Wal-Mart stays No. 1, Ashley jumps to third
By Carole Sloan -- Furniture Today, August 20, 2006
New York — Ashley Furniture HomeStores vaulted from No. 13 to No. 3 on Furniture/Today's list of Top 25 furniture and bedding retailers for 2005, but Wal-Mart and Rooms To Go maintained their grip on the first two slots.
And three distribution channels — manufacturers' gallery stores, department stores and lifestyle furniture stores — set the pace for the Top 25 furniture retailers in 2005 with sales gains in the double digits.
Manufacturers' gallery stores led with a gain of 17.3%, followed by department stores with 15.3% and lifestyle furniture stores at 10.4%.
In part, the strong increase in manufacturers' gallery stores can be attributed to Ashley Furniture HomeStores, which surged 69.6% to $1.5 billion in 2005, up from $867 million in 2004. Ashley added 66 stores to its roster during the year.
In the department store channel, Federated Department Stores included the sales of the May Department Stores for a five-month period in 2005, following the completion of its acquisition. Counted as a group, furniture and bedding at Federated — including both Bloomingdale's and Macy's Home Stores — and May were $1.1 billion, a 25.1% gain over 2004 sales. Store count was 861 versus 459 in 2004.
Also in the Top 25 in the department store category is JCPenney, which generated a sales increase of 3.5%, bringing its furniture and bedding business to $760 million, up from $734 million in 2004.
Double-digit increases by both Ikea and Pottery Barn in the lifestyle furniture store channel propelled the three retailers in this segment to the third-highest channel gain among Top 25 retailers. Ikea and Pottery Barn posted furniture and bedding increases of 17% and 12.5%, respectively.
With just three new stores, albeit mega-stores in the 300,000-square-foot bracket, Ikea had furniture and bedding sales of $965 million, while five new stores helped Pottery Barn move up to $720 million from $640 million in 2004. Each retailer's sales in furniture and bedding were helped significantly by its catalog and Internet business efforts.
Interestingly, while the three leading distribution channels in the Top 25 showed double-digit sales percentage gains, their share of the total furniture and bedding business for the group merely edged up a notch or remained the same. Both the lifestyle furniture stores and the department stores held even in their share of the business with 10% and 8%, respectively. Manufacturers' gallery stores gained two percentage points to 25% in 2005, up from 23% in 2004.
Overall, the Top 25 had 2005 sales of $23.4 billion, an increase of 8.8% for the group over 2004. Within the group, there were 10 retailers with double-digit sales increases; five of those had increases of more than 20%. Federated Department Stores recorded the second highest gain — 25.1%— behind Ashley, largely due to the combining of the May Department Stores' furniture and bedding sales with both the Macy's Home Store and Bloomingdale's sales for part of the year, after the merger was completed.
Raymour & Flanigan moved up two notches in the rankings to No. 20 with increased sales of 23.4%, due to an aggressive move into new markets, a strong merchandising program, and the debut of a new Web site. With a 20.7% gain, Select Comfort moved up three positions to No. 21, bringing its retail sales to $588 million, helped by the opening of 26 stores. The fifth 20-plus sales gain was recorded by Big Lots, which moved up a notch to No. 19, despite closing 101 stores and concentrating its furniture and bedding efforts in its full-line stores.
On the minus side, only three retailers had sales declines for 2005 compared with 2004. Levitz had the most severe sales loss at 35.1%, bringing its sales down to $580 million and closing 56 stores to concentrate on seven geographical areas. As part of this drive, this month it announced the appointment of veteran home furnishings retailer Jane Gilmartin as senior vice president and chief merchandising officer.
Art Van and La-Z-Boy were the other two retailers with sales declines — 1.7% and 1.0% respectively.
