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THE DEFINITIVE RANKING 2OO5

StORES
A S P E C I A L R E P O R T S P O N S O R E D B Y A L L I A N C E D ATA S Y S T E M S

®

SPECIALTY
THE NATION’S BIGGEST

CHAINS
S
BY DAVID P. SCHULZ

hakeouts and consolidations in other
retailer segments — department, drug
and grocery stores, in particular — are
expanding the possibilities for specialty stores
as both suppliers and consumers seek new
outlets for merchandise.
Specialty retailers, once dismissed as “satellites” meant to fill up mall space
between department store anchors, are now a major force in retailing, whether
in the context of shopping centers or as freestanding entities.One factor boost-
ing specialty retail is the growth of so-called lifestyle shopping centers. Though
the configurations differ, these centers generally are mixed-use facilities in-
corporating some combination of residential and recreational/entertainment
usage with retail stores. The tenor, or lifestyle aspect, is created by the retail
tenants, which typically do not include a department store or large general
merchandise retailer.
Specialty store operators are themselves playing the “lifestyle” card. Big
box retailers, such as Best Buy and
1 Bed Bath & Beyond, are using
smaller, more intimate locations
with narrowly focused offerings
to penetrate niche markets.
Best Buy, which once again
tops the STORES Top 100 Spe-
cialty Retailers chart, is using
both concept stores and service
outlets to address consumers’
lifestyles, while Bed Bath & Be-
yond is using recent acquisi-
tions to edge beyond its home-
store envelope toward other
aspects of shoppers’ lifestyles.
Best Buy is testing neigh-
S2 STORES / AUGUST 2005 WWW.STORES.ORG

Information is power. service or experience that is responsive to his or her needs and expectations is the only way to compete in a mar- ketplace with more choice than ever before.ORG STORES AUGUST 2005 S3 . and to provide integrated credit and database marketing services to more than a few members of this year’s list. the right information can be invaluable.STORES. And when you’re looking for definitive information about America’s premier specialty stores and sales. We deliver the customer insights and customized solutions that create a deeper relationship between a retailer’s cus- tomer and their brand. with plenty of insight and analysis from the STORES editorial staff. Ivan Szeftel President of Retail Services Alliance Data Systems WWW. So congratulations to this year’s Top 100. call Alliance Data Sys- tems. It’s information you’ll use again and again. and turn casual shoppers into dedicat- ed customers. 13 7 A lliance Data Systems is proud once again to sponsor the STORES magazine special report on the nation’s Top 100 Specialty Retailers. more aware and better pre- pared. When you’re looking to know more and sell more. That’s why informative resources like the STORES report are so valuable. knowing the customer and delivering a product. refer to this report. These companies represent the biggest and best in specialty retail. It’s all about learning and adapting to a moving marketplace — a skill these Top 100 companies likely learned long before they earned a coveted spot on this enviable list. We gather and analyze critical data and use that information to help our clients drive sales. It can make you smarter. Sincerely. It’s a pleasure for us to be able to work in this diverse and dynamic industry. At Alliance. our programs are centered on delivering the “right” information to retailers. Whether you’re selling toys or tires. It’s a thorough resource on the prime movers in the industry. And while all information is valuable.

Ill.STORES. has the feel of a fashion boutique and is clearly appealing to women who make consumer electronics buying decisions. both reach consumers who are Office Depot and Gap intimidated or otherwise have unveiled new uncomfortable shopping store designs in the in one of its 500-plus last 12 months. which may re- sult in recommendations for purchasing items at a WHAT’S SO SPECIAL ABOUT THEM? Among the activities that Can’t figure out why large Best Buy store.connected to their dio D and Escape to customers. The store has an area for consultation and instruction. or “communi. TOP 1OO SPECIALTY RETAILERS 4 borhood. Studio D. warehouse-sized stores.” concepts Stu.Always trying to stay ty-centric. as well as explanation of the training in such things as method behind our printing over-sized pic. S4 STORES / AUGUST 2005 WWW. in Naperville. 2 tures. some companies are represented in the take place at Studio D Top 100 Specialty are instruction in creat- ing digital scrapbooks Retailers chart and from photographs and others aren’t? See an other sources.ORG .madness on page S15..

159 22.147. first NYC stores in Brooklyn and Queens after building in northern N.541 -25.680 7. Best Buy says recommendations from store associates drives online sales.000 11. of Y/Y Rank Comment (000) Change (000) Change Stores Change 1 Best Buy Minneapolis $27.058 913. respectively 7 Circuit City Richmond.5 9. 24 stores expected by end of next year and perhaps double that number by the end of 2007 4 Office Depot Delray Beach. Mich. COO Christopher Kay promptly announce resignations.5 Menswear has underperformed leading to disappointing Father’s Day sales in June.6 As big as it is.190 8.209 -1.433.200 4. KB Toys. Modell’s. hands-on technology educa- tion experience for customers 15 Big Lots Columbus.472. Eddie Bauer.256.072 4.3 637.5 Chairman Larry Castellani turns CEO reins over to Mike Coppola as No. Texas 4. Texas 3.5 3.779 -3. Los Angeles.150.6 2. 10.025 3.3 639 12.100) 43.0 504. – Not available *Estimate WWW.2 3.5 1.6 1. divestiture of Game Stop is making year-over-year financial comparisons easier 14 RadioShack Fort Worth.364 6.4 Cut the ribbon on StoreOne. rolling Christmas Tree shops beyond Northeast 13 Barnes & Noble New York 4.378 11. 3.483 8.0 CompUSA/Good Guy megastores (16 in all) opened in June in Seattle. 5. home market for its Quill mail order division.841.1 168. Va. J&R Music World and Computer World.5 billion to repurchase shares 3 Staples Framingham.770.-ft. 1. The Top 100 companies for which STORES has made sales estimates are.988 50.175. 4. domestic division generates 44% of volume 5 OfficeMax Itasca.000 4.100.3 3.448.000 2. Tenn.9 173. Fla.502 Struggling in first half: cut back advertising.ORG STORES AUGUST 2005 S5 .355.834 -2.196 60.4 Apparel moves to support role as founder Leslie Wexner says.5 1. rumors continue to fly about a possible takeover bid. store is an interactive.564. We are now predominantly a personal care. Academy Sports.000 11.C.903. Sacramento and Portland.1 Shareholders OK buyout by private firms. beauty and lingerie company.000* 0. with private equity firms prominently men- tioned as candidates 10 AutoZone Memphis. and on Long Island N.0 6.272 9.5 143.053.4 1. 14.8 201.A.900 14.297 7. opened net of 31 stores in the period 11 Foot Locker New York 5. Hobby Lobby.J. TOP 1OO SPECIALTY RETAILERS To the extent that it is available. 13.STORES.9 Operates stores in 17 countries under various Foot Locker names as well as Champs Sports. IKEA.312 5.4 1.200 13. still has 50 Good Guys.4 1. Ill. company is Wall Street favorite.499 -0. Company Headquarters 2004 Revenues Y/Y 2004 Earnings Y/Y No.5 820 -2.0 Even with financier Carl Icahn on board as a director. N.8 25.000 12. late of ShopKo.408..699 9. Ill.994 -0.3 Lost in legal ruling by appeals court in San Francisco that state can demand sales tax collection on e-sales even though online division has no prop- erty in California 19 Advance Auto Parts Roanoke. led to markdowns to move inventory and depressed margins.1 612 2.267. margins improved 91 basis points and income rose 3. 13. Fry’s Electronics.000 0.595 11. testing in-store restaurant in Chicago’s 8.4 663 14. SGA expenses rose on inventory write-downs 8 Limited Columbus. Ore. STORES gathers performance data from the annual reports of publicly traded retail companies.239. chairman/CEO John Eyler.658 -169.200 2.8% $984.2 Overall sales sagged and same-store sales dropped 5% in Q3 ended in May.964 26.1 293.. Crate & Barrel.9 187.000 39.2 61.J. Richard. 2 auto aftermarket retailer takes impressive strides in gaining on top dog AutoZone 20 Michaels Stores Irving. P.652 4.6 N.9 Moving to strengthen balance sheet and focus on capital structure with moves such as retiring debt ahead of schedule and spending $2.967 9.J. taking with them $65 million and $14 million.375.678 15.270.1 337. 3. Bass Pro Shops.393. San Francisco. acquired 11 locations in Ireland last fall to give it nearly 500 units in Europe 12 Bed Bath & Beyond Union. Calif. Forever 21. particularly among hedge fund managers. Va. takes chair/CEO/president reins of company SEC is investigating over accounting issues involving 935 -4. in descending order: CompUSA.000th North American unit bowed in June in Countryside. 10. BrandsMart USA.873.3 539. — 225 0.6 131.7 Consciously implementing Wal-Mart’s strategy of surrounding a city prior to opening urban locations. “We’ve reinvented ourselves completely.5 2.5 1.8 Ten stores open in Chicago.6% 830 In reversal of usual claims.5 Sam Duncan.893 5.1 With 20% average annual earnings growth. Mass.1 vendor allowances 6 Toys “R” Us Wayne. Ohio 4.A.000 41.251 9. KB Toys bankruptcy 4. 11.682 -68.2 Some executive shuffling after Q1 results were released showing net loss widening to $13 million from $6 million a year ago.” 9 Blockbuster Dallas 6. 230 CompUSA stores 18 Borders Group Ann Arbor.388 44.8 338. Ohio 9. a new Harry Potter book due out in July raises hopes for Q2 improvement.4 708.809 13.990 8.012 4. seasonal merchandise has also been below plan so earnings forecasts have been lowered a notch 17 CompUSA Dallas 4.000 186.3 As part of drive to open 100 new stores by the end of next year.2%.376 -5.2% Lincoln Park neighborhood 2 Gap San Francisco 16.000 -4. N.4 (1.637. 5. which hurt sales.0 252. part of Riverfront headquarters campus in Fort Worth.000-sq.9 ramifications still down the road 16 Ross Stores Pleasanton.

