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PLUNKETT’S RETAIL INDUSTRY TRENDS & STATISTICS 2009
Jack W. Plunkett
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S. Buyouts and Consolidation Alter the Department Store Landscape 5) Discounting and Discount Stores Evolve 6) Category-Killers and Big Box Retailers Struggle to Keep Up With Discounters 7) Sophistication and Success for Direct Marketers 8) Rise of Showcase Stores and Super-Merchandisers 9) Bricks.: October 2008 Top 20 Retail Websites. through August 2008 Estimated Quarterly U.S.S. U. Cosmetics and Accessories Stores 4) Name Changes. Disposable Income.PLUNKETT'S RETAIL INDUSTRY TRENDS & STATISTICS 2009 CONTENTS Chapter 1: Major Trends Affecting the Retail Industry 1) Introduction to the Retail Industry 2) Wal-Mart Dominates as the World’s Biggest Retailer (and now America’s Biggest Grocer) 3) Department Stores have Evolved into Giant Apparel. Clicks and Catalogs Create Synergies While Online Sales Growth Slows 10) Location Based Services (LBS) and Advertising on Cellphones Take Hold 11) Retail Technologies Leap Ahead 12) RFID Drives Inventory Management Evolution 13) Self Service Retail and Travel Technologies Take Off 14) Retailers Find New Markets in China While India’s Retail Industry Sees Lukewarm Growth/Russia Attracts Retail Interest 15) Lifestyle Centers and Super-Regional Malls Falter/Mall Glut Anticipated 16) Entertainment-Based Retailing. U.S.S.S.S.: 2002-August 2008 Retail & Food Services Sales by Kind of Business.: Monthly. U. Household Expenditures: 2001-2007 Distribution of Total U. U.: November 2007 Top 20 Websites.S. Expenditures & Gross Domestic & National Product Per Capita: 1960-2008 Average Annual U.S.: November 1.S.: 2002-September 2008 1 1 3 5 7 8 9 10 13 14 15 17 18 20 21 23 25 25 26 27 27 28 30 31 32 33 34 36 38 39 40 41 42 43 44 45 46 . U.Socially Conscious Consumers Create Challenges and Opportunities for Advertisers and Marketers 21) How to Interpret Reports of Retail Sales Chapter 2: Retail Industry Statistics U. Retail Industry Overview Exports. General Imports & Trade Balance in Goods.S. Annual Household Expenditures. by Major Category: 2008 (Estimates) Resident Population Estimates by Age.S. U.S. Retail Sales & Annual Percent Change: 1992-2008 Retail & Food Services Sales by Kind of Business. U.S. including Power Towns 17) Shopping Center Tenants Face Slow Sales/Store Closings force Landlords to Become Creative 18) Malls Morph to Stay Afloat 19) Luxury Item Sales Slow 20) LOHAS. 2008 Employment in the Retail Industry. Total & E-Commerce: 1st Quarter 2001-2nd Quarter 2008 Total U. U. Retail Sales.: 1980-2nd Quarter 2008 Total U.: 2001-2010 Twenty Largest Shopping Centers.
5 million in 2007 and 17. with total sales of cars and light trucks for the year at about 13. Retail sales in the U.2 million.400 trillion according to Plunkett Research estimates.482 trillion in 2007. automobiles. Retail sales in 2007-2008 were affected by several factors: 1) Sales of both new and existing homes slowed dramatically. with more than 15 million employees in America alone.com Chapter 1 MAJOR TRENDS AFFECTING THE RETAIL INDUSTRY Major Trends Affecting the Retail Industry 1) Introduction to the Retail Industry 2) Wal-Mart Dominates as the World’s Biggest Retailer (and now America’s Biggest Grocer) 3) Department Stores have Evolved into Giant Apparel.S. totaling about $4. While homes themselves are not counted in retail sales figures. Cosmetics and Accessories Stores 4) Name Changes. www. automobile sales saw a disastrous drop off in 2008.Socially Conscious Consumers Create Challenges and Opportunities for Advertisers and Marketers 21) How to Interpret Reports of Retail Sales 1) Introduction to the Retail Industry Retail. down from about 16. buyers of these . and food service. (total retail sales include the categories of gasoline. Car sales in 2009 could decline further. Sales were $4. is one of the largest industries in the world by number of businesses and number of employees.Plunkett Research. Clicks and Catalogs Create Synergies While Online Sales Growth Slows 10) Location Based Services (LBS) and Advertising on Cellphones Take Hold 11) Retail Technologies Leap Ahead 12) RFID Drives Inventory Management Evolution 13) Self Service Retail and Travel Technologies Take Off 14) Retailers Find New Markets in China While India’s Retail Industry Sees Lukewarm Growth/Russia Attracts Retail Interest 15) Lifestyle Centers and Super-Regional Malls Falter/Mall Glut Anticipated 16) Entertainment-Based Retailing. up from $4. Buyouts and Consolidation Alter the Department Store Landscape 5) Discounting and Discount Stores Evolve 6) Category-Killers and Big Box Retailers Struggle to Keep Up With Discounters 7) Sophistication and Success for Direct Marketers 8) Rise of Showcase Stores and SuperMerchandisers 9) Bricks.plunkettresearch.307 in 2006. including Power Towns 17) Shopping Center Tenants Face Slow Sales/Store Closings force Landlords to Become Creative 18) Malls Morph to Stay Afloat 19) Luxury Item Sales Slow 20) LOHAS. Ltd. Retails sales in 2007-2008 were driven partly by higher gasoline costs as well as by deep price discounting during the holiday seasons by mass merchandisers.5 million at the peak in 2005. Meanwhile. as well as merchandise) will show a slight decrease in 2008.
materials. Negative factors that will impact the retail sector in 2009: • Extremely high consumer debt levels • Higher health care costs for consumers • Global terrorism. the slowing real estate market. home heating fuel. meant that the party was over. “ARMS. etc. the 2008 slowdown in consumer spending has put the brakes . Meanwhile.Plunkett Research. electricity and heating oil. A retailer without a significant competitive advantage doesn’t stand a chance. appliances. Also. consumer electronics and garden supplies to fill up their new residences. taking advantage of rapidly rising home values that increased their borrowing power. a large portion of foreclosed homes are those subject to rising monthly payments due to adjustable rate mortgages. by late 2006. and that trend will accelerate in 2009. where borrowers have poor credit or inadequate income. Many homeowners also increased the balance on their mortgages. Bombay Co.. food. natural gas and electricity • A continuation of depressed conditions in the housing market • Rising home mortgage foreclosures (including large numbers of adjustable rate mortgages. Many of these foreclosed homes are part of the subprime mortgage fiasco that is rocking financial markets. Current economic trends will be tough on retail customers. Many retailers have been driven into bankruptcy recently. Linens ‘n Things. they took advantage of very low mortgage interest rates and very easy lending requirements. and more will follow. 3) Another major negative impact was the growing number of homes going into foreclosure as their owners were unable or unwilling to meet monthly payments. Americans were refinancing their existing home mortgages in record-setting numbers. at retail outlets. 4) The sale of gasoline at the pump is included in retail sales figures. Extremely high prices per gallon for gasoline have shown up as growth of total retail sales in America. Homeowners were spending this cash windfall freely. At the same time. Items that promote a healthy lifestyle will receive a growing focus. a trend toward purchases that support “Lifestyles of Health and Sustainability. This definitely had a negative effect on retail sales. Borrowing against home equity lines of credit was also high. driving up retail sales in many categories. linens. catalog companies and home-shopping television channels continues to be popular. including a pull back in lines of credit available on credit cards and home equity loans • Extremely low consumer confidence • Consumer tastes and expenditures influenced to a growing extent by LOHAS. In doing so. insurance and mortgages. They will have fewer discretionary dollars left in their budgets after they face the challenges of high prices for energy. including Sharper Image.” scheduled to reset to higher rates in 2009) • Layoffs and falling profits in a wide variety of business sectors • Rising unemployment levels • Tightened lending standards that will make it more difficult for consumers to obtain credit. Unfortunately. health care. appliances. Meanwhile. and mail order firm Lillian Vernon. However. consumers have been forced to allocate a larger portion of their household budgets for gasoline. low impact on the environment and low energy consumption. followed by tougher lending standards. and much of that money went to retail purchases. Online selling at deep discounts is even making immense inroads into major consumer purchases such as jewelry. 2) Another factor was home mortgages: From 1998 through part of 2006.com homes are a significant force at retail stores where they purchase furniture. consumers were forced to retrench in 2008. However.plunkettresearch. Direct selling through online retailers. Superstores are battling each other on every major corner while direct marketers (including catalogs and online sites) are stealing customers from stores. Ltd. When they do spend. job security is declining.” Consumers will be more conservative going forward. saving more while spending less. they will be focusing to a growing extent on high-value items with long life. www. Likewise. tension and uncertainty • Consumers burdened with high energy costs for such items as gasoline. when they purchase supplies. builders and remodelers are a strong factor in retail sales. The slowdown in building and remodeling led to reduced sales at home centers such as Home Depot. competition among retailers has never been tougher. leaving fewer dollars left over for discretionary retail spending.
as of the end of 2008 the company showed growth in samestore sales while almost all other retailers posted losses. which have immense. Outside America. This particular Monday is now important since online retail sites show very strong holiday sales on this day.1 million total global employees. up dramatically from $10.com.Plunkett Research.K. where consumers know they can find everyday low prices on high quality merchandise. and an unusually high number will take bankruptcy.S. with a strong presence in such nations as Mexico.490 stores throughout America in late 2008. Costs are cut to the bone while customers flock to the stores in droves. Many firms will post losses. Wal-Mart operated approximately 4. This is a letdown from the 19. First.org survey. new mall developments. Analysts at eMarketer project 2008 online sales to be $136. Growth in online shopping has been driven by two factors.org) offers the latest information on shopping centers.4 billion. but it likely had the effect of leaving consumers with fewer dollars to spend on shopping during December. based on revenue ($374.2% over the previous year (not including travel sales). retail industry.nrf.plunkettresearch.S. homes and businesses leapt to about 100 million by early 2008. as well as the e-commerce efforts of traditional retailers such as Home Depot and WalMart. up only 7. Wal-Mart management knows that the average shopper makes several grocery-shopping trips weekly. to $142. In addition. there’s the savvy marketing of online giants like Amazon. Canada.6 million consumers shopping online from home or the office.900 stores by the end of 2008. is an excellent place to read about retailers’ expansion plans. Cyber Monday 2008 enjoyed 84. much of it by people shopping from their desks at work. www. and is the largest corporate employer in the U. with 2. The success of the grocery venture is fueling significant expansion for Wal-Mart.5 billion during 2008). Among the rare bright spots are Wal-Mart and Costco.S.S. according to a Shop. retail technologies and much more. Wal-Mart is second only to ExxonMobil in annual revenues.7 billion in the previous year).0 million in 2006 and 60. At the same time.1% growth rate in 2009.com (with more than $14.8 billion. Sales of cars and luxury items are dismal. Profits at retailers for 2008-2009 are going to be low. Ltd. up from 72. even at the office. spending vast sums on advertising to lure shoppers into buying at huge price reductions. It is rapidly adding new WalMart Supercenters to its chain. supermarket-like grocery departments that work on lower profit margins than those of traditional supermarkets. Next. Black Friday 2008 was relatively strong compared to 2007. These Supercenters have been designed to sell top-quality groceries at bargain prices in order to bring those frequent shoppers into Wal-Mart’s total shopping environment—thus driving up average sales. malls and retail trends.com) offers a wealth of information regarding the U. The International Council of Shopping Centers (www.7 million in 2005. They further predict a very low 4. Sales in October 2008 dropped a record 2. Wal-Mart’s non-grocery departments benefit when these grocery shoppers pick up items elsewhere in the store. high volume purchasing and cutting-edge technology that raised the chain’s distribution and inventory control systems to the pinnacle of efficiency. Wal-Mart achieved its astounding success through deep discounts.icsc. Shoppers who bypass the neighborhood supermarket to go to a Wal-Mart Supercenter know that they will save substantially. The strategy worked. the number of fast Internet connections in U.S. In terms of U. since a large number of U. The two most closely-watched retail days of the year are the Friday after Thanksgiving (referred to as “Black Friday”) and the Monday after Thanksgiving (known as “Cyber Monday”). retailtrafficmag. These connections make buying online faster and more interactive. workers take time out to shop online from their desktops. and the U. 2) Wal-Mart Dominates as the World’s Biggest Retailer (and now America’s Biggest Grocer) Wal-Mart is the world’s largest non-oil company. well-stocked. Retail Traffic magazine’s web site. All current trends point to a tough time for retailing.-based firms. Internet Research Tip: The National Retail Federation (www.8% over the previous month. These fast Internet connections are extremely important. Wal-Mart had 2. but only because retailers pulled out all the stops.8% growth rate of 2007. Supercenters .8 billion in 2007 revenues.com on online retail sales growth. One way in which the company has expanded dramatically is through its revolutionary entry into the grocery business.