Within the Top 25, the Top 5 increased its dominance, with a sales gain of 16.3% to $7.5 billion, bringing its share to 32%, up from 30% in 2004. The Top 10 saw sales gains of 12.8%, bringing the group's total to $12.7 billion for 2005.
|Top 25 U.S. furniture retailers|
|Rank||Estimated furniture and bedding sales in $ millions||Percent change||Total number of units at year's end|
|2005||2004||Company, home base, notes||2005||2004||2004 to 2005||2005||2004|
|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 2005 and 2004, unless otherwise noted.
Source: Furniture/Today market research
|1||1||Wal-Mart, Bentonville, Ark.||$2,005.0||$1,900.0||5.5%||3,189||3,066|
|Publicly held; fiscal year ended Jan 31. Sales and store counts are for U.S. stores only and exclude Neighborhood Markets and Sam's Club. Also sells online at walmart.com. Store expansions in 2005 added about 39 million square feet with the opening of a net 22 discount stores and 267 supercenters, including 166 discount conversions to supercenters. Plans to add 270 to 280 new supercenters and 20 to 30 new discount stores in 2006. Figures include bedding and futon sales of about $72 million in 2005 and $68 million in 2004. Comp-store sales increased 3.4% in 2005. Total 2005 sales were $209.9 billion, up 9.4% from $191.8 billion in 2004. Ranks No. 1 among discount department stores in furniture and bedding (see page 30).|
|2||2||Rooms To Go, Seffner, Fla.||$1,520.0||$1,349.0||12.7%||102||98|
|Privately owned chain operating Rooms To Go, Rooms To Go Kids & Teens, Rooms To Go Beds and clearance centers throughout Florida and in Alabama, Georgia, the Carolinas, Mississippi, Tennessee and Texas, and a franchise unit in Puerto Rico. Also sells online, shipping product to 32 states. Last fall, rolled out an exclusive Cindy Crawford Home Collection for the dining room, living room and bedroom, all at the top of RTG's price spectrum. In June 2006, acquired five stores from New Orleans-based Kirschman's. The Louisiana stores will reopen as Rooms To Go starting in mid-September. Furniture and bedding accounted for about 95% of total 2005 sales. Total 2005 sales were $1.6 billion, up 12.7% from $1.4 billion in 2004.|
|3||13||Ashley Furniture HomeStores, Arcadia, Wis.||$1,470.0||$867.0R||69.6%||219||153|
|Fastest-growing manufacturer's dedicated store network, with over 200 stores in North America and one in Japan. Sales and store counts for U.S. operations only. Stores, averaging 40,000 square feet, offer promotional to midpriced furniture for every room in the house, and area rugs, decorative accessories, textiles and lamps. Merchandise for the stores is produced in five company facilities in the United States and Asia. Expects retailers to open about 100 HomeStores this year. Furniture and bedding accounted for about 93% of total 2005 sales. Total 2005 sales were $1.6 billion, up 73.2% from $913 million in 2004.|
|Fiscal year ended Jan. 28. Opened 87 new Target stores, 22 new Super Target stores and closed 20 Target stores last year. Plans to open a total of 100 new stores in 2006, with 29 opening in July. Has a heightened home furnishings presence online, including upholstery, case goods, accent furniture, lamps, lighting and area rugs. In April 2005, launched the Signature collection from Renovations, a division of Thomasville Furniture. Debuted the Vintage Modern Collection by Thomas O'Brien, including RTA furniture, home accents, floor coverings, tabletop, lighting and bed and bath, last October. Home furnishings and decor represented 20% of total 2005 sales. Total 2005 sales were $51.3 billion, up 12.2% from $45.7 billion in 2004.|
|5||4||Berkshire Hathaway furniture division, Omaha, Neb.||$1,160.0||$1,040.0||11.5%||32||31|