in Chicago’s Lincoln sales engines.Abercrombie & dwellers who are already Fitch. Escape is de. The lo.” says CEO Brad H. while Pep conversant with consumer Boys rev sales with electronic technology. since profitability is an is- sue. One Best Buy concept that is being rolled out in- 31 volves the Geek Squad.Suggestive images and-metal decor. adding that the company is “finding new ways to serve diverse customer groups. TOP 1OO SPECIALTY RETAILERS 35 With its modernistic glass. An- derson. “Initially. Park neighborhood. After a successful test of freestanding loca- S6 STORES / AUGUST 2005 WWW. techies who provide support for consumers having problems dealing with tech- nology.push product at signed for young adult city.ORG .STORES.” Whether these concept stores are rolled out as chains is an- other question. “We are in the process of reinventing what Best Buy means to its customers. The consoles can be rented by the hour and can also be networked for group playing. however. which can be tested on consoles installed in booths.” Anderson concedes. we care more about what we learn than the economic model of those strategies.more traditional cation. offers the newest gadgets and latest editions of games.

2 743 14.000) — 4.4 34.601. Kan.9 274.457 -48. if not.253 18.1 213.000 9.272.489 6. now trying to bolster share price with stock buyback 22 Burlington Coat Factory Burlington. Wall Street applauds move 23 Williams-Sonoma San Francisco 3.4 Matthew Rubel. but the specialty store entity will still rank behind Wal-Mart in total category sales N. Texas 1.8 1. but real challenge comes from improving performance of Galyan units acquired last year.2% same-store sales gains in Q1 2005.221 -0.3 Good last year. TOP 1OO SPECIALTY RETAILERS Company Headquarters 2004 Revenues Y/Y 2004 Earnings Y/Y No. “West Elm.7 1.8 Largest unit of UK-based Signet.7 With Monroe Milstein.171.399 43.299 41. but will it carry through the rest of the year? 39 AnnTaylor New York 1. has the potential to become our largest brand.2 304. Colo.2 150 6.896 6.304.8 Though Warren Buffett prefers to take a low-profile approach with chains.142 -15. with plans for Europe and Japan in next two years 36 Electronics Boutique West Chester.9 N. Ohio.6 Acquisition of Electronics Boutique will create a $3.853 1.204.235 Direct sourcing has led to improved margins during FY ended in July.826 20.000 12.STORES.892.7 60.” 24 Luxottica Retail Cincinnati 2. 2.863 38.4 66.7 Positive testing in Columbus. Hollister units have been impressive in early 2005.332. acquisition of Crosstown Traders enhances multi-channel capabilities as Lane Bryant margins rise and Catherine’s posts double-digit comps 30 Zale Dallas 2.500 -0. – Not available WWW. N.8 After spending $500 million for Cole National. Crew and CEO at Nike’s Cole-Haan division. Sterling’s Kay Jewelers chain opened its first New York City store in June in the vicinity of Macy’s flagship Herald Square store 35 Abercrombie & Fitch New Albany. sometimes controversial but moving full steam ahead right now.6 Sported 3.087 14.ORG STORES AUGUST 2005 S7 .1 challenge for top spot in segment? 29 Charming Shoppes Bensalem.241 31. Ohio 2. of Y/Y Rank Comment (000) Change (000) Change Stores Change 21 PETsMART Phoenix $3.0 67.806 16. company pins hopes on successful back-to-school season and fall launch of 600-sku collection by 11.109. Pa.4 217. Forte 31 Pep Boys Philadelphia 2.469 11.021.857 20.579 — 595 0.J.7 63.1 63.4 billion by Game Stop. stores remerchandise and there’s new emphasis on service offerings 32 Tiffany New York 2. even as it enters Iberian market with its own takeover of Jump Ordenadores of Valencia with 141 loca- tions in Spain 37 Pier 1 Imports Fort Worth. 46 had grand re-openings in Philadelphia in June.989.2 370 0.0 1.2 106.7 234 43. Pa.853.6 60.5 2.435.6% 726 12.4 Always edgy.360.583 16.000 12. 2. as much to drive traffic into stores as to sell direct to consumers 38 American Eagle Outfitters Warrendale.136. and Las Vegas last fall led to spring launches of 84-page catalogs.9 5.8 Oprah’s Nate Berkus 26 Payless ShoeSource Topeka.8 billion video game behemoth. — 362 3.842.831 10. positive results start to flow from Gart merger as sales begin to build and margins rise. NJ 2.9% Americans are fond of their pets and willing to spend on them as results show in both top and bottom lines.640 -8.2 (2.6 492 After forecasting losses for this year’s Q2.656.500 5.000 11.1% $171.991 256. looking for more this year.7 846 -6.156 4. Australia 33 Dick’s Corapolis. Wall Street will turn quickly 34 Sterling Jewelers Akron.440 4.5 163. exposure on MTV’s Real World Austin hasn’t hurt.277 -37.4 Indicative of historic Atlantic City’s new-found panache. former head offices in Twinsburg.A. former executive vice president at J. have been closed and everything moved to Lenscrafters HQ in southern part of state 25 Linens ‘n Things Clifton. 3.3 1.2 52.712 27. Ohio. CEO Ed Muller says.242 65. also growing in Pacific Rim with new store in Brisbane. Pa.881.060.8 Store openings include recycling Pottery Barn locations into Hold Everything stores.9 180.A.258 6.473 — 2. 0.150 108. 2. Kansas City-based Helzberg Diamonds wants to ramp up attention with new creative communications agency 28 Sports Authority Englewood. Texas 1. Pa. Tiffany plans opening at The Pier at Caesar’s next year.5 23.909 26.382 24. chairman/CEO of family-run firm now 77. over time.0 says CEO Mary L. Ohio 2.287 14.334 2.7 392 After a two-year incubation. takes CEO post in Topeka after Steve Douglas vacates both CEO and chairman posts in July 27 Berkshire-Hathaway Retail Omaha 2.5 Regained footing with move back to marketing to teens.1 Moved head offices from retail-friendly 57th Street to frenzied Times Square as new CEO Kay Krill tries to replicate in main chain what she did for the Loft division stores 40 Game Stop Grapevine.8 386. is Dick’s growing enough to 2. 1.000 7.4 Being acquired for $1.977 29.0 787 12.0 With 130 remodels done in two largest markets.661.897. 1. company brings in Goldman Sachs to explore strategic alternatives.100 22.931 13.6 552 7. 2. company also imposed “operating disciplines” to bolster bottom line.926 -4.000 -1.