Wal-Mart executives wanted a drink sweetened with Splenda. The stores stock prepared meals in addition to fresh produce. As early as 2006 it began cutting inventories and rethinking its expansion plans. Each of these initiatives is not without its difficulties. liquor companies are often pushing products that are never sampled. along with low-cost prescription eyeglasses. which has long served shoppers who are willing to spend more for organic or gourmet items. Wal-Mart is testing a significant departure from its giant 200. Another small store concept will offer health services and products as part of Wal-Mart’s overall plan to become a major health care company in addition to the world’s largest retailer. which is situated in a dry county. although still required by law to buy alcoholic beverages through distributors. Wal-Mart is also scaling back its new store openings from 2008 through 2010. to about 170 new Supercenters yearly. but the new Coke Zero was to be sweetened with aspartame. In its efforts to provide its customers with true one-stop shopping. easy shopping. Wal-Mart has an agreement with Coca-Cola and Coca-Cola Enterprises (Coke’s largest bottler) to deliver Powerade brand sports drinks directly to Wal-Mart warehouses.S. Another relatively new focus for Wal-Mart in a large number of its stores is on the sale of liquor. the products they produce and the way in which they package and distribute those products. eggs and laundry detergents. Wal-Mart had in-store clinics in a few dozen stores nationwide. Wal-Mart has significant influence on food companies. retail market. Wal-Mart saw the writing on the wall regarding a looming global recession. alcoholic beverage sales made up a relatively small portion of revenues. at least one-fifth of consumers have switched their shopping to discounters for food and household staples. (Already the firm has slashed health care costs for many customers by offering $4 prescriptions for more than 360 generic drugs. Firms such as Kroger Co. it is not impervious to the marketing efforts of other grocery chains.com now number about 2.000 square foot stores called Marketside in Arizona.S. however. thereby bypassing other bottlers. On the distribution end. which is growing in popularity in the U. grocery shoppers were looking for consistently low prices more than convenience. In 2008.S. candy and tobacco sales amounted to about $153. Likewise. According to retail consultant TNS Retail Forward. The stores test an urban convenience concept. grocery. wine and spirits have been sold by Wal-Mart in areas where liquor sales are permitted by state law for years. or 41% of Wal-Mart’s total revenues. by far its largest product category. Ltd.5 billion. in which the two companies work together to develop brands and merchandising schemes.447 in the U. wide selections or gourmet items. as the company reevaluates alcohol as part of its customers’ shopping needs. www. The Sam’s Club unit has long done a booming business in wine sales. planned to introduce a diet soft drink called Coke Zero in early 2006.000 square foot store size with the opening of four 15. an artificial sweetener that sells well to Wal-Mart customers. PepsiCo. selling groceries geared toward more affluent tastes.) By late 2008. Coca-Cola released Diet Coke with Splenda first. Meanwhile. meats. has a relationship with Diageo PLC. which attributes 11% of its North American sales to products sold by Wal-Mart. Wal-Mart must beef up its selection. one of the largest liquor companies in the world based on sales. Mainstream grocers such as Safeway. the company can sell at lower prices than independent liquor stores due to high volume purchasing. Although there is no question as to Wal-Mart’s dominance in the U. When selling their wares to Wal-Mart at its Arkansas headquarters. stores such as Whole Foods Market. This is clearly a plan to compete with Tesco’s neighborhood markets which opened in Southern California in late 2007. and hopes to find them successful enough to rollout the concept on a wide basis.Plunkett Research. for example. dairy and bakery items and are designed for fast. As of late 2008. Perhaps more than any other retailer. Wal-Mart. these health care customers are likely to make purchases elsewhere in the store as long as they are already in a Wal-Mart. This is expected to change. are seeing profits decline as much as 30% while sales were slowing considerably as of late 2008. Although beer. and numbered more than 60 stores by late 2008. .plunkettresearch. and to price reductions on must-haves such as milk. created a diet soft drink called Slice One at the retailer’s request. Coca-Cola. Even with the stipulation of working through distributors (which Wal-Mart eschews in most other merchandise categories). SuperValu and Kroger have to shift their focus to house brands. At the retailer’s urging. and later introduced Coke Zero. especially of hard liquor. and SuperValu. The clinics offer quick and inexpensive visits for such needs as school physicals and treatment for minor infections. In the same way that grocery customers drive sales in other Wal-Mart departments.
In response to falling home values. a toy department and a fine jewelry department—all at full price? Things are quite different now. offering clothing and other non-food items.S. Tesco OneStop. upper-end chains.K. From 1999 through 2005.. enjoyed strong sales through 2007. the department store was developed and enhanced by retail pioneers in France and America from the 1850s through the early 1900s. Dillard’s saw chain-wide sales decline from $8. A mid-day break for lunch or tea was often taken in the stores’ restaurants. The firm recently announced plans to develop a cash-and-carry business in India. Tesco Extra. superstores and convenience stores in 14 countries. During the same period. Marshall Field in Chicago (operating ever-larger downtown stores beginning in 1865). visits to department stores were down 6% from the previous year. Tesco opened its first Fresh & Easy Neighborhood Market convenience stores in the Los Angeles area. H. Can you remember Sears Roebuck’s “Sears has everything” line? Or do you remember going into Saks Fifth Avenue’s flagship store in Manhattan and finding everything from haute couture to a travel agency to a restaurant. In 2007. These department stores were located in the heart of the downtown area within major cities. The department store industry has evolved and generally suffered in recent decades. with a 7. the company sold four properties and signed lease agreements to continue operations at the sites. The company operates 3. plus a hair salon. neighborhood shopping experiences in addition to stocking higher-end breads. major department store chains were compelled to evolve in an effort to arrest their falling sales. the company began running a dedicated green rail line between Scotland and the Midlands to improve its supply chain. which provide traditional grocery items as well as other non-food products and services. growing job insecurity and the stock market freefall. sales at department stores overall slipped 14% to $86. The department store was envisioned as an antidote to shopping at endless blocks full of small. Also. While select.7 billion (meanwhile. Tesco Personal Finance. Originally.956 supermarkets. Cosmetics and Accessories Stores Even before the global economic crisis of 2008. As of mid-2008. For example. By 2006. a combination of better merchandising and increased marketing focus began to stem the tide at some major chains. Tesco acquired 36 Homever stores in South Korea from the E-Land Group. Neiman Marcus and Nordstrom were suffering sales declines in late 2008.com Inc. a joint venture with O2. are redesigning stores to offer shoppers more relaxed. Ltd.000item catalog and 11. shoppers were keeping their wallets in the pockets and purses and staying home. a bit of history is in order.000 products on its web site. Macy opened what was billed as “the largest store on Earth” in . Tesco operates six main store formats: Tesco Express. Ltd.15 billion in fiscal 2002 to $7. according to Nielsen North America. eagerly looked forward to by many consumers. including Neiman Marcus and Nordstrom. offers telecommunications services.7 billion. with over 5 million customer accounts. During 2008. R.6 billion to $7. mom-and-pop specialty shops such as hat stores. and one of the largest retail firms in the world. small urban stores designed to meet the needs of the local community. furniture stores. sales in warehouse chains and membership clubs skyrocketed 128% and clothing stores 31% during the same period). In May 2008. Tesco Metro. These transactions are part of Tesco’s ongoing strategy to move from owning to leasing property. most chains serving middle-income consumers suffered. By 2008. the concept had grown to over 60 stores in the U. including 350 stores outside the U. combination convenience stores and gasoline retailers. In November 2007. online banking and insurance policies. The firm also operates non-food retailer Tesco Direct. Tesco Homeplus. the company opened 508 new stores.plunkettresearch. offers financial services such as savings accounts. www. and Tesco Superstores. hypermarkets located primarily in Asia. Nordstrom enjoyed an increase in sales from $5. Tesco Mobile. In order to better understand what is happening in the department store sector. In 1902.. John Wannamaker in Philadelphia (using advanced advertising techniques to launch a giant department store by 1878) and Aristide Boucicaut in Paris (his Bon Marche became the first true department store by 1852) figured out that housewives would prefer to find everything under one roof—in “departments” that varied from hardware to books to housewares to food items to furniture to clothing. meats and wine not carried by Wal-Mart. 3) Department Stores have Evolved into Giant Apparel.Plunkett Research.K.56 billion in 2006. hardware stores and shoe stores. Spotlight: Tesco plc Tesco plc is the largest retailer in the U. Even previouslybooming Saks. Shopping at them was an all-day affair.
becoming major regional or national chains. and top sales people can earn $100. for example. If they offer any other types of merchandise. That’s why the first thing you see when you walk in the door is cosmetics. “Department store” is a misnomer at this point. offers the utmost in personal service combined with unique and high-quality merchandise that offers high value. with a few also offering a reasonable depth of housewares. Major department store chains went broke by the score in the 1980s. Generally. purses and other accessories. Neiman-Marcus . As stores merge. By focusing on the mass market. For example. Department stores dug themselves a hole by encouraging shoppers to buy during frequent “sale” events. exclusivity is compromised. The company is concentrating on new locations with easy-to-use parking and access that does not force people to go through malls. encouraging the creation of the enclosed mall. most “department” stores are actually mall-based apparel. consumers complained that department stores were hard to access. Downtown shopping fell out of favor. (Some had to overcome financial pressure caused by excessive leverage or overly aggressive expansion). Consumers became accustomed to shopping near where they lived. buyers and merchandisers may lose touch with the needs and wants of their customers on a local level. Once there. Customer service has been deemphasized. Continuously successful department stores are those on the leading edge of modern retailing. it’s necessary for customers to park their cars in remote lots. The growing popularity of life in the suburbs. and the shopping experience becomes a chore instead of a pleasure. The newest merchandise and styles are priced at full amount for a short time. Several chain operators are attempting to address these problems. Inc.com Manhattan. walk a long way to enter the department store and then navigate even further to find the merchandise area they need. such as Neiman Marcus. The smaller size should also make stores easier for consumers to navigate and less costly to operate. discount stores and power centers began competing for consumers’ dollars. reposition themselves and seek new financial resources in order to survive. On the luxury end of the spectrum. were enjoying success before the economic crisis of 2008.000 square feet.000 or more yearly. Nordstrom sales personnel receive above-average commission rates. However. stores focusing strictly on high-priced luxury merchandise. The majority of the balance of the store is apparel—mostly women’s.plunkettresearch. dictated a new role for department stores as “anchors” of malls—a role that became less successful as time passed. recently opened Nordstrom stores are smaller than Nordstrom’s average store of 190. The store featured nine stories. Today. Federated Department Stores. Aggressive advertising and frequent promotions help to move the merchandise. Another problem plaguing department stores is one brought on by large-scale consolidation. In many cases. such as furniture or electronics. not at old-fashioned downtown stores. consumers generally want things to be on sale. merchandising expertise is critical. acquired May Department Stores in 2005. under-stocked sections that don’t compete well against big box specialty stores such as Best Buy. As recently as 2007. and then prices decrease quickly through bigger and bigger markdowns. (Apparel manufacturers cover some of the cost of these markdowns. tastes and consumer needs evolved. The highest volume in the store on a per foot basis is typically done in the cosmetics department. Through the decades. they are often in small. merging Federated’s chains (Macy’s and Bloomingdale’s) with May’s (Marshall Field’s. since most are anchor tenants in large malls. they had to learn to offer better value. and cosmetics generally aren’t on sale.) Shoppers have been trained to wait for items to go on sale. Ltd. They needed to learn to utilize advanced information systems and inventory methods. along with shoes. While malls sprang up like wildflowers in suburban fields. accessories and cosmetics stores. big box stores. www. among others). 33 elevators and several escalators. Nordstrom is perhaps the best example of a department store company that is stemming the retail tide of discount stores and membership clubs. sales clerks are often hard to find and registers are decentralized. Companies like Allied and Federated had to alter their methods. starting in the 1960s. which can make paying for merchandise more complicated than it should be. At about 150.Plunkett Research.000 square feet. Due to ever-changing fashions and fickle consumer tastes. and thus take smaller investments. In addition. Nordstrom. Add to that the higher prices charged by department stores as opposed to discount stores. Department store execs have tried to fight back by making more and more of their merchandise private-label “house brands” (with higher profit margins) instead of designer brands.
3% and a double-digit percentage decrease was expected for November. Inc. A new store was opened in November 2008 at the Water Tower Place in downtown Chicago. advertising power and new clout in leasing store locations. Macy & Co. Inc. the company leapt forward again by acquiring competitor May Department Stores. The question is whether the merchandising will be localized enough through this arrangement. In June 2007. creating efficiencies and boosting profits. In August 2005. and abroad. H.Plunkett Research. repositioned most of its stores to the Macy’s name. October same store sales fell 6. Private equity fund managers tend to acquire existing companies with the goal of improving management.S. adding 491 stores including such brands as Marshall Field’s. down from 15 in 2007. thanks to the May Department Store acquisition. that it had acquired from May’s Department Stores.S. Illinois. including department stores. (The Lord & Taylor stores acquired in the May Department Stores deal were promptly sold off to private equity investors. Macy’s re-branded nearly all of the department stores. Federated changed its name to Macy’s. a new concept from Barney’s. Northbrook Court and Chicago. Now. Next. going bankrupt in 1990 and emerging from bankruptcy in 1992. accessories. Kaufmann’s. for example. The end goal is to own a company with a much higher value than it had when first acquired. Federated ranked as America’s leading operator of mid. Neiman Marcus Group. Buyouts and Consolidation Alter the Department Store Landscape Big changes in ownership are occurring in the department store field as owners and investors try to keep their heads above water. Louis. Virginia. Saks. a number of private equity firms bought retail chains. Federated’s history is dotted with such incidents—after merging with competitor Campeau/Allied in 1988. Inc. St. it is managing operations under seven regional divisions based in Atlanta.plunkettresearch. especially luxury stores.9% drop in same store sales from September 2007. (owner of Saks Fifth Avenue and Saks Off 5th stores) fell 16. the reinvigorated company can have a public offering (IPO) or be sold off at a great profit. Now that Macy’s has grown to 856 stores. Inc. Inc. Marshall Field’s. Virginia. was acquired in October 2005 by two private investment firms in this manner. Neiman Marcus. plans for the new store were on hold. In addition to difficulties in securing funding due to the global credit crisis. located in Tyson’s Corner in McLean. Consequently. By using regional management. books and CDs. In October. many U. Cusp competes with Co-op. including the contentious rebranding of such famous names as Marshall Field’s. To begin with.to upper-tier. the firm had acquired R.6% from October 2007. www.6% drop for the same period. Century City in Los Angeles. Ltd. From 2005 through 2007.com opened a handful of “Cusp” stores targeting the younger generation with hip merchandise and kicky décor that sets it apart of the understated elegance of the Neiman-Marcus brand. Miami. San Francisco and Seattle. it gave up store names that have been regional or local icons for decades. reported a 12. Strawbridge’s and Meier & Frank. One of America’s leading luxury department store chains. 4) Name Changes. In 2006 through 2007. Management’s plan for the future includes boosting private-label brands. the company is attempting to boost results by using the Macy’s name on nearly all of its stores in the first truly nationwide department store chain in the mid. Italian menswear designer Ermenegildo Zegna for one already has stores in 31 Chinese cities and is forcing Saks to negotiate about selling its line in the proposed Shanghai store. including Foley’s. By 1994. There were 11 of Barney’s Co-op stores by the end of 2008. department store chains were hoping to expand internationally in response to softening sales and a weak dollar. The stores. department stores as well as retailers of all types were facing serious losses in revenue.) Federated’s widespread change to the Macy’s name was a significant move. By the end of 2006.to upper-end department stores. covering 40 stores. stores with apparel and accessories are wary of competing in international markets where they have established stand alone stores under their own names. Minneapolis. planned to open its first store in Shanghai in time for the Summer Olympics. New York. Hecht’s. Falling revenues are curtailing expansion plans both in the U. Chestnut Hill. At Macy’s. designers who supply U. California. As of late 2008. Nordstrom saw a 9. It is retaining Bloomingdale’s as a separate brand. same store sales for Saks. as well as the bridal and formalwear stores. carry clothing. to either Macy’s or Bloomingdale’s. the firm hopes to retain a unique flavor of merchandising that will suit local consumers’ needs. Georgetown.S. operating efficiencies may result from the firm’s massive buying power. Next. simplifying pricing and enhancing the in-store experience through improvements such as wider aisles and better . Massachusetts. Federated Department Stores. As of late 2008. In September 2008..
