Top kids home furnishings retailers
By Dana French -- Kids Today, 7/1/2006
Kids home furnishings sales for the 20 largest retailers increased a healthy 5.4% last year, growing to $9.7 billion from $9.2 billion for the same companies in 2004. The Top 20 sold kids merchandise through 11,634 stores in 2005, up a net 238 doors from 11,396 the previous year. For the third consecutive year, Wal-Mart, Target and Babies "R" Us rank as the No. 1, 2 and 3 kids retailers respectively.
As a channel, lifestyle specialty stores posted the highest sales gain in kids home furnishings sales. On this year's ranking, the lifestyle specialty store channel consists of San Francisco-based Pottery Barn and Plymouth Meeting, Pa.-based IKEA. Together, the two companies recorded kids 2005 sales of $735 million, an increase of 14.5% over 2004 kids sales of $642 million.
Individually No. 13 IKEA had the highest sales gain in kids home furnishings sales of any Top 20 retailer at 17.6%. As part of the privately held, Sweden-based company, IKEA opened three new U.S. stores last year and thus far in 2006 has opened stores in West Sacramento, Calif. and Canton, Mich.
Accounting for nearly three-fifths of the Top 20 kids home furnishings sales, discount department stores and off-price retailers own the largest share of the Top 20. Headed by No. 1 Wal-Mart and No. 2 Target, discounters registered kids sales of $5.7 billion last year, up 5.4% from $5.4 billion in 2004. The channel sold kids home furnishings through 7,574 stores in 2005, up 108 net units from 7,466 the previous year. Wal-Mart alone accounts for 31% of the Top 20 kids sales and Wal-Mart and Target together comprise nearly half of the Top 20 kids sales.
No. 14 Big Lots experienced the highest gain in kids sales among discounters and off-price retailers. Even though the Columbus, Ohio-based retailer closed 174 stores last year, including all 41 of its stand-alone Big Lots Furniture stores, Big Lots opened 73 new stores and posted 2005 kids sales of $105 million, up 12.9% from $93 million in 2004. Home, including kids home furnishings, was the best performing category for the closeout retailer last year.
Kids specialty stores experienced respectable growth in 2005, garnering $2.1 billion in kids sales, a gain of 5.2% over $2 billion in 2004. The channel accounts for 22% of the Top 20 this year. Kids specialists sold kids merchandise through 1,375 doors in 2005, a net gain of five outlets for the year.
No. 3 Babies "R" Us is the undisputed leader among the specialists. The chain, along with its parent Toys "R" Us, was purchased by the private equity firm Kohlberg Kravis Roberts last July for $6.6 billion. The baby superstore continues to grow its base, opening 13 new stores last year and planning to open 22 new stores this year, 12 of which will be converted from previous Toys "R" Us units. Total company sales grew 11.5% last year, while kids home furnishings sales grew $6.3%, hitting nearly $1.28 billion.
No. 8 Baby Depot posted the largest growth among the kids specialists. As part of publicly held Burlington Coat Factory, Baby Depot grew its kids sales 10% to $330 million in 2005. At year-end, the company operated one free-standing Super Baby Depot store and 305 Baby Depot departments within Burlington Coat Factory stores. Thirteen net Baby Depot departments were opened last year.
Full-line furniture stores recorded kids sales of $378 million last year, a 7.7% increase over $351 million in 2004. No. 11 Rooms To Go and No. 20 Berkshire Hathaway furniture division, including the regional furniture stores of Nebraska Furniture, Homemakers Furniture, R.C. Willey, Star Furniture and Jordan's Furniture, led the way with the greatest kids sales gains at 16.7% and 11.1% respectively. Full-line furniture stores sold kids home furnishings through 632 units last year and account for 4% of the Top 20.
No. 12 Ashley Furniture HomeStores makes its debut on the Top 20 this year. The Arcadia, Wis.-based retailer posted kids sales of $130 million in 2005. At fiscal year end, the privately owned, single-source retailer operated 207 licensed and 12 company-owned U.S. stores. Ashley's youth departments average 3,000 square feet and offer bedroom furniture, textiles, lamps, wall art, permanent botanicals, area rugs and other decorative accessories. Total 2005 sales for the fast-growing retailer were $1.58 billion, an increase of 73.2% from $913 million in 2004. Kids home furnishings accounted for an estimated 8% of Ashley's 2005 total sales.