Best Buy isn’t putting all of its diversifica- tion eggs in the single basket of freestanding formats. as well as products nolia appellation comes from the name of a be critical for both such as electronic notebooks and network servers. units won’t carry any merchandise. These 1. the company created two “store-within-a-store” concepts at 45 Best 6 Buy locations in 12 cities.” Anderson says.ORG . like Toys “R” Us. as well as design servic. offers professional consulta- es and professional installations. TOP 1OO SPECIALTY RETAILERS 57 tions in California. In June. one ad- several years ago. (The Mag. “We would like to claim for Geek Squad a position as the premier national computer service provider.STORES. The upcoming Best Buy for Business. but will serve as launching pads from which tech- nicians are dispatched to businesses and homes with technology problems.) FYE and toy sellers dressing the consolidation of the nation’s drug store The other new store-within-a-store effort. industry. the Geek Squad is being expanded over the next 12 to 18 months to as many as 50 stand-alone sites. involves a joint venture with Minneapolis- S8 STORES / AUGUST 2005 WWW. The Magnolia Home Theater store offers state-of-the-art home theater systems. holiday season will tion to small business owners.500- sq.-ft. West Coast-based retailer Best Buy acquired music retailers like Still another lifestyle effort by Best Buy.

0 Performance has been improving along with the nation’s economy (demand for men’s suits increased during this period) and the formalwear rental business is along for the ride 51 Guitar Center Westlake Village.A.000* 7.049 6. TOP 1OO SPECIALTY RETAILERS Company Headquarters 2004 Revenues Y/Y 2004 Earnings Y/Y No.6 Operating with co-presidents Greg Henslee and Ted Wise as O’Reilly family establishes succession plan for company with stores from Carolinas to Kansas. plans to open 50 stores this year 47 Retail Brand Alliance New York/Enfield.344.3 N. but Famous chain is the engine that drives retail operations 60 Hobby Lobby Oklahoma City 1.800 81.A. Maine 1.650. 1.679 11.974 11. with ladies’ apparel.500. Wis.6 41.425 72. N.645 15.6 60.A.032 35. quickening growth with 50-60 domestic and 20-25 European stores 5. Mo.0 Cavernous locations are part emporium.000 8.400.0 36.555.1 138 The country’s largest retailer of musical instruments — not that there’s much competition — saw sales and earnings grow by double digits 11. 40 of the larger stores opening this year as 14 smaller stores have been shuttered 43 Petco Animal Supplies San Diego 1.Conn. markets this year 50 Men’s Wearhouse Houston 1.000 10. Mass.000* 10. Mass.400 4.9 1.” says Chairman and CEO Maynard Jenkins. been searching for partner with deep pockets: first Leonard Green & Partners.577.000* 8. Neb. part museum.264) — 378 34.5 10 11. Marshalls 42 Jo-Ann Stores Hudson. opened stores in Fort Worth and Austin. closed five stores in Q1 and pushing some openings back to 2006 54 General Nutrition Centers Pittsburgh 1.1 Less than a third of sales come at retail in segment that includes Bass Pro Shops and Gander Mountain.2% 850 -4.835. company can now concentrate on upgrading communications infrastructure 44 Hollywood Entertainment Portland. 1. Ga.9 1.1 71. 1. 1.A.9 N.7 63. Ohio 1.9 71. 1.782. 1.172 18.0 37.1 N.275 -0.5 As with so much of what Hollywood is about. then Blockbuster. Bean Freeport. before settling on Movie Gallery 45 O’Reilly Automotive Springfield. – Not available *Estimate WWW.7 97.A.881 241. 1.9 146.8 Back in Nasdaq's good graces after delay in filing annual. 22. acquiring Music & Arts Center 52 IKEA Plymouth Meeting. digital download strategy still being devised 58 Polo Ralph Lauren New York 1. grows internationally and gets more attention 48 CSK Auto Phoenix 1. — 26 12. Gulf to Great Lakes 46 Talbots Hingham.300.365.546.145 12.200 15.364 5.721.4 Competitors step up pressure by also targeting 40-something women.700 -5.0 Selling more goods at full price.3 in Q1 this year. first Cali- fornia store set for 2007 56 L.812.625.7 Superstores.607 8. — 16 0.459.100 2..5 46. 1.8 company is opening 50 new stores 49 Cabela’s Sidney. — — — Closed 84-unit August Max and put both Casual Corner chain and Carolee Designs up for sale.5 278 Regained control of many of labels and lines that had been licensed.050 45. accessories pick up slack for sluggish performance of new music and DVD releases.3 335 -48.0 2. now generating nearly 40% of total volume and out performing traditional units.0 N.513.673 29.642 Since director Robert J. 1.8 707 2.3 261 0. 1. Calif.123 38. more profitable Brooks Bros.396 -7. says chairman/CEO Robert Higgins.8% ($5. still planning rollout of freestanding HomeGoods next to T. of Y/Y Rank Comment (000) Change (000) Change Stores Change 41 TJX U.5% Flagship HomeGoods topped $1 billion in sales for first time last year but overall performance was disappointing.410.0 800 -3. 1. Texas.ORG STORES AUGUST 2005 S9 .843 4.4 1.973 1. 1. opened in Macon.L.241 13.9 Video games. Bean plans to add six stores — more than in any one year previously — in the New England/Mid-Atlantic region by end of 2007 57 TransWorld Entertainment Albany. Fla.2 also targeting small business customers 53 Stein Mart Jacksonville.0 N.A. closing 80 Naturalizer units while opening 30 outlet stores. accessories and menswear all showing strength this year. Maxx.J. company has made several short-term -3. Ore.6 Parent Brown Shoe reorganized branded shoe stores. — 22 Stepping up pace of North American expansion to 4-5 new stores a year while looking at new markets such as Atlanta. quarterly reports almost resulted in delisting this spring.215 14. — 345 Closing locations on Sunday doesn’t seem to have slowed growth of what are now called “creative centers” rather than stores.300 16. Talbots responds with more flair and trend among its classic offerings. Dallas and Phoenix.600 3.812. in January with another due in San Antonio by year’s end. Specialty Framingham.7 59 Famous Footwear Madison. with 15 more 7. $1.6 1.006 4.249 12. Mo.348.697. Pa. DiNicola (late of Zale’s jewelers) took over as interim chairman in December.STORES.Y.2 190.9 — — 2.134 In cost-cutting mode to “provide us with operating leverage as our same-store sales improve.425 12.9 changes while laying longer-term plans 55 Bass Pro Shops Springfield.8 slated to open prior to year’s end N.288 -11.0 Coming off strong year in 2004.5 96.460 0.308.S.5 83.

