Wal-Mart remains No. 1 retailer; RTG is 2nd
Three join Top 25, others shift rankings
By Carole Sloan -- Furniture Today, September 5, 2005
New York — Three new players and major shifts in rankings were the newsmakers in Furniture/Today's 2004 list of Top 25 furniture and bedding retailers, with Wal-Mart continuing to hold a big lead in first place.
The Bentonville, Ark.-based Wal-Mart continued to widen its lead over second place Rooms To Go, opening the gap $551 million for 2004 on furniture and bedding sales of $1.9 billion, compared with last year's difference of $501 million.
New to the Top 25 are Liverpool, N.Y.-based Raymour & Flanigan, which debuted at No. 21; Select Comfort, Minneapolis, just behind at No. 22; and W.S. Badcock, Mulberry, Fla., at No. 25.
Within the group, seven retailers moved up in the ranks, with Ashley Furniture HomeStores recording the biggest jump — up to No. 10 from No. 17 in 2003, when it first made Furniture/Today's Top 25 ranking. And once again, the Arcadia, Wis.-based Ashley showed the largest percentage increase, with 2004's percentage up 50.7%, bringing its sales to $895 million, helped in part by an increase of 32 stores.
Among the Top 25, 10 companies slipped in the rankings, with the largest, Woodbury, N.Y.-based Levitz Home Furnishings, dropping five slots to No. 11 from No. 6 in 2003. Levitz' furniture and bedding sales dropped 5.3% to $894 million.
Besides Wal-Mart, four other retailers maintained their rankings: Rooms To Go, Seffner, Fla., at No. 2; Costco, Issaquah, Wash., at No. 9; Plano, Texas-based JCPenney at No. 16; and May Department Stores, St. Louis, at No. 18.
Within the Top 25, six other retailers besides Ashley recorded double-digit sales increases: Select Comfort, up 20.8% on sales of $517.4 million; Raymour & Flanigan, with a sales gain of 14.8% on sales of $531.6 million; Ikea, Plymouth Meeting, Pa., and Staples, Framingham, Mass., up 13% each (Staples to $940 million and Ikea to $825 million); JCPenney, Plano, Texas, up 10.4% to $734 million; and Office Depot, Delray Beach, Fla., up 10.3% to $984 million.
Besides Levitz, three of the Top 25 had sales losses in 2004. They were May Department Stores, with a decline of 3% to $684 million; Art Van, Warren, Mich., with a 1.8% drop to $534 million; and Pier 1 Imports, Fort Worth, Texas, with a 0.3% drop to $690 million.
Although all categories of furniture stores continue to dominate the ranks of the Top 25, the make-up by channel shifted a bit from 2003 to 2004. Manufacturers' gallery stores gained the most in share — up by 1.3 percentage points over 2003, with an 18.9% share of the Top 25. Office supply stores were the only other channel in the ranking to record a gain in market share, up 0.4 percentage points, bringing their total to a 9.2% share of the Top 25.
Full-line furniture stores dropped to a 37.6% share of the Top 25, down slightly from 38.4% in 2003.
Overall, all furniture stores accounted for 56.6% of the Top 25, up slightly from the 56.1% the group recorded in 2003. Sales for the group were up 7.6% to $11.8 billion.
The Top 25 had a sales increase of 6.6%, bringing the 2004 total to $20.8 billion.
While all distribution channels in the Top 25 recorded sales increases, the biggest sales increases by channel were in manufacturers' gallery stores, where sales in the Top 25 increased to $3.9 billion, up 14.3%; and office supply stores, where the increases were 11.6%, or a total of $1.9 billion. Closeout retailers posted an 8.3% gain, bringing their sales in the Top 25 to $541 million. The smallest increases were in home improvement centers with a 1% gain to $495 million, and department stores, with a 2.6% gain.