discount stores are able to offer the convenience that department stores lack. Interestingly. www. and the likely answer will be “Ikea. they gain exponentially in volume. Its operating profits (excluding special items) declined by 29% during the same period compared to 2007. The company designs and sells a wide range of furniture products. sofas and tables. desks. Wal-Mart branched out into major metro areas with astonishing success. How does the Wal-Mart method work? Primarily.com dressing rooms. value and practicality are key motivators for shoppers. It has an extensive mail-order catalog and also does business online.5% for the first 9 months of 2008 compared to the same period in 2007. or the Sam’s Choice products found in its Sam’s Club stores.500 distinctive items.300 suppliers in 54 nations. Ltd. Half of the goods sold at Target stores are now privately branded. everyday low prices. As the retail industry weathers the global economic crisis of 2008. Another interesting point is that discount stores attract a broad customer demographic. discount stores are offering more and more products that are private label. rugs. amounting to a total product line of approximately 9. fast centralized checkout. kitchens and offices. What Wal-Mart. once it conquered hundreds of small towns. Discount stores are superbly positioned to take advantage of this climate. discount stores are taking customers and therefore profits from traditional department and specialty stores—today more than ever before. Ikea has over 565 million shoppers visiting its stores yearly. it had 287 stores in 36 countries and territories as of 2008. With or without groceries. and it prints 198 million catalogs per year. Meanwhile. Such is the case with WalMart and its Ol’ Roy dog food. In general. especially in difficult economic times. industry watchers wait to see how consumers will react. it meets the simple needs of average consumers by using money-back guarantees. Macy’s is suffering from the economic crisis. Many of these stores operate around the clock. watch for additional mergers and acquisitions. value-priced goods. competition from discount stores and specialty stores for consumer dollars is fierce. opening approximately 20 new stores each year. bookcases. by opening five new stores yearly. lamps. is 50 stores by 2010. Instead of being limited to selling branded products from major manufacturers like Proctor & Gamble. However. SPOTLIGHT: Ikea Ask consumers around the world what their favorite home furnishings store is. It’s become commonplace to see luxury vehicles in Wal-Mart. with a significant amount of merchandise manufactured in China. claimed for decades). and creating better profits through such changes will be a significant challenge. Costco and other discount stores lack in profit margin. discount stores have been contracting for the manufacture of storebranded merchandise. Wal-Mart was first conceptualized as a rural store—a modern general store if you will—located in smaller communities that lacked much in the way of local shopping facilities.Plunkett Research. The firm’s vast supply chain includes more than 1.000 square feet and up) stocked to the ceiling with trendy. Russia and China. including beds. an in-house design staff plus dozens of freelance consultants constantly create and evolve the merchandise. Nonetheless. 5) Discounting and Discount Stores Evolve Wal-Mart might as well be the first mentioned in this category.” Inter IKEA International is a multinational home furnishings company based in Sweden. Wal-Mart and its competitors offer plenty of parking by the door. The firm continues to grow. Since its founding in 1962. easy returns and quality inventory that includes broad categories of name-brand merchandise. Constantly cutting prices. Wal-Mart has flourished to become the nation’s top retailer (a bragging right that Sears Roebuck & Co. Meanwhile. the company strives to provide affordable home furnishings.S. Convenience. urban shoppers need the same services and low prices as rural consumers. chairs. Thanks to astonishingly steady growth.S. The firm’s focus is on giant stores (300. In order to maintain its trendy and unique styles. Obviously. People of all ages and incomes are shopping there. Consolidated operations may have efficiencies great enough to keep stores open. Target and Kohl’s parking lots alongside practical compacts and trucks. while offering everyday low prices. Same store sales were off 3. as well as various accessories for bathrooms. ease of access and floor help trained to offer assistance. Its fastest-growing areas have been the U. the George line of apparel.plunkettresearch. and it entered Japan for the first time in 2006. Consideration is given to local tastes and trends. merchandise that is rarely out of stock.. Costco’s Kirkland Signature brand is on everything from cookware to . Its long-term goal is in the U.
Special types of shopping centers. dominant retailers in dozens of segments. Although this method has long been used by department store chains and a handful of specialty store chains.390* Costco: (year ended 8/31/08) Fiscal 2008 Revenues Employees Stores Target: (year ended 2/2/08) Fiscal 2007 Revenues Employees Stores $70. Some stores opened in massive. it was picked up by WalMart. At least part of this trend is attributable to the difficulty and costs that manufacturers have in reaching the consumer through mass advertising. Heinz and KimberlyClark have begun accepting contracts to make products under store names. This is a dangerous proposition when those same stores are promoting their own private-label products.plunkettresearch. While Costco and Wal-Mart were enjoying sales growth in 2008. Other designers have jumped on board the exclusive discount bandwagon.com paper goods to food items. As an alternative. ** Includes Targets and SuperTargets. Haute couture designer Isaac Mizrahi has been working exclusively with Target. roughly two acres in size. was Charmin. such as fine diamond jewelry and fine wines. 6) Category-Killers and Big Box Retailers Struggle to Keep Up With Discounters Home Depot is widely accepted as the most recognized category-killer. creating an inexpensive line of sophisticated clothing for women as well as trendy home décor items such as furniture. bedding and dinnerware. Supercenters. All have tremendous buying and advertising power. Sitting next to it on the shelves.100. including Jaclyn Smith and Martha Stewart at K-Mart and Vera Wang at Kohl’s. As an alternative to going through the painful process of establishing their own brands.000 543 $63. After P&G dropped the brand. some manufacturers have been turning to in-store promotions. which ended November 1. Whereas manufacturers previously spent as much as 65% of their advertising budget on media outlets such as television. Another interesting trend in brands is the development of discount-priced designer lines. freestanding buildings on major roads. at a slightly higher price. Costco has long enjoyed success selling high-end items at discount prices. Sales of private-label items are generally growing at a faster rate than those of name brands. All offer significantly lower prices than do traditional retailers. Wal-Mart put its White Cloud private brand toilet paper on all its shelves and saw sales skyrocket as customers remembered an old favorite. category-killers like OfficeMax. stores. newspapers and magazines.” were invented to house these superstores. Discount Giants (With approximate store count at 1/1/2007) Wal-Mart: (year ended 1/31/08) Fiscal 2007 Revenues $374. known as “power centers.Plunkett Research. Taking advantage of a once well-recognized brand name. Taking brand names that were abandoned by their original manufacturers. A prime.3 billion 366.” Today. discount stores have also been picking up brands that have been left by the wayside.000 Stores 7. the toilet paper currently made by Proctor & Gamble. and somewhat ironic.9 billion 137. Other category-killers include Best Buy. referred to by real estate professionals as “white boxes. Target suffered a small drop in same stores sales through its fiscal third quarter. Ltd.000 1. along with Lowe’s. relying on the fond memories of its customers to inspire confidence and sell the product.5 billion Employees 2. Many major brand manufacturers such as Kraft. and stacked to the ceiling with every conceivable type of appliance.591** * Includes International and U. Operating a discount chain is not a guarantee of easy profits. It is constructed like a warehouse store. Bed Bath & Beyond and Staples are ubiquitous. 2008. example of this is White Cloud toilet paper. www. while at the . or ones whose trademarks have expired. Sam's Clubs and Neighborhood Markets. few have picked it up with as much enthusiasm or effectiveness as the discount retailers. they now put as much as 60% towards special shelf placement fees (fees charged to the manufacturers by store management for giving merchandise greater prominence on shelves) and promotional offers in the stores where their products are sold. tool and home construction/improvement item. which is a major competitor to Home Depot.S. which was originally made by Proctor & Gamble. the retailer then releases the product afresh.
directly and indirectly owned by Bain Capital and Kohlberg Kravis Roberts and Co. Circuit City (Best Buy’s major competitor) and Linens ‘n Things (which was Bed Bath & Beyond’s major competitor) each took bankruptcy during 2008. non-store retailing evolved. as early leaders like Gateway and Dell Computer found success via aggressive advertising in computer magazines. upscale catalogs such as the Horchow Collection had emerged in large number. and profit margins are under pressure. Both of these companies are.com same time offering a fantastic depth of merchandise from which to choose. Television shopping became sophisticated as the advent of new.S. direct mail and mail-order advertising Television home-shopping programs and infomercials. Meanwhile. Business-tobusiness catalogs of such items as office supplies also saw rapid growth. low-priced channels for the online purchase of everything from housewares (competing. Amazon. innovative non-store methods. but was forced into bankruptcy in late 2008. mail-order ads in magazines or newspapers and door-to-door peddlers of such items as Watkin’s Vanilla Extract. non-store selling (sometimes called “direct selling”) is giving traditional retail selling a run for its money. Vornado Realty Trust and Gordon Brothers Group LLC. respectively. At the same time. growing competition from discount Internet-based sellers can be extremely hard on big box stores. For example. Bath & Beyond) and consumer electronics (competing with Best Buy and Circuit City). Ltd.).158 trillion in 2008 when all business sectors are included. The direct-marketing and direct-response industry includes thousands of companies offering unique niche catalogs. Amway and Mary Kay in selling cosmetics and other personal-care items through legions of independent representatives. such as financial services and transportation. niche cable TV channels created additional sales venues. Competition from discount stores and online sites is daunting. it is possible to have too much of a good thing in retailing.. commercial and nonprofit direct marketers would spend $183.com offers convenient. and scores of new companies copied the methods of leaders like Avon. www. Mergers and failures have already begun. By the late 1980s. and there may be too many superstore chains in some categories. Direct selling involves both old-fashioned methods and state-of-the-art technologies. multi-level marketing was booming. The group projected that direct marketing would generate revenues totaling $2. as well as retailing. Sales growth at many big box chains has slowed. non-store retailing consisted only of catalogs (such as those from Sears Roebuck & Co.. catering to the growing base of affluent households where women were holding demanding.plunkettresearch.Plunkett Research. More recently. for example. Likewise. In spite of these benefits. Toys ‘R’ Us is under intense pressure from competition at Wal-Mart. such as the closure of the Incredible Universe computer and electronics stores and the Just for Feet shoe stores in recent years. thanks to competition from Best Buy and WalMart. As of the end of 2008. and firms using additional. Toys ‘R’ Us was acquired by two private equity firms. The company bounced back to some extent starting in 2005. 7) Sophistication and Success for Direct Marketers Several decades ago. Slowly. television home-shopping programs. millions of independent sales representatives selling everything from lingerie to cookware through personal calls and party-like events in the home. The Direct Marketing Association projected that in 2008. Internet-based retail sites. big box retailer consumer electronics Circuit City went through difficult times in 2003 and 2004. By the 1970s. Fuller Brushes and Kirby Vacuums. well-paying jobs and had less time or inclination for traditional shopping. LLC and Global Toys Acquisition Merger Sub. Today. Circuit City hoped to restructure successfully after closing 155 stores.S. Global Toys Acquisition. In 2005. previously held by Toys ‘R’ Us. telemarketers. among others. Linens ‘n Things was liquidating and closing its business entirely. mail-order sales of personal computers and related accessories soared. along with direct-sales offers broadcast by radio Merchandise or services offers via interactive television programming Internet-based retail sites (also see Plunkett’s ECommerce and Internet Business Almanac) .1 billion on advertising in the U. The non-store category of retailing is comprised of the following sectors: • • • • Catalogs. The discount giant has overtaken the coveted position of number one toy retailer in the U. with Bed. It has steadily chipped away at the market share of stores. where toys are being sold at deep discounts.
up from $7. For example. 365 days a year. In instances where a retailer has both stores and catalog operations. Pottery Barn and Victoria’s Secret also are leaders in this type of multi-faceted retail marketing. This not only provides faster and more thorough customer service.4 billion in sales during 2007.S. It is important to note that there are several purposes for direct marketing. For example. With interactive cable TV services. take orders and suggest high-profit-margin upgrades to those orders. This is more precisely defined as the “direct-response advertising” segment of direct marketing. a subsidiary of the Liberty Media Corporation. households in 2006.0 billion in 2006. complaints. watch for direct mail budgets to be cut. it may also give the customer a false sense of a personal relationship. homes with cable service. brochures. Consumer calls are routed to these centers. with operators continuously available to take calls and process orders. including the generation of sales leads or the creation of a level of interest in the consumer that will generate store traffic. For example. flyers and postcards. The company racked up $7. Many of these call centers are outsourced to foreign countries where labor is cheaper than in the U. long-term history of purchases and other activities with a simple keystroke on the computer.. Ltd. value and convenience. QVC. On the other hand. one group has used full-page ads in the New York Times to skewer Victoria’s Secret for its continuous.com • Direct sales offers advertised online and via email • Door-to-door and “party” selling • Telemarketing Note: Many sophisticated non-store retailers use combinations of these methods Extremely sophisticated database software now enables direct marketers to mail. then the ad is a direct-response advertising success. e-mail or telephone their offerings to well-targeted groups. matching such data as home value.S. direct marketing serves multiple functions. “QVC” stands for quality.S.S. Retailers will analyze their lists more carefully in an effort to drop addresses that are less likely to respond. occupation. advertising and marketing methods have blurred the distinctions between mass-media marketing and direct marketing.Plunkett Research. in addition to billions of directmail offerings via letters. subscribers can order movies on demand and other unique services. is a banner ad on a web site a direct-marketing effort or is it mass-media advertising? If you simply look at the banner without clicking on it. Cable Systems and Interactive TV Television shopping shows were an instant hit. With regard to telephone orders. Television-Based Shopping. today’s socalled “telephone centers” are staffed with welltrained order-takers and customer service representatives at both traditional and non-store retailing firms. The network broadcasts themed shopping programming 24 hours a day. an operator can see a customer’s complete. www. More broadly. direct marketing can have other purposes. For example. massive mailouts that consume immense amounts of paper. In seconds. where operators use the latest in database and telecommunications technology to expertly answer questions. delivered by its stores. Interactive television services are growing rapidly.) L. However. then the ad may be a mass-media branding success. Consequently. is a good example. Pennsylvania that broadcasts internationally with locations in Germany. and eventually make an online purchase rather than go to a retailer’s store. the intent is to close the sale through direct contact with the consumer. Victoria’s Secret mails about 390 million. credit rating and automobile type owned against a database of residents in a particular city may identify those most likely to purchase a particular item or line of merchandise. it reaches more than 87 million households. Special software in the call centers keeps track of a customer’s questions. in the case of a catalog mailed to the home by a seller that does not operate any stores at all. and the meaning of the ad or the name of the retailer registers with you. Catalogs and Direct-Mail Offerings Catalog retailing remains an immense business. for 2009 and beyond. In the U. market. NeimanMarcus’ marketing synergism. Catalogs also remain a popular venue for items we may not want our neighbors to see us buying in a store. is a televised shopping network based in West Chester. accessing 96% of all U. if you click on the ad. Bean mails about 250 million catalogs yearly. They also have the ability to . Japan and the United Kingdom. About 20 billion print catalogs were mailed to U. (This vast use of printing paper is irritating to some conservationists. Catalog shopping can offer great convenience and frequently offers better prices than shopping in stores. catalogs and online site.L. leading to new opportunities for direct selling via TV. modern retailing. purchases and needs.plunkettresearch. Inc.