turns. garment manufacturers — still reeling from the market research firm NPD Group. led by No.STORES. however. Apparel retailers.200 stores in North America and begin opening stores in China before the end of 2006. which has about 850 stores in the United States and Canada. All of this comes amidst a push by Best Buy to grow to as many as 1.-ft. That pace will quicken as the company begins to open more compact. form the largest subset of the Top 100 Specialty Retailers. 2 Gap and No. NPD re- S10 STORES / AUGUST 2005 WWW. Annual sales fell blockbuster acquisition of May Department Stores — are each year from that 2000 peak until 2004 when.ORG . hitting a high of nearly $176 billion in 2000.000-sq. where the company currently has three sourcing fering through years of sluggish sales and diminishing re- offices. according to Right now. TOP 1OO SPECIALTY RETAILERS 3 based PrairieStone Pharmacy and Park Nicollet Health Services into wellness and health care electronic gadget retailing — everything from air purifiers to sphygmo- manometers. 20. The push into China involves “lab stores. Domestic apparel sales grew steadily though the 1990s. units in smaller mar- 38 kets and big city neighborhoods. The trends have not Kmart-Sears merger and Federated Department Stores’ been very positive since then. has been opening about 75 loca- tions annually in recent years.” which the company describes as “a way to accelerate learning about the diverse consumers” in that trying to figure out where they will sell clothing after suf- country. 8 Limited. The company.

851 27.8 expanding into outlet shopping centers 67 P.A. though house brands dominate 77 Academy Sports Houston 850.6 same-store sales rise in prior year 69 Chico’s FAS Fort Myers.S.807 10. repairs and contractor sales also part of equation 68 Genesco Nashville 1.7 Former Limited Inc.6 990 12. the venerable catalog is no more. N.5 All that’s left of Spiegel Inc. strong accessories sales helped boost comps 7.C.125.676 -2.040.066. 908.617 16.000. ft.600 sq.489 87.1 43. Fla.A.212 31. Crew New York 804.5 1. Gregg Indianapolis 803. trends. but new store openings are on schedule and overall sales continue to grow. but stores don’t close as often as they once did 76 Recreational Equipment Kent. CEO Scott Edmonds sees the next billion coming even faster.000 16. European stores.000* -43.J.4 kids’ furniture and accessories location 74 Cost Plus Oakland. brags founder/CEO Richard Hayne.9 53.7 477 1. Anthropologie and Free People — with no two stores alike. to South Hill. N.H.000* 7.A. — 130 Gordon Segal wants to stay “entrepreneurial” as website gets high marks for its shopping experience. Fla.0 561 21.9% $143.206 40. while Hat World continues to dazzle with 7% comps in Q1.3 15.767 18.560 13.A.653 -11.A.. — 418 -7.9 668 21.9 Planning a larger prototype (8.000) — 198 1.ORG STORES AUGUST 2005 S11 . adding seven stores in the Carolinas this year N. 1. – Not available *Estimate WWW.199 6.0 With Mickey Drexler at helm.279. 925. service.9 48.5 N. distribution functions moved from Knoxville. 887.2 Grew from $250 million volume in 2000 to more than $1 billion last year.112. Wash.800 50.618 Journeys is the best performer among the footwear chains.7 Three chains — Urban Outfitters. Calif.4 78 Adding stores and expanding catalog distribution as it ventures beyond mountain-climbing gear origins to generic outdoor sporting goods 2.6 605 13. 64 Pacific Sunwear Anaheim.4% 2. vs. sales 13% as selling space grew 12%. current 3. — 80 14.3 Largest of the country’s family-owned-and-operated retailers selling major appliances and consumer electronics.000 sq.401 -83.6 and apparel.5 236 13.266. 1.000 stores by 2010 and rethinking merchandising approach to appeal to younger shoppers.243.8 141.9%. 1. long-time Texas leader has been growing at double-digit rate for the last 15 years 78 Urban Outfitters Philadelphia 827.407 12.841 9. and former owner Michael Otto is out of the post-bankruptcy picture.) for surf-and-skate styles with an eye on 1.5 (100.1 142 25.7 662 14.7 Aiming at 1.7 60 9. emulating U.4 18-year-old chain charging along in value-priced apparel for teens segment as fashion-follower able to get trends into stores quickly. opened a fourth The Land of Nod 2.C. CEO search on to succeed retiring Murray Dashe 75 Tuesday Morning Dallas 897.124 24. Fla.1 62.882 38.400 stores and $2 billion in sales by the end of 2007 65 Finish Line Indianapolis 1.3 30.5 Q1 was tough as comps dipped 1. — 49 4. $1.3 61. home division shut stores 72 Aeropostale New York 964. Tenn.7 With lack of national powerhouse in sporting goods specialty segment.993 3.9 7 of 10 new stores opened this year are Peebles units as division outperforms Beall’s and Stage stores. 1.. ft. TOP 1OO SPECIALTY RETAILERS Company Headquarters 2004 Revenues Y/Y 2004 Earnings Y/Y No.1 105.056 Bought 313 Disney Stores last fall with commitment to spend $100 million upgrading them and paying licenses to Disney.157. of Y/Y Rank Comment (000) Change (000) Change Stores Change 61 Claire’s Stores Pembroke Pines.Y.000* 7.229.1 N. new prototype for Man Alive chain — now 38 stores strong — selling men’s and ladies’ hip hop fashions 66 Children’s Place Secaucus. chain was sold to Bear Stearns Capital II and then taken public last year.7 N. Tenn. Wash. Va. even up against a 23% 55. Calif. though it still has 46 units in Tar Heel state with another outlet opening this fall 63 Stage Stores Houston 1.892 32.681 32.000* 5.106 8.263 29.9 90.4 358 6. starting with 100 new stores this year 70 New York & Co.5 N. lot of room to grow in Calif. also sport positive comps in first half 62 Goody’s Family Clothing Knoxville.6 29.2 84. Richard Farmingdale.9 Exited Charlotte.248 3.STORES. market in January with first store closings in more than a year.4 528 1. New York 1.762 18. 1. now the chain is 52. sales events remain.840 1. Ill. in narrow-focusing on niche markets for under 45s 79 J. expense controls also influenced bottom line performance 80 H.. N. company turned red ink to black in Q1 with a 37% jump in same-store sales.166.2% during 2004 71 Eddie Bauer Redmond.1 18. and Texas 73 Crate & Barrel Northbrook.221 -7.2 315 32.9 Q1 earnings up 24%..1% Costume jewelry and accessories offerings were strong last year and have continued to show well early in 2005.546 45.1 Consumer electronics and appliance dealer got sales boost from five new stores in Atlanta and other Southeastern markets.112 55.264 88.028 8. 1.2 1.

