Little change in Top 20 kids retailers
By Dana French -- Kids Today, 7/1/2005
The Top 20 kids home furnishings retailers garnered $9 billion last year in kids sales, an increase of 3.2% from $8.8 billion in 2003 for the same group. The Top 20 sold products through 11,379 door fronts in 2004, up a net of 292 doors from 11,087 in 2003. For the second consecutive year, Wal-Mart, Target and Babies "R" Us rank as the No. 1, 2 and 3 kids retailers.
For the third consecutive year, Pottery Barn registered the highest sales gain among the Top 20. The lifestyle specialty store, part of publicly held Williams-Sonoma, moved up one spot to No. 5 this year and recorded kids sales of $540 million, a 22.7% increase from its 2003 sales of $440 million. Pottery Barn sells kids products through two of its brand extensions, Pottery Barn Kids and PBteen. Plans for this year include opening three Pottery Barn Kids stores and increasing its PBteen online marketing initiatives and catalog circulation.
Discount department stores and off-price retailers are the undeniable leaders in the kids market. The sheer number of outlets operated by the channel — 7,466 units last year, a net gain of 238 from the previous year — gives them an advantage over other channels.
Bolstered by No. 1 Wal-Mart and No. 2 Target, discounters registered $5.4 billion in 2004, a modest gain of 1.6% from $5.3 billion in 2003. Discounters Kmart and Meijer and off-price retailer Big Lots round out the group. Taken together, discounter department stores/off-price retailers own a 59% share of the Top 20.
Kmart saw its kids sales decline 15.4% last year, the largest decline among the Top 20. In March, No. 4 Kmart merged with No. 6 Sears to form one company, Sears Holding Corp. Sears had a 3.2% decline in kids sales last year. Together, the two rang up $1.3 billion in kids sales in 2004. The new company plans to convert approximately 400 Kmart units to Sears name plates over the next three years.
Kids specialty stores recorded sales of $2.0 billion last year, a 5.2% increase over $1.9 billion in 2003. No. 15 Bellini Furniture and No. 3 Babies "R" Us led the way with the greatest sales gains at 16.0% and 6.7% respectively. Other kids specialists on the list include Burlington Coat Factory's Baby Depot, Toys "R" Us, USA Baby, Baby News Stores and One Step Ahead. Specialists have a 22% share of the Top 20.
Lifestyle specialty stores, consisting of No. 5 Pottery Barn and No. 12 IKEA, posted the greatest sales gain of any store type last year at 21.8%. Pottery Barn opened nine stores last year and IKEA opened three.
Full-line furniture stores on the ranking include Rooms To Go, Ethan Allen, Levitz Home Furnishings and Berkshire Hathaway furniture division. Taken together, furniture stores garnered $268 million last year in kids home furnishings, up only 1.1% from $265 million in 2003.
Levitz announced in May plans to close its 45 Seaman's store franchise, including the 10-store Seaman's Kids in greater New York. About 25 stores will be converted to the Levitz name plate.
No. 6 Sears and No. 7 J.C. Penney are the department stores on the Top 20. Together, the two pulled in $790 million in kids sales in 2004, down 3.1% from $815 million the previous year.
Retailers to watchSeveral kids home furnishings specialists are on the verge of breaking into the Top 20 Kids Home Furnishings Retailers. Here are some of the leading candidates:
- Fort Lauderdale, Fla.-based Baby Universe posted net sales of $14.3 million in 2004, an increase of 61.4% from $8.8 million in 2003. In April, the online specialist filed a registration statement with the SEC to raise up to $17.25 million in its initial public offering. The company began selling online in 1997, providing new and expectant parents with a one-stop shopping experience of more than 33,500 products from more than 450 manufacturers. Customers can register online through the baby registry. Shoppers can also link to a Spanish-only site.