|Owns Nebraska Furniture Mart, Omaha, Neb.; R.C. Willey, Salt Lake City; Star Furniture, Houston; and Jordan's Furniture, Avon, Mass. In 2005, R.C. Willey opened a store and warehouse in Reno, Nev., and Jordan's opened a 60,000-square-foot clearance center in its Avon facility. This summer, R.C. Willey entered California with a distribution center in Roseville and a store in Rocklin, both in the Sacramento market. Expects to open another store in the market within two to three years. NFM is remodeling and expanding its Appliance, Electronics and Computer Store, integrating more home furnishings into the mix. The project is to be completed by fall 2007. Furniture and bedding accounted for about 62% of total 2005 sales, up from 56% in 2004. Total 2005 sales were $1.88 billion, up about 1% from $1.87 billion in 2004.|
|6||12||Federated Department Stores, Cincinnati||$1,095.0||$875.0||25.1%||861||459|
|Publicly held; fiscal year ended Jan. 28. Completed the acquisition of May Department Stores on Aug. 30, 2005. Completed the conversion of all regional department store nameplates to the Macy's nameplate in March 2005. Will add another 400 Macy's locations nationwide beginning in September as it converts all May regional stores. Divesting 80 duplicate locations as a result of the acquisition, including 40 current May stores in 11 states and 40 Macy's stores in 15 states. Also plans to close five duplicate distribution centers this year. Total 2005 sales, including May sales from September 2005 through January 2006, were $22.4 billion, up 41.9% from $15.8 billion in 2004.|
|7||7||Sam's Club, Bentonville, Ark.||$1,045.0||$990.0||5.6%||567||551|
|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 $265 million in 2005 and $248 million in 2004. Opened 17 new clubs in 2005 and closed one. Clubs range from 70,000 to 190,000 square feet and average 129,000 square feet. Continued to focus on small business members last year. Sales of hardgoods, including furniture and bedding, were $9.2 billion in 2005, up 7.2% from $8.5 billion in 2004. Comp-store sales increased 5% in 2005. Total 2005 sales were $39.8 billion, up 7.2% from $37.1 billion in 2004.|
|8||5||La-Z-Boy Furniture Galleries, Monroe, Mich.||$1,025.8||$1,036.6||-1.0%||308||304|
|Fiscal year ended April 29. Sales and store counts are for the calendar year and for the U.S. only. Manufacturer's dedicated store network of dealer-owned and company-owned units, with 307 Furniture Galleries (136 in the New Generation format) and one Showcase Shoppe. Average size of all stores is 13,255 square feet; New Generation stores average 15,590 square feet and offer an expanded selection of home accents and additional accent furniture from Hammary. Continues to relocate, convert and add stores in the more productive New Generation format, and expand its in-home design service. Furniture and bedding accounted for about 97% of total 2005 sales, with upholstery accounting for 92%. Total 2005 sales were $1.06 billion, down 0.9% from $1.07 billion in 2004.|
|9||10||Costco, Issaquah, Wash.||$1,020.0||$905.0||12.7%||346||330|
|Publicly held; fiscal year ended Aug. 28. Sales and store counts are for the trailing 12 months ended Feb. 12, and include sales from U.S. locations and from its two Costco Home stores, in Seattle and Tempe, Ariz. Costco Home stores account for about 4.5% of total sales. Costco Home offers about 2,000 items, including furniture, drapes, rugs, lamps and home theater systems. Will open a third Home store in Fairview, Ore., in late 2006. Also sells online at costco.com. Opened 16 net new stores in 2005. Currently testing a larger prototype store in Hillsboro, Ore. Figures include bedding sales of $85 million in 2005 and $76 million in 2004. Total 2005 trailing 12-month sales were $54.6 billion, up 10.8% from $49.3 billion in 2004.|
|10||6||Ethan Allen, Danbury, Conn.||$1,010.0||$1,001.0||0.9%||279||282|