which has opened and spring. according to the federal Bureau of Labor Statistics. which have de- clined in each of the last six years. Such is not the case. there has been de. future of Limited.sories keep regis- sumers have paid for ters humming.Women’s apparel cent — but for a total of sales continue to only $173 billion. suits. is going through its own extreme makeover. the landscape would appear favorable for apparel-selling specialty stores. while In addition to stagnant personal products sales. bought and sold more retail formats and addressed now predominantly a personal care. In light of the elimination of import quotas for sourc- ing garments from around the world. while personal S12 STORES / AUGUST 2005 WWW. and its clothing chains are actual. noting that non-intimate apparel ac- tor. beauty and lingerie more lifestyle needs than any other specialty store opera.” he said. however. TOP 1OO SPECIALTY RETAILERS 46 ports. they rose 4 per. With shrinking numbers of department stores and other large dry goods retailers sell- ing clothing and the increased pressure on manufacturers to find new outlets for their wares. Limited. slacks. if not ecstatic. clothing.ORG .and home acces- flation in the prices con. bottoms. shirts and skirts are not the of total sales at Limited.STORES. counted for just 29 percent of 2004 sales. Leslie Wexner told shareholders this ly a drag on earnings. We are closed. company. The truth is that apparel sales are falling as a percentage Tops. “We’ve reinvented ourselves completely. multi- 8 ple-format operators such as Limited and Gap should be upbeat. plod along.

3 1.834 12.1% in first half and same-store sales up 3. fashion-forward women’s apparel and accessories chain 98 Gander Mountain St.809 5. Colo.0 40.0 Testing Divastyle loyalty card for trendy 15.482 15.140 31.0 — — 900 -18. audio and video are all part of lower Manhattan world — where half the sales are online or mail order — and now there are 0. 778.9 41.1% 2. New Albany.1 Quit franchise deal with Bang & Olufsen. — 6 Music.5 Athletic footwear was star performer as company posted 37th consecutive quarter of positive same-store sales results.7 N.650 -36.A.A. 642.C.ORG STORES AUGUST 2005 S13 .3 22. 11.141 274.7 presentations 91 Modell’s New York 700. Jus- tice chain adding 50-60 units 96 Ultimate Electronics Thornton.7 34. liquidating rest of chain and other assets after Chapter 11 filing Jan. Fla. Calif.7 34. Ala. 700. 700.607 10.364 83. TOP 1OO SPECIALTY RETAILERS Company Headquarters 2004 Revenues Y/Y 2004 Earnings Y/Y No.162 5. of Y/Y Rank Comment (000) Change (000) Change Stores Change 81 Movie Gallery Dothan.7 Though TV campaign didn’t generate the buzz CEO Mike Rayden had hoped.8 Consolidating house-brand apparel under the Cato label while focusing on emerging fashion trends and colors.to 29-year-old set at Torrid.4 568 2. reorganizing product development and sourcing functions 86 Tweeter Home Ent. CEO Peter Harris assumed president’s title and duties in June 95 Too Inc. 658.478 8.4 Rough start to 2005 — a “transition year.0 housewares on the shelves 93 BrandsMart USA Hollywood.0 176 1. but adds about $200 million in annual sales for FY ended July 30.7 N.8 30. reporting to CEO/chair Lisa Harper. 656.000 26. Mass. 2005 90 Fry’s Electronics Palo Alto.0% Picked up where Blockbuster left off in bidding for rival Hollywood Entertainment.673 -16. the company’s plus-size. often urban locations 92 J&R Music/Comp.7 Boating supplier in search of president/COO after Richard Everett announced intention to step down after 25 years. Wattles in April for $43. opened prototype architecture unit in Las Vegas last January that includes offerings of supplier/partners Hewlett Packard. CE.8 N.553 -2. brown goods.3 Completed first year as a public company and plans to open 18-20 stores in 2005 in the competitive outdoor sporting goods segment. 750.4 — — 6 20. athletic footwear.003 17.000* 7.6 Though sporting goods is part of official company name.2 Planning to emerge from Chapter 11 bankruptcy protection in time for this year’s holiday selling season. 2005 97 Hot Topic City of Industry. Microsoft 87 Sharper Image San Francisco 760.000 sku’s worth more than $8 million stuffed into each warehouse-sized store from Palm Beach County to Florida Keys including white goods.000* 7.488 0.5% as management looks for more and a strong finish to 2005 83 Jones Apparel Retail New York 780.0 (11.662) 0. 771. World New York 700.6 Sold 32 stores to CEO Mark J.754 -10.7 N.8 39.000* 2.300 -7.A. Ohio 675. Paul.A. N.534 27.915 -61.4 Results have been upbeat so far this year. 682.Y.547) -77.4 14. small appliances and housewares 94 West Marine Watsonville.6 82 7.5 Growing quickly in both Forever 21 and Forever XXI formats.905 9.7 Cognescenti suggesting acquisition of Barneys New York signals rapid growth for the retailer and a major directional shift for apparel maker in light dust-up with Ralph Lauren 84 Big 5 Sporting Goods El Segundo.3 309 5. Calif.STORES.6 175 17.2 (3.2 25. N.903 6. with total sales up 8. 754. eyeing $850 million volume this year 99 Forever 21 Los Angeles 640.8 million and assumption of liabilities.2 118 4. Minn. sales rose but income slipped in Q1. small-town markets 82 Haverty Furniture Atlanta 784. higher margins boosted this year’s Q1 earnings to record level. then turned red in Q2 5. company purchased Gadzooks at bankruptcy sale and will operate 150 stores under the Gadzooks name 100 Matt Gymboree San Francisco 594.6 679 21.7 776 0.9 — — 28 Legendary Silicon Valley old-timer stays on cutting edge to meet demands of loyal customer base and innovative merchandise buying and 3. $791.3% $49. opening 16-20 new stores this year in western markets 85 Cato Charlotte. — 62 -4. acquisition gives company West Coast base and moves it out of rural.000* -10. has closed 600 stores since filing bankrupt- cy petition in January 2004 89 Dress Barn Suffern.4% 646 McCauley takes over as president.1 376 8.259 30. — 1.5 $350 million acquisition of 470-store Maurices chain in January depressed earnings. including MP3 devices 88 KB Toys Avon/Pittsfield.037 4.300 13.0 N.177 14. Canton.000* 9. – Not available *Estimate WWW.A.7 — — 130 1. Mass. Calif.379 3. — 205 2.” says CEO Richard Thalheimer — but high expectations for new merchandise lines being unveiled this fall. computers. sporting apparel and other menswear are part of the mix in its East Coast.468 14.2% 9.177 6. 773. Calif.