The department store channel posted a sales decline for kids last year. Consisting of No. 6 Sears and No. 7 JCPenney, the channel pulled in 2005 kids sales of $772 million, down 2.3% from $790 in 2004.
| Discount department stores/off-price retailers | 59% |
| Kids specialists | 22% |
| Department stores | 8% |
| Lifestyle specialty stores | 7% |
| Full-line furniture stores | 4% |
| Lifestyle specialty stores | 14.5% |
| Full-line furniture stores | 7.7% |
| Discount department stores/off-price retailers | 5.4% |
| Kids specialists | 5.2% |
| Department stores | -2.3% |
| Top 20 | 5.4% |
| Source: Kids Today market research |
|
| Rank | Company, home base, notes | Estimated kids home furnishings Sales in $ millions | Percent change 2004 to 2005 | Number of units with kids home furnishings | ||
| 2005 | 2004 | 2005 | 2004 | |||
| 1 | Wal-Mart, Bentonville, Ark. | $2,980 | $2,775 | 7.4% | 3,189 | 3,066 |
| Fiscal year ended Jan 31. Sales and store counts are for U.S. stores only, including discount and supercenter stores and exclude Neighborhood Markets and Sam's Club locations. Also sells kids home furnishings online at www.walmart.com. Store expansions last year added approximately 39 million square feet by opening a net of 22 discount stores and 267 supercenters, including 166 discount conversions to supercenters. Ended the year with 1,209 discount stores and 1,980 supercenters. Plans to add 270 to 280 new supercenters and 20 to 30 new discount stores this year. Comp store sales increased 3.4% in 2005. Total 2005 Wal-Mart Stores sales were $209.9 billion, up 9.4% from $191.8 billion in 2004. For the first quarter ended April 30, Wal-Mart Store sales were $52.5 billion, up 10.2% from $47.6 billion in the first quarter of 2005. | ||||||
| 2 | Target, Minneapolis | $1,575 | $1,460 | 7.9% | 1,397 | 1,308 |
| Fiscal year ended Jan. 28. Opened 87 new Target Stores and closed 20 in 2005. Also opened 22 new SuperTargets. Plans to open a total of 100 new stores this year. Launched the exclusive Amy Coe infant toy line last August. Is building a 2 million-square-foot import warehouse in Savannah, Ga., scheduled for completion in the summer of 2007. Comp store sales increased 5.6% last year. Total 2005 sales were $51.3 billion, up 12.2% from $45.7 billion in 2004. For the first quarter ended April 29, sales were $12.5 billion, up 11.8% from $11.2 billion in the first quarter of 2005. | ||||||
| 3 | Babies "R" Us, Paramus, N.J. | $1,275 | $1,200R | 6.3% | 232 | 217 |
| Division of privately held Toys "R" Us, fiscal year ended Jan. 28. Sales and store counts are for Babies "R" Us units only. Also sells kids merchandise online at www.babiesrus.com, sales figures not included. The entire Toys "R" Us chain was purchased by private equity firm Kohlberg Kravis Roberts in July 2005 for $6.6 billion. Under the deal, Vornado Realty Trust, Kohlberg Kravis Roberts & Co. and Bain Capital Partners each own one-third of the company. Opened 13 stores in 2005. Plans to open 22 new stores in 2006, 12 of which will be converted Toys "R" Us units. Opened its first Babies "R" Us store in Manhattan last fall by taking over the former Toys "R" Us location in Union Square. Comp store sales increased 5.7% last year. Wood furniture categories had double-digit net sales increases in 2005. Total 2005 sales were $2.08 billion, up 11.5% from $1.86 billion in 2004. | ||||||
| 4 | Kmart, Hoffman Estates, Ill. | $830 | $880 | -5.7% | 1,416 | 1,480 |
| Fiscal year ended Jan. 28. Part of publicly held Sears Holdings Corp. Merged with Sears (see No. 6) to form one company in March 2005. At fiscal year end operated 1,361 discount stores and 55 supercenters in 49 states, Guam, Puerto Rico and the U.S. Virgin Islands. Also sells kids merchandise online at www.kmart.com. Closed a net of 64 stores last year, including 48 stores converted to the Sears Essentials format. Discount stores average 92,000 square feet and supercenters average 165,000 square feet. Comp store sales decreased 1.2% in 2005. Total 2005 sales were $19.1 billion, down 3.8% from $19.8 billion in 2004. For the first quarter ended April 29, sales were $4.3 billion. | ||||||
