002. Ranks No. 1 among discount department stores in furniture and bedding sales (see page 27 for details). | |||||||
| 2 | 2 | Rooms To Go, Seffner, Fla. | $1,311.0 | $1,235.0 | 6.2% | 95 | 95 |
| Operates throughout Florida and in Georgia, the Carolinas, Tennessee and Texas and has a franchise operation in Puerto Rico. Currently operates 68 regular-format stores, 20 Rooms To Go Kids stores, nine clearance centers and one Rooms To Go Beds store. In March, a Rooms To Go affiliate sold its nearly 50% stake in Wickes Furniture to investment firm Sun Capital Partners of Boca Raton, Fla. This year, has opened two Rooms To Go Kids stores, in Greensboro, N.C., and Nashville, and its first Rooms To Go Beds store in Palm Beach, Fla. Expects to open additional bedding stores in Florida this year. Including decorative accessories, sales for 2003 totaled $1.38 billion. | |||||||
| 3 | 3 | Ethan Allen, Danbury, Conn. | $970.0 | $1,006.0 | -3.6% | 283 | 284s |
| Fiscal year ended June 30. Sales and store counts are for U.S. units only, for the trailing 12 months ended Dec. 31. Operations included 114 company-owned and 169 dealer-owned stores in the United States. In 2003, opened four stores, including its first two dedicated Ethan Allen Kids stores, in Farmington, Conn., and Reston, Va., and closed five. Introduced its new store design in June 2003 — twice the size of most of its current stores — at its Alpharetta, Ga., location. Total 2003 revenues were $1.19 billion, including decorative accessory sales of approximately $165 million. | |||||||
| 4 | 7 | Sam's Club, Bentonville, Ark. | $960.0 | $850.0 | 12.9% | 538 | 525 |
| Fiscal year ended Jan. 31. A division of publicly held Wal-Mart. Sales and store counts are for Sam's Club division only. Includes bedding sales of $240 million in 2003 and $210 million in 2002. Furniture and bedding brands include Serta, Berkline, Bassett, Sauder, Bestar, A. Joffe and StratoLounger. Began offering Serta's fire-resistant bedding in May. Opened 13 new units last year. Clubs average 127,000 square feet. Instituted a back-to-basics merchandising strategy last year and renewed its focus on small-business members. The policy helped differentiate itself from Costco and helped drive a 10.1% increase in operating profit. Hardlines, including furniture, accounted for 20% of 2003 total sales, up from 19% in 2002. Total sales were $34.54 billion in 2003, up 8.9% from $31.70 billion in 2002. | |||||||
| 5 | 9 | Berkshire Hathaway furniture division, Omaha, Neb. | $950.0 | $836.0 | 13.6% | 30 | 27 |
| Fiscal year ended Dec. 31. Owns Nebraska Furniture Mart of Omaha, Neb.; R.C. Willey of Salt Lake City; Star Furniture of Houston; and Jordan's Furniture of Avon, Mass. In 2003, opened a Nebraska Furniture Mart in Kansas City; a Star Furniture in Sugar Land, Texas; and an R.C. Willey in Summerlin, Nev. Star is planning one or two Thomasville stores in 2004; Jordan's is opening a store this fall in Reading, Mass.; and R.C. Willey is opening a store in Reno, Nev., in spring 2005. Total 2003 revenues were $1.59 billion, including decorative accessory sales of approximately $51 million. | |||||||
| 6 | 4 | Levitz Home Furnishings Inc., Woodbury, N.Y. | $944.0 | $928.0R | 1.7% | 127 | 128 |
| Fiscal year ended March 31. Majority owned by funds and accounts managed by Resurgence Asset Management. Included 74 Levitz stores, 42 Seaman's and 11 Seaman's Kids units at fiscal year-end. In April 2004, announced plans to open 11 stores over the next two years. LHFI is adjusting its merchandising and marketing strategies to better distinguish its two brands, with Seaman's as a promotional to midpriced room-package and lifestyle retailer and Levitz as a more fashion-oriented retailer that tops out a step above Seaman's. Total 2003 revenues were $1 billion, including decorative accessory sales of about $29 million. | |||||||
| 7 | 5 | La-Z-Boy Furniture Galleries, Monroe, Mich. | $928.4 | $901.8R | 2.9% | 302 | 295 |
