Wal-Mart, Target lead Top 5 discounters
By Carole Sloan -- Furniture Today, August 24, 2008
NEW YORK — Discount department stores held on to their second-place ranking among all retailers of furniture and bedding with sales of $4.4 billion in 2007, up 5.1% from 2006.
Within the Top 25 ranks, discount department stores accounted for 17% of the group's furniture and bedding sales in 2007, the same percentage as in 2006.
Heading the discount channel's list, albeit not the overall Top 25 retailer this year, No. 2-ranked Wal-Mart had sales last year of $2.2 billion, up 6.3% from its 2006 sales of $2.08 billion.
In second place in the channel is Target with sales of $1.5 billion, up 5.1%. Target maintained its fourth- place ranking in the overall Top 25.
In third place among discounters is Big Lots with furniture and bedding sales of $687 million, up 1.8%. Big Lots brings to three the number of discount department stores on Furniture/Today's Top 25 retailer ranking in furniture and bedding.
Kmart comes in at No. 4 with sales of $335 million, down 8.2% from $365 million in 2006. The company was the only one of the Top 5 in this channel to record a sales decline in furniture and bedding, a performance consistent with the company's total sales results for the year.
Meijer, a distant No. 5 among the Top 5 discount department stores in 2007, recorded sales of $84 million, up 2.4%.
Target set the pace in store openings for the channel with 103 net new units in 2007. Wal-Mart opened 87 stores last year, a significant decline from its 2006 addition of 142 new units.
Meijer added five new units, a pace equal to that in 2006.
Big Lots recorded a net loss of 22 stores as its shifted emphasis in merchandising and presentation. Kmart closed six units.
| Top 5 discount department stores | ||||||
|---|---|---|---|---|---|---|
| Rank 2007 | Company, home base, notes | Estimated furniture and bedding sales in $ millions | Percent change 2006 to 2007 | Total number of units | ||
| 2007 | 2006 | 2007 | 2006 | |||
| All sales information, except for that supplied by publicly held companies that break out furniture and bedding sales, are Furniture/Today market research estimates. All data are for calendar 2007 and 2006, unless otherwise noted. Source: Furniture/Today market research |
||||||
| 1 | Wal-Mart, Bentonville, Ark. | $2,210.0 | $2,080.0 | 6.3% | 3,418 | 3,331 |
| Fiscal year ended Jan 31. Sales and store counts are for U.S. stores only. Also sells online. Supercenters average 187,000 square feet, while discount stores average 108,000 square feet. Canopy, a contemporary, private-label line of home furnishings, was launched this March. Launched a new bedding program in September 2007. The home category, including furniture and bedding, accounted for 6% of total sales in both 2007 and 2006. Total 2007 sales were $239.5 billion, up 5.8% from $226.3 billion in 2006. | ||||||
| 2 | Target, Minneapolis | $1,492.0 | $1,420.0 | 5.1% | 1,591 | 1,488 |
| Fiscal year ended Feb. 2. Offers an expanded furniture assortment online. Home furnishings lines include the Sami Hayek line, DwellStudio, Simply Shabby Chic, Furio, Thomas O'Brien, Woolrich Furniture, Smith & Hawken, Target Home and Global Bazaar, the discounter's annual international home furnishings event. Home furnishings and decor accounted for 19% of 2007 sales, the same as in 2006. Total 2007 sales were $61.5 billion, up 6.2% from $57.9 billion in 2006. | ||||||
| 3 | Big Lots, Columbus, Ohio | $687.0 | $675.0 | 1.8% | 1,353 | 1,375 |
| Fiscal year ended Feb. 2. The furniture category, including upholstery, mattresses, ready-to-assemble and case goods, accounted for 14.8% of 2007 total sales at the closeout retailer, up slightly from 14.4% in 2006. Purchased about 25% of its merchandise directly overseas during 2007, including 21% from Chinese vendors. Operates five regional distribution centers and two furniture distribution centers. Comparable store sales increased 2% in 2007. Total 2007 sales were $4.66 billion, down 1.8% from $4.74 billion in 2006. | ||||||
| 4 | Kmart, Hoffman Estates, Ill. | $335.0 | $365.0 | -8.2% | 1,382 | 1,388 |
| Fiscal year ended Feb 2. Part of publicly held Sears Holdings Corp. At fiscal year-end, operated 1,327 discount stores and 55 supercenters. Also sells online. Kmart's exclusive contract with the Martha Stewart brand will expire January 2010. Added the Abbey Hill home furnishings division last fall. Other home furnishings lines include its Essentials Home brand RTA line. Comparable store sales declined 4.7% last year. Total 2007 Kmart sales were $17.3 billion, down 7.5% from $18.6 billion in 2006. | ||||||
| 5 | Meijer, Grand Rapids, Mich. | $84.0 | $82.0 | 2.4% | 181 | 176 |
| Family-owned and operated, in business for 74 years. Is recognized as the inventor of one-stop shopping. Operates supercenters in Michigan, Indiana, Illinois, Ohio and Kentucky. All stores are open 24 hours and average 200,000 to 250,000 square feet. Opened five stores in 2007. Added an e-commerce feature to its Web site for general merchandise in October. Corporately emphasizes green and won an Environmental Excellence Award from the EPA for its leadership in conserving energy and reducing greenhouse gas emissions from its transportation and freight activities. Total 2007 sales estimated at $14.4 billion. | ||||||
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