At Doncaster. Carlisle and Worth enable women who are independent representatives to show and sell clothes and accessories from their homes or company show rooms at trunk shows. Companies like Avon have taken great pains to make a functional recruiting and selling structure. Another direct selling option from the home is women’s apparel. As of early 2005. Ads displayed by the cable system can then be custom tailored to match the viewer’s profile. In addition to companies that engage in direct selling as their primary line of business.com respond to direct sales offers via their cable systems.donotcall. selling a broad spectrum of products. It’s a model similar to Tupperware parties. and have come up with multi-level pay packages that can yield marketers a satisfying return and encourage “group leaders” not only to sign up recruits. Firms like Avon have found tremendous success in nations such as China using this business model. merchandising and marketing.000 Independent distributors: another 5. Avon’s and Mary Kay’s business models have been so successful that many other companies. Cable TV offers another unique advantage to direct sellers and other advertisers. Payments to these group leaders are based on sales of those they have recruited. giving them a strong incentive to take responsibility for those under them in the hierarchy. Today’s practices are very different. “Do not call” list regulation at the federal level places the future of this industry in doubt. Party-Based Selling and Other Personal Direct Selling Methods While this type of non-store retailing has been with us for a long time. Companies such as Doncaster. www. as advertised in 600 million sales brochures printed yearly in 25 different languages. the Federal Trade Commission amended its Telemarketing Sales Rule to require telemarketers purge their call lists of all names and numbers found on the National Do Not Call Registry (www. and around the world in the form of selling parties. viewers watching a pay-per-view music concert may be able to order souvenirs such as tshirts via the cable system. such as the Pampered Chef unit of Berkshire Hathaway.gov). it does create sales. Prices range from $60 for accessories up to $1. Independent Representatives.93 billion in 2007 Employees: 42. This registry. trying to sell goods that no one wanted. golf clubs. two-income households has added greatly to the popularity of a sideline career as an “independent consultant” for companies like Mary Kay. Avon: Queen of Door-to-Door Sales Yearly sales worldwide: $9.4 million people in over 114 nations Marketing: The distributors sell 2. with top sellers earning more than $100. the growing struggle of middle-class families to become stable. Representative selling has often been looked on with scorn. Orders are placed. Average annual income for associates is about $40. Annual sales for these private companies run between $30 million and $130 million. Using individual reps as sales agents has grown very rapidly outside the United States.plunkettresearch.S. Telemarketing Despite the fact that many consumers find telemarketing annoying. For example. have entered living rooms across the U. Tools designed for women. value and size of the home and other data. usually held four times per year.Plunkett Research. Each quarter. Since the cable system knows the address of the cable subscriber. Avon and Amway. and then the apparel is delivered to the customers within several weeks. for example. but also to teach these recruits how to sell. pet supplies and wine are only a few items that are selling big in the home.000.5 billion units yearly of Avon’s plethora of personal-care products. especially in legitimate businesses that look for long-term returns and loyalty from both customers and recruits. which opened in June 2003. associates send out advance marketing materials and invitations (professionally produced by Doncaster) to friends and acquaintances.000. mostly because of the so-called “pyramid schemes” that often left recruits indebted to the company. many manufacturers and retailers have found great success with direct marketing. Appointments are made by customers to see and try on pieces from the current line. as well as the nuts and bolts of processing orders and collecting payments. “associates” are trained by district sales leaders to learn the ropes of fashion display.000 or more for suits and outerwear. contains upwards of 145 million . that address information can be matched against demographic databases to create a unique profile of the subscriber based on likely household income. Ltd.
featuring an enormous. Each has received rave reviews. Nike stores in the super-merchandiser category are futuristic extravaganzas. more than a hundred miles from any urban center. Boston and Minneapolis. too opulent to be considered profitable. Dallas. Fears that the registry would expire in 2008 were put to rest when the Federal Trade Commission pledged not to drop any numbers from the list. caribou and other trophy animals set amidst built-in landscapes of rocks and waterfalls. as well as smaller American Girl Boutique and Bistro locations in Atlanta. www.plunkettresearch. fisherman and outdoors enthusiasts came with their families. with similar reactions. people who are knowledgeable about the products and the use of them. on the other hand. originally a catalog-only retailer devoted to hunting and fishing goods. they spared no expense in the construction of the store. with two additional stores in the planning or construction stages. bringing their American Girl dolls with them and buying more inside.” are also staffed with the most qualified people available. coming to see this retail phenomenon. their dogs and even their horses as though they had found a new home.com registrants. One such merchandiser is Cabela’s. photo studio and doll hair salon. located in downtown Chicago and Manhattan. stocked with huge fish for shoppers to ogle. Inc. High. and has been welcomed not only by shoppers but also by the towns in which they were built. In August 2008 the FTC enacted a further cut aimed at telemarketing by imposing stricter regulations on calls and setting a ban on prerecorded call messages effective September 1. For their fishing clientele. they have proven immensely successful. Bass Pro is another company that began as a cataloguer for outdoor gear and has built stores similar to those of Cabela’s. the Cabela’s store was not expected to see many visitors. are opulent buildings more reminiscent of 19th century mansions than retail stores. The story of Cabela’s success is not unique. each employee hired was more park ranger or outdoors expert than sales clerk.000 square foot flagship American Girl Place store in Chicago. Supermerchandisers. They have even become major tourist attractions. operating in a number of specialty fields such as sporting goods. Ltd. they built four 8. either for ambiance and style or for demonstrations and practice areas for their products. the owners of Cabela’s decided that they wanted to showcase their products in a store which would not only display all the things they sold. many of which are vast and immaculate. which are also known as “showcase stores. Finally. Girls and their families line the street before the doors open each day. The firm has additional stores in Los Angeles and New York. It was for show only. Then something astounding happened: People started flocking to the sleepy little town in droves. With these ideas in mind. well-stocked selection of sports gear. Built in a small town. Discount stores like Target focus on stocking their stores with basic items from a wide variety of merchandise categories set in large stores with minimal operating costs. The store proved so successful that the firm decided to build several more just like it. After the catalog business was firmly established. theater. Ralph Lauren showcase stores.Plunkett Research. Hunters. and they had to know and love what they were selling. has a 42. with display models in abundance and many specialty services such as bicycle maintenance and repair. high fashion and cooking. the store was not complete without people to staff it. but would act as a flagship for the company. but for one reason or another. traveling hundreds of miles and staying for hours. 2009. spend huge amounts of money on the construction of unique (and often entertaining) stores and devote large portions of these spaces to non-retail purposes. wood-beamed ceilings. each custom- . or even turn a profit. Of course. hardwood floors and lush furniture were just the beginning. drawing as many as 6 million people a year. several large corporations have opened “flagship stores. Dick’s Sporting Goods had 348 stores in 38 states as of early 2008.” built with the same showcase idea in mind. After an arduous process of interviewing and testing numerous applicants. The stores. American Girl. Thus a super-merchandiser was born. Cabela’s had 28 such stores as of November 2008. These retailers began as anomalies. while almost half the floor space was devoted to wildlife scenes that include stuffed bears. Several other retailers have found supermerchandising to be a viable strategy. an upscale retailer of dolls and doll accessories. The flagship stores of Polo Ralph Lauren and Nike are excellent examples of these. regardless of when they were registered. 8) Rise of Showcase Stores and SuperMerchandisers Super-merchandisers are the polar opposites of discount department stores.000-gallon fish tanks. Illinois with a café. Super-merchandisers have popped up in several different categories. American Girl is now a subsidiary of toy giant Mattel.
albeit on a smaller scale than Cabela’s.com designed. such as the 3. the fact that consumers feel pressed for time. with 2007 sales of $4. the more entertaining a shopping environment is. needs or interests. the more that target consumers will drive a long way to get to the store and stay a long time once they have arrived. Customers like the opulent atmosphere. They further predict a very low 4. fountain and sculptures to reach a maze of walled-off boutiques that showcase products.000 square foot showroom dedicated to a wide variety of electronics from home entertainment to kitchen appliances. Illinois. for example. super merchandisers. large showcase stores are in such areas as the Galleria Mall in Houston and Palo Alto’s main shopping district. This is a letdown from the 19. refrigerators and freezers. All of these stores were conceived with a very specific group of consumers in mind: enthusiasts and professionals who are very dedicated to the products offered by the stores. The trend has proven successful enough to inspire copycat stores in industry sectors as varied as electronics and home improvement. Customer education is emphasized as strongly as making sales. Bose. they fit perfectly in the trend of entertainment-based retailing.2% over the previous year (not including travel sales). The concept is working to the tune of $300 million in annual revenue. Spotlight: Abt Electronics Another great example of showcase stores is Abt Electronics. up only 7. hobbies. The stores have also targeted consumers who have often been underserved in the past.000 per square foot (compared to about $971 per square foot at Best Buy). Apple and Sony have opened showcase stores. a new pair of running shoes or a doll with a complete wardrobe. Ltd. there were more than 100 million homes and businesses in the U. housed in a 355. Customers walk through an entrance atrium with a 7. including stores in the U. Several factors will encourage consumers to do more of their shopping online. and who have never before been offered such a wide variety of top-quality products.plunkettresearch.8% growth rate they found in 2007. Abt has a 65. Sub-Zero and Viking like the separation of their products from their competitors.500 gallon aquarium. and major. while manufacturers such as Apple. Clicks and Catalogs Create Synergies While Online Sales Growth Slows The 2008 slowdown in consumer spending has put the brakes on online retail sales.000 square foot. announced plans to reduce its staff by 10% in late 2008. By the beginning of 2008. Japan and the U.. Like Cabela’s. These super-merchandising stores offer something that no other kind of retailer has offered before: the perfect atmosphere for buying a certain product. and therefore online activity such as retail sales grew apace through 2007. Analysts at eMarketer project 2008 online sales to be $136. A massive. and they predicted essentially no growth for the critical holiday months of November and December 2008.000 people. The company was founded in 1936 by an $800 investment as a family-owned enterprise. www. Cabela’s.8 billion. Also.000 square foot facility. the electronics companies have staffed their showcase stores with experts in all store products. Store staff members tend to be enthusiasts themselves who can answer questions expertly. including today’s wildly fluctuating gasoline costs. Why have these stores been so successful? They were designed from the ground up to cater to specific niche audiences. .Plunkett Research. Apple. Analysts at commScore found that October 2008 online retail sales were up only 1% over the previous year. These stores always give customers an opportunity to learn more about their personal sports. Canada. be it a rifle. especially. Supermerchandisers have filled in a previously unseen gap. employing 1.1% growth rate in 2009. Apple operated 200 retail stores as of late 2008. cooktops. Sony operates elaborate showcase stores in major malls. $1 million “Living Kitchen” that showcases Sub-Zero and Wolf ranges.K. it is one of the world’s largest independent sellers of consumer electronics. such as hunters and cooks. These are hip boutiques filled with their latest electronic gadgets located in upscale shopping districts or malls. built and lighted in order to inspire awe in all who see them. Today. flagship store is in Manhattan. with broadband connections. like all other retailers. has enjoyed astounding success. However. a family-owned and run business in Glenview. Broadband connections expanded at an astounding rate in recent years. There is also a $5 million design center near the main store. the widespread adoption of high speed Internet access and growing ease-of-use of online shopping carts. That is. There will be some slowing in the broadband growth pattern as saturation points are neared.S. are facing difficult times in the global economic crises of 2008.S. Each boutique is specially designed. 9) Bricks.4 billion. to $142.
Such a strategy would entail: • Seamless integration of store. customer reviews and creating Facebook pages to promote their sites. The point is to create loyalty-inducing convenience for customers. For example. This is an adjunct to location based services (LBS). retail stores and web sites. store-based retailing and combine it with the growing popularity of catalog and Internet-based retailing. In America. touch or try on merchandise and then make their purchases online to avoid waits at cash registers or the need to deliver gift items themselves. which are growing in popularity. while Deloitte Touche reports that 62% of consumers have looked at least once at an online peer review before buying. TV and video delivered to the cellphone by subscription. Many of these ads are • • Few companies have reached this level of integration of traditional and non-traditional retailing. Savvy marketers are delivering ads to cellphone screens. and advertising via cellphone is no exception. as well as phone and fax ordering options. for example. Communication of a seamless brand identity and level of service throughout catalogs. Free shipping offers proliferate.Plunkett Research. for good examples of companies that are evolving toward such “seamless” strategies. visiting stores to see. As online retailers face slowing sales and a grim holiday shopping season forecast for 2008. For every dollar spent by consumers online. TeleNav and MapQuest. Opportunities to offer personalized marketing and service through the use of customer profile data. later visiting a physical store to make a purchase. even going so far as to consult an online Bloomingdale’s inventory to suggest alternatives to the in-store shopper. study Wal-Mart. where and how they please. providing choices of 1) place and method of purchase. Enablers include faster Internet access for cellphones (including new 3G networks with very high speeds). Ltd.com Online shopping often goes hand-in-hand with in-store shopping. Many shoppers do their homework on foot. and a number of web sites are adding product videos. customers find enhanced flexibility and customer service thanks to the opportunity to shop via the web. such as Vindigo. sending an image across the Internet to friends PCs. and mobile access to Internet sites. cellphone technologies and services evolve much faster in Asia and Europe than in the U. 10) Location Based Services (LBS) and Advertising on Cellphones Take Hold GPS technology is allowing advertisers and information providers to push information to mobile consumers based on their locations. Location based advertising is already fairly common in Japan and in parts of Europe. Clearance sale pages are also becoming more popular. Even more innovative ways of merging bricks and clicks are evolving. cellphones have the potential to deliver a wide variety of advertising and local data to the consumer. However. giving them options for purchasing when. several leading companies have developed expertise in enabling GPS maps and location based data to appear on cellphones include Smart2go. Numerous surveys consistently show that most shoppers prefer to make their purchases in physical stores. repairs and additional services as needed. . www. Thanks to rapidly evolving technologies. 2) method of pickup or shipment and 3) place or method of returns. an additional $6 is spent in stores as a result of Internet research. The most successful companies among retail firms of all types will be those that take full advantage of the stability of traditional. According to Accenture. Friends can then comment on the outfits by instant messaging. The reverse is also true. entertainment attractions and special sale events at retailers. GPS-equipped cellphones have the potential to alert consumers on the go to nearby restaurants. many are revamping their web sites to better attract customers. the Victoria’s Secret catalog or Victoria’s Secret stores. In Asian nations such as South Korea and Japan. In 2007. consumers are enthusiastic adopters of new cellphone services.. Staples and Victoria’s Secret. stores hand out copies of the catalogs—which feature the web address of VictoriasSecret. In addition to the millions of catalogs that are mailed every week. that were created especially for use by cellphone consumers who are on the go.S. At lingerie giant Victoria’s Secret. The Gap. Typically. Surveys also report that a large number of shoppers who browse a traditional retail firm’s web site do so to gain information. Bloomingdale’s tested an interactive “mirror” that allows customers to model outfits while in stores. catalog and Internet-based offerings to consumers. REI. color screens. Online apparel sales are soaring. 69% of consumers research products online before buying in a store.plunkettresearch.com. based on GPS.
