Check out who has the highest customer satisfaction ranking among major appliance retailers.
 
It’s Best Buy, according to a study by J.D. Power and Associates.
 
The electronics retailer received a 797 out of 1,000 on the scale, performing particularly well in installation service and delivery service, J.D. Power said in a news release.
 
The study also takes into account sales staff, the store facility, merchandise and price.
 
Next was hhgregg at 794 and Lowe’s at 792. Sales staff and price were pluses for hhgregg, while Lowe’s did particularly well in store facility and merchandise, J.D. Power said.
 
The study is based on responses from more than 4,200 consumers who bought a laundry or kitchen appliance within the previous 24 months.
 
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(Photo: Reuters)

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.

The 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 Costco.  Home 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.

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(Reuters photo)

Check out the mixed messages from Home Depot.
 
The retailer posted better-than-expected quarterly profit. But that was still a 31-percent drop.
 
The company also said it expected sales to drop more this year than it previously thought.
 
Home improvement retailers were the leading edge of the retail slump, getting hit by the housing slowdown before the rest of the economy fell into what is likely a recession.
 
But with rival Lowe’s and now Home Depot both beating expectations, there could be signs of of a turnaround.
 
“Hardline retail stocks have historically begun their recoveries when expectations begin to be achieved, and this may be happening for Home Depot and Lowe’s,” Credit Suisse analyst Gary Balter said in a research note.
 
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Gift card sales seen down 6 percent this holiday

(Reuters photo)

Check out the lower expectations in the retail world.

Discount retailer Target Corp rang up its fifth consecutive lower quarterly profit, suspended almost all of its share buyback program and cut capital spending plans as cash-strapped consumers shifted away from its trendy merchandise to staples like food and toiletries.

Meanwhile, Lowe’s Companies, the No. 2 home improvement retailer, posted a lower profit, but even worse cut its fourth-quarter profit forecast below Wall Street’s expectations, citing rising unemployment, falling home prices and tight credit as reasons homeowners are putting off some renovations and purchases.

Most economists say the U.S. economy is in recession and will shrink even faster in the fourth quarter. The news reflects the pressures consumers are under.

The result? Fewer shoppers plan to use credit cards to buy gifts this holiday season and most have yet to complete their gift buying as retailers brace for their worst holiday season in about three decades. In fact, more consumers are simply putting away their plastic.

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(Photo: Reuters)

Sears, Roebuck is looking to grow home-goods sales by adding stores away from malls as shoppers flock to new retail centers.

That off-mall strategy includes more dealer stores located in smaller, rural markets, and home appliance showrooms in big cities.

Sears has about 860 dealer stores and 24 appliance showrooms, in addition to its more than 900 traditional mall-based stores. This year, the retailer is adding 75 dealer outlets and about 50 appliance showrooms, said Steve Titus, vice president of Sears Dealer Stores, in an interview.

The Hoffman Estates, Illinois, retailer is the top-selling U.S. appliance chain but has seen its dominance challenged as home-improvement stores such as Home Depot and Lowe’s expand their offerings.

Now, as Home Depot and Lowe’s cut their store growth in the slowing U.S. economy, Sears Holdings is looking to grow key businesses in hopes of benefiting when conditions improve.

The appliance showrooms (pictured), which include as much as 5,000 square feet, are located in high-traffic retail strips that also include other big-box stores such as Target.

Sears is hoping the appliance showrooms, which are currently in Minneapolis, Dallas, Houston, Atlanta and some other big cities, will help fill the gaps in areas not served by its mall stores or existing dealer stores.

“If we pull this off right, it could really help us grow our appliance business,” Titus said.

The dealer stores are locally owned and operated. Owners pay rent and expenses and Sears provides the products and pays a commission for selling them.

Even in the slow economy, “we have several hundreds of people requesting ownership of these stores right now,” Titus said.

Photo/Sears

Check out some positive signs for home improvement stores?
 
Goldman Sachs raised its rating on Lowe’s to “buy” from “neutral,” citing, in part, stabilization in the housing market.
 
“Stabilization” might be a stretch. But Goldman noted that home sales fell 15.5 percent in July, following a 17.9 percent decline in June. The drop was the smallest since July 2007 and marked the fifth consecutive monthly improvement.
 
The tumbling U.S. housing market has clobbered both Lowe’s and Home Depot, so any signs that the worst might be over could be a good thing for those companies.
 
Relatively calm hurricane seasons in the last two years have also hurt the retailers, Credit-Suisse analyst Gary Balter said.
 
Both retailers historically receive bumps from hurricanes, with Katrina, Rita and Wilma in 2005 “having a measurable impact not just on near term sales trends but on rebuilding for nearly one year past the hurricane event,” he said in a research note.
 
Gustav, Hanna, Ike, Josephine and what is currently a tropical depression could lift sales for Lowe’s and Home Depot, he said,
 
“Among natural disasters, hurricanes rank as the most sales impactful because unlike major winter storms, earthquakes or tornadoes, they are predictable providing a sales lift on both sides of the event,” Balter wrote.
 
He did note that both companies keep prices and margins low during natural disasters, but the impact of rebuilding still works its way to the bottom line.
 
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 (Photo: Reuters)

Home improvement consumers have spoken, and their choice of top retailer might surprise you.

Ace Hardware, the hardware cooperative with 4,600 stores, ranked highest in home improvement customer satisfaction for the second straight year, according to a J.D. Power and Associates study.

The 2008 study, conducted in March and April, tracked satisfaction with merchandise, price, sales staff, sales/promotions and store facility. Findings are based on responses from 9,770 consumers who bought a home improvement product or service within the past year.

Illinois-based Ace scored 791 points out of a possible 1,000 and rated high on sales staff and store facility measures.

Lowe’s came in second with a score of 784, followed by privately held Menards at 779. True Value, another cooperative, rated 774 on the satisfaction index. Home Depot, the biggest home improvement retailer, had a score of 753 and trailed Sears, which scored 767.

Lowe’s stood out for its merchandise, while Menards got high marks on price and promotions, the information services company said.

“Home Depot ranks lowest overall in our study primarily in its performance in the sales staff and store facility categories,” said Dale Haines, senior director of the retail and construction practice at J.D. Power.

Shareholders of Home Depot complained at last week’s annual meeting that finding goods on store shelves and workers to help customers was difficult. The company responded by saying it has stepped up store maintenance and hired electricians and other skilled staff.

As consumers pressed by higher gasoline and food prices spend less, service can be a key factor in determining where they’ll shop. “Retailers who are competing for that shrinking source of revenue can differentiate themselves by focusing on providing superior levels of customer service,” Haines said.

Meanwhile, Lowe’s told its shareholders on Friday that it was confident that it will rack up market share gains this year even as the slumping U.S. housing market continues to pressure sales.

“In a tough environment, great companies look for opportunities to strengthen their business,” Lowe’s Chairman Robert Niblock said.

(Photos: Ace Hardware and Lowe’s)

Check out those furrowed consumer brows.

In April, 24.5 percent of American consumers postponed a major purchase — an item of $500 or more – citing worries over higher gas prices, job security, credit card debt and the wait for a tax refund, according to a survey conducted by America’s Research Group.

That’s a big shift from a year ago, when almost 23 percent delayed a major purchase, saying they “did not want to spend the money right now.”

“This year most consumers did not even try to shop,” said C. Britt Beemer, founder and CEO of ARG. “They just stayed home to save on gas prices.” 

That new consumer mindset is a negative sign for retailers at least into 2009, Beemer said.

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Lowe’s posts lower net, cuts year forecast

Dillard’s to open only four stores in 2009

 (Photo: Reuters)