Share of market for the Top 25 varied only slightly this year, with the Top 5 slipping to a 30.4% share, versus a 30.9% share in 2003. The Top 10 scored a modest increase in share, moving up to 53% from 52.1% in 2003, while the Top 15 also had an increase, up to a 72.8% share, from 72.5%. For the Top 20, there was a slight dip in share to 88.1%, down from 88.4% in 2003.
| Top 25 U.S. furniture retailers | |||||||
|---|---|---|---|---|---|---|---|
| Rank | Estimated furniture and bedding sales in $ millions | Total number of units | |||||
| 2004 | 2003 | Company, home base, notes | 2004 | 2003 | Percent change 2003 to 2004 | 2004 | 2003 |
| 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 estimates. All data for calendar 2004 and 2003, unless otherwise noted. Source: Furniture/Today market research |
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| 1 | 1 | Wal-Mart, Bentonville, Ark. | $1,900.0 | $1,812.0R | 4.9% | 3,066 | 2,949 |
| Fiscal year ended Jan. 31. Sales and store counts are for U.S. stores only, including discount and supercenter stores and exclude Sam's Club locations. Includes sales at walmart.com. Bedding sales, including futons, totaled $68 million in 2004 and $65 million in 2003. Last year, opened a net of 34 discount stores and 242 supercenters, including 159 discount conversions to supercenters, to end the year with 1,353 discount stores and 1,713 supercenters. Plans to add 240 to 250 supercenters this year and 40 to 45 discount stores. Total 2004 Wal-Mart Stores sales were $191.8 billion, up 10.1% from $174.2 billion in 2003. Ranks No. 1 among discount department stores in furniture and bedding (see page 22 for details). | |||||||
| 2 | 2 | Rooms To Go, Seffner, Fla. | $1,349.0 | $1,311.0 | 2.9% | 98 | 95 |
| Privately owned retailer with stores throughout Florida and in Georgia, the Carolinas, Tennessee, Texas and Alabama, and a franchise operation in Puerto Rico. Operations include Rooms To Go, Rooms To Go Kids, Rooms To Go Beds and clearance centers. In 2005, has opened Rooms To Go with adjacent Kids stores in San Antonio and in Birmingham, Ala., its 100th store and first in Alabama. Plans to open about 10 Rooms To Go and Kids stores in the next 12 to 18 months, and about eight Beds stores this year. Including decorative accessories, sales for 2004 totaled $1.42 billion. | |||||||
| 3 | 5 | Berkshire Hathaway furniture division, Omaha, Neb. | $1,040.0 | $950.0 | 9.5% | 31 | 30 |
| 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 2004, Star opened a Thomasville Home Furnishings store in Houston and Jordan's opened a unit in Reading and closed the unit in Waltham, Mass. R.C. Willey will open a store in Reno, Nev., this fall and will move into its fourth state with a store in Rocklin, Calif., in the Sacramento market in 2006. Total 2004 revenues for the four companies were $1.97 billion, including decorative accessory sales of about $55 million. | |||||||
| 4 | 7 | La-Z-Boy Furniture Galleries, Monroe, Mich. | $1,036.6 | $999.3R | 3.7% | 304 | 302 |
| Fiscal year ended April 30. Sales and store counts for calendar year. Manufacturer's dedicated store network of dealer-owned and company-owned units, with 300 Furniture Galleries (97 in the New Generation format) and four Showcase Shoppes in the United States at year-end. Figures exclude stores in Canada. During 2004, 12 stores were opened and another 21 converted to the New Generation format. New Generation stores average 15,516 square feet and offer an expanded selection of home accents and additional accent furniture from Hammary. Upholstery accounts for about 92% of sales. Plans to end 2005 with 324 stores in the U. S. Including decorative accessories, sales for 2004 totaled $1.07 billion. | |||||||
| 5 | 3 | Ethan Allen, Danbury, Conn. | $1,001.0 | $970.0 | 3.2% | 282 | 283 |