Likewise. including the ability to advertising on its entertainment and news sites that have been designed especially for mobile screens. reality TV show American Idol has viewers vote for contestants via text messaging. and in London’s train stations and shopping malls.S. Cellphone advertising became a reality in the U. millions of American cellphone carriers are now buying subscriptions to cellphone TV programming.6 billion in 2008 and $19. Ltd. In the U. broadcast giant CBS’ mobile unit is partnering with social network service Loopt to display ads on web sites CBS Mobile News To Go and CBS Sports Mobile. bear in mind that the global cellphone user base will be about 5 billion by 2012.’s television unit has encouraged viewers to download bingo boards to their cellphones so that they can play along with games that are on TV. have downloaded the ads.com. Other ads deliver coupon-like information that enables consumers to save money. In fact. games and sports programming.. sports scores.ingenio. In much of Asia and Europe. cellphone owners must optin or be viewing an Internet site before they can be subjected to ads. Sprint and Verizon began testing and rolling out mobile phone ads.admob.S. However.com entertaining or include contests of some sort. . California-based company. so those revenues represent only about $5 per subscriber. movie times. Virgin Mobile USA has tested programs that reward customers who view at least four ads per day with reduced monthly bills and access to free programming. The spots tend to be about 30 seconds long. (Ingenio also provides this service on standard.7 billion in 2007.) The firm has deals with Microsoft’s MSN unit and with AOL. or travel-related services. Ingenio. mobile downloads and more. Washington that provides the default search engine for a variety of mobile phones served by carriers including Verizon Wireless and T-Mobile.com. www. To begin with. which may contain ads. Mobile Advertising and Marketing Companies to Watch: AdMob. non-mobile Internet searches. Meanwhile. Vindigo.. now owned by AT&T. consumers may find compelling enough to get them to participate. U. www. paypercall. a mobile phone ad distributor. Others are subscribing to news services and still other consumers use their cellphones and PDAs to access Internet sites that contain ads in addition to useful information. offers both advertisers and publishers to target and personalize cellphone advertising in more than 160 countries. Yahoo! and Time Warner are establishing advertising networks designed for cellphones. Potential ways to get consumer interest are endless. weather. News Corp. www.vindigo. General Motors ran a campaign that encouraged consumers to send in photos from their cellphone cameras and enabled participants to download special ring tones. spots about new cars. Content often includes interviews with musicians or entertainers.1 billion by 2012. Major Internet firms such as Google. news. Loopt’s GPS-based technology and social media activity makes location based-ads possible. that offers a pay-for-performance advertising system that places ads relating to mobile Web searches next to search results. flight information. Its 4INFO service offers mobile web users access to business listings. entertainment and sports programming to cellphones and PDAs. and could reach $4. maps.S. a San Francisco. there are many offerings that U. It offers a large range of mobile advertising and branding opportunities. in late 2006 when cellphone carriers such as AT&T. a mobile marketing firm in Seattle.com. and high levels of consumers who are in range. music programming. To put that projection into perspective. is an American firm that provides ring tones. Inc. At Heathrow Airport near London.plunkettresearch. broadcast and cable TV programming can encourage cellphone users to participate in interactive advertising and entertainment. about 10%. For example. Research firm eMarketer estimates that global cellphone advertising revenues were $2.com. Its Medio MobileNow Ad Network offers pay-per-click mobile ads to advertisers.Plunkett Research. Google began selling ads for cellphone-viewable web pages in late 2007.S. delivery of ads via cellphones is not prohibited or is subject to minor regulations. Medio Systems. medio. the Federal Communications Commission (FCC) released an order in early 2007 requiring mobile marketers to obtain express consent from customers before wireless carriers can release customer information to third parties that might attempt to target ads. consumers carrying Bluetooth-enabled cellphones may come within range of transmitters alerting them to digital ads and offers. The cellphone ads may be combined with nearby billboards for greater effect. In China.
When it comes time to check out.. There are concerns are that shoppers will attempt to leave stores without paying for their scanned .S. The goal is to increase speed and convenience for shoppers.S. Shoppers pick up a scanning device and small computer monitor from a rack near the entrance (or grab a shopping cart with the device attached) and scan their store customer loyalty cards with a detachable barcode reader. complete with a map of the store indicating where each item can be found.Plunkett Research.S. An additional feature is the ability for shoppers to create online shopping lists at store web sites and have those lists beamed into the device and displayed on the monitor. As the shopper walks the aisles and scans items for purchase. Stop and Shop switched to a smaller. are now in place at many stores across the U. Information about past purchases appears on the monitor as well as special offers dictated by personal preferences. Scan a jar of peanut butter. 11) Retail Technologies Leap Ahead Retailers. Customer Checkout Retail productivity has benefited tremendously from the construction (or remodeling) of new.plunkettresearch.com. mostly because of concerns about infringement on privacy. Virtually all chain retailers are utilizing pointof-sale computer systems. The system verifies the customer’s fingerprint image and charges the associated credit or debit card on file. Major chain stores across the U. The monitor displays information and special offers about nearby items. In 2008. Ltd. participating shoppers merely press their fingers on a pad at the payment terminal. The system also beams signals to the store's central computer network regarding shoppers’ locations in the store. more efficient stores with the latest checkout and inventory control equipment. Stop and Shop of Quincy.com Wavemarket. even moves as seemingly innocuous as buying groceries. Additional deposits may be added into the accounts as necessary for ongoing use of the same cards.). such as Kroger. Co. the system keeps a running tally and suggests complementary items. RFID tagging and fingerprint identification. A host of gadgets. since newly equipped stores show significantly higher profits due to growth in efficiency. Retailers who could not invest in productivity-enhancing technology and remodeling have suffered. hand-held scanners. such as touch-screen information monitors. Biometric systems such as fingerprint or retinal scans are perceived by some consumers as ominous portents of a future in which government and law enforcement agencies have the power to track every move. adjust the inventory in the computer and reorder merchandise automatically. as well as to curtail credit card fraud. The easyShop device. messaging.. and in Europe. maintain secure personal files that store credit or debit card numbers along with encrypted fingerprint images. Today. www. Still another innovation in checkout is hand-held or shopping-cart mounted scanners that provide a “checkout-as-you-go” service. Customers pay for a card in amounts from $5 to $500.. are investing heavily in new technology that will simplify transactions and increase customer service. some customers are still hesitant to sign up for this service. which creates a debit account. A boon to habitual customers is the convenience provided by the proliferation of private-label cash balance cards such as those issued by Starbucks.S. friend and family finding programs and campaign management. is in use in about 100 Stop and Shop stores. However. and the computer suggests buying jelly or offers an instant coupon on the brand of jelly purchased by that customer in the past. Instead of handing over a few dollars in cash for a Grande Latte. which costs more than $500 each. and Piggly Wiggly Co. www. hand-held device called easyShop which is made by Motorola and uses software developed by Modiv Media. based on which aisle the customer happens to be in at a given time. The more advanced point-of-sale systems prompt cashiers with suggestions of additional merchandise that might go well with the items being purchased. Piggly Wiggly and Bi-Lo are among the supermarket chains that already have fingerprint technology at work in stores for verifying customer identities when cashing checks (a system in use by many banks across the U.wavemarket. This technology has helped companies like WalMart and Nordstrom to become giants in their segments. Inc. you’ll find at least the basics in computer systems in even the smallest stores. customers have their cards swiped and their account balances are lowered accordingly. especially grocery retailers. Massachusetts had a shopping cart-mounted version of the system called the Shopping Buddy (made by IBM) in 20 of its stores in the northeastern U. Still another benefit for speedy shoppers is fingerprint identification. in which bar code scanners immediately capture sales information at the cash register. Blockbuster. a California firm offers mobile media.
000 items. NearbyNow has deals with 650 U. These systems can lead to great reductions in shoplifting and the elimination of costly manual inventory counts. Watch for growing numbers of retailers to roll out versions of the personal scanning systems in the midterm and beyond. an 85% improvement in the time it takes to scan bar codes. Bar codes will be replaced by Electronic Product Codes (EPC).com merchandise. The system catalogs almost every item in every store in the mall. based upon the length of the commercial and the number of stores in which the ad appears.000 and 800. In retail stores. including Kroger. Video-surveillance is necessary as are random spot checks in which customers are required to pass through a traditional checkout stand where items are scanned all over again.000 retail locations to shopper’s phones. For example.. a major retailer in the U. 12) RFID Drives Inventory Management Evolution The biggest technology breakthrough in inventory management is RFID (radio frequency identification)—the placement of microchips in product containers. Shoppers can search online for an item and a mall (e. The firm requires most of its top suppliers to have RFID tags on every pallet and case coming to its distribution centers and stores. generally between 600. For example. Leading suppliers of RFID tags include Intermec Technologies Corp. “Ralph Lauren sweater” will return the names of the stores that carry sweaters by that brand along with prices and relevant sales. “Levi’s 501 jeans Redfield mall”). Text Messaging Tech firms NearbyNow and GPShopper are both offering text messaging services that allow shoppers to use their cell phones and PDAs to search inventories and sales at shopping malls. communicating via wireless means. which are stored in RFID microchips. 15.000 of its suppliers still hadn’t complied . (behind NBC. Signs are posted around the malls inviting shoppers to send a six-digit text message to a specific address for sales information.g. Another potential advantage of RFID is that manufacturers and distributors will be able to reduce overall inventory thanks to greater supply chain efficiency. Wal-Mart and Metro Group’s Future Store in Rheinberg.S.S. From loading docks to store shelves to cash registers to parking lots.Plunkett Research. and view a list of stores in the mall that carry that item. In-Store TV Many retailers. cartons and packaging. the efficiencies gained by shorter shopping times. In addition to the in-mall service.000 per commercial for a four-week run. making it the fifth-largest network in the U. while GPShopper’s Slifter mobile phone service links 350 million products at 200. cities and shopping centers. RFID readers have the potential to wirelessly track the movement of each and every item of inventory. combined with the use of special sensors in warehouses or on store shelves that alert a central inventory management system as to shipment arrivals. Ltd. while another monitor on the cereal aisle shows commercials for breakfast foods. the technology has links to Google. www. In the case of Wal-Mart.plunkettresearch. and Symbol Technologies. Clicking on a retailer enables the shopper to sign up to receive an e-mail within minutes about the item and if the needed size is in stock. CBS. the chips could even eliminate the need to scan each item at checkout. Checkout stations will be equipped with receivers that automatically calculate purchases a cart full at a time.K. rather than each individual item. Marks & Spencer. Major food companies such as Kraft. A welcome message is sent back. The savings of time as well as reduced cost of spoiled food are expected to make the system’s $3-million price tag feasible. Germany are installing large (up to 42 inch) plasma or highdefinition LCD monitors throughout their stores.000 and $292. including tags for the millions of containers that hold food being shipped from suppliers to its stores. is replacing bar codes with an RFID system. By January 2008. Rates run between $137. Each screen displays ads relating to nearby inventory. Wal-Mart is also heavily invested in this new technology. product purchases and the need to restock inventory. In addition to ads. with a prompt for shoppers to type in the brand or product they want. the monitors display a proprietary television network programmed with ads for a wide variety of merchandise. in-store televisions often broadcast national and world news items and public service announcements. ABC and Fox). which is a unit of Motorola. It takes a mere five seconds to receive data from 50 containers. However. Unilever and PepsiCo are lining up to buy air time on the Wal-Mart network. customer convenience and personalized marketing outweigh the growing pains. The program started with Wal-Mart’s top 100 suppliers in 2005 and has been expanding ever since. a monitor near the bananas shows ads for produce. which captures 130 million viewers every four weeks.
com with the RFID request. 700store Sam’s Club chain (which sells items on pallets in bulk) gets on board the RFID train. Participating drivers. and significant financial benefits and cost reduction have not yet emerged. the grocer Metro operates an entire store equipped with RFID. Likewise. It included 12 stores equipped with RFID readers. So far.speedpass. as well as several other technologies. The test was conducted by the University of Arkansas. Wal-Mart planned to have 12 of its 120 distribution centers using RFID by the beginning of 2007. The ability to keep popular items properly in-stock means higher revenues. including some Sam’s Club stores. Supermarkets in Japan currently provide the technology via meat counter computers that display information relating to specific codes on each package. Not all of Wal-Mart’s goals are being met. Science fiction you say? Software is already on the market that enables camera-enabled phones to read barcodes. Hoping to concentrate on a simple way to begin to remedy the problem. then the larger Wal-Mart system may follow. WalMart’s initial test of in-stock advantages was done in 2005. RFID is already in wide use for such tasks as tagging livestock and for motorists using non-stop. There is a significant challenge of overcoming inertia in moving the world of distribution into full use of RFID. such as whether or not the customer likes a printed receipt. theorizes it could increase annual sales by $1. and tends to reduce transaction time significantly. not on individual products. Some suppliers are unhappy with the time and money they must invest in order to use RFID. Finally. Wal-Mart has the potential to save immense sums yearly through full implementation of RFID systems. that hasn’t happened. although low-cost commercial software systems will eventually emerge. SpeedPass works inside the company's food marts as well. SpeedPass can debit a checking account or post a charge to a credit card. which can assist them in finding products by a keyword . The University of Arkansas conducted a similar test in 2008 that corroborated the first test’s findings. The thinking is that if the smaller. One industry estimate calculates that the coded cases and pallets will save the retail giant $407 million per year. The reduction could add as much as 3-4% to Wal-Mart’s annual sales. For more details.Plunkett Research. WalMart began charging suppliers $2 per pallet that doesn’t have an RFID tag shipped to its Sam’s Club distribution center in Texas. so their costs are high at about 15 cents apiece. Ltd. RFID on Steroids University of California at Berkeley professor Dara O'Rourke published a paper in 2004 describing the potential consumer revolution posed by the advent of RFID technology. depend on the ability of Wal-Mart and its suppliers to successfully implement and utilize widespread RFID at a reasonable cost. Tagging the individual products on a cost-effective basis may still be many years away. Customers are given touch-screen computers that also have readers. Not only is every item equipped with a tag. The data encrypted in that code links to a web site showing pictures of the ranch from which the meat came and medical and feed records pertaining to the specific cow.000 Wal-Mart stores (less than 20% of all properties) were equipped to read RFID tags. Should RFID tags be placed on every item in every store. Savings of that magnitude. The firm implemented RFID in 400 additional stores by 2008. ExxonMobil is also on the bandwagon with the SpeedPass wireless payment system. a major supplier to Wal-Mart and other mass merchandisers. there is the problem of training staff to utilize RFID. Proctor & Gamble. ostensibly to cover the company’s costs to affix tags on each pallet once it’s delivered.2 billion via RFID technology by reducing incidences of out-of-stock items in stores. The greatest advantage of RFID implementation in stores such as Wal-Mart may be reduction of outof-stock situations. numbering more than 6 million. The study found a significant reduction (16%) in out-of-stock situations. Today’s RFID tags and scanners are still manufactured in relatively low volume. To begin with. In Germany. creating and installing software to take full advantage of RFID data is still difficult and expensive. and 12 control stores operating in the traditional non-RFID manner. today’s RFID is being used on case and container shipments. extra effort and large investments of capital. Implementing such a radical technology is going to take time. wave a prepaid 1. see www. but a tag reader is also installed in each shelf.plunkettresearch.5inch wand attached to their key chains at the pump. pre-paid lanes on toll ways (often called EZPass). The system stores personal preferences. however.com. but was only able to implement in five distribution centers. based on Texas Instruments RFID technology. about 1. By the beginning of 2007. called the Future Store. Imagine using a cellphone camera to scan an RFID embedded in the packaging of a steak. www. but vast potential looms on the horizon nonetheless.