|Fiscal year ended June 30. Sales and store counts are for the calendar year and for the United States only. Offers a full range of furniture and accessories to fit both casual and formal lifestyles. In June 2005, issued its first non-sale direct-mail magazine, introducing consumers to "everyday best" pricing on all products. Continues to differentiate itself by focusing on providing decorating solutions and upgrading the professionalism of its design services. Plans to continue upgrading and relocating stores, with 10 to 15 new stores planned each year. Furniture and bedding accounted for about 80% of total 2005 revenues. Total 2005 revenues for the calendar year were $1.25 billion, up 2.6% from $1.22 billion in 2004.|
|11||8||Office Depot, Delray Beach, Fla.||$1,005.0||$984.0||2.1%||1,016||951|
|Sales and store counts are for U.S. units only. Also sells through catalogs and online at officedepot.com. Opened 100 stores in North America last year and closed 22. Plans to open at least 100 new stores in 2006. The product category of "furniture and other" accounted for 13.1% of total sales in 2005, down from 13.5% in 2004. In 2006, launched a line from Christopher Lowell featuring desks, bookcases and hutches. Acquired Allied Office Products, a privately held dealer of office products and services, in May 2006. Total 2005 sales were $14.3 billion, up 5.3% from $13.6 billion in 2004.|
|12||9||Staples, Framingham, Mass.||$989.0||$940.0||5.2%||1,260||1,188|
|Fiscal year ended Jan. 28. Sales and store counts are for U.S. only, with stores in 47 states and the District of Columbia at year's end. Also sells online at staples.com and through its direct-mail business Quill Corp. Celebrated its 20th anniversary in May 2006. Opened 72 net U.S. stores last year and entered the Chicago market with 25 new stores. Plans to open 80 new stores in 2006. Z-line Designs launched its Lexington Home Brands line of RTA home office furniture at Staples in October 2005. Office furniture accounted for 6.9% of total 2005 sales, down from 7.3% in 2004. Comp-store sales in North America increased 3% last year. Total 2005 sales were $16.1 billion, up 11.3% from $14.4 billion in 2004.|
|13||14||Ikea, Plymouth Meeting, Pa.||$965.0||$825.0||17.0%||24||21|
|Fiscal year ended Aug. 31. Its U.S. stores, in the 250,000 to 300,000-square-foot range, typically offer supervised children's play areas, a 250- to 300-seat restaurant, and a Swedish food market. In 2006, has opened stores in Bolingbrook, Ill., Stoughton, Mass., West Sacramento, Calif., and Canton, Mich., and will end its fiscal year in August with 28 stores. Future U.S. stores planned in Brooklyn, N.Y., Draper, Utah, Dublin, Calif., Orlando, Fla., Portland, Ore., Round Rock, Texas, Somerville, Mass., and Sunrise, Fla. Plans to have 50 North American stores by 2010. Furniture and bedding accounted for about 48% of total 2005 sales. Total fiscal year sales were $2 billion, up 17.6% from $1.7 billion in the previous fiscal year.|
|14||15||American Signature, Columbus, Ohio||$800.0||$775.0||3.2%||111||100|
|Owned by Schottenstein Stores Corp. Operated 92 promotional to midpriced Value City Furniture stores, primarily in the Midwest and on the East Coast, and 19 midpriced to high-end American Signature Home stores in Florida, Georgia and Tennessee at year's end. Testing a new format, Rooms Today, that bridges its Value City and American Signature stores. Opened stores in Kentwood and Kalamazoo, Mich., in June 2006. Furniture and bedding accounted for about 96% of total 2005 sales. Total 2005 sales were $830 million, up 3.1% from $805 million in 2004.|
|Publicly held, midpriced to upper-midpriced chain in 17 states in the South and Midwest. A majority of its merchandise is private label, called Havertys Collections and Havertys Premium Collections. Continues to expanded its proprietary branded offerings. Sales in all major categories of furnishings increased in 2005, with sofa-sleepers and dining categories performing better than average. In 2006, plans to open five stores and close two older units. Furniture and bedding accounted for about 96% of total 2005 sales. Total 2005 sales were $827 million, up 5.5% from $784 million in 2004.|
|16||17||JCPenney, Plano, Texas||$760.0||$734.0||3.5%||1,019||1,017|