| Fiscal year ended June 30. Sales and store counts are for the calendar year and United States only. Offers furniture and accessories from casual contemporary to classic formal. Launched its "solutions" marketing campaign, making all products available at "everyday best prices." With the rollout of new casual collections in fall 2004, more than 70% of its products have been introduced in the past three years. Last fall, launched a bathroom vanities line, with seven vanity styles and coordinating hardware and accessories. The two Ethan Allen Kids stores have been closed and are now full-line stores. Total 2004 revenues were $1.22 billion, including decorative accessory sales of about $170 million. | |||||||
| 6 | 4 | Sam's Club, Bentonville, Ark. | $990.0 | $960.0 | 3.1% | 551 | 538 |
| Fiscal year ended Jan. 31, division of publicly held Wal-Mart. Sales and store counts are for Sam's Club division only. Also sells online at samsclub.com. Includes bedding sales of $248 million in 2004 and $240 million in 2003. Opened 13 new clubs in 2004. Operates clubs in 48 states. Clubs range between 70,000 and 190,000 square feet and average 128,000 square feet. Continued its focus on its small business members last year. Hardlines, including furniture and bedding, accounted for 19% of 2004 sales, down from 20% in 2004. Comp 2004 store sales increased 5.8%. Total 2004 sales were $37.1 billion, up 7.5% from $34.5 billion in 2003. | |||||||
| 7 | 8 | Office Depot, Delray Beach, Fla. | $984.0 | $892.0 | 10.3% | 951 | 867 |
| Fiscal year ended Dec. 25. Sales and store counts for U.S. units only. Also sells through catalogs and online at officedepot.com. Opened 80 stores in North America last year and closed 11. Plans to add 100 total new stores in 2005 and remodel 50 existing stores. In June, opened its 1,000 store in the Chicago suburb of Countryside. Agreed to purchase 124 former Toys "R" Us locations during 2004, with plans to convert 50 into Office Depot units. By year-end, had opened 36 of these locations, with 15 more opening this year. The product category of "furniture, low tech and other" accounted for 19.9% of total sales in 2004, up slightly from 19.8% in 2003. Comp store sales were positive in each quarter of 2004, reversing a trend of 15 consecutive quarters of decline. Total 2004 sales were $13.56 billion, up 9.8% from $12.36 billion in 2003. | |||||||
| 8 | 10 | Staples, Framingham, Mass. | $940.0 | $832.0 | 13.0% | 1,188 | 1,134 |
| Fiscal year ended Jan 29. Sales and store counts for U.S. stores only. Also sells online at staples.com and direct mail business Quill Corp. Plans to open 95 North American stores in 2005, compared to the 77 new stores opened last year. At fiscal year end, 437 stores employed the Dover format, a prototype featuring a more open interior and 20,000 square feet, and 17 stores employed a smaller 14,600 square foot format. Plans to open 10 stores in smaller markets in the smaller format this year. Will enter the Chicago market in 2005 with 20 stores. Office furniture accounted for 7.3% of total sales in 2004, up slightly from 7.2% in 2003 and 6.9% in 2002. Total 2004 sales were $14.45 billion, up 11.4% from $12.97 billion in 2003. | |||||||
| 9 | 9 | Costco, Issaquah, Wash. | $905.0 | $860.0R | 5.2% | 330 | 318 |
| Fiscal year ended Aug. 29. Sales and store counts are for U.S. locations only, including the two Costco Home stores in Seattle and Tempe, Ariz., for the trailing 12 months ended Feb. 13. Also sells home furnishings online at costco.com. Also has significant offers of furniture via mass coupon mailings with other companies' coupon offers that are special to the specific promotional event. Includes bedding sales of $71 million in 2004 and $68 million in 2003. Opened 12 net new clubs last year and plans to open up to 25 new clubs during 2005, emphasizing international expansion. Expanded its test of self-checkout lanes from two clubs to four in June. Costco Home stores provide home delivery and in-home design consulting. Hardlines, as a percentage of total fiscal year sales, were 13%, down from 14% in fiscal 2003. Total 2004 trailing 12-month sales were $49.3 billion, up 10.9% from $44.4 billion for the same period in 2003. | |||||||
| 10 | 17 | Ashley Furniture HomeStores, Arcadia, Wis. | $895.0 | $594.0 | 50.7% | 153 | 121 |