Now called EPCglobal. which will lower the cost of RFID systems significantly. In the U. Intel created a new chip for UHF readers. Ltd. Proponents of the systems are looking for compromises in the nature of tags that are deactivated once items are purchased. (See www. (As of early 2008. RFID is the future of retail inventory management. the project launched the www. They will be able to track virtually every item made. Gen 2 RFID Several companies are testing next generation RFID tags. The goal is to provide more information automatically while increasing read-through rates. www. the global slowdown in retailing in 2008 will dampen funds available for investment in new technologies at many retail companies. Other retailers are studying this store very closely. The ultra high frequency (UHF) readers that receive data from the tags will be better able to focus on RFID tags in their immediate vicinity. RFID systems will be more than mere inventory management systems.plunkettresearch. Though the system has experienced bugs and glitches.DiscoverRFID. thereby substantially reducing costs. including electronic product codes for the tags and software to look after them.com search as well as ring up each item as it is placed in the cart. the pharmaceutical and hospital industries are extremely interested.org web site devoted to informing the public about the use and benefits of the technology. This means that a facility could have a larger number of readers without fear that they will duplicate readings. However. In addition. Target and Albertson’s. the initiative is backed by more than 50 companies including Wal-Mart. At MIT. however. 13) Self Service Retail and Travel Technologies Take Off Self-Service Checkout Another innovation that has been growing rapidly in store use is the automated self-checkout kiosk. notably in major chains such as Kroger. When fully implemented. It is estimated that costs must fall to between one and five cents per chip and around $100 per scanner for this new wave of technology to be universally adopted. saving significant overhead necessary to support ticket agents. From the consumer perspective. For example. from the factory to the freight container to the shipping line to the warehouse to the store.) In late 2004.500 tags per second (compared to 100 in Gen 1). They could even be used to sort recyclable items for reuse by the manufacturers. Wal-Mart and Home Depot. EPCglobal has published standards for Gen 2 RFID. Though initially avoided by many shoppers because of worries about mistakes and complications. costs in actual commercial RFID use were about 15 cents per chip. these clerk-less checkout lanes have been gaining popularity and have become the preferred method of checkout for many customers. experts are endeavoring to enhance RFID systems by continuing work on a project originally called the Auto-ID Center. retail chains with RFID projects include Best Buy. Additional goals are complete international interoperability and a read rate of about 1. Thousands of these machines are in use in traditional retail stores. Automated checkout machines have attracted a certain amount of ire. In 2007. it is a bold venture that gives shoppers a good idea of what the store of the future might look like. There were technical glitches as well. the project reached its goal of developing a common language for all RFID chips. Innovative companies are researching novel ways to make RFID tags. RFID tags and the equipment to read them were prohibitively expensive at first. snags in technological developments and concerns about privacy. Proctor & Gamble and Coca-Cola. Albertson’s.) EPCglobal has been at the forefront of design standards for all components of RFID systems.org.S. Nanosys is researching the possibility of utilizing its nanotechnology expertise to reduce the cost of manufacturing the tags by a significant margin. even from the checkout lane to the home. A major difference will be an increase in the potential memory on board each tag to 256 bits. older shoppers dislike the increasing lack of human . especially after they have used them many times. Department of Defense is also pursuing the use of RFID on its massive amounts of inventory. In 2007. Look for mass use of radio tags by 2011 to 2015.Plunkett Research. following the entire lifecycle of every product. costs will fall dramatically as the volume of use of this technology spreads and reliability will continue to improve as new products hit the market. Early shipments of RFID-embedded pallets often had a low read-through rate due to dampness or other conditions.epcglobalinc. The problems facing the widespread use of these chips include cost. a tripling over first generation tags. Despite ethical concerns and early technical glitches. However. The U. Most major airlines have now installed similar automated kiosks for checking in passengers..S.
Redbox Automated Retail LLC is a leader in this field.com) is placing extralarge vending machines. For example.S. The machines pay for themselves in nine to 12 months. www.000 people by late 2008. for retailers. is growing rapidly as the Chinese economy expands. With hundreds of machines in place. Many companies build and sell these machines.000. there are daunting government regulations to overcome. in addition to supermarkets and other high traffic locations that offer a selection of about 500 DVDs each for a $1 rental fee. since Russia’s economic growth has been based largely on its status as one of the world’s largest oil and gas producers.S. For example. RedBox expects the self-service DVD rental market to grow to $3 billion by 2009. There are 10.zoomsystems.com interaction that began with the automated use of such systems as voice mail and has culminated in this new technology. Europe.000 in annual sales per location.000 to 400. 14) Retailers Find New Markets in China While India’s Retail Industry Sees Lukewarm Growth/Russia Attracts Retail Interest It is clear that rising household income and a growing middle class in India. Redbox is very user- friendly. but it is going to be a long haul requiring patience and significant investment.S. these machines typically offer up to 120 high-dollar items such as iPods.S. Plummeting oil and gas prices in late 2008 have seriously dampened growth prospects there. and is the result of technology developed by a U. Foreign retailers will eventually do well in these markets. as the machines generate between $60. and many previously announced expansion plans will be delayed or cancelled. China and Russia offer potentially lucrative expansion markets for sophisticated retail firms headquartered elsewhere (such as leading retailers from Japan. referred to as robotic retail store networks. Ltd. Oregon and Virginia as of 2008. A robotic arm retrieves a selected item and deposits it in a bin. multiple challenges face firms attempting to break into these markets.intellifit.000 and $240. retailers are all scrambling to grab their piece of the rapidly growing Chinese retail market. Redbox is a venture owned by a subsidiary of McDonald’s Corporation and Coinstar. office campuses and universities across the U. These new shoppers seek the convenience.S. at which time the user’s credit card is charged. Self-Service Kiosks turn into Super Vending Machines A San Francisco startup company called Zoom Systems (www. Instead of offering drinks and snacks. These consumers are hungry for ever-widening varieties of products. California. which completely replaces customer relations with clerks. and in London are promoting a high-tech scanning booth that promises to scan shoppers for their exact measurements and then print out a selection of clothing lines and styles that will fit the best. headphones and wireless laptop cards. in locations such as airports. The process takes about 10 seconds. Of course. hotels. Because the stores are located in high traffic consumer areas. Users choose a product using a touch screen that displays detailed product information. A burgeoning middle class. installing these devices is simply good business. as the cost saved in labor alone is enormous. digital cameras. Users charge the rental fees to credit cards. Another growing use for vending machines is for DVD rentals. However. with a handful of installations in malls in Pennsylvania. and frequent encounters with demands for wellplaced bribes in order to secure building permits and business licenses. The company also offers an online movie rental service. Zoom had 780 ZoomShops in place by late 2008. Department of Energy research facility. and Japan. comfort . Just as ZoomShops can be customized to locations. Intellifit is currently leasing the booths to client stores. the U. In China. a cosmetics company could customize a Zoom Shop so that it carried the look and feel of the brand and offered the best of its product line. these customized stores can provide branding opportunities as well. the global financial crisis of 2008 is dampening growth in these nations. which are generally stocked by the owner with films and television programs in DVD format. Inc. and Australia). The Russian market faces unique problems.Plunkett Research.000 Redbox kiosks in locations such as McDonald’s restaurants. estimated at 250.com). the glass booths cost about $50. it charges no late fees. Zoom is betting that consumers will have few problems with spending as much as $500 at a vending machine. Early results are promising. Built by a private company called Intellifit (www. and it is positioning itself to have a major market share. Each machine is about 40 square feet in size. Meanwhile. Size Scanners Several Levis Stores across the U. displaying and advertising retail merchandise. they can also be customized to brands.plunkettresearch. In addition to the need to understand local consumer tastes and requirements regarding packaging. in the U.
Plunkett Research. and that the market will reach $860 billion by 2009. made plans to invest $6 billion starting in late 2006 to open 1.plunkettresearch. Carrefour SA. the new competition may drive forward the retail industry in China.5 billion in the stores. in November 2006. in accordance with China’s 2001 entry into the World Trade Organization.000 supermarkets through 2011. The growing presence of Western retailers has created a healthy competitive atmosphere.com and selection offered by Western-style stores. Tata Group’s Westside department stores and RPG Group’s Spencer’s. of Shanghai are lobbying for these measures. starting with 11 locations in the city of Hyderabad.’s Pantaloons department stores and Big Bazaar discount hypermarkets. Bain & Co. The announcement led to vast demonstrations by thousands of small vendors. Although Chinese retailers of all kinds have the benefit of knowing the ins and outs of their local markets. and elsewhere. In the mid-term. Dutch company Makro. The country’s booming population. www. 60% of which is under the age of 30. Indian partners must be involved. There is the potential for foreign ownership of minority stakes of perhaps 25% to 49% in retail chains. Small. and under Indian law they will have significant rights. to develop discount stores in India. claiming that foreign retails have been enjoying an unfair bias from the government. took effect in December 2004 that allow foreign companies complete ownership of Chinese stores (foreigners were previously limited to a 65% stake and had to seek Chinese joint venture partners). Meanwhile. Stores would be owned by Bharti under a franchise agreement with Wal-Mart. there remains exceptional long-term potential here for retailers. The second business is a cash-and-carry supplier that will provide merchandise to these hypermarkets on a wholesale basis. India’s retail sector has been largely closed to foreign companies. Carrefour had a network of 118 hypermarkets in China as of 2008. and allow stores to be located anywhere in China instead of only provincial capitals and selected large cities. Reliance Industries. There may be troubled waters ahead for large foreign retailers such as Wal-Mart and Carrefour if the Chinese government finalizes new regulations that raise costs and increase red tape for rapid expansion. In other words. and Lianhua Supermarket Co. companies such as Ralph Lauren or Apple might be encouraged to expand their stores into India under this scenario. one of India’s largest business groups. However. Meanwhile significant Indian retail enterprises exist.000 hypermarkets and 2. Ltd. India loosened regulations slightly by enabling foreign investors to own up to 51% of “single-brand” retail stores. have all set up shop. has not adopted western shopping habits as quickly as expected. Foreign companies are now allowed to own 100% of cash-and-carry subsidiaries that sell supplies to businesses (not to retail consumers). The first is a franchise business that is providing a license to an Indian firm to open Carrefour hypermarkets within India. the French discount giant. most business sectors in India are now enjoying relaxed regulations regarding foreign investment and ownership. India’s once rosy forecast for booming retail growth has darkened considerably. This will lead to introduction of foreign retail concepts in cooperation with local partners. farmers and workers who feel that the opening of stores like Wal-Mart threatens their livelihoods. German grocer Metro and. Wal-Mart announced a joint venture with business giant Bharti Enterprises. Bharti will invest up to $2. New regulations. Projected sales for 2008 are only about $350 billion. of course. Wal-Mart operated 202 stores in China through a combination of join ventures and minority-owned subsidiaries as of early 2008. In early 2006. This has encouraged retail giant Carrefour to create two business models in India. The rules under review by the Chinese State Council may require retailers to file detailed blueprints for proposed locations and hold public hearings about the impact of new stores on the local communities. largely unorganized shops and stalls are the traditional methods of selling to consumers in India. High-dollar Western brands such as . they do not have the deep pockets. Wal-Mart is currently supplying Bharti with technical support and the two firms plan to open a wholesale cash-and-carry supply chain operation in 2009. The retail sector was expected to expand from $300 billion in 2007 to $637 billion in 2015. management expertise and scale of the foreign firms. such as Pantaloon Retail (India) Ltd. estimated that overall retail sales are growing at a rate of 15% per year in China. Chinese retailers such as WuMart Stores. as well as further develop the Chinese economy while it assists bottom lines in the U. Inc.S. While the middle class is smaller in India than in China. require only local government approval instead of central-government okays. However. Despite the protests.
S. lifestyle centers offer leaseable retail area of 150. The projects will be located in relatively small cities that lack many retail options.com Tommy Hilfiger.S. and a number of deals are on the horizon. however.plunkettresearch. mall developer Vornado Realty Trust signed a joint venture deal with Indian conglomerate Reliance Industries Ltd. There are currently 38 square feet of retail space for every person in those 54 markets. A “lifestyle center” is an open-air. Western retailers continue to study Indian markets. A “power center” is typically an open-air complex of categorydominant anchors such as category-killers.S. In 2007 alone.000 square feet from 1997 through 1999.000 square feet of retail space) were favored in new construction up until 2008. such as power centers and lifestyle centers.S. That is. shopping centers or malls which include at least three department stores and at least 800.000 residents is about 420 square feet compared to the 25. Britain’s Tesco PLC is working with Tata Group to develop a wholesale cash-and-carry business similar to Wal-Mart’s deal with Bharti. 37 lifestyle centers were built. This is 25% more that what was built during the same period in the 1990s.000 to 500. Malls like these can cost more than $200 per square foot to build. Value-oriented centers are built on formats that emphasize discounted prices. U. Fueled largely by investment money provided by pension funds. averaging 1. www. 15) Lifestyle Centers and Super-Regional Malls Falter/Mall Glut Anticipated Super-regional centers (that is. Inc. franchises opened by Murjani Group have closed. As U.000 square feet. as have more than 20 Straps stores. run by India’s Oswal Group that featured lingerie by Hanesbrands.000 square feet between 2008 and 2009. The firm intends to invest as much as $500 million a year in Russia and Brazil. New malls have been slightly smaller than those of the past. Many new value-oriented centers feature significant entertainment segments. The global economic crisis of 2008 is making developers painfully aware of recent over-development and putting the brakes on growing numbers of new projects. and that the volume of shopping space per 1.000 square feet of space typically dedicated to upscale national specialty stores such as WilliamsSonoma. announced plans to build three malls per year in Russia and the Ukraine between 2008 and 2015. and value oriented centers.148. In late 2008. in many cases robbing traffic from traditional malls. had been developing rapidly in recent years .S. Overall. In addition to Developers Diversified. open air strip malls anchored by department stores.1% in 2007.060. from 2000 through 2008. Other types of shopping center properties.-based Developers Diversified Realty Corp. . U. compared to an average of 1. There are also hybrid centers.Plunkett Research.S. Ltd.S. highly landscaped configuration of approximately 50+ stores.758 square feet of available shopping space for every 1. to invest $500 million in building and operating shopping centers in India. Inc. markets. Analysts at Russian brokerage Jones Lang LaSalle report that Russia’s economy grew 8. discount stores and warehouse clubs. Compared to the 45. Unlike Developers Diversified’s typical U. Hybrids have some of the features of enclosed malls and lifestyle centers. India’s expansion is modest. home improvement stores. Three Build-A-Bear Workshop. making the new properties’ investments in the range of $150 million to $250 million each. if not always profitable. These include outlet malls. Inc. REITs and professional money managers. they have both open-air sections and enclosed sections. U. initial projects planned for Russia are vertical structures anchored by supermarkets. retailers face a grim economic outlook starting in 2008. Jimmy Choo and Calvin Klein are finding smaller markets in India than previously thought as most Indians shy away from spending three to 10 times more for international brands.000 American residents. Jones Lang LaSalle claims that 54 million square feet of shopping space is scheduled for completion by 2011. real estate broker Cushman & Wakefield estimates that almost 17 million square feet of malls would be built in 2008 in eight Indian cities. with at least 50. up from 29 square feet in 1983.5 million square feet of new retail space expected in the eight largest U.. According to Property & Portfolio Research. investments. some retail investors are looking to Russia’s expanding affluent class for possible new markets. Generally located near upscale neighborhoods. Gucci. totaling 12 million square feet. Development is slow. Orco Property Group of Luxembourg and Altarea of Paris plan Russian developments. developers have built 1 billion square feet of retail space in the 54 largest markets in the U. these new shopping centers had been very popular.