|Fiscal year ended Jan. 28. Sales and store counts are for department stores in the U.S. and Puerto Rico, the "big book" and specialty catalogs. Opened 18 new stores in 2005, including 11 off-mall locations, and closed 16. Plans to open 27 stores this year. Opened the JCPenney Experience, a three-level, temporary store in New York's Times Square, in March. Sales per square foot increased 4% last year to $157 from $151 in 2004. Comp-store sales increased 2.9% in 2005, the fifth consecutive year of improvement. Internet sales rose 28% in 2005 and surpassed the $1 billion mark for the first time. Total 2005 sales were $18.8 billion, up 3.8% from $18.1 billion in 2004.|
|17||19||Pottery Barn, San Francisco||$720.0||$640.0||12.5%||268||263|
|Fiscal year ended Jan. 29. Owned by Williams-Sonoma. Specialty home furnishings chain selling through stores, catalogs and e-commerce Web sites under the Pottery Barn brand, including Pottery Barn Bed & Bath, Pottery Barn Kids and PBteen. In 2006, plans to open nine Pottery Barn stores, including four Kids stores, and remodel/expand seven stores, including one kids store. Also plans to open its first three Bed & Bath stores in the third quarter of 2006. In 2005, the Pottery Barn brand had a 10.9% increase in revenues; Pottery Barn Kids, a 13.5% increase; and PBteen, a 15.6% increase. Furniture and bedding accounted for about 45% of total Pottery Barn 2005 revenues. Total 2005 revenues for the Pottery Barn brands were about $1.7 billion, up 12% from about $1.5 billion in 2004.|
|18||18||Pier 1 Imports, Fort Worth, Texas||$694.0||$690.0||0.6%||1,150||1,122|
|Fiscal year ended Feb. 25. Specialty retailer of imported decorative home furnishings and gifts, with Pier 1 stores in 49 states, Puerto Rico, Canada and Mexico, and Pier 1 Kids stores in the U.S. Sales and store counts are for stores in the U.S. and Puerto Rico. In 2006, the company expects to close five Pier 1 Kids stores, open a net 10 new Pier 1 stores, and open five stores in Mexico and two in Puerto Rico. Last fall, distributed its first nationwide catalog, with the second mailing in March 2006. Also in March, launched its brand repositioning campaign, featuring its Modern Craftsman merchandise, a more streamlined contemporary design. The compaign included new advertising and new in-store visuals to mirror its catalogs. Furniture and bedding accounted for about 42% of total 2005 sales. Total 2005 U.S. sales were $1.6 billion, down 3.4% from $1.7 billion in 2004.|
|19||20||Big Lots, Columbus, Ohio||$650.0||$541.4||20.1%||1,401||1,502|
|Fiscal year ended Jan. 28. Broadline closeout retailer operating 1,401 stores in 47 states at fiscal year's end, with 37% of the stores operating in four states — California, Ohio, Texas and Florida. Continued to add furniture departments, ranging from 2,000 to 5,000 square feet, to its closeout stores, ending the year with 1,320 departments. Closed its 41 stand-alone furniture stores in January 2006 to focus on growing furniture sales in its main closeout stores. Home, which includes furniture, was the best-performing merchandise category in 2005. Furniture and bedding accounted for about 13.5% of total 2005 sales. Total 2005 sales were $4.6 billion, up 6.2% from $4.4 billion in 2004.|
|20||22||Raymour & Flanigan, Liverpool, N.Y.||$649.0||$526.0R||23.4%||59||53|
|Family-owned Northeast chain with stores in New York, Massachusetts, Pennsylvania, New Jersey, Connecticut and Delaware. In 2006, has opened stores in Nanuet, N.Y., Ocean Township, N.J., and Norwalk, Conn., and plans to open units in Watchung, Freehold, Phillipsburg and Paramus, N.J. Launched an e-commerce program in January 2006, and will expand its distribution center in Liverpool to about 580,000 square feet by this fall. Furniture and bedding accounted for about 99% of total 2005 sales. Total 2005 sales were $655.5 million, up 23.3% from $531.6 million in 2004.|