- BombayKIDS, a subsidiary of publicly held The Bombay Co., had $35.2 million in kids home furnishings sales last year, an 89.2% increase over $18.6 million for 2003. The kids specialist ended its fiscal year January 29 with 48 U.S. stores and plans to open 12 to 13 BombayKIDS stores this fiscal year. The stores, which average 4,000 square feet and are often adjacent to a Bombay store, offer furniture, textiles and accessories for children's bedrooms and bathrooms. Kids home furnishings are also sold online, through its catalog and through Bombay Outlet stores.
- Garden City, N.Y.-based Buy Buy Baby was founded by Jeffrey and Richard Feinstein, sons of Bed Bath & Beyond's co-founder Leonard Feinstein, in 1995. The specialist sells kids merchandise online at www.buybuybaby.com and through eight stores. Stores range from 35,000 to 60,000 square feet and offer more than 20,000 products, including a full-line of infant and toddler furniture, apparel, infant gear, toys and accessories. Total 2004 sales for the specialist are estimated at $20 million.
- Wheeling, Ill.-based Land of Nod began selling kids home furnishings in 1996 through its storybook catalog. The specialist teamed up with lifestyle specialty retailer Crate & Barrel in 2001, a partnership that enabled it to expand into retail stores. In 2003, the chain opened its first brick-and-mortar store in Chicago and currently operates four stores. Units range in size from 5,000 to 7,000 square feet. The stores share warehouse facilities, distribution, delivery and installation services with Crate & Barrel. Additionally, Land of Nod sells kids home furnishings and gifts for babies and children through its catalog and online at www.landofnod.com. The company launched its online baby registry, which can also be accessed through stores, last fall.
- Pier 1 Kids, part of publicly held Pier 1 Imports, garnered $25.7 million in kids home furnishings sales last year, up 29.5% from $19.8 million in 2003. At fiscal year end, Fort Worth, Texas-based Pier 1 Kids operated 45 stores. Units average 3,400 square feet of selling space. The specialist plans to open two stores each in Florida and Texas to end the year with 47 units. As of March, all previous CargoKids stores have been converted to the Pier 1 Kids nameplate. In 2004, youth bedroom furniture accounted for 65% of sales and decorative accessories accounted for 35%.
| Rank | Company, home base, notes | Estimated kids home furnishings Sales in $ millions | Percent change | Number of units with kids home furnishings | ||
| 2004 | 2003 | 2003 to 2004 | 2004 | 2003 | ||
| 1 | Wal-Mart , Bentonville, Ark. | $2,775 | $2,640R | 5.1% | 3,066 | 2,949 |
| Fiscal year ended Jan. 31. Sales and store counts are for U.S. stores only, including discount and supercenter stores and exclude Sam's Club locations. Also sells kids merchandise online at www.walmart.com. Opened a net of 34 discount stores and 242 supercenters in 2004, including 159 discount conversions to supercenters, to end the year with 1,353 discount stores and 1,713 supercenters. Plans to add 240 to 250 supercenters this year and 40 to 45 discount stores. Comp store sales increased 2.9% in 2004. Total 2004 Wal-Mart Stores sales were $191.8 billion, up 10.1% from $174.2 billion in 2003. For the first quarter ended April 30, Wal-Mart Stores sales were $47.6 billion, up 9.3% from $43.6 billion in the first quarter of 2004. | ||||||
| 2 | Target , Minneapolis | $1,460 | $1,355R | 7.7% | 1,308 | 1,225 |
| Fiscal year ended Jan. 29. Opened 18 net superstores and 65 net new general stores last year and remodeled 71 units to the P2004 prototype. P2004 stores feature a comprehensive "Baby World" department that offers baby supplies including diapers and formula grouped with infant furniture, gear and layette. Plans to open 105 to 110 new units this year, 26 of which opened in March. Expects to add more than 600 stores within the next five years, giving it a total of about 2,000 stores. Comp store sales increased 5.3% in 2004. Total 2004 sales were $45.7 billion, up 11.6% from $40.9 billion in 2003. For the first quarter ended April 30, sales were $11.2 billion, up 12.7% from $9.9 billion in the first quarter of 2004. | ||||||