The Phase II mixed-use complex is zoned for up to 5. is facing serious challenges in restructuring its debt. Las Vegas. which may include a performing arts theater. Overall.S. the NASCAR Silicon Motor Speedway.000 during holiday and summer seasons. General Growth Properties. night clubs. . completion Fall 2010 (Delayed from a previously scheduled 2009 opening date. an office building.2 million square feet. Nevada. sales per square foot in the same period in regional malls rose by only 0. a spa and entertainment attractions. completion Summer 2009 Elk Grove Promenade. At Simon’s Chelsea Premium Outlets center in Houston. Tentative plans for new tenants include several hotels. completed Spring 2008 Shoppes at River Crossing.4% to $511 as of March 2008. is part of a 42-acre new Phase II development just north of the original site. Major Entertainment/Retail Projects of 2008 Hamilton Town Center. it contains 4. completed Fall 2008 Legacy Place.2 million square feet in 2008.C. LEGO building center. Fredricksburg. By comparison. (Not everyone comes here just to shop: the Mall of America reports that more than 4. compared to the previous year. .000 people daily (or 40 million people per year). www.plunkettresearch. 1. a figure much higher than typical malls.7 million square feet.E. a luxury shopping center developer that owns 25 malls in 12 states.95 million square feet.000 in normal times and up to 13. Massachusetts. Retailers expected to weather the storm tend to be discount stores and outlets where low prices can still attract shoppers. completion Fall 2010 Shops at Summerlin Centre. 2008 sales per square foot increased 2. a 1. located in Bloomington. and are able to charge higher rental rates. Expansion plans are being shelved and new projects are being postponed or cancelled altogether. Texas. as the economic crisis of 2008 takes effect. The Ikea store. 1.000-square-foot Ikea home furnishings store. Spotlight: Mall of America The largest mall in the U.mallofamerica.. Low-end malls showed weak sales per square foot while highend malls were the most successful.Plunkett Research. is the Mall of America (www. sales per square foot rose 5. Macon. Shoppers from far and wide visit Bloomington and stay several days specifically to shop this mammoth mall. and further delays may be required.icsc. A.2-million gallon walk-through aquarium.S. Virginia.org $350 range. which often report average sales in the . reported average sales per square foot of mall space of $550 in 2007. Indiana. Property & Portfolio Research projects a decline in occupied retail space in major U.2 million square feet. a comedy club. completion Spring 2011 * Square footage applies to gross leaseable area Source: International Council of Shopping Centers www. 1. Dedham. Flight Simulation and over 520 specialty shops. Texas.75 million square feet. This may change. .S. Taubman Centers. Shopping mall performance in recent years was sharply delineated by economic scale.6 million square feet of new development.8% to $491. First opened in 1992. 1. Elk Grove. the first decline since the 1990-1991 recession.000 people have exchanged wedding vows in the Malls “Chapel of Love” wedding chapel. For example. Noblesville. visitors from outside the mall’s 150-mile radius hover at around 35%. Georgia. for example. The developer. Minnesota.) The District at Desert Star. Simon Property Group reports that year-to-year growth in comparable sales per square foot was stronger at outlet centers than at traditional high-end malls as of early 2008. retail-space construction will fall 48% from 2008 to 71 million square feet.3% in the first nine months of the year.2 million square feet of gross building area (2. Property & Portfolio Research forecasts that in 2009. Total employment in the center ranges from 11.5 million leaseable) and is visited by an average of 110. a seven-acre amusement park. With the addition of a 306. Inc. International visitors are common. completed Fall 2008 Village at Fairview. completed Spring 2008 Spotsylvania Towne Center. markets of 1. As the financial crisis hit in late 2008. Ltd. while not directly connected to the original mall.74 million square feet. the “Walksport Mall Stars!” has registered more than 4. Nevada. California. 1 million square feet.com). Entertainment is everywhere in this mall: 14 movie screens. however.com The end result of the glut of mall space is a retail space shakeout. and the mall’s mall-walking list. Fairview. there were about 74 lifestyle centers under construction and more than 100 projects under development. the mall enters its newest phase of construction.000 people.2 million square feet. Malls catering to wealthier customers also cost more to build and operate. Las Vegas.
away from their computer screens and web browsers and into the retail store. include Desert Ridge in Scottsdale. store managers in many malls found themselves facing light traffic in early 2008 and devastating losses in the fall of 2008 as the global economic crisis gained momentum. including Sharper . and Avon Common in Avon. jugglers. a comedy club and a mammography center. Pacific Sunwear announced in January 2008 that it is closing its 150 d. for example. storytellers and other entertainers were an integral part of public markets.com 16) Entertainment-Based Retailing. An early form of this idea is found in the Easton Town Center. dotted with smaller specialty retailers and a plethora of entertainment and dining facilities. lawns and ponds. merchants have realized that entertainment draws crowds of people who linger and shop. Another example is the long-anticipated $2billion Meadowlands Xanadu center being built by Colony Capitol Acquisitions in New Jersey (the project was originally under the control of Mills Corp. Even during the Dark Ages.50 per square foot for its nonanchor space. Beyond retail tenants. restaurants and movie theaters. 12 million square foot mixed-use development overseen by The Georgetown Company and Limited Brands. For the near-term. stores. sometimes called power towns. as mall traffic is slowing and sales at the cash register are generally disappointing. In fact. Consequently. sparing no expense to make the stores and surrounding areas as pleasant and attractive as possible.). Ltd. with space for offices and residential areas. including Power Towns Since the earliest days of the marketplace.) After a weak holiday season at the end of 2007. entertainment’s value as a drawing card for retail customers will be of growing importance. Desert Ridge. are devoting up to 40% of gross leaseable area (GLA) to entertainment. many new shopping center developments are including the most desirable elements of both power centers and lifestyle centers.e. the explosive growth of retailing over the Internet means that brick and mortar retailers must offer more than the mere availability of merchandise in order to lure shoppers out of their homes. They sprawl over 80 to 100 acres and contain 600. including dominant anchor tenants in large formats.plunkettresearch. in Columbus. where consumers are flocking to take advantage of everyday low prices for essential household needs. and a 44. although this will leave the chain with about 950 remaining stores that operate under other brands. day-care centers and community centers for performance theatres and galleries. the 1. a Culinary Arts Center with live cooking demonstrations.300 acre. the Burbank Empire Center in Burbank. while stores such as Foot Locker and Zales announced that they were closing large numbers of stores. www. they are the shopping center equivalent of the super-merchandiser stores. Wilson’s the Leather Experts announced the closing of 158 of its 260 mall stores. Developers are planning to make centers that not only provide entertainment but are also designed to be communities. Built for pedestrians instead of cars. Though the costs of power towns might be intimidating. Yet consumers still want the convenience found in neighborhood centers. (The most notable exceptions are discount giants Wal-Mart and Costco. with many people driving past other shopping centers just to go to there. trees. a Trader Joe’s and an AMC theatre. Builders spent 25% to 30% more on these areas than on a comparable power center.000 square foot LEGOLAND Discovery Center. mixed in with a spa and fitness center. 17) Shopping Center Tenants Face Slow Sales/Store Closings force Landlords to Become Creative Many major chain store companies are cutting expansion plans for 2008 and beyond. These centers. Ohio. a growing number of chains filed for bankruptcy in recent months. especially those in urban areas. all set in a pleasant outdoor environment with sidewalks.m. Barnes & Noble. Beyond these initial projects. brings in shoppers from a 15-mile radius. companies such as JC Penney announced cuts in new store openings.000 to 1. lies the potential for even more ambitious mixed-use projects. there will be a 780foot ski slope for skiing and snowboarding called the Snow Dome. especially for the retailing of goods beyond everyday staple items. they have impressive drawing power for customers.000 square feet of retail space. In many ways.000.Plunkett Research.o. New shopping centers. Worse still. an enormous ferris wheel with views of Manhattan. These projects may even include areas for post offices. Ohio. Arizona. Developers are betting that Xanadu’s entertainment features will draw enough shoppers to justify steeper than usual rent averages of $67. California.7-million-squarefoot retail center contains anchors such as Nordstrom. helping to draw throngs of people who might purchase goods. Xanadu’s entertainment features will open in 2009. The retail center sits within a 1. For the foreseeable future. however.
opened a two-story store in a mall in a suburb of New York City and a three-story location in a Los Angeles mall formerly occupied by a Macy's department store. Parking garages are coming down as well so shoppers can park directly by the entrance of their favorite stores. WalMart. ICSC projects that announced-store closings will reach approximately 6. For example. Some operators of enclosed malls are scrambling to find alternative tenants to fill empty spaces. Malls are forced to adjust in order to stay in business. Hanover Mall. retrenching and bankruptcy will occur throughout 2009. employees and on mall owners alike. Ltd. Furthermore.S.H. reported that 4.6%. However.. Apparel stores accounted for 26. A leading trade group. rental agents are actively seeking unique locallyowned stores to expand into mall spaces when national chain store tenants vacate. in Hanover.4% of the closure announcements. California was an enclosed shopping mall built in 1966. transforming the mall into an open-air lifestyle center with 74 shops and restaurants and a 4. Inc.500 in 2007.com Image. where clients can receive a botox shot or laser-based removal of unwanted hair. as well as favorable leases with mall owners who are anxious to fill large amounts of space. Domain. are obsolete or soon to become so. and offer shopping carts and centralized checkout stands for convenience. Paradise Development Co. In a similar circumstance. the International Council of Shopping Centers (ICSC). Fortunoff (jewelry) and Circuit City (electronics). Meanwhile. In some cases.603 during the entire 2007 year. jewelry stores 18.Plunkett Research. day spas or medical spas are becoming commonplace in malls. for example. the stand-alone locations have plenty of close-in parking. home entertainment 17. old-fashioned enclosed mall are numbered. many developers are biting the bullet and following suit.000 square feet under one roof due to consolidation and store closings. the developer split a defunct Home Place store into a 30. More announcements of closings. Faced with tens of thousands of empty square feet in large spaces. developers who lease to Wal-Mart in particular are reaping large rewards. The discount giant’s generally busy traffic is spilling over to nearby stores. Sales per square foot across the mall jumped from $300 to $350 in the same period. Department store chains such as J.100 for the first six months of 2009. restaurants and entertainment venues. landlords’ rental income will fall. Builder J. Owners are having a tough time finding tenants for such large volumes of space. The rebuilt center features Italian architecture and design accents. Typically built to have a single floor. for example when a department store abandons perhaps 200. leaving mall owners with echoing empty spaces of painfully high square footage. Costco is another highly desirable discounter to have in or near a major retail center.1%. Anchor tenants such as major department stores are moving or going out of business. as many major chains are closing large numbers of mall stores.100 in 2008 and surpass 3. For example. www. The net effect of these store closings will be hard on suppliers.plunkettresearch.) Meanwhile.000 square foot spaces now leased by Copeland’s Sporting Goods and Barnes & Noble. a Las Vegas owner and property developer. cutting the boxes into smaller spaces is a viable option.000 square foot DFW Shoes discount store. Since the switch. On the other hand. up from 4. Penney and Macy’s are opening freestanding stores at mall sites. Bella Terra in Huntington Beach. (This is a growing trend.000-seat. The International Medical Spa Association reports that its membership grew from 450 in 2004 to nearly 2. 20screen cinema megaplex. overall occupancy rose from 78% to 97%. Snyder Company spent $170 million to tear off the roof and knock down walls. Both projects cost a cool $2 million to renovate. Bath & Beyond and a 20. (furniture). An estimated one-third of the malls in the U.5% and home furnishings 6%. In addition. Meanwhile.C. Of particular difficulty for landlords is the task of finding tenants for empty “big boxes” and department store sites.632 store closures were announced in the first 10 months of 2008. Massachusetts is seeing occupancy boom since Wal-Mart replaced another discount department store called Ames in 2003. The pluses for Wal-Mart in these locations are access to mall shoppers without having to acquire real estate that is scarce in congested areas. food and beverage 14. 18) Malls Morph to Stay Afloat The days of the dull. One way to attract customers is to raise the roof—literally tear off the connecting roofs between stores to create an open-air environment. Firms that own and operate malls and shopping centers will be scrambling to find replacements for empty spaces. split a former large store into two 25. Wal-Mart faces increased .000 square foot Bed. mall operators are looking for new categories of niche tenants. mall owners are now more likely to consider incorporating nightclubs or additional food and drink venues in their empty spaces.