|21||24||Select Comfort, Minneapolis||$588.0||$487.0R||20.7%||396||370|
|Publicly held, vertically integrated airbed maker selling Sleep Number mattresses and foundations through its stores, e-commerce Web site and direct-marketing call center. Select Comfort's wholesale business sold the Personal Preference line of Sleep Number beds through 12 different retailers in 308 stores in 2005. Also sells a line of Sleep Number beds through the QVC TV shopping channel. Sales from its wholesale business are not included in the sales figures. In December 2005, expanded into Canada through a partnership with Sleep Country Canada. Plans to open a total of 40 to 45 net new stores in 2006, with a long-term goal of 600 to 650 U.S. stores. Furniture and bedding accounted for about 92% of total 2005 sales. Total 2005 sales were $691 million, up 24% from $558 million in 2004.|
|22||11||Levitz Furniture, Woodbury, N.Y.||$580.0||$894.0||-35.1%||80||136|
|Fiscal year ended March 31. Owned by Prentice Capital Management and Great American Group, which acquired its assets in December 2005 out of Chapter 11 bankruptcy proceeding. Under its new ownership and management, Levitz is focusing on a core group of better-performing stores in greater New York, metro Los Angeles, northern California, Portland, Ore., Seattle, Phoenix and Las Vegas. Also working on its merchandise assortment and store layout. The company plans to open a handful of stores in New York, New Jersey, California and Nevada in 2006. Furniture and bedding accounted for about 97% of total 2005 sales. Total 2005 sales were $600 million, down 34.6% from $917.2 million in 2004.|
|23||21||Art Van, Warren, Mich.||$525.0||$534.0||-1.7%||29||30|
|Family-owned, midpriced to high-end Michigan chain, operating 29 stores, including 13 in metro Detroit. Recently hired a retail design firm to help assess its merchandise mix, floor layout and design, and expects to begin implementing design changes in the next 12 months, incorporating more trend-forward products. Currently testing EQ3, a furniture concept from Canadian producer Palliser focused on modern, sleek design at moderate prices. Also looking to open four mattress-only stores in metro Detroit ranging from 3,500 to 6,000 square feet. Furniture and bedding accounted for about 98% of total 2005 sales. Total 2005 sales were $535 million, down 1.8% from $545 million in 2004.|
|24||23||Thomasville Home Furnishings Stores, Thomasville, N.C.||$515.0||$488.0||5.5%||150||144|
|Owned by Furniture Brands International. Manufacturer's dedicated store network of dealer-owned and company-owned, midpriced to high-end stores. Sales and store counts for U.S. only. Thomasville created a 10,000-square-foot prototype store in its showroom at the April 2006 High Point market, including more accessories and impulse-purchase items, as it seeks to attract a younger consumer. The prototype concept is being launched in 10 or 12 stores. The company will continue to focus on accelerating the growth of its branded stores, both independently owned and company owned. Furniture and bedding accounted for about 97% of total 2005 sales. Total 2005 sales were $530 million, up 6% from $500.1 million in 2004.|
|25||25||W.S. Badcock, Mulberry, Fla.||$474.0||$442.0||7.2%||329||332|
|Southeast chain of promotional to midpriced, credit-oriented stores with almost two-thirds converted to its new format, Badcock Home Furniture & more. Continues to convert its older Badcock Home Furnishings Centers to the new prototype, with the changeover expected to be complete in two years. Stores, both company- and dealer-owned, carry appliances, electronics and floor coverings in addition to furniture and accessories. Began testing a rent-to-own business, Home Now, in August 2005. In June 2006, entered Virginia, its eighth state, with a company-owned store in Danville. Furniture and bedding accounted for about 86% of total 2005 sales. Total 2005 sales were $536.8 million, up 7.5% from $515 million in 2004.|