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Retailers, consumers and prices

August 3rd, 2009

Check Out Line: Want growth? Buy up.

Posted by: Aarthi Sivaraman

Check Out retail strategy for growth.APPLE/EARNINGS

A list of the top 10 companies from a “Hot 100 Retailers list” compiled by Planet Retail for the National Retail Federation showed that while a few companies grew organically, most grew as a result of a merger or acquisition.

Topping the list of companies that grew through a deal was DineEquity,  which bought Applebee’s last year. 

Others in that category include Susser Holdings after its purchase of Town & Country Food Stores and Village Market grocery stores, as well as the combination of fast food chains Wendy’s and Arby’s into Wendy’s/Arby’s.

Of the companies that grew on their own, Los Angeles-based American Apparel was “tops,” with revenue growth of 57.6 percent, the list showed.

Another not-so-surprising name in the top 10 was Apple, known for its iPod, Mac computer and one of the latest favorites in the market — the iPhone. “Still opening new locations, Apple also uses its stores as a way to build brand awareness,” according to the survey.

Some retailers actually managed to maintain growth, averaging a 10.8 percent compound annual growth rate, the list showed.  Those on the growth chart include GameStop, Urban Outfitters, Best Buy and J. Crew to name a few.

The Hot 100 Retailers study is the annual ranking of the fastest-growing publicly traded retail chains, and rankings are decided by increases in year-over-year revenues between 2007 and 2008.

Here’s the list of the top 10 companies in the Hot 100 Retailers List:

1.       DineEquity

2.       American Apparel

3.       Susser Holdings

4.       A&P

5.       Apple Stores/iTunes

6.       Wendy’s/Arby’s Group

7.       O’Reilly Automotive

8.       Finlay Enterprises

9.       The Pantry

10.     Amazon.com

 

Also in the basket:

 

Molson Coors profit jumps more than expected

 

Tyson profit led by chicken, shares higher

 

Equities too hot for their own good?

 

(Photo/Reuters)

July 1st, 2009

Check Out Line: Buying basics buoys big chains

Posted by: Jessica Wohl

Check out the ten largest U.S. retailers.

The National Retail Federation’s STORES magazine is out with its annual ranking of the top 100 retailers.

wal-mart-meat-shoppersThe list shows that U.S. consumers have been focused on bargains and basic necessities, such as food and medicine.  Wal-Mart tops the lineup, followed by Kroger and CostcoHome Depot fell from No. 2 in 2007 to the fourth spot in 2008 as many shoppers decided to cut back on costly home-improvement projects.

Home Depot, Lowe’s and Sears Holdings were the only members of the top 10 to see their revenue fall in 2008.

Some other rankings that may interest you: Amazon.com is the 19th largest retailer, ranking higher than well-known chains such as J.C. Penney, 7-Eleven and Gap.  Apple’s stores and iTunes combined hold the 40th spot, topping chains such as Nordstrom, Whole Foods and Barnes & Noble.

The companies were listed by annual revenue, which may include estimates for private or closely-held companies.  Revenue from major non-retail operations were excluded when possible.

Also in the basket:

General Mills profit tops view, outlook strong

Constellation Brands earnings beat expectations

Goldman raises Yum Brands to buy

Turf War at the Hot Dog Cart (New York Times)

(Reuters photo)

May 11th, 2009

Netflix tops customer satisfaction survey

Posted by: Alexandria Sage

NETFLIX-OUTAGE/Online retail may be outperforming brick-and-mortar rivals amid the U.S. recession, but that’s no reason to get complacent.

In a wake-up call to the industry, a new survey shows that customer satisfaction with online retailers declined 3 percent from last year.

The slipping satisfaction level uncovered in ForeSee Results’ Top 100 Online Retail Satisfaction Index is a “remarkable trend,” according to its author.

The report — which surveyed 22,000 respondents to measure customer satisfaction at the top 100 online retailers by sales volume — found that the top performers were outweighed by more bottom performers, with 55 online retailers seeing their scores drop from last year.
 
“Customer satisfaction, when measured scientifically, is not just a number or a beauty contest. It is a direct precursor of customer behaviors that have a measurable and quantifiable ability to impact sales and profitability,” warned author Larry Freed.
    
A 1 point increase in customer satisfaction is equivalent to nearly 9 percent growth in online sales, the report found, while a satisfied shopper is 71 percent more likely to buy than a dissatisfied one. 
    
First, the good news: Netflix.com is still No 1, followed by Amazon.com, with the top two companies maintaining their spots for five years in a row.  Avon.com came in third.

While a score of 80 or above represents a superior job, those logging lower than a 70 need some help.

That group includes 1800Flowers.com, BlueNile.com, JCrew.com, UrbanOutfitters.com and RestorationHardware.com.

The biggest year-over-year declines in customer satisfaction came from discounter Etronics.com and book retailer efollett.com, both also among the worst performers.
    
“It is surprising that any of the top 100 retailers could get away with scores in the 60s and maintain any kind of market dominance for very long,” wrote Freed.
    
While not in the bottom group, sites including CVS.com, NeimanMarcus.com, Apple.com and Blockbuster.com all saw their ratings fall over 6 percent from the prior year.

The biggest year-over year improvement came from Kohls.com, which improved nearly 6 percent.

December 31st, 2008

Check Out Line: Online shopping woes

Posted by: Jessica Wohl

Check Out the drop in online sales.
 
Even online retailers are ready for 2008 to end. After we heard about the abysmal holiday season at stores, comScore said online sales for the holiday period up to Dec. 23 dropped 3 percent. It was the first decline in online spending since comScore started tracking online sales in 2001.
 
The end of 2008 will also mark the first quarter that online sales fell. From Oct. 1 through Dec. 28 e-commerce spending fell 4 percent to $36.8 billion, according to comScore. 
 
CIRCUITCITY/So who were the biggest winners and losers in December? Through Dec. 24, Hewlett Packard’s online traffic in the U.S. rose 28 percent to more than 19.4 million unique visitors.  Apple, with more than 35 million visitors, saw its traffic rise 19 percent.  Meanwhile, traffic to Circuit City’s site fell 21 percent.  Presumably shoppers were spooked after it filed for bankruptcy protection and said it would shut some stores. Dell’s traffic was down 17 percent.  EBay was still the most popular site, though its traffic fell 4 percent to 85.4 million visitors.
 

Also in the basket:

Jobless claims drop by much more than expected

China dairy boss pleads guilty in melamine case

Bratz dolls to get reprieve, manufacturer says

Walmart Pulls Out of Nielsen’s PRISM (Advertising Age)

(Reuters photo)