| Fiscal year ended April 24. Sales and store count for calendar year. Network of independently owned, free-standing units with 294 Furniture Galleries (62 using the New Generation format) and eight Showcase Shoppes in the United States at year-end. Figures exclude stores in Canada. During 2003, 12 new stores were opened and another 10 converted to the New Generation format. The New Generation stores offer an expanded selection of home accents as well as additional accent furniture from Hammary. Plans to end 2004 with 320 stores in the United States. Total 2003 revenues were $1 billion, including lamps and decorative accessory sales of $17.8 million. | |||||||
| 8 | 6 | Office Depot, Delray Beach, Fla. | $892.0 | $868.0 | 2.8% | 867 | 837 |
| Fiscal year ended Dec. 27. Sales and store counts for U.S. units only. Also sells through the Office Depot and Viking Office catalogs and online at www.officedepot.com. In 2003, opened 36 stores in the United States and Canada and closed three. Plans to add 80 to 100 new stores this year. Unveiled its Millennium2 (M2) retail format in June, a prototype that features furniture and technology at the store's center to better facilitate consultative sales. Added a small office/home office furniture collection created by Christopher Lowell and manufactured by Sauder in late 2003. Comp-store sales in North America were down 4% last year. Total 2003 sales were $12.36 billion, up 8.8% from $11.36 billion in 2002. | |||||||
| 9 | 10 | Costco, Issaquah, Wash. | $850.0 | $750.0 | 13.3% | 318 | 304 |
| Fiscal year ended Aug. 31. Sales and store counts are for U.S. locations only, for the trailing 12 months ended Feb. 15. Includes bedding sales of $68 million in 2003 and $60 million in 2002. Hardlines, as a percentage of total fiscal-year sales, were 16% in 2003 and 2002. Brands include Sealy, Comfortaire, A. Joffe, DeCoro, Distinctive Designs, Estates by Thomasville, Lane, Pulaski and Shermag. Opened its first home furnishings store in Kirkland, Wash., in December 2002 and plans to open its second in Tempe, Ariz., in October. Has listed Los Angeles, San Diego and San Francisco as possible home store sites in the future. Has opened two new units through May and plans to open seven to nine more before the end of fiscal 2004. Comp-store sales for fiscal 2003 were up 5%. Total 2003 trailing 12-month sales were $44.40 billion, up 12.6% from $39.42 billion in 2002. | |||||||
| 10 | 11 | Staples, Framingham, Mass. | $832.0 | $702.0 | 18.5% | 1,134 | 1,088 |
| Fiscal year ended Jan. 31. Sales and store counts for U.S. stores only, which are in 46 states and the District of Columbia. Also sells through its Web site and direct-mail catalog business Quill Corp. At fiscal year-end, 343 stores in North America employed the Dover format, a prototype featuring a more open interior and 20,000 square feet. Opened 67 new units in the United States and Canada last year and closed nine. Plans to open 95 new units this year. Office furniture accounted for 7.2% of total 2003 sales, up from 6.9% in 2002. Furniture sales benefited from improvements in merchandise layouts and delivery services. Comp-store sales in North America increased 4% in 2003 and 1% in 2002. Total sales were $13.18 billion, up 13.7% from $11.60 billion in 2002. | |||||||
| 11 | 8 | Federated Department Stores, Cincinnati | $829.6 | $843.0 | -1.6% | 459 | 456 |