| Manufacturer's dedicated store network of more than 180 stores in North America - now 38 states including Hawaii and Alaska - with seven company-owned units focuses on locations where company distribution is limited. Store size has increased to 50,000 square feet plus to better allow merchandising of furniture along with company program of lighting and rugs. The chain's recent Chicago debut featured a 65,000 square foot store. Stores are offered suggestions for accessories to enhance the ambiance. Average store size is 35,000 square feet. Plans call for about 40 new units in 2005 with full product range offered. Sales, including rugs, lighting and decorative accessories, for 2004 were $913 million, up 52.2% from $600 million in 2003. | |||||||
| 11 | 6 | Levitz Home Furnishings, Woodbury, N.Y. | $894.0 | $944.0 | -5.3% | 136 | 127 |
| Fiscal year ended March 31. Majority owned by Resurgence Asset Management. At year's end, operated 89 Levitz stores and 47 Seaman's stores, including 10 Seaman's Kids units. In May 2005, Levitz announced it would close its Seaman's operation, converting about 25 of those stores to Levitz. The transition should be completed by Labor Day, when LHFI expects to have 115 Levitz stores in 10 states, 55 on the West Coast and 60 in the Northeast. Also plans to open four to five more stores by year's end. Total 2004 revenues were $953 million, including decorative accessory sales of about $23 million. | |||||||
| 12 | 11 | Federated Department Stores, Cincinnati | $875.0 | $865.6R | 1.1% | 459 | 459 |
| Fiscal year ended Jan. 29. The merger with May Department Stores, announced in February, is expected to close in the third quarter. In March, the names of the five Federated divisions, exclusive of Bloomingdale's, were changed to Macy's from the previous temporary change of Macy's and the prior regional nameplate, to facilitate a national marketing strategy. May's regional department stores will be converted eventually to the Macy's nameplate. No decision has been made concerning May's Marshall Field's and Lord & Taylor names. The Macy's Home Store, formed in 2004 as the strategic, buying, marketing and logistical corporate arm for the home furnishings business, exclusive of Bloomingdale's, has undergone a major management shakeup including reporting relationships of senior management. Total 2004 sales were $15.6 billion, up 2.4% from $15.3 billion in 2003. | |||||||
| 13 | 12 | Ikea, Plymouth Meeting, Pa. | $825.0 | $730.0 | 13.0% | 21 | 18 |
| Fiscal year ended Aug. 31. At fiscal year-end operated 21 stores in the United States and 11 in Canada. The newer stores range in size from 270,000 square feet to 350,000 square feet with four model homes, 50+ room settings, restaurants, cafes and food markets. Now merchandises its home furnishings under broad umbrella labels — dining, sleeping, living — with lifestyle presentations, as well as in dedicated departmental product displays. Opened a store in Tempe, Ariz., last November, in June opened a store in Atlanta and on August 3rd will open one in Frisco, Texas. This fall, will open stores in Bolingbrook, Ill., and Stoughton, Mass. | |||||||
| 14 | 13 | American Signature, Columbus, Ohio | $775.0 | $723.0 | 7.2% | 100 | 94 |
| Fiscal year ended July 31. Owned by Schottenstein Stores Corp. At fiscal year end operated 82 promotional to midpriced Value City Furniture stores located primarily in the Midwest and East Coast states and 18 midpriced to high-end American Signature Home stores in Florida, Georgia, Maryland and Tennessee. The Value City stores also carry the company's private-label brand, American Signature. Including decorative accessories, sales for 2004 totaled $805 million. | |||||||
| 15 | 14 | Havertys, Atlanta | $760.0 | $723.0 | 5.1% | 117 | 113 |
| Fiscal year ended Dec. 31. Operates stores in 16 states in the South and Midwest. Havertys' private-label program has grown dramatically, representing about 50% of company sales in 2004. Major national brands are still important. In 2004, opened four stores, one in San Antonio and three in the new markets of Columbia, Md., Baton Rouge, La., and Cincinnati, the chain's 16th state. Opened a unit in Northern Virginia in February. Will also open stores in Fort Lauderdale, Fla., Columbus, Ohio, and Indianapolis, its 17th state. Total 2004 revenues were $789 million, including decorative accessory sales of about $24 million. | |||||||