such as scented candles and potpourri.) $479. operated chains such as Fashion Conspiracy. Jeans West and Oak Tree.) 126. this first quarter. store and supermarket industries. Chess King and Metro) were decades seems to have evaporated in the face of tough included.J. Limit- footwear manufacturer whose shoe stores were not included ed bought Slatkin & Co.R. Apparel (St. in year expectations.000 204 parel 25 percent and personal disciplines" have Charming Shoppes (Bensalem.700 268 care generated 30 percent and Crate & Barrel Edison Bros. Grace Retail Apparel (New York) 139. N. Thus. who had previously worked Works. even apparel intended for the mass mar- Melville was a real conglomerate.S. like U. U.) 369. Ohio) 265.J.) 201.STORES. roughly two-thirds of clothing stores. Shoe. Louis) 185.O. The situation hasn’t changed much so far this together at Home Furnishings Daily.4 million in volume. year.S. Bath & Body Berman’s. Limited’s C. is not yet at commodity status. a maker of merchandise in the study.200 401 71 percent of sales.Y. Gap has been in a turnaround mode for a couple of S14 STORES / AUGUST 2005 WWW. Bigelow Apothe- Trowsers at $19. where huge The smallest compa. competition from the likes of Wal-Mart and Target.) 171. the proto-specialty retail store survey Limited’s sales — and virtually all of its earnings — was created by STORES editor Joan Bergmann and New York were rung up by Victoria’s Secret and Bath & Body Timesman Isadore Barmash. N. operating CVS drug ket. Shoe operated Works. Clothes Bin.000 527 earlier. intimate ap. apparel accounted for focused concept.R.700 620 73 Gap Stores (San Bruno.000 697 U.ORG . amounts of personal care and beauty products are ny was Topps & sold each year. A decade gives nod to kids- Melville Retail Apparel (Rye. prompting the company to lower full- showcase listed. Edison Brothers. but the consumer stores and shoe chains like Thom McAn. Shepler’s and Diana Shops. will launch an online selling which was Casual Corner. but only its apparel loyalty that operators like the Gap have relied on for divisions (Foxmoor. TOP 1OO SPECIALTY RETAILERS SPECIALTY A QUARTER-CENTURY OF STORE GROWTH 1981 Company (Headquarters) 1980 Sales Number (000) of Stores Petrie Stores (Secaucus. Pa. Grace was parent of cary is set to open six units later this year.300 322 Miller-Wohl (Secaucus. Shoe Apparel (Cincinnati) 373. Brooks Fashion Stores (New York) 148. More telling is the fact that in line at Zale. And just a couple of months ago. Poor performance at the Limited and Express Unlike subsequent clothing chains pulled down corporate earnings in the Top 100 surveys.900 772 lingerie 41 percent. N.while "operating W. itled the “Specialty Store Showcase” and including only 2004.. Part of Limited’s transformation/reinvention has only nine chains and been precipitated by the consolidation in the drug four conglomerates. Clothing.100 202 bolstered the bottom T care products just 4 percent.S. and Size 5-7-9.800 472 Limited Stores (Columbus. W. which has just introduced the Breathe fra- both women’s wear and menswear chains. fast-moving retailers like H&M and Forever 21 and continued on page S15 highly-focused operations like Chico’s. the largest of grance and skin care line. alphabetical order. Calif. a site this fall.

as total sales editor of Chain Store Age Executive. Neiman- years now. includ- ing many operators that were not primarily mall-based chains. options have split and merged and The ratings on the chart are sories-only store on New York’s Fifth Avenue.000 39 Petrie Stores (Secaucus. accessories that was intended to roll out to select Gap stores.702. drug stores. ited to a single category or closely.” Pressler said. so fiscal year.J. decreased 1. Crew) and they looked like department stores and competed with the dawn of the Paul Pressler era. convenience stores. who had sold the busi- our efforts to serve more occasions for women. From a seven- store test in the Denver area last fall.000 800 30 T he fifth edition of the Top 100 Specialty Store Retailers showcased both hardline and softline specialists. provides a snapshot of leading stores. because they didn’t have furniture. merchants whose offerings are lim.) 1. we ness to Minneapolis-based Dayton Hudson 10 years earlier.) 1.000 92 Neiman-Marcus (Dallas) 725. and only last year did the company sell By going for a bigger piece of the pie and falling flat Mervyn’s. the fied with our women’s products.000 1. Marshalls and T.ORG STORES AUGUST 2005 S15 . former percent below last year’s opening period.000 4. dealerships and service merchants the concept to 10 locations in Connecticut and five in dise typically found in a traditional such as beauty salons. metrosex.000 203 Marshalls (Woburn.000 21 Lerners (New York) 700. The STORES Top 100 Specialty retailers as discount stores. Calif.000 209 Nordstrom (Seattle) 983. building materials dealers. N.360 Saks Fifth Avenue (New York) 815. Looking beyond apparel. industry observers.1 percent and comparable-store sales fell continued on page S16 4 percent. toys. Mistakes have been department stores but weren’t considered department stores made.STORES. Gap is continuing to experiment with a lifestyle design that addresses con. are based on information spired effort to promote new packaging and decor for clear may now have blurred. Estimates.-ft.” store division. Texas) 2.717 Toys “R” Us (Rochelle Park. Gap saw first quarter earnings slip 6. And moving into territory plowed by Limited.000 126 Radio Shack (Fort Worth. sporting goods. was a holiday-in. the San Diego area. merchandising and travel agencies. Retailers shops. “In West Coast brainchild of Merv Morris. re-split. but are not yet satis. asexual — or sexually confused. Thus. Schulz. as Pressler readily admitted to securities ana.7 piling the Top 100 with Bergmann was David P.) $2. called Love. auto ual.J. “At Gap. barber full-line department store. ware- Without putting a name on it. Retailers is an annual survey that house clubs and dollar/closeout sumers by gender rather than as unisexual. TOP 1OO SPECIALTY RETAILERS S P E C I A L T Y S T O R E G R O W T H (continued) 1985 Company (Headquarters) 1984 Sales Number (000) of Stores Mervyn’s (Hayward. broadened our merchandise and design perspective Dayton Hudson became Target. from company executives. named for its large discount going a bit outside Gap’s iconic aesthetic. Com- in the process. securities store chart are such broadline analysts and/or vendors. lysts in May. a period that has seen the departure of Marcus and Saks Fifth Avenue were included. where they placing a babyGap adjacent to a full-line Gap store. The closing of a number of stores during the THE SPECIALTY STORE DEFINED last fiscal year also contributed to the declines. gasoline service stations have evolved. consult- Excluded from the specialty ants. revenues as of the end of the 2004 vey was begun 25 years ago. and some new ones have determined by sales volumes and come into existence since the sur. space. fashion stores such as Nordstrom.190. N.000 40 Levitz Furniture (Miami) 761. appliances or luggage departments. we are pleased with the progress we’ve Large-scale. The 800-sq. Mass.J.141. promotions-driven apparel sellers such as made in the menswear business. distinctions that were once quite appear. to a group of privately-held investment firms. dis. as was Mervyn’s. Gap is expanding related classifications of merchan. WWW. Maxx were included.133. as well as supermarkets. Gap unveiled an acces. even though Mickey Drexler (who later resurfaced at J.) 951.