| Fiscal year ended Jan. 31. At fiscal year-end, operated 393 department stores and 66 furniture galleries in 34 states, Puerto Rico and Guam. As part of a national strategy to more fully leverage its Macy's brand, The Bon Marche, Lazarus, Goldsmith's and Rich's stores all were renamed effective Aug. 1, 2003, and Burdines stores were renamed effective Feb. 1, 2004. Currently is staffing and merchandising its new Macy's Home Store organization, which eliminates buying and merchandising functions in the divisions and brings them under a New York-based group. Bloomingdale's continues to buy and merchandise furniture and its entire home store independently of this organization. Plans to unveil three "reinvented" home stores in existing stores in October. Federated expects to open more free-standing furniture galleries after the new home store organization is in place. Mattresses and recliners are viewed as strong candidates for inclusion in full-line stores without furniture. Total 2003 sales were $15.26 billion, down 1.1% from $15.44 billion in 2002. Federated's six department store divisions are ranked among the Top 15 department stores (see page 24 for details). | |||||||
| 12 | 14 | Ikea, Plymouth Meeting, Pa. | $730.0 | $670.0 | 9.0% | 18 | 15 |
| Fiscal year ended Aug. 31. The full-line home furnishings retailer expanded the size of its stores beginning with those opened in 2003 to better accommodate its revised marketing approach, with displays that show products together as they would be used in the home rather than in rigid product presentations. More vignettes and room settings incorporate furniture with specially designed rugs, fabrics, lighting and tabletop. The bigger stores also are designed to offer more space for customers to experience the displays and to relax. Larger play areas for kids and a bigger restaurant also are featured. Kids are particularly important in the retailer's 2004 marketing theme, "Living with Children." At fiscal year-end, operated 18 stores in the United States and 11 in Canada. Has opened stores in Bloomington, Minn., and New Haven, Conn., this summer. In August, opened its second store in the Philadelphia area and a relocated store in Houston. Other planned store openings include a store in Tempe, Ariz., to open this fall; stores in Atlanta, Stoughton, Mass., and Frisco, Texas, to open in summer 2005; and a second Chicago store scheduled to open in fall 2005. Total 2003 revenues were $1.47 billion, including decorative accessory sales of approximately $220 million. | |||||||
| 13 | 13 | American Signature, Columbus, Ohio | $723.0 | $674.0 | 7.3% | 94 | 80 |
| Fiscal year ended Aug. 2. Owned by Schottenstein Stores Corp. Operates promotional to midpriced Value City Furniture stores and midpriced to high-end American Signature Home stores. In August 2003, Value City changed its corporate name to American Signature Inc., parent of Value City Furniture and American Signature Home stores. Currently operates 84 Value City Furniture stores and 16 American Signature Home stores. Including decorative accessories, sales for 2003 totaled $750 million. | |||||||
| 14 | 12 | Havertys, Atlanta | $723.0 | $683.0 | 5.9% | 113 | 111 |
| Fiscal year ended Dec. 31. Operated 113 stores in 75 cities in 15 Southern and Central states at year-end. In 2003, opened four stores, including one in Bowie, Md., — a new state, but part of its Washington metro market — and closed one. Opening its first store in Ohio later this year in Cincinnati. In June, opened a unit in Columbia, Md., and in September will open a second store in San Antonio. A fourth store opening is planned for Baton Rouge, La., late this year. Sales increases have come in large measure because of its expanded Havertys Collections merchandise and new private-label bedding line. Private-label brands accounted for approximately 36% of total 2004 second-quarter sales, more than double that of 2003's second quarter. Total 2003 revenues were $751 million, including decorative accessory sales of about $22 million. | |||||||
| 15 | 15 | Pier 1 Imports, Fort Worth, Texas | $692.0 | $641.5 | 7.9% | 1,062 | 972 |