| 16 | 16 | JCPenney, Plano, Texas | $734.0 | $665.0 | 10.4% | 1,017 | 1,020 |
| Fiscal year ended Jan. 29. Sales and store counts are for department stores in the United States and Puerto Rico, the "big book" and specialty catalogs. Chris Madden's "Turning Home into Haven" collection celebrated its first anniversary in May. Opened 14 stores and closed 17 in 2004. Plans to open 20 new stores this year, most of which will be off-mall stores, and remodel 50 existing stores. Comp store sales were up 5% in 2004, its fourth consecutive year of improvement. Catalog and Internet sales together increased 3.3% in 2004. Total 2004 sales were $18.1 billion, up 3.3% from $17.5 billion in 2003. Ranks No. 1 among the top department stores for furniture and bedding (see page 20 for details). | |||||||
| 17 | 15 | Pier 1 Imports, Fort Worth, Texas | $690.0 | $692.0 | -0.3% | 1,122 | 1,062 |
| Fiscal year ended Feb. 26. Buffeted by a dramatic expansion of competition, an advertising campaign that did not work and a slowdown in consumer spending, Pier 1 is taking major steps to improve sales and profits. Keys are making stores easier to shop and eliminating clutter by significantly reducing SKUs, expanding its advertising to include the launch of a national catalog in September and more Internet activity and offering more exclusive products. Same store sales for the five-month period ending July 30 were down 9.3%, with full second-quarter comp sales expected to be down in the mid-to-high single digit range. A "Special Finds" book in all stores allows customers to order featured items, such as larger furniture and upholstered pieces, that are available only in the larger Pier 1 stores. All Cargokids stores were converted to Pier 1 Kids by March. Plans to end 2005 with 1,143 Pier 1 stores and 47 Kids stores. Total revenues for 2004 were $1.71 billion, including decorative accessories sales of about $670 million. | |||||||
| 18 | 18 | May Department Stores, St. Louis | $684.0 | $705.0R | -3.0% | 430 | 428 |
| Fiscal year ended Jan. 29. Operates under the names Robinsons-May, Hecht's, Strawbridge's, Foley's, Kaufmann's, Famous-Barr, Filene's, Meier & Frank, The Jones Stores, L.S. Ayres and Marshall Field's. Also owns department store Lord & Taylor and a group of bridal retailers — sales not included. Opened eight stores in 2004 and plans to open eight department stores this year, including a Robinsons-May in El Centro, Calif., which opened during the first quarter. Last summer, acquired Marshall Field's as well as nine Mervyn's stores from Target. The merger of May and Federated Department Stores is expected to close in the third quarter of 2005. Except for Lord & Taylor and Marshall Field's, the other nameplates will be renamed Macy's sometime in fall 2006. A decision on whether to rename Marshall Field's has not yet been made. In addition, 41 duplicate locations will be divested, starting in 2006. | |||||||
| 19 | 22 | Big Lots, Columbus, Ohio | $541.4 | $500.1R | 8.3% | 1,502 | 1,430 |
| Fiscal year ended Jan. 29. Sales and store counts are for Big Lots stores and freestanding Big Lots Furniture stores. Includes bedding sales estimated at $63 million in 2004 and $58 million in 2003. Opened 103 total stores in 2004 and closed 31. Added 224 net furniture departments, ranging in size from 2,000 to 5,000 square feet, in 2004. At fiscal year end, operated 1,069 furniture departments within existing stores and 43 freestanding furniture stores. Furniture, including lamps, accounted for 12.5% of net 2004 sales, up from 12.1% in 2003. Comp store sales for 2004 were flat. Total 2004 sales were $4.38 billion, up 4.8% from $4.17 billion in 2003. | |||||||
| 20 | 19 | Art Van, Warren, Mich. | $534.0 | $544.0 | -1.8% | 30 | 30 |