| 3 | Babies "R" Us , Paramus, N.J. | $1,143 | $1,071R | 6.7% | 217 | 198 |
| Fiscal year ended Jan. 29. Division of Toys "R" Us. The entire Toys "R" Us chain was purchased by private equity firm Kohlberg Kravis Roberts in March for $6.6 billion. Under the deal, Vornado Realty Trust, Kohlberg Kravis Roberts & Co. and Bain Capital Partners will each own one-third of the company. Sales and store counts are for Babies "R" Us units only. Also sells kids merchandise online at www.babiesrus.com, sales figures not included. Opened 19 new stores in 2004. Plans to expand store base this year, including conversions of Kids "R" Us and Toys "R" Us stores. Will open its first Manhattan store in time for the holidays by taking over a previous Toys "R" Us store. Partnered with Wendy Bellissimo in October, creating a multi-year agreement to design an exclusive line of baby bedding and nursery accessories. The first four lines were available beginning December 2004. Comp store sales increased 2.2% in 2004. Total 2004 sales were $1,863 million, up 7.2% from $1,738 million in 2003. | ||||||
| 4 | Kmart , Troy, Mich. | $880 | $1,040 | -15.4% | 1,480 | 1,511 |
| Fiscal year ended Jan. 26. Merged with Sears (see No. 6) to form one company, Sears Holdings Corp., in March. Closed a net of 31 stores last year. Will convert about 400 Kmart units to Sears name plates over the next three years. Units average 95,000 square feet of selling space. In December, launched a new-look prototype in two of its units in White Plains, N.Y., and Boca Raton, Fla. New stores feature bright orange signage and fixtures. Launched the Kmart Reward credit card in November, offering cash rewards related to buying frequency. Comp store sales decreased 11% for fiscal 2004. Total 2004 sales were $19.7 billion, down 15.3% from $23.3 billion in 2003. For the first quarter ended April 30, total sales decreased 2.3% compared to the first quarter of 2004. | ||||||
| 5 | Pottery Barn , San Francisco | $540 | $440 | 22.7% | 85 | 76 |
| Fiscal year ended Jan. 30. Part of publicly held Williams-Sonoma. Sells kids home furnishings through two of its brand extensions, Pottery Barn Kids and PBteen. Pottery Barn Kids offers casual furnishings and textiles for children ages 0–12 through its stores, catalogs and e-commerce site, potterybarnkids.com. PBteen offers teen home furnishings and decorative accessories through both its catalogs and e-commerce site, pbteen.com. At year-end, operated 87 Pottery Barn Kids stores, including two in Toronto, Canada. Sales and store count for U.S. operations only. In 2005, plans to open three Pottery Barn Kids stores. In PBteen, plans to increase catalog circulation — had a 55% increase in circulation in 2004 — and expand its online marketing initiatives. | ||||||
| 6 | Sears , Hoffman Estates, Ill. | $450 | $465 | -3.2% | 873 | 871 |
| Fiscal year ended Jan. 1. Sales and store counts are for full-line U.S. stores only and exclude sales from the Sears for Kids catalog and Internet site operated by Direct Marketing Services. Merged with Kmart (see No. 4) to form one company, Sears Holdings Corp., in March. Opened six stores last year and closed four. About 400 Kmart units will convert to Sears name plates over the next three years. Launched a new off-mall, mid-sized format called Sears Essentials this spring. The stores are the result of the acquisition of 50 Kmart and six Wal-Mart stores last year. The first 25 to open include six in California; five in Florida; three in Illinois; two each in Maryland and New Jersey; and one each in Arizona, Kentucky, Michigan, New Hampshire, Pennsylvania, Tennessee and Virginia. Full-line comp store sales decreased 1.9% in 2004. Full-line 2004 sales were $22,287 million, down 2.5% from $22,863 million in 2003. | ||||||
| 7 | J. C. Penney , Plano, Texas | $340 | $350 | -2.9% | 1,017 | 1,020 |