| Fiscal year ended Feb. 28. Ended the year with 1,022 Pier 1 stores and 40 Cargokids stores in the United States, including seven in Puerto Rico. Figures exclude 117 international stores. Last year, added a net 75 Pier 1 stores and 15 Cargokids. Implementing several strategies, including editing its merchandise mix, reducing the number of SKUs and reducing price points on most items except furniture. In its Cargokids division, is testing a name change, converting four units in metro Washington to Pier 1 Kids. The retailer already has one Pier 1 Kids in Birmingham, Ala. About 110 net new Pier 1 stores are planned for this year, with 40 closing due to relocations. Cargokids plans to end the year with 52 stores. Total 2003 revenues, $1.7 billion; decorative accessory sales, about $609 million. In August, Berkshire Hathaway said it had purchased an 8.8% stake in Pier 1. | |||||||
| 16 | 16 | JCPenney, Plano, Texas | $665.0 | $588.0 | 13.1% | 1,020 | 1,049 |
| Fiscal year ended Jan. 31. Furniture and bedding sold through 165 stores, catalogs and online. Includes bedding sales of $110 million in 2003 and $100 million in 2002. Opened six stores and closed 29 last year. Plans to open 14 new stores this year, half as free-standing stores and half in traditional malls. Opened its first standalone store in decades near Dallas in November. Sold its Eckerd drug store chain to CVS Corp. and The Jean Coutu Group in July. Sales in stores were led by home, especially in window treatments, bedding, housewares and furniture. Comp-store sales for 2003 were up 3.3%, its first positive comps since 2000. Internet sales increased more than 50% in 2003 to $600 million. Total 2003 retail sales were $17.8 billion, up 0.9% from $17.6 billion in 2002. Ranks No. 1 among the top department stores for furniture and bedding (see page 24 for details). | |||||||
| 17 | NR | Ashley Furniture HomeStores, Arcadia, Wis. | $594.0 | $346.0 | 71.7% | 121 | 102 |
| Manufacturer's dedicated store network of 116 licensed and five company-owned promotional to midpriced stores in the United States. Figures exclude stores in Canada and Japan. In 2003, opened 19 stores, including its first stores in California, North Dakota, Nebraska, New Mexico, Ohio, Tennessee, Virginia, Vermont and Wyoming. Including decorative accessories, sales for 2003 totaled $600 million, up 71.4% from $350 million in 2002. | |||||||
| 18 | 18 | May Department Stores, St. Louis | $570.0 | $550.0 | 3.6% | 366 | 358 |
| Fiscal year ended Jan. 31. Includes bedding sales of $143 million in 2003 and $130 million in 2002. In 2003, opened 10 department stores, including four lifestyle-designed stores, May's newer, off-the-mall store format featuring contemporary design and flexible merchandise presentations. In early 2004, May introduced Hotel Suite, its proprietary brand of classic, high-quality merchandise for the home, including sleek furniture, luxury linens, plush towels, stylish tableware and elegant barware. Acquired the Marshall Field's department store group and nine Mervyn's stores in Minneapolis/St. Paul from Target, effective the end of July. Marshall Field's will retain its nameplate and operate as a separate division. Some of the Mervyn's stores may be converted to Field's stores or sold or developed as other properties. Eight new department stores are planned for 2004. | |||||||
| 19 | 19 | Art Van, Warren, Mich. | $544.0 | $549.0 | -0.9% | 30 | 29 |
| Family-owned, midpriced to high-end Michigan chain. In 2003, opened a showroom in Chesterfield Township in metro Detroit and completed the remodeling of its Southfield store. At the end of 2005, will open a store in Rochester, a suburb of Detroit. Including decorative accessories, sales for 2003 totaled $555 million. | |||||||
| 20 | 23 | Lowe's, Mooresville, N.C. | $540.0 | $465.0 | 16.1% | 952 | 854 |