| 5 | Pottery Barn, San Francisco | $615 | $540 | 13.9% | 86 | 85 |
| Fiscal year ended Jan. 29. Part of publicly held Williams-Sonoma. Sells kids home furnishings through Pottery Barn Kids and PBteen. PBkids offers casual furnishings and textiles for children ages 0–12 through its stores, catalog and potterybarnkids.com. PBteen offers teen home furnishings and decorative accessories through its catalogs and pbteen.com. Sales and store counts for U.S. only. In 2006, plans to open four PBkids stores and remodel/expand one due to damage caused by Hurricane Katrina. Plans to expand its nursery assortment including increasing the catalog page count and testing infant apparel in all three channels of distribution. Will continue to refine PBteen's catalog presentation, expanding furniture, bedding, jewelry storage and personalization. | ||||||
| 6 | Sears, Hoffman Estates, Ill. | $420 | $450 | -6.7% | 924 | 873 |
| Fiscal year ended Jan. 28. Part of publicly held Sears Holdings Corp. Sales and store counts are for full-line U.S. stores only, including Sears Grand and Essentials locations and exclude Sears for Kids catalog and Internet site operated by Direct Marketing Services. Merged with Kmart (see No. 4) to form one company on March 24, 2005. Closed three full-line stores in 2005 and opened 54 Sears Essentials and Grand locations. During the first half of 2006, all Sears Essential stores will change nameplates to Sears Grand. Full-line stores average 132,000 square feet. Sears Domestic sales were $30 billion in 2005, down 3.9% from $31.2 billion in 2004. For the first quarter ended April 29, Sears Domestic sales were $6.69 billion. | ||||||
| 7 | JCPenney, Plano, Texas | $352 | $340 | 3.5% | 1,019 | 1,017 |
| Fiscal year ended Jan. 28. Opened 18 new stores last year, including 11 off-mall locations, and closed 16. Plans to open 27 stores this year. Opened the JCPenney Experience, a three-level, temporary store in Times Square in March. Sales per gross square foot increased 4% last year to $157 from $151 in 2004. Comp store sales increased 2.9% in 2005. Internet sales increased 28% in 2005 and surpassed the $1 billion mark for the first time. Total 2005 sales were $18.8 billion, up 3.8% from $18.1 billion in 2004. For the first quarter ended April 29, sales were $4.2 billion, up 2.5% from $4.1 billion in the first quarter of 2005. | ||||||
| 8 | Baby Depot, Burlington, N.J. | $330 | $300 | 10.0% | 306 | 306 |
| Fiscal year ended May 28, 2005. 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. Super Baby Depot has 25,000 square feet and offers diaper-changing facilities, complimentary gift wrap and a Safety Super Center, which features safety products in kitchen, bath and bedroom displays and allows customers to test products in a home-like environment. Trailing 12 month 2005 home sales, including kids home furnishings, were $676.5 million, up 10% from $614.8 million in 2004. Total 2004 trailing 12 month sales were $3.4 billion, up 9.2% from $3.1 billion in 2004. | ||||||
| 9 | Toys "R" Us, Paramus, N.J. | $202 | $205 | -1.5% | 674 | 681 |
| Privately held, fiscal year ended Jan. 28. 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 July 2005 for $6.6 billion. Under the deal, Vornado Realty Trust, Kohlberg Kravis Roberts & Co. and Bain Capital Partners each own one-third of the company. Closed 10 stores during 2005. Began closing 87 stores in January, 75 of which will close permanently and 12 of which will reopen as Babies "R" Us stores this fall. Comp store sales decreased by 1.4% in 2005. Total 2005 sales were $5.98 billion, down 2.1% from $6.1 billion in 2004. | ||||||
| 10 | Meijer, Grand Rapids, Mich. | $173 | $165 | 4.8% | 171 | 163 |