| Fiscal year ended Jan. 29. Sales and store counts are for department stores in the U.S. and Puerto Rico, the "big book" and specialty catalogs. Opened 14 stores and closed 17 last year. Operated 10 off-mall units at fiscal year end. Plans to open 20 new stores this year, most of which will be off-mall stores and remodel 50 existing stores. Comp store sales were up 5% in 2004, its fourth consecutive year of improvement. Catalog and Internet sales together increased 3.3% in 2004. Internet sales alone increased 32% to $812 million. Total 2004 sales were $18.1 billion, up 3.3% from $17.5 billion in 2003. For the first quarter ended April 30, total sales were $4,192 million, up 3.9% from $4,033 million for the first quarter of 2004. | ||||||
| 8 | Baby Depot , Burlington, N.J. | $300 | $288R | 4.2% | 306 | 293 |
| Fiscal year ended May 29, 2004. Sales and store counts are for the trailing 12 months ended Feb. 26. Operates 305 Baby Depot departments within Burlington Coat Factory stores and one free-standing Super Baby Depot store in Moorestown, N.J. Opened its second Super Baby Depot unit in Ontario, Calif., in March. Super Baby Depot stores average 25,000 square feet and offer diaper-changing facilities, complimentary gift wrap and a "Safety Super Center" that features safety products in kitchen, bath and bedroom displays and allows customers to test products in a home-like environment. The free-standing stores also sponsor community events, such as its "Breakfast at Baby Depot" program offering information to parents. Trailing 12-month 2004 home sales, including kids home furnishings, were $642 million, up 4.4% from $615 million in 2003. Total 2004 trailing 12-month sales were $3.1 billion, up 12% from $2.8 billion in 2003. | ||||||
| 9 | Toys "R" Us , Paramus, N.J. | $205 | $210R | -2.4% | 681 | 685 |
| Fiscal year ended Jan. 29. Sales and store counts are for U.S. Toys "R" Us units only. Also sells kids merchandise online at www.toysrus.com, sales figures not included. The entire Toys "R" Us chain was purchased by private equity firm Kohlberg Kravis Roberts in March for $6.6 billion. Under the deal, Vornado Realty Trust, Kohlberg Kravis Roberts & Co. and Bain Capital Partners will each own one-third of the company. Opened one new store in 2004, relocated three and closed five. Employs a merchandise "world" concept in all stores with kids home furnishings and apparel located within the "juvenile world." Comp store sales decreased 3.7% in 2004. Total 2004 sales were $6,104 million, down 3.5% from $6,326 million in 2003. | ||||||
| 10 | Meijer , Grand Rapids, Mich. | $165 | $158 | 4.4% | 163 | 158 |
| Family-owned and operated discount department store. Celebrated its 70th anniversary last year. Is recognized as the pioneer of the supercenter. Approximately half of its stores are in Michigan, with the balance in Illinois, Indiana, Kentucky and Ohio. 2005 expansion plans include seven new stores in Michigan and one each in Indiana and Illinois. New stores will feature wider aisles and lower shelving and are based on Meijer's new prototype, the first of which opened in Lincoln Park, Mich., in November. All units are open 24-hours a day. Meijer's Baby Club offers exclusive savings to expectant parents and parents with children under 3. Total 2004 sales estimated near $13 billion. | ||||||
| 11 | Rooms To Go , Seffner, Fla. | $120 | $115 | 4.3% | 98 | 95 |
| Privately owned retailer. Offers kids products for the infant through teen at its Rooms To Go stores, Rooms To Go Kids stores and clearance centers. At year-end, RTG Kids included eight in Florida, four each in Georgia and Texas, two in North Carolina, one in Brentwood, Tenn., and a franchise store in San Juan, Puerto Rico. RTG Kids average 8,000 square feet and sells its own exclusive furniture, along with collections from Young America, Good Cos., Thomasville, Simmons and Sealy. In 2005, has opened Rooms To Go with adjacent Kids stores in San Antonio and in Birmingham, Ala., its first in Alabama. Kids home furnishings accounted for approximately 8% of total merchandise sales in 2004. Total Rooms To Go 2004 merchandise sales, $1.42 billion. | ||||||