| Family-owned, midpriced to high-end Michigan chain. Sells furniture by Amish, Broyhill, Lane, La-Z-Boy, Natuzzi, King Koil, Sealy, Simmons and Stearns & Foster. At the end of 2005, will open an 85,000-square-foot store in Rochester, a suburb of Detroit. Including decorative accessories, sales for 2004 totaled $545 million, down 1.8% from $555 million. | |||||||
| 21 | NR | Raymour & Flanigan, Liverpool, N.Y. | $531.6 | $462.9 | 14.8% | 53 | 52 |
| Fiscal year ended Dec. 31. Family-owned Northeastern chain with stores in Connecticut, Delaware, Massachusetts, New Jersey, New York and Pennsylvania. Furniture and bedding vendors include Alan White, Berkline, Broyhill, Clayont Marcus, H.M. Richards, Kincaid, La-Z-Boy, Legacy, Natuzzi, Rowe, Sealy, Stanley, Stearns & Foster, Universal and Vaughan-Bassett. In 2005, has opened six stores in Danbury, Conn., Carle Place, Middletown and Yonkers, N.Y., Woodbridge and Fairfield, N.J. Will open a seventh new store in Ocean Township, N.J., later this year. Total 2004 revenues were $539.4 million, including decorative accessory sales of about $17 million. | |||||||
| 22 | NR | Select Comfort, Minneapolis | $517.4 | $428.2 | 20.8% | 370 | 344 |
| Publicly held, vertically integrated airbed specialist selling the Sleep Number brand mattresses and foundations through its stores, e-commerce site and direct-marketing call center. Also operates a wholesale business (which sells to home furnishings and specialty bedding retailers and the QVC shopping channel), revenues not included. Introduced a sofa-sleeper called the Sleep Number SofaBed into a limited number of stores. Will continue the selective roll-out of the SofaBed in 2005. Phased out its leased department program with Bed Bath & Beyond during the second quarter of this year. Plans to add 30 to 40 stores and close five mall-based units in 2005. Total 2004 revenues were $557.6 million. | |||||||
| 23 | 20 | Lowe's, Mooresville, N.C. | $495.0 | $490.0R | 1.0% | 1,087 | 952 |
| Fiscal year ended Feb. 28. Also sells online at lowes.com. Opened 140 new stores in 2004. Plans to become national this year and open 150 new stores, many of which target large metropolitan markets. Had opened 27 by the end of the first quarter. Future expansion plans include 160 new stores in 2006 and entering the Canadian market in 2007 by opening six to 10 stores in Toronto. Opened its 1,000th store in 2004 and opened its first truly urban store in the New York City borough of Brooklyn last April. Is currently testing self-checkout in five of its stores. Indoor furniture sales, excluding outdoor, totaled $163 million in 2004, down 23.5% from $213 million in 2003. Total 2004 sales were $36.46 billion, up 18.2% from $30.84 billion in 2003. | |||||||
| 24 | 25 | Thomasville Home Furnishings Stores, Thomasville, N.C. | $488.0 | $455.0 | 7.3% | 144 | 131 |
| Fiscal year ended Dec. 31. Owned by Furniture Brands International. Manufacturer's dedicated store network of dealer-owned and company-owned midpriced to high-end stores. Figures exclude 13 stores outside the United States. In October 2004, unveiled its new prototype store, with a new floor plan that devotes more space to major collections and related accessories. Plans about 20 new stores in 2005. Expects to have 220 U.S. stores by the end of 2007. Including decorative accessories, sales for 2004 totaled $500.1 million, up 7.1% from $467 million. | |||||||
| 25 | NR | W.S. Badcock, Mulberry, Fla. | $442.0 | $422.0 | 4.7% | 332 | 331 |
| Fiscal year ended Dec. 31. Southeastern chain of promotional to midpriced, credit-oriented stores, operating primarily as Badcock Home Furnishings Centers but changing to the Badcock Home Furniture & More format. Continues to convert older stores to its new prototype, having completed 176 conversions so far. Also sells floor coverings, appliances and electronics. Expects to enter Virginia, its eighth state, with a company-owned store by the end of 2005. Is testing rent-to-own stores this year. Total 2004 revenues were $515 million, including decorative accessory sales of about $17 million. | |||||||
