Ikea maintains top lifestyle specialist spot
By Carole Sloan -- Furniture Today, August 25, 2008
NEW YORK — Lifestyle furniture stores recorded the second-highest percentage increase by channel in the furniture universe for 2007, while retaining its 13% share of the Top 25 sales revenues by channel, the same as in 2006.
Lifestyle stores on the Top 25 had a collective sales increase of 5.9% to $3.4 billion, second only to the bedding specialty stores, which racked up a 6.4% gain.
Among the Top 5 lifestyle stores, Ikea again was in the top spot with a sales gain of 14.6%, reflecting the opening of three U.S. megastores in 2007. Furniture and bedding sales held to roughly the same percentage of its total sales in 2007, 47.2%, versus 47.8% in 2006.
Williams-Sonoma, parent company of three distinct home brands — Williams-Sonoma Home, Pottery Barn and its offshoots and the growing West Elm — held the second slot with a sales gain of 9.4%, bringing its 2007 total to $1.04 billion.
Pottery Barn, with its offshoots PBTeen, Pottery Barn Teen and Pottery Barn Bed & Bath, is the biggest division of the company. Williams-Sonoma is more decorator oriented, while West Elm is focused on the young contemporary adult market.
Crate & Barrel's furniture and bedding sales grew 3.1% last year, to $495 million. The company added seven stores including a CB2 in New York, the third in the company's young adult contemporary concept. Overall, Crate saw furniture and bedding sales drop to 37.6% of its total volume last year, from 40.3% in 2006.
On the losing side, Cost Plus World Market in the No. 5 position had a dramatic 22% sales decline, to $230 million in 2007, despite a net gain of 11 units in the period, bringing its total to 298.
The other loss was Pier 1, which is in the second year of a reorganization. Its 2007 furniture and bedding sales dropped 15.5% to $496 million. Under its restructuring program, Pier 1 shed 78 units during the year, including Pier 1 Kids and the clearance centers.
| Top 5 lifestyle furniture and bedding stores | ||||||
|---|---|---|---|---|---|---|
| Rank | Company, home base, notes | Estimated furniture and bedding sales in $ millions | Percent change 2006 to 2007 | Total number of units | ||
| 2007 | 2007 | 2006 | 2007 | 2006 | ||
| 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 2007 and 2006, unless otherwise noted. Source: Furniture/Today market research |
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| 1 | Ikea, Conshohocken, Pa. | $1,370.0 | $1,195.0 | 14.6% | 31 | 28 |
| Fiscal year ended Aug. 31. The Sweden-based specialist has close to 300 stores in more than 35 countries. Sales and store counts are U.S. only. Stores range from 250,000 to 350,000 square feet, featuring three to four model homes reflecting a variety of living situations, a 300-seat restaurant serving Swedish specialties and American dishes, a supervised play area, and some 10,000 exclusively designed items from furniture, lighting, textiles, storage and decorative accessories, to full kitchens including cabinets, countertops, appliances and sinks. Future store openings include units in Charlotte, N.C., Tampa, Fla., and Somerville, Mass. Furniture and bedding accounted for about 47% of total 2007 sales. Total fiscal year sales were $2.9 billion, up 16% from $2.5 billion for the previous fiscal year. | ||||||
| 2 | Williams-Sonoma, San Francisco | $1,045.0 | $955.0 | 9.4% | 585 | 579 |
| Fiscal year ended Feb. 3. Specialty home furnishings retailer selling furniture and bedding through stores, mail-order catalogs and e-commerce Web sites, primarily through its Pottery Barn, Pottery Barn Kids and PBteen brands, but also through its West Elm, Williams-Sonoma Home and Williams-Sonoma brands. Sales and store counts for U.S. only. Last year, in-sourced its West Coast furniture hub and expanded its upholstered furniture operations. Will continue to roll out these changes in 2008. Opened five West Elm stores in 2007 with plans to open 12 in 2008. Furniture and bedding accounted for about 30% of total 2007 sales. Total 2007 revenues were $3.94 billion, up 5.8% from $3.73 billion in 2006. | ||||||
| 3 | Pier 1 Imports, Fort Worth, Texas | $496.0 | $587.0 | -15.5% | 1,041 | 1,119 |
| Fiscal year ended March 1. Specialty retailer selling a wide variety of furniture, wicker, decorative home furnishings, housewares, bath and bedding accessories, candles and other specialty items for the home imported from over 50 countries. In 2007, closed all Pier 1 Kids and clearance centers and exited its e-commerce and catalog businesses. Plans to end its fiscal year with 1,019 stores after opening three stores and closing 25. Plans to carry more small, functional pieces and impulse items in furniture and fewer case goods collections. In June, Pier 1 offered to acquire Cost Plus in a stock swap but later withdrew the offer after it was rejected by the Cost Plus board. Furniture and bedding accounted for about 36.5% of 2007 sales, down from about 39% of 2006 sales. Total 2007 sales in the U.S. were $1.36 billion, down 8.9% from $1.49 billion in 2006. | ||||||
| 4 | Crate & Barrel, Northbrook, Ill. | $495.0 | $480.0 | 3.1% | 160 | 153 |
| Fiscal year ended Feb. 3. Subsidiary of Germany-based Otto Versand. Lifestyle specialty retailer focused primarily on contemporary and transitional home furnishings operating through stores, catalogs and online. Sells midpriced to high-end furniture primarily through 62 metro-market furniture stores as well as through its three CB2 units, two in Chicago and one in New York's SOHO district offering contemporary modern furnishings for apartments, lofts and homes to consumers ranging in age from 25 to 50. Opened a fourth CB2 store in San Francisco at the end of July. Is looking to open as many as 20 CB2 stores in the next three years, including ones in Boston, Miami and Los Angeles. Will open its first Crate & Barrel store in Canada in September. Total 2007 sales were $1.32 billion, up 10.5% from $1.19 billion in 2006. | ||||||
| 5 | Cost Plus World Market, Oakland, Calif. | $230.0 | $295.0 | -22.0% | 298 | 287 |
| Fiscal year ended Feb. 2. Specialty retailer of casual home furnishings and entertainment products in 34 states under the names World Market, Cost Plus World Market, Cost Plus Imports and World Market Stores. Home furnishings accounts for about 61% of total sales and includes furniture as well as rugs, pillows, bath linens, lamps, wall décor, window coverings, frames, candles and baskets imported from more than 50 countries. As part of its strategy to reconnect with its loyal customer base, it has returned to an everyday low-price strategy. Is offering less high-priced furniture, reducing larger upholstered offerings and thinning its dining room mix, making room for smaller pieces. In June, Pier 1 Imports announced plans to acquire Cost Plus in a stock swap but later withdrew the offer after it was rejected by the Cost Plus board. Furniture and bedding accounted for about 22.5% of total 2007 sales, down from about 28% of 2006 sales. Total 2007 sales were $1.02 billion, down 1.6% from $1.04 billion in 2006. | ||||||