| Fiscal year ended Jan. 30. The home improvement chain opened 125 new stores last year, including the new market of Chicago, relocated five and closed six. Also expanded its store count in Florida and California last year. Plans to open 140 new units in 2004, including the relocation of four stores, and open 150 units in 2005. Opened its first "truly urban" store in the New York City borough of Brooklyn in April. Future expansions will be focused on metropolitan markets with populations of 500,000 or more. Will open a new distribution center in Poinciana, Fla., in August and one in Plainfield, Conn., in February 2005. Its average sales ticket last year was $59.21, up from $56.80 in 2002. Comp-store sales were up 6.7% in 2003. Total 2003 sales were $30.8 billion, up 18.1% from $26.1 billion in 2002. | |||||||
| 21 | 20 | Rhodes, Atlanta | $518.0 | $528.0R | -1.9% | 92 | 92 |
| Fiscal year ended Feb. 29. Midpriced retailer operating in 13 Southern and Midwestern states. Also operates John M. Smyth Homemakers in the Chicago area and Marks Fitzgerald in the Birmingham, Ala., area. Rhodes relocated three stores in 2003, and plans to relocate three in 2004, two in Atlanta and one in Nashville, Tenn. Including decorative accessories, sales for 2003 totaled $534 million. | |||||||
| 22 | 24 | Big Lots, Columbus, Ohio | $505.1 | $437.0R | 15.6% | 1,430 | 1,380 |
| Fiscal year ended Jan. 31. Sales and store counts are for Big Lots closeout stores and free-standing Big Lots Furniture stores. Includes bedding sales of $58 million in 2003 and $40 million in 2002. Opened 88 new stores last year and closed 38. Sales in 2003 started slowly and ended strongly. This year, major gains are projected for bedding and upholstery. Furniture departments are expected to be in 90% of the retailer's stores by year-end, up from 70% in 2003, with much of the increase coming from a rollout on the West Coast, the result of a strong test program in metro Los Angeles. Recorded its second consecutive profitable year in fiscal 2003. Total 2003 sales were $4.2 billion, up 7.9% from $3.9 billion in 2002. | |||||||
| 23 | 21 | OfficeMax, Shaker Heights, Ohio | $480.0 | $495.0 | -3.0% | 940 | 938 |
| Fiscal year ended Dec. 31. A subsidiary of publicly held Boise Cascade Corp. Sales and store counts are for U.S. locations only, including stores in Puerto Rico and the Virgin Islands. Acquried by Boise Cascade in December. Closed 45 stores during the first quarter. Remodeled 250 stores in 2003. Plans to remodel only 12 stores this year and 200 to 250 in 2005. New stores this year include three in southwest Florida in May, one in Bayamon, Puerto Rico, in June and one in Irving, Texas in July. Installed new register systems nationwide to provide faster checkout times in May. Total 2003 sales were $4.62 billion, down 3.3% from $4.78 billion in 2002. | |||||||
| 24 | 17 | Kmart, Troy, Mich. | $460.0 | $585.0 | -21.4% | 1,511 | 1,829 |
| Fiscal year ended Jan. 28. Closed 316 stores in 2003 and 283 in 2002 as part of its Chapter 11 bankruptcy reorganization. Emerged from bankruptcy protection on May 6, 2003. Plans to sell up to 54 stores to Sears by the beginning of next year and 24 stores to Home Depot. This May, extended its licensing agreement with Martha Stewart Living Omnimedia through 2009 and plans to expand the brand into ready-to-assemble furniture. Reported a profit in the fourth quarter of 2003 and the first quarter of 2004, its first profits since filing for bankruptcy in January 2002. Total 2003 sales were $23.25 billion, down 20.8% from $29.35 billion in 2002. Ranks No. 2 among discount department stores in furniture and bedding sales (see page 27 for details). | |||||||
| 25 | 22 | Thomasville Home Furnishings Stores, Thomasville, N.C | $455.0 | $455.0 | 0.0% | 131 | 131 |
| Furnishings Stores, Thomasville, N.C Fiscal year ended Dec. 31. Owned by Furniture Brands International. Network of independently owned, midpriced to high-end, free-standing gallery stores in or near major metropolitan areas. Figures exclude 13 international stores. About 20 to 25 new Thomasville stores are planned for 2004, including at least two more company-owned stores in the San Francisco Bay area. Including decorative accessories, sales for 2003 totaled $467 million. | |||||||
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