Kinney Shoe.557 204 Tandy (Fort Worth. Shoe subsidiary. Mass.721 lifestyle issues in many of its efforts.000 1. Fla.) $8. Eleven Gapbody units are slated to open this year.S.W. 28 concept was unveiled four years ago.226. TOP 1OO SPECIALTY RETAILERS S P E C I A L T Y S T O R E G R O W T H (continued) 1990 Gap has launched Gapbody. Radio Shack and Gap clustered near the top of Chicago area. Another U. number of lifestyle photos to trailing Staples help tell a story.920 Office Depot (Del Ray Beach.821 close third in sales volume.000 404 fifth.J. Office supply stores are a small but strong niche.199 420 Woolworth Specialty (New York) 3. Maxx (Framingham. Ohio) 7.000 3. 33 in one year.) $4. offering personal care.042. while the greater presence of store associates in areas where five-and-dime retailer also owned 99th-ranked Little Folks shoppers tend to have more questions. The model in- rung. Even with its base of small.792 4.) 4. Texas) 4.000 960 around the globe. In describing the store interior.947 204 Best Buy (Eden Prairie. Woolworth. color schemes that serve to Talk about a pressure catch the eyes of consumers cooker . holding down the No. while the shoe divisions were ranked in the 71st posi. apparel stores — led by Casual Corner — rested in the 10th The Chicago stores are of the “Back to Brighton” spot. Toys “R” Us (Paramus.J.000 347 ly a conglomerate with direct-selling and small-busi- T.227 Circuit City (Richmond.) 1. Shoe’s two or three years.977.648. ation by December and as many as 50 within the next nents rather than as entities themselves.406 TJX (Framingham.722.097. where it plans to have 20 units in oper- the chart. and its Foot Locker volves enhanced customer service that includes a chain. N.) 3. 3 and Office Company (Headquarters) 1994 Sales Number OfficeMax is being reshaped Depot at No. fragrance and lingerie. Gantos. N. the Top 100 Specialty Store Retailers that it began rolling out the concept in July to more ranking was taking on an appearance that would be rec. N. ognizable to today’s readers. ranked third representing F. thus U. beauty.818 1.and Petrie Stores (Secaucus.J.679 6.098 Gap (San Francisco) 3. type.939. named for the Massachusetts town where the tion.) 1.S.258. Contempo Casuals. than 550 Stop & Shop stores on the East Coast. . Mass.508 5 continued on page S17 S16 STORES / AUGUST 2005 WWW. A test of selling B office supplies in supermarket aisles was so successful y the 10th year. OfficeMax 1995 across the store and include a holds the No.the Top 100 list. Va. fourth and Toys “R” Us (Rochelle Park. Merry-Go-Round was the hottest chain. Staples is the largest.115 Limited (Columbus.000 3.) 1.) 2.569 home-business customers.604 bulked with former Boise Cascade operations — is a Radio Shack (Fort Worth.677.) 5.ORG .S. 4 on (000) of Stores following a convoluted evolu. Ranked third.943. Staples opened its first stores in the Us. Circuit City (Richmond. Va.” at No. Calif. was LensCrafters.079. “We use from No. 000 4. Minn.745.188 low and the extensively restructured OfficeMax — Kinney Shoe (New York) 3. Claire’s Stores and Circus World.J.674.867 Melville Specialty (Rye. jumping ager Bob Wolfe says. New to the chart this year were West Coast graded technology consultation and assistance.788. Limited. Shoe Apparel (Cincinnati) 1. Staples addresses U.000 1. .940.234.) 1.320. 5 spot. WiFi section in the store for the free use of customers. Office Depot is a rung be- The Limited (Columbus. and a consumer electronics retailer The Good Guys.586 1.Y.) 5. N.582. as well as a presence in several regions Gap (San Bruno. with names such as Toys “R” Earlier this year. Staples regional man- a toy retailer. 56 to No. Mass. Texas) 2.STORES.940 1. Staples is real- Marshalls (Woburn.747 3. Conglomerates were represented by their compo.000 352 ness operations. There is also up- apparel stores. Clothestime.000 149 As with all the office supply dealers.587.) 5. however.000 7.842. Ohio) 4. Company (Headquarters) 1989 Sales Number claiming three of the first five spots on the Top 100 (000) of Stores Specialty Retailers chart.

lisher of STORES.842. D.129 In March. Bob’s Stores.018 it was sold to a private equity firm earlier this year.000 1. Office supply retailers in a couple of years.263. sported an impressive portfolio that included Marshalls. Many of the new stores Office De. Va. Electronics. Ohio.) 8. a lot was office supply new about the 15th edition stores rise to prominence of the Top 100 Specialty Stores. CEO and pres.) 10. capped by the April arrival of Sam Dun. WWW. TOP 1OO SPECIALTY RETAILERS S P E C I A L T Y S T O R E G R O W T H (continued) W ith Rick Gallagher now editor and pub.391 104 OfficeMax (Shaker Heights.357 and CEO. — no small sellers of computers and other electronic pot is opening are former Kids “R” Us locations machines themselves — nailed down three of the Top 10 spots. Fla.698 946 A ident at AutoZone.913 Office Depot is also operating with new leadership. Retail conglomerates with specialty store operations were listed by total volume.5 billion. Best Buy (Minneapolis) 12.548 of Fred Meyer. Steve Odland was recruited as chairman TJX (Framingham. had been head of ShopKo Stores until Gap (San Francisco) 11.) 11.) $12. which then shed its timber business.023 357 can as president and CEO. Mass.321. Linens ’n Things and This End Up. new century was dawning. Odland had been chairman.795. Limited. was taken over by forest products company Boise Cascade. Along with the NRF. which has long been an incubator of retail con- cepts.390 658 ecutive suite. for example.) 8.280 825 late June. 3 Melville.460 1. STORES had moved from New York’s garment district to Washington. Woolworth en route to becoming what it is today — Foot Locker.W. yet to burst.842.347 1. 2000 tion over the past 18 months. Thom McAn. Duncan. had spun off the Victoria’s Secret stores and catalog and a few other concepts into a company called Intimate Brands. Just a couple of years later.494. Both Office Depot and OfficeMax have been ramp- ing up store openings in order to keep pace with Sta.ORG STORES AUGUST 2005 S17 . CompUSA (Dallas) 6. as well. 12 with sales of $4. The one-time Kmart subsidiary based in Shaker Heights. and the Top 100 Specialty ples. (000) of Stores Earlier this year there was a major shakeup in the ex. primarily in the Northeast and New England. Limited (Columbus. No.635. Circuit City (Richmond. Ohio) 4.723. Duncan added the duties of chairman. Resting in the 11th position was Venator.J. former president Toys ‘R’ Us (Paramus. In Office Depot (Del Ray Beach.334 2. the venerable former F.STORES. Mass. N. merged Office- Max with its business products and services unit and Company (Headquarters) 1999 Sales Number renamed the entire company OfficeMax. Office Depot is opening as many as 60 stores this Store Retailers reflected the technology bubble that had year. Limited brought Intimate Brands back into the fold and the recombined company was called Limited Brands.862. Consumer electronics specialists Circuit City and Best Buy ritory in 1998. Kay-Bee Toys (as it was known then). among others. There were signs of change elsewhere on the chart. Wilsons House 66 of Leather.C. Ohio) 9.614.462 3. Footaction. ranked first and second on the chart. Staples (Westborough. only to close many of the stores with. Office Depot made a similar move into the same ter. ranked No.