| Family-owned and operated. In business for 72 years. Is recognized as the pioneer of the supercenter. All stores are opened 24-hours. Approximately two-thirds of its stores operate in Michigan, with the balance in Illinois, Indiana, Kentucky and Ohio. Opened eight net stores in 2005, including six in Michigan. Will open five new supercenters this year. Selected Mark Murray as its future president. Murray will join the company this August. Meijer's Baby Club offers exclusive savings to expectant parents and parents with children under 3. Total 2005 sales estimated near $14 billion. | ||||||
| 11 | Rooms To Go, Seffner, Fla. | $140 | $120 | 16.7% | 102 | 98 |
| Privately-owned retailer. Offers kids products for the infant through teen at its Rooms To Go Kids & Teens stores, Rooms To Go main stores and clearance centers in Florida, Georgia, the Carolinas, Mississippi, Tennessee, Texas and Alabama. At year's end operated some 24 Kids showrooms as free-standing units, adjacent units to a RTG main store and as showrooms within RTG stores. In 2005, rolled out four Disney youth bedroom groups — Disney Princesses, Mickey Mouse, Winnie the Pooh and Lizzie McGuire. Is adding youth groups based on the movies "Pirates of the Caribbean" and "Cars" this fall. In January, opened 11 former Rhodes stores, acquired in August 2005, as RTG. Nine of those stores include Rooms To Go Kids & Teens within the stores. Kids home furnishings accounted for almost 9% of 2005 total sales. Total 2005 sales, $1.6 billion. | ||||||
| 12 | Ashley Furniture Home Stores, Arcadia, Wis. | $130 | NA | NA | 219 | 153 |
| Privately owned retailer with 207 licensed and 12 company-owned stores across the U.S., including Alaska and Hawaii. The youth departments average about 3,000 square feet and offer bedroom furniture, textiles, lamps, wall art, floral, rugs and other accents targeted more toward the young adult and early teen versus a younger juvenile set. No infant merchandise is offered in the stores. Overall, stores average 40,000 square feet. Ashley expects retailers to open 100 or so HomeStores this year. Kids home furnishings accounted for about 8% of total sales in 2005. Total Ashley Furniture HomeStores 2005 sales, $1.58 billion. | ||||||
| 13 | IKEA, Plymouth Meeting, Pa. | $120 | $102 | 17.6% | 24 | 21 |
| Privately held, Sweden-based retailer. Fiscal year ended Aug. 31. Sales and store count for U.S. operations only. At fiscal year end, operated 24 stores in the U.S. — eight in California, three in Pennsylvania, two each in Illinois, Maryland, and New Jersey, and one each in Connecticut, Massachusetts, Minnesota, New York, Texas, Virginia and Washington. Children's IKEA has a full range of kids furnishings including furniture, beds and mattresses, accessories, textiles, lighting, storage, and toys. Will end its fiscal year in August with 28 stores, including stores opened last fall in Bolingbrook, Ill., and Stoughton, Mass., a store opened in March 2006 in West Sacramento, Calif., and a store set to open this June in Canton, Mich. Kids home furnishings accounted for approximately 6% of 2005 total sales. Total 2005 sales, $2 billion. | ||||||
| 14 | Big Lots, Columbus, Ohio | $105 | $93 | 12.9% | 1,401 | 1,519 |
| Fiscal year ended Jan. 28. Opened 73 new stores last year and closed 174 stores, including all 41 of its stand-alone Big Lots Furniture stores. Furniture departments, ranging in size from 2,000 to 5,000 square feet, were in 1,320 stores at fiscal year end. Home, including kids home furnishings, was the best performing category in 2005. Furniture sales represented 13.5% of company sales last year, up from 11.7% in 2004. Comp store sales increased 1.8% in 2005. Total 2005 sales were 4.4 billion, up 6.8% from $4.1 billion in 2004. For the first quarter ended April 29, sales were $1.08 billion, up 4.7% from $1.03 billion during the first quarter of 2005. | ||||||