| 12 | IKEA , Plymouth Meeting, Pa. | $102 | $87 | 17.2% | 21 | 18 |
| Privately held, Sweden-based retailer. Fiscal year ended Aug. 31. Sales and store count for U.S. operations only. At fiscal year-end U.S. stores included Baltimore and College Park, Md.; Burbank, Carson, Costa Mesa, Covina, East Palo Alto, Emeryville and San Diego, Calif.; Conshohocken, Pittsburgh and Philadelphia, Pa.; Elizabeth and Paramus, N.J.; Long Island, N.Y.; Houston; Minneapolis/St. Paul; New Haven, Conn.; Schaumburg, Ill.; Seattle; and Woodbridge, Va. The stores range from 270,000 square feet to 350,000 square feet. Will end this fiscal year with 24 stores, including a store opened in Tempe, Ariz., in November and stores opening in Atlanta and Frisco, Texas, this summer. Kids home furnishings accounted for approximately 6% of total sales in 2004. Total IKEA 2004 sales, $1.7 billion. | ||||||
| 13 | Big Lots , Columbus, Ohio | $93 | $93R | 0.0% | 1,449 | 1,385 |
| Fiscal year ended Jan. 29. Sales and store counts are for Big Lots stores only and do not include freestanding Big Lots Furniture stores. Opened 103 total stores in 2004 and closed 31. Added 224 net furniture departments, ranging in size from 2,000 to 5,000 square feet, last year. Furniture sales represented 12.5% of 2004 net sales, up from 12.1% in 2003. Comp store sales for 2004 were flat. Total 2004 sales were $4,375 million, up 4.8% from $4,174 million in 2003. For the first quarter ended April 30, sales were $1,099 million, up 7.8% from $1,019 million for the same period in 2004. | ||||||
| 14 | USA Baby , Lombard, Ill. | $88 | $85 | 3.5% | 65 | 60 |
| Chain of 65 franchised stores known primarily as USA Baby and The Baby's Room in 29 states and one store in Mexico. Sales and store count for U.S. stores only. Offers non-apparel products for infants and toddlers, including furniture, bedding, strollers, textiles and toys. Operates two free-standing Childspace stores in Cary, N.C., and Huntingdon Valley, Pa., and Childspace departments within many USA Baby's stores, offering big kids furniture and textiles for the 2 through college-age child. Stores average 7,500 square feet. In 2004, opened nine stores, including its first stores in the states of Hawaii, Connecticut, Washington and New Mexico. Also closed four stores, leaving Louisiana and Oregon. In 2005, plans to open seven stores, including its first in Missouri and Puerto Rico. | ||||||
| 15 | Bellini Furniture , Scarsdale, N.Y. | $87 | $75 | 16.0% | 49 | 48 |
| Independently owned stores franchised through Bellini Furniture. Units are located in 19 states and average 5,000 square feet. Stores exclusively carry Bellini furniture, textiles and accessories, as well as accessories from other vendors. All furniture is made in Italy and Canada out of beechwood and maplewood. All Bellini cribs convert into toddler beds, have four mattress levels, side rails that raise up and down, a non-toxic finish and a storage drawer underneath. Bellini also has cribs that convert to full beds. Stores also carry twin and full beds, dressers, changing tables, bassinets, armoires, nightstands, desks, toy chests and bookcases. All changing tables convert into bookcases or dressers. Bellini helped direct the nursery makeover on a March episode of ABC's "Extreme Makeover: Home Edition." For the show, the upscale retailer donated the major case goods, including six twin beds, desks and armoires, and contacted other youth vendors to complete the room's décor. | ||||||
| 16 | Baby News Stores , Livermore, Calif. | $81 | $81 | 0.0% | 52 | 55 |
| Independently owned and operated stores franchised through Stanford Distributing. U.S. stores are located in Alaska, Arizona, California, Colorado, Florida, Hawaii, Idaho, Illinois, Missouri, Montana, Nevada, New Jersey, New York, Ohio, Oregon, Pennsylvania, Utah and Washington. Also operates 11 stores overseas in Bermuda, Guam and Singapore; figures are excluded from estimates. Sells online at www.babynewsonline.com. Closed three net stores in 2004. Its Web site also features a liquidation center. Units average 8,000 square feet and carry a full range of kids home furnishings. Vendors include Graco, Evenflo, Britax, Pali and Dutailier. | ||||||