but don’t count cerns remaining relatively steady. a price premium for their common With the video rental market shrink- stock to take the company private. chairman and CEO John Eyler Icahn fought his way onto Block- and COO Christopher Kay left TRU. a New York-based 39 the problem in realizing that share. the funds rate (perhaps to 4 percent by the end of the ever. but didn’t provide a lot of the year — actually declining in May for the first time in 10 explanation for the move. the news is that consumer confidence hit a three-year year). Ever since its unsuccessful attempt to parently not successfully or fast take over rival Hollywood Entertain- enough for a consortium of private ment. writer and editor. how this impacts consumer spending and retailers’ high in June. a successful operating plan. a New York-based moment. The board raised the federal funds Consumer prices have moderated since the beginning of rate 0. Wal. “Job growth. an economist business activity and labor market activity will continue to with market research firm Retail Forward.8 on the monthly index prospects for the second half of 2005 is the question of the developed by the Conference Board. Blockbuster (9) and announced the closing of 19 superstores. an ana. Alan McCullough.” says W. 16 ago as the nation’s largest seller of chairman and chief executive of Cir- toys. the company tury: Toys “R” Us (6). While most observers feel the Fed will continue to raise For retailers who watch what shoppers are doing.” and foreign retailers for several pub- Circuit City — once larger than Best lications.1 in May.” says Lynn Franco. Buy after transforming itself from Wards stores during the Four of the Top 10 specialty store retailers are living on go-go electronics years — is another company in search of past glory and struggling to remain relevant in the 21st cen. er with Vornado Realty Trust. this year. [June’s] results show that consumers’ desire to “The improvement in consumers’ mood suggests that shop remains intact. to putting itself up for sale. St ORES the company is worth a lot more and perhaps [former] management was David P. Circuit City (7). reports on U. prospects.ORG .25 percent on June 30. pick up over the next several months. how. The shuttered stores showed Toys “R” Us has been downsizing for more than a year “no reasonable expectations of positive cash flow and as its status as category killer continues to diminish. S18 STORES / AUGUST 2005 WWW. there is little reason to on Alan Greenspan and the Federal Reserve to provide expect a dramatic shift in consumer spending. buster’s board of directors specifically Investment companies Bain Capital to make the company more receptive and Kohlberg Kravis Roberts. its stores and being inattentive to cus- lyst with Standard & Poor’s. ing in the face of online direct-delivery Once the purchase was finalized in competition. home buying and the recent stock market run-up are pro- director of the Conference Board’s Consumer Research viding a solid foundation for near-term spending Center. billionaire financier Carl June. TRU’s management had been cuit City. Earlier this year. “And with consumers in better spirits and job con. observes tomers in favor of paying off credi- that the new owners “obviously think tors.” says Steve Spiwak. have AutoZone has come under fire for not said what they plan to do with the failing to keep up the appearance of company. Schulz. much less enlightenment as to months — while the economy as a whole has exhibited where the economy might be headed for the second half of slow-but-steady growth. togeth. But Michael Souer. moving up to 105. [were] without relocation opportunities over the near Mart surpassed TRU several years term.S. holder value. fices and a distribution center. five regional of- AutoZone (10). towel. Blockbuster has become a bat- investors. The June uptick came on “Despite fears that consumers are finally throwing in the the heels of a rise to 103.STORES. TOP 1OO SPECIALTY RETAILERS I THE ECONOMY WILL IMPROVING CONSUMER CONFIDENCE BOOST SALES? nflation may or may not be on the move. economic research organization. searching for new directions. but ap.” any clear guidance.” acquired from Toys “R” Us last year. which offered shareholders tleground for deep-pocketed investors.

Calif. N.H. 19 J&R Music/Computer World New York 92 Aeropostale New York 72 J. Calif.Y. Canton. 46 Game Stop Grapevine. 90 Talbots Hingham. Ore. 96 H. 18 New York & Co. Neb. N. New York 70 BrandsMart USA Hollywood. 98 TJX U.Y. 51 Tweeter Home Ent. 89 Ross Stores Pleasanton. N. 36 Sports Authority Englewood. 47 Dress Barn Suffern. Pa. 44 Zale Dallas 30 WWW. Calif. Gregg Indianapolis 80 Urban Outfitters Philadelphia 78 Haverty Furniture Atlanta 82 West Marine Watsonville. Mich.C. Ala. 74 Polo Ralph Lauren New York 58 Crate & Barrel Northbrook. Mo. Calif.Y. N. Wash. 12 Linens ‘n Things Clifton. 64 Chico’s FAS Fort Myers. Bean Freeport. Ohio 42 AnnTaylor New York 39 Jones Apparel Retail New York 83 AutoZone Memphis. N. 10 KB Toys Avon/Pittsfield. 66 Pep Boys Philadelphia 31 Circuit City Richmond. Tenn. Colo.J. 88 Barnes & Noble New York 13 L. Calif. 38 Jo-Ann Stores Hudson. 67 Charming Shoppes Bensalem. Mass.C.STORES.ORG STORES AUGUST 2005 S19 . Fla. 49 O’Reilly Automotive Springfield. TOP 1OO SPECIALTY RETAILERS COMPANY HEADQUARTERS RANK COMPANY HEADQUARTERS RANK Abercrombie & Fitch New Albany. Paul. Pa.S. 41 Gap San Francisco 2 Too Inc. 69 Payless ShoeSource Topeka. 22 OfficeMax Itasca. 84 Michaels Stores Irving. Ohio 35 Hot Topic City of Industry. Ohio 8 Bed Bath & Beyond Union. Texas 37 Cost Plus Oakland. Mass. Fla. Ill. Pa. 62 Tuesday Morning Dallas 75 Guitar Center Westlake Village. 16 Eddie Bauer Redmond.L.J. 4 Burlington Coat Factory Burlington. 61 PETsMART Phoenix 21 CompUSA Dallas 17 Pier 1 Imports Fort Worth. 76 Dick’s Corapolis. Texas 14 CSK Auto Phoenix 48 Recreational Equipment Kent. 94 Hobby Lobby Oklahoma City 60 Williams-Sonoma San Francisco 23 Hollywood Entertainment Portland. Ohio 15 Modell’s New York 91 Blockbuster Dallas 9 Movie Gallery Dothan. 7 Petco Animal Supplies San Diego 43 Claire’s Stores Pembroke Pines. Fla. Calif. Specialty Framingham. 71 Sharper Image San Francisco 87 Electronics Boutique West Chester. 53 Forever 21 Los Angeles 99 Sterling Jewelers Akron. Va. Texas 20 Big Lots Columbus. Ill. 97 Academy Sports Houston 77 IKEA Plymouth Meeting. 6 Genesco Nashville 68 TransWorld Entertainment Albany. Tenn. Calif. 85 P. Ohio 34 Fry’s Electronics Palo Alto. Texas 40 Tiffany New York 32 Gander Mountain St. Crew New York 79 American Eagle Outfitters Warrendale. Richard Farmingdale. 5 Cabela’s Sidney. Pa. N. Kan. NJ 25 Berkshire-Hathaway Retail Omaha 27 Luxottica Retail Cincinnati 24 Best Buy Minneapolis 1 Men’s Wearhouse Houston 50 Big 5 Sporting Goods El Segundo. Mass. Wis. Maine 56 Bass Pro Shops Springfield. Fla.J. 45 Cato Charlotte. 86 Gymboree San Francisco 100 Ultimate Electronics Thornton. 29 Pacific Sunwear Anaheim. 93 Office Depot Delray Beach. 3 Foot Locker New York 11 Stein Mart Jacksonville. Va. 55 Limited Columbus. Pa. 81 Borders Group Ann Arbor. N. 52 Advance Auto Parts Roanoke. Fla. Wash.J.Conn. 59 Stage Stores Houston 63 Finish Line Indianapolis 65 Staples Framingham. New Albany. 26 Children’s Place Secaucus. Colo. Calif. Mass. 33 Retail Brand Alliance New York/Enfield. 57 Goody’s Family Clothing Knoxville. Ohio 95 General Nutrition Centers Pittsburgh 54 Toys “R” Us Wayne. 73 RadioShack Fort Worth. Minn. N. Mass. Mo. 28 Famous Footwear Madison.

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