| 15 | USA Baby, Lombard, Ill. | $89 | $88 | 0.9% | 64 | 65 |
| Chain of 57 franchised stores known primarily as USA Baby and The Baby's Room in 28 states and Mexico, and eight licensee stores operating under the name My Child's Room in the Chicago area. Sales and store count for U.S. stores only. Offers non-apparel products for infants and toddlers, including furniture, bedding, strollers, high chairs, car seats, textiles and toys. Vendors include Baby Bjorn, Baby's Dream, Berg, Dutailier, Graco, Kolcraft, Lambs & Ivy and Peg Perego. Operates one free-standing ChildSpace store in Cary, N.C., and ChildSpace departments within many USA Baby's stores. Stores average 7,500 square feet. In 2005, opened stores in Clovis, Calif., and in Virginia Beach, Va., and closed in Johnson City and Syracuse, N.Y., as well as a ChildSpace store in Huntington Valley, Pa. | ||||||
| 16 | Bellini Furniture, Scarsdale, N.Y. | $87 | $87 | 0.0% | 49 | 49 |
| Independently owned stores franchised through Bellini Furniture. Units are located in 20 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. Additionally, stores carry twin and full beds, dressers, changing tables, bassinets, armoires, nightstands, desks, toy chests and bookcases. All changing tables convert into bookcases or dressers. | ||||||
| 17 | Baby News Stores, Livermore, Calif. | $80 | $81 | -1.9% | 50 | 52 |
| Independently owned and operated stores franchised through Stanford Distributing. U.S. stores are located in Alaska, Arizona, California, Hawaii, Idaho, Illinois, Michigan, Missouri, Montana, Nevada, New Jersey, New York, Ohio, Oregon, Utah and Washington. Also operates 11 stores overseas in Bermuda, Guam, Hong Kong and Singapore, figures are excluded from estimates. Closed two net stores in 2005. Also sells online at www.babynewsonline.com. Units average 8,000 square feet and carry a full range of kids home furnishings. Vendors include Baby Bjorn, Britax Child Safety, Combi International, Cosco, Dutailier, Evenflo,Graco, Kolcraft Enterprises, Pali and Peg Perego. | ||||||
| 18 | One Step Ahead, Lake Bluff, Ill. | $61 | $58 | 5.2% | 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. | ||||||
| 19 | Ethan Allen, Danbury, Conn. | $58 | $56 | 3.6% | 279 | 282 |
| Fiscal year ended June 30. Sales and store count are for the trailing 12 months ended Dec. 31 and for U.S. stores only (127 company-owned and 152 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. Stores range in size from 6,000 to 35,000 square feet, with an average of 15,000 square feet. This past year, introduced everyday pricing program eliminating periodic sales events in lieu of an "everyday best" price on all of its offerings. Plans to continue upgrading and relocating stores, with 10 to 15 new stores planned each year. Kids home furnishings accounted for 4.6% of total sales in 2005. Total 2005 sales, $1.25 billion. | ||||||
| 20 | Berkshire Hathaway furniture div., Omaha, Neb. | $50 | $45 | 11.1% | 32 | 31 |
| Fiscal year ended Dec. 31. Owns Nebraska Furniture with one store each in Omaha and Kansas City; Homemakers Furniture of Iowa with one store each in Des Moines and Urbandale; R.C. Willey with 13 stores in Idaho, Nevada and Utah; Star Furniture with 11 stores in Texas; and Jordan's Furniture with four stores in the Boston area. The size of the kids areas vary, with NFM's 10,000 square foot departments to Homemakers 7,000, to R.C. Willey's 4,200 square foot departments. R.C. Willey is opting to focus on cribs and crib accessories, and is removing strollers, car seats and high chairs. R.C. Willey opened a store in Reno, Nev., in November 2005 and will enter the California market with a store in Rocklin this year. Kids home furnishings accounted for 2.6% of 2005 total sales. Total Berkshire Hathaway furniture division 2005 sales, $1.88 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 NA = Not available NS = No stores |
||||||
|