| 17 | One Step Ahead , Lake Bluff, Ill. | $58 | $55 | 5.5% | NS | NS |
| Part of privately held Chelsea & Scott, Ltd. Sells through its One Step Ahead and Leaps & Bounds catalogs and online at www.onestepahead.com and www.leapsandbounds.com. Strives to make customers keep coming back as children grow through its two-brand merchandise strategy: One Step Ahead features a complete line of home furnishings for prenatal through age 3, while Leaps & Bounds offers home furnishings, as well as developmental toys and a larger offering of safety equipment for ages 3 to 8. Mails catalogs four times a year for both brands. Offers a complete guarantee on every item. Online offerings include a gift registry and a "shop smarter" section that includes articles on how to make cribs safer, how to chose a carseat, how to childproof your home and how to balance breast-feeding and work. | ||||||
| 18 | Ethan Allen , Danbury, Conn. | $56 | $55 | 1.8% | 282 | 283 |
| Fiscal year ended June 30. Sales and store count are for the trailing 12 months ended Dec. 31 and for U.S. stores only (119 company-owned and 163 dealer-owned). Offers everything from case goods, accents and upholstery to comforters, matching sheet sets and window treatments for infants to the young adult through its Ethan Allen Kids departments. The two Ethan Allen Kids stores, opened in 2003, have been closed and are now included in full-line stores. Kids home furnishings accounted for approximately 4.6% of total sales in 2004. Total Ethan Allen 2004 sales, $1.2 billion. | ||||||
| 19 | Levitz Home Furnishings , Woodbury, N.Y. | $47 | $54 | -13.0% | 136 | 127 |
| Fiscal year ended March 31. Majority owned by Resurgence Asset Management. At fiscal year-end operated 10 Seaman's Kids stores, 89 Levitz stores and 37 Seaman's stores. In May 2005, Levitz announced it would close its Seaman's operation, including the Kids stores. About 25 stores will be converted to Levitz , expanding that brand's market coverage in the Northeast. The transition should be completed by Labor Day, when LHFI expects to have 115 Levitz stores in 10 states. The Levitz stores will be undergoing some changes during this time, including expansion of Levitz Kids departments. The Kids galleries will be 6,000 to 8,000 square feet, 25% to 50% larger than they are currently, when the transition is completed. Kids home furnishings accounted for approximately 4.9% of total sales in 2004. Total Levitz Home Furnishings 2004 sales, $953 million. | ||||||
| 20 | Berkshire Hathaway furn. div. , Omaha, Neb. | $45 | $41 | 9.8% | 31 | 307 |
| Publicly held, fiscal year ended Dec. 31. Owns Nebraska Furniture Mart, with one store each in Omaha, Neb., and Kansas City and two Homemakers Furniture of Iowa stores in Des Moines and Urbandale; R.C. Willey, with 12 stores — one in Idaho, two in Nevada and nine in northern Utah; Star Furniture, with 11 stores in Texas; and Jordan's Furniture with four Boston-area stores. All four furniture divisions carry youth furniture. NFM's stores infant and youth area occupies about 10,000 square feet and Homemakers Furniture store in Des Moines has about 7,000 square feet for kids furnishings. Kids home furnishings accounted for about 2.4% of total 2004 merchandise sales. Total Berkshire Hathaway furniture division 2004 merchandise sales, $1.87 billion. | ||||||
| All kids home furnishings sales information, except for publicly held companies that break out line-of-business sales for kids home furnishings, are Kids Today market research estimates. All data for calendar year ending Dec. 31, fiscal year-end or trailing 12 months closest to that date. R = Revised from updated information NS = No stores Source: Kids Today market research |
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