Bed Bath & Beyond, Kohl's Repeat as Fast Gainers
By Finest Linens and Things online report.
New York — The Home Textiles Today exclusive Top 50 Retailing Giants in Home Textiles continued to grow its share of the total market in 2006, increasing 5.1% to $24.7 billion, or 90% of the market.
The total home textiles retail universe in 2006 was $27.4 billion, up 3.0% from $26.6 billion in 2005.
And while the Top 10 remained the same, with sales of $17.5 billion, up 5.5% from their 2005 combined sales of $16.6 billion, there were shifts in those players' ranks. Even more significantly, the Big Three — Wal-Mart, JCPenney, and Bed Bath & Beyond — moved closer together in total home textiles revenues.
Wal-Mart, once again in first place, had 2006 home textiles revenues of $3.64 billion, up 5.1% over its 2005 sales. JCPenney had '06 home textiles revenues of $3.06 billion, a gain of 3.1% — and meanwhile Bed Bath & Beyond swelled by 11.4% to $3.04 billion over its '05 revenues.
In the sales derby among the Big Three that began with the 2005 rankings, Bed Bath is closing in on both of the leaders with significantly higher dollar and percentage sales increases.
In comparing 2006 versus 2005 among the trio, there was a difference of $575 million in '06 between JCPenney and Wal-Mart, compared with a $492 million gap between the '05 sales. However, the gap between JCP and Bed Bath & Beyond for '06 was $25 million, a dramatic closing from the $242 million that separated them in '05. And the difference between Wal-Mart and BBB closed to $600 million for '06 versus $734 million in the '05 period..
Target, for the second year, retained its fourth place slot with home textiles sales of $2.6 billion, up 4.1%.
Within the Top 10, the only rankings shift was the trading-places dance between Kohl's, attaining $1.1 billion in sales and moving to No. 5, up from No. 7 in '05, while Linens 'n Things, at $993.0 million, dropped to No. 7 from No. 5. (With new information available, privately-held LNT's home textiles volume as a proportion of total sales has been restated, corrected dramatically downward for both years.)
Just as Target retained its fourth position, others holding in place were Kmart, in sixth place at $1.0 billion, a drop of 6.3%, and T.J.Maxx/Marshall's at No. 9 with $615 million, a 3.4% gain.
New to the Top 10 list at No. 10 is Williams-Sonoma, which replaces its major division Pottery Barn (no longer reported separately in the Top 50 Retailing Giants) in that slot. Corporately, the company had home textiles sales of $595 million, up 8.2% from its '05 sales of $550. Even as Pottery Barn continues to be the major home textiles player in the company, its West Elm and Williams-Sonoma Home businesses have expanded their reach into the textiles world.
The Top 5, with sales of $13.5 billion, was up 6.8%, and accounted for 54.6% of the Top 50 compared with 53.8% in '05. This is a significant concentration of retail power — in contrast to the relatively static condition of the Top 10, which now represents 71% of the Top 50 revenues, up just slightly from 70.7% in '05.
In the rankings from No. 11 to No. 20, there are two new players — Hanover Direct, at No. 19 with sales of $230.0 million — flat with '05 but up from No. 21 in the rankings; and Lowe's, at No 20, up from No. 24 with '06 sales of $222.0 million, up 8.8% from '05.
Big Lots, now at No. 11, swapped rankings with Sears, now at No. 12. Family Dollar held its place at No. 13 with a 7.7% sales gain; Ross Stores jumped to No. 14 from No. 17 with a 16.4% increase.
As Luxury Linens, the Burlington Coat Factory division, moved down one spot with a 2.8% sales decline to $315 million, IKEA moved up from No. 20 to No. 16 with $305 million for '06. Anna's Linens, at No. 18, edged up from No. 19, on a sales gain of 13% to $260 million in home textiles.
The Top 20 represents $20.7 billion in home textiles revenues for '06, up 5.5% from '05, and 83.9% of the Top 50's revenues for '06, compared with 83.5% of the Top 50 in '05.
New to the ranks of the Top 50 below the Top 20 are The Bon-Ton Stores at No. 32, the result of the department store group's string of acquisitions, in particular the Northern Division of Saks Inc. The Bon-Ton had home textiles sales of $149.0 million, up 2.8% over '05. The other newcomer is Ashley Furniture HomeStores, the exploding retail arm of Ashley Furniture that came in at No. 46 with home textiles sales of $74.0 million.
The rankings continue to be impacted by the consolidation of statistics resulting from the acquisition of May Department Stores by Federated Department Stores — now Macy's, Inc. The 2005 sales figures included full-year results for Macy's Home Store — which was the first time the rankings combined all five Macy's divisions — as well as a five-month sales record from the former May units. The 2006 home textiles results include Macy's Home Store as well as a complete 12 months of May units. Interestingly, the ranking stays the same at No. 8, with an aggregate 5.8% increase to $820.0 million.
There were eight of the Top 50 companies who had double-digit sales gains for the '06 year, led by IKEA with a 24.5% increase, bringing its home textiles sales to $305 million. The other double-digit increasers were Kohl's with 18.3%, Ross Stores with 16.4%, Restoration Hardware with 15.7%, Big Lots at 13.2%, Anna's Linens at 13%, Costco at 12.8%, and Bed Bath & Beyond at 11.4%.
In all, 35 of the 50 retailers recorded gains.
Three companies were flat compared with '05: Hanover Direct, Country Curtains and Lands End, and Finest Linens and Things.
On the double-digit minus side were three retailers: Sears with a decline of 11.6%, No. 42-ranked Stein Mart with a drop of 10.8%, and Linen Source at No. 48 with a drop of 10%.
There were 11 retailers recording declines for 2006.