Washington D.C., August 2--After a tough year of consolidations and mergers among department, drug and grocery stores, specialty stores are gaining a wider market share, making them a major force in retailing, according to the 2005 Top 100 Specialty Retailers ranking, sponsored by Alliance Data Systems.
Released today by STORES magazine, the monthly magazine of the National Retail Federation, the report is an annual snapshot of the specialty retailing industry, ranking companies by revenues and grouping them on one chart regardless of the merchandise categories in which they operate. The Top 100 Specialty Retailers includes more than 20 different merchandise categories and orientations and is published in the August issue of STORES.
"With so many choices, people are able to be selective about where they spend their money," said Rick Gallagher, STORES publisher and NRF vice president.
"Specialty stores are attracting a large number of customers because they are able to provide the consumer with deep product assortments, experienced sales staff and high customer service levels."
Minneapolis-based Best Buy (#1) once again topped the chart as the nation’s largest specialty retailer with 2004 sales of $27.4 billion, an 11.8 percent increase over the previous year. By using both concept stores and smaller service outlets to address consumers’ lifestyles, Best Buy has created more intimate neighborhood concept stores to appeal to those who are intimidated by their larger format stores.
Apparel retailers, led by Gap (#2) and Limited Brands (#8), form the largest subset of the Top 100 Specialty Retailers. Gap, holding on to its number-two position with a total of $16.27 billion in sales, broadened its merchandise base this past year with the launch of an accessories-only store, Love, and the Gap Body line. Limited Brands has shifted its focus from traditional apparel to personal care, beauty and lingerie. In 2004, two-thirds of its $9.4 billion in sales were rung up by Victoria’s Secret and Bath & Body Works.
Office stores remain a small, but strong, niche, claiming three of the top five spots on this year’s Top 100 chart. Ranking third, fourth and fifth on the list, Staples (#3) is the largest with 2004 sales of $14.45 billion, an 11.4 percent increase over the previous year and Office Depot (#4), having increased store openings to keep pace with its competitor, is right behind with 2004 sales totaling $13.6 billion. After undergoing extensive restructuring, Office Max (#5) saw an incredible 60 percent growth in sales last year and leapt from the number-twelve spot into the list’s Top 5.
Toys “R” Us followed at the number-six spot and Circuit City, once larger than Best Buy, dropped down to number seven, after closing 19 superstores, five regional offices and a distribution center this past year. Blockbuster, despite feeling the squeeze from its online-direct delivery competition, was able to retain the number-nine spot, while AutoZone bumped Barnes and Noble (#13) from the number ten spot, despite a marginal 3.3 percent sales increase over the previous year.