Socially Conscious Consumers Create Challenges and Opportunities for Advertisers and Marketers LOHAS. it represents a significant and growing portion of the consumer market. recyclable materials. Many also contribute significant sums to charitable organizations. the party is over for high-end retailers.org.icsc. “Eco-friendly” products are important to them. dietary supplements and personal care products. magazines as diverse as Shape and Town and Country devoted entire issues to environmentally-friendly topics. these consumers tend to be strong advocates for renewable energy and seek out socially-conscious products and companies. in the form of acupuncture. One recent example of this corporate trend is Gap Inc. an acronym for Lifestyles of Health and Sustainability. In the global business arena. Conspicuous consumption is out of fashion. organic contents. energy efficiency. aircraft and jewelry are also flooding the market at bargain prices as owners feel the economic pinch. Ltd. for example. they are now more interested in paying down their debts.plunkettresearch. With stock portfolios plummeting and unemployment rates on the rise. to place stricter controls on the working conditions at factories run by suppliers. were down 14% compared to the previous year. Even luxury resort areas such as Aspen. Although this group of people is far from homogeneous.000 are appearing in classified ads at greatly reduced prices. www. In the face of growing levels of obesity.and sociallyconscious entities. toxicity. visit the International Council of Shopping Centers. celebrated its 30th anniversary year in 2008 with the launch of a higherpriced BR Monogram line. allergens. Same-store sales in the U.” In an unusual move. or to ensure that fair wages are paid by suppliers.com security and logistics costs and the difficulty of having to switch from a single-floor sprawl to multistory confusion. Luxury department store chains Neiman-Marcus and Saks suffered dramatic drops in sales in the fall of 2008 also. many more companies have begun to present themselves as environmentally. they also often prefer alternative medicines and therapies. Advertisers jumped to provide eco-sensitive ads highlighting products . Highly customized Bentley sedans that once sold briskly at more than $300. especially those that had recently experimented with upscale lines to capitalize on the formerly growing affluence enjoyed through early 2008. pervasive chemicals and hormones found in food.S. www. 19) Luxury Item Sales Slow After years of aggressive spending on luxury goods by wealthy consumers. Luxury chains had been enjoying great growth in emerging markets in Russia and China. environmental impact and alternative living styles. Furthermore. the clothing retailer admitted problems with some suppliers regarding work and safety conditions.Financiere Richemont SA (which owns the Cartier brand) are reporting falling revenues and anticipating further slumps. LOHAS consumers typically prefer to buy organic or “natural” foods. and the world’s massive fossil fuel consumption. social responsibility appears to be an important issue that companies must address. Banana Republic. Napa Valley and Palm Beach are seeing vacation home prices soften. Coach. which in 2004 released its first-ever “Social Responsibility Report. but these consumers should not be confused with extreme “greens” or environmental fanatics. Internet Research Tip: Shopping Centers For up-to-the-minute facts and figures about shopping centers of all types. 20) LOHAS. Uber-expensive automobiles.. As a result. and consumers are no longer willing to stretch their budgets to acquire luxury brands. is a term used to describe the segment of consumers whose purchases are influenced by matters such as corporate social responsibility. In 2007 and 2008. but dwindling economic activity in those markets will hamper expansion plans and put a damper on profits. real estate. Instead. luxury goods companies such as LVMH Moet Hennessy Louis Vuitton. Moderately-priced retailers are taking hits as well. announced dramatic decreases in sales and profits for the third quarter of 2008.Plunkett Research. LOHAS consumers are from all age groups and income levels. concerns about personal health and sustainable energy have begun to affect consumer buying practices. Savvy retailers will stress “affordable” luxury items of lasting value and eco-friendly materials. massage and herbal remedies. and revoked its approval of 136 factories. Coldwater Creek tested a new line called Spirit which had higher price points than the rest of its merchandise only to pull the plug in mid-2008. The famous jewelry firm Tiffany & Co. Prada and Cie. Many have taken steps to build green facilities. Some of their issues have begun to gain popular momentum. Chanel.
Same Store Sales/Comparable Store Sales: You should also be aware of the difference in “Same Store Sales” and “Total Sales.” Same Store Sales are results only for the stores in a retail chain that have been open for at least 12 months. 21) How to Interpret Reports of Retail Sales Because several different organizations publish monthly sales reports on America’s retail sector.S. office supplies and gifts. a comparison of April 2005 sales over March 2005 (the previous month) will be quite different from a comparison of April 2005 sales over April 2004 (the previous year). but smarter. Consumers are now much more financially conservative. This is a solid indicator of the consistency of sales through the chain. including department stores. Near the top of its reports. For example. gasoline and food service at restaurants. A “less is more” mentality will spread.com that fall into “green” categories such as those using recycled packaging or non-animal tested. thousands of consumers pay a higher price for hybrid-equipped vehicles than they would have paid for traditional cars. S. depending on exactly which portion of retail you are trying to track. Ltd. electronics and appliances.) The following is a list of easy to use resources for retail sales trends. even if they have high LOHAS factors. furnishings. base of about 3 million) to get its figures. A. despite the fact that it can take years and years to earn a return on that extra cost. Period Compared: At all times. however. including new and used automobiles. However.Plunkett Research.gov/mrts/www/mrts. cars like the Prius and the Mini. Savvy retailers. www. as evidenced by the tremendous success of the small. 3) If you dig deeper into its reports. manufacturers and marketers will adopt the following practices in order to position themselves for the LOHAS market: • Stress the utility and long-lasting value of products (as well as their inherent beauty and fashion) • Stress an organization’s sensitivity to environmental issues.html. but smart.census.S. Another example: Each month. has stopped. When you see this bureau’s retail trade figures in print. (Same Store Sales may also be referred to as Comparable Store Sales. “Total excluding automobiles and parts” and “GAFO. the U. but only when they see lasting value or reduced environmental impact. Recent trends in high energy costs have combined with the global financial crisis of 2008 to boost the LOHAS mentality.4%. The . lowered environmental impact and/or reduced costs in products and services • Cater to consumers’ concerns about health issues by supporting appropriate causes and creating tieins to health education and issues • Be aware that consumers will pay more for LOHAS-centric goods and services. sporting goods. U. in April 2004.S. For example. clothing. For example. • Day-to-day consumer products must be priced within reason. surveys consistently show that many consumers will pay a bit more for electricity that is generated by renewable means. these reports can be tricky to interpret. and homes will be smaller. the continual growth in the size of the average new home built in the U. 4) Next. Department of Commerce Reports— Retail Stores. Automobiles. For example. energy concerns. books. bear the following things in mind: 1) DOC includes all types of retail trade in its numbers. the DOC surveys a few thousand stores and restaurants (out of a total U. Wal-Mart reported an increase in Total Sales of 11. be aware that the DOC reports “Adjusted” and “Not Adjusted” sales. The same is true in automobiles. and a corresponding Annual Retail Trade Survey at www. 2) Every month.” The GAFO figure represents General Merchandise stores only. Same Store Sales were up only 4. Food Service: To begin with.7% over the previous year. the DOC breaks down sales by category of store.plunkettresearch. and they want items that are of lasting value. personal health needs and restrained personal budgets • Show consumers concrete examples of value. you should be aware of the dates being compared. Department of Commerce (DOC) publishes its Monthly Retail Trade Survey. going forward. The difference accounts for the fact that Wal-Mart opened a large number of new stores over the previous 12 months. you will find “Total” (including autos and restaurants). Health care costs and other considerations are boosting demand for products that promote a healthy lifestyle.
Target. www.C. Kohl’s. These reports track the growth of E-Commerce sales over a period of several quarters and several years so that you can readily see the growth of Internet-based retailing. It’s important to note that surveys of e-commerce sales can vary widely. Costco. stores tracked in this report included many of the best known chains.shoppertrak. E. The index tracks America’s largest chain store companies.gov/svsd/www/advtable. C. DOC published advance estimates of March 2004 retail sales. and releases that report about one week after the end of the month. the International Council of Shopping Centers (ISC. J. comScore Networks. including Macy’s and Home Depot. more conclusive report is published several weeks later. several large chains had stopped reporting monthly. (www. Major Chain Store Sales and the International Council of Shopping Centers An industry group that represents mall and shopping center owners. supermarkets and drugstores.census. Since the index ignores newly opened stores and only compares the year over year change in sales at established stores.com) promptly provides very useful weekly and monthly retail sales reports.com) also tracks retail sales online on a continuing basis. it is extremely useful in determining the true direction of revenues at major chains. The comScore reports are broken down to show the difference that adding in sales of travel would make. the group expanded its surveys to include building centers like Home Depot. The report provides both Same Store Sales and Total Sales for the previous month. National Retail Federation Monthly Reports: The National Retail Federation (NRF) is a massive trade organization representing firms involved in the retail industry. on April 13.comscore. U. The Gap.html B. Federated. For about 20 years. D. comScore E-Commerce Sales Reports. As of January 2005. Ltd.com Adjusted figures have been altered to allow for seasonal variations.org) reports on sales at approximately 50 major national chains. While the report is extremely useful in tracking general merchandise sales. Major Chain Store Sales—Goldman Sachs Retail Composite Index Goldman Sachs compiles an index of changes in monthly sales at stores that have been open at least one year (“same store sales”). Its monthly reports on retail sales. separate report (“Retail E-Commerce Sales”) that breaks out E-Commerce sales and compares the market share of E-Commerce to traditional sales. www.plunkettresearch. Its figures can be very useful in tracking the growth of e-commerce. . Inc. and they are published much faster than those of the DOC. such as the dates of major holidays. www. For example.html. By 2008.com.gov/mrts/www/mrts.S. focus mainly on results at major chain stores. Penney. TJX.Plunkett Research. ShopperTrak Weekly and Monthly Retail Reports: ShopperTrak (www. A final. 5) The DOC publishes “Advance Monthly Sales” as an estimate.census. This makes the total monthly sales report much less useful an indicator. Department of Commerce—Retail ECommerce Sales Reports The DOC includes “Non Store Sales” in its monthly and annual reports. Nordstrom and Saks Fifth Avenue. www. It also issues a very useful. which can be found at www. depending on whether they include revenues from travel booked online (a huge category) and automobiles or other peripheral items sold online. Limited Brands. many of which are mallbased.nrf. 2004. Its products include the respected National Retail Traffic Index (NRTI) and the National Retail Sales Estimate (NRSE).icsc. such as Wal-Mart. it should not be confused with total retail sales at all types of stores. It releases figures for the previous month about 12 days after the end of the month. however.
U.Plunkett Research.: 1980-2nd Quarter 2008 Total U. Total & E-Commerce: 1st Quarter 2001-2nd Quarter 2008 Total U. U. Expenditures & Gross Domestic & National Product Per Capita: 1960-2008 Average Annual U. U.: November 1.S.: 2001-2010 Twenty Largest Shopping Centers. U. Ltd. General Imports & Trade Balance in Goods.S. U.S. Household Expenditures: 2001-2007 Distribution of Total U. through August 2008 Estimated Quarterly U.plunkettresearch. Retail Sales & Annual Percent Change: 1992-2008 Retail & Food Services Sales by Kind of Business. U.S. U.S. by Major Category: 2008 (Estimates) Resident Population Estimates by Age. Annual Household Expenditures.S. 2008 Employment in the Retail Industry.: November 2007 Top 20 Websites.: 2002-September 2008 31 32 33 34 36 38 39 40 41 42 43 44 45 46 . Disposable Income.: Monthly.: 2002-August 2008 Retail & Food Services Sales by Kind of Business.S.S.S.S.S. U.S.com Chapter 2 RETAIL INDUSTRY STATISTICS Tables and Charts: U. Retail Industry Overview Exports. www. Retail Sales.S.S.: October 2008 Top 20 Retail Websites.
3 118. Book & Music Stores General Merchandise Stores Miscellaneous Store Retailers Nonstore Retailers Food Services & Drinking Places Annual Disposable Personal Income per Capita.2 560. Hobby. & Supplies Dealers Food & Beverage Stores Health & Personal Care Stores Gasoline Stations Clothing & Accessories Sporting Goods.plunkettresearch. US$ Bil. US$ Bil. US$ Bil.S. Ltd.953.2 224.483 145. www.667 35. Census Bureau Source: Plunkett Research.6 124.7 111.plunkettresearch.S.162. US$ Bil.S.7 90.S.4 442.com U. US$ Bil. US$ Bil.com . Retail Industry Overview Amount Unit Year Source Total Retail Sales in 2008 Total Retail Sales in 2007 1 1 4. Copyright© 2008.3 576.7 1. US$ Bil.4 118. US$ Bil. US$ Current US$ Current US$ 2008 2007 2008 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 20082 2007 2007 2006 PRE Census PRE Census Census Census Census Census Census Census Census Census Census Census Census Census Census BEA BEA ITA ITA ICSC Total e-Commerce Retail Sales in 2008 Total e-Commerce Retail Sales in 2007 Motor Vehicle & Parts Dealers Furniture & Home Furnishings Electronics & Appliance Stores Bldg. US$ Bil.4 337. US$ Bil.7 87. US$ Includes food services sales. US$ Bil. US$ Bil. US$ Bil.8 303. as opposed to an extrapolation based on a database count of larger properties. Materials & Garden Equip.3 33. Methodology has changed to reflect a count of actual properties. 2008 Total Exports of Goods Total Imports of Goods Number of U. US$ Bil. Annualized as of the third quarter.6 237. Bureau of Economic Analysis ITA = International Trade Association PRE = Plunkett Research estimate ICSC = International Council of Shopping Centers Census = U. All Rights Reserved www.4 445. BEA = U. 2007 Annual Disposable Personal Income per Capita.6 919.Plunkett Research. US$ Bil.400 4. Ltd. US$ Bil. Shopping Centers3 1 3 2 Bil. US$ Bil.786 Bil.152 1.
8 -498.3 -535.0 580.4 -106.5 -52.0 -144.6 205.5 950.7 660.9 904.8 393.2 254.9 1.8 199.0 473.6 -105.054.8 261.0 179.0 258.4 149.953.0 258.3 148.: 1980-2nd Quarter 2008 (In Billions of US$.175.6 792.7 744.5 -410.8 151.8 689.6 1.2 -66. Latest Year Available) Year 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Q2 2008 1 Total goods1 Exports Imports Balance 238.9 257.0 218.288.9 -209. trade between the U.3 611.8 434.3 890.S.6 1. 2 Manufactured goods include commodity sections 5-9 under Schedules A and E for 19701982 and SITC Rev.7 -651.1 -91.9 345.4 1.0 522.5 -182.5 148.9 230.S.9 728.6 -233.0 557.8 485.6 641.9 447.8 782.5 692.8 687.3 -465.4 583.9 1.com Exports.3 -27.8 -89.5 -109.com .0 330.416.6 22.2 170.9 255. Virgin Islands and foreign countries and undocumented exports to Canada.4 1.855. scrap and base bullion) and special category shipments.S. U.670.5 365. 3 Census data concordances link the 1980-1992 data into the best possible time series.163.3 -197.2 Manufactured goods2.9 1.1 168.8 -124.4 368.7 591.0 -791.3 480.5 1.7 -117.216.5 791. Source: U. 3 for 1983-forward.1 -118. Ltd.4 -160.8 -401.4 205.3 1.5 663.0 622.4 -52.2 -74.7 -22.9 -470.4 314.2 -270.2 -137.4 -331.037. Ltd.3 Exports Imports Balance 171.5 430.3 723.9 532.7 1.6 680.4 -66.plunkettresearch.8 227. General Imports & Trade Balance in Goods.7 -137.3 870.8 1.4 496.0 3.6 -151.9 -436.0 1.6 389. non-monetary gold (excluding gold ore. 1991 imports include revisions for passenger cars.6 224.5 296. Import values are based on transaction prices whenever possible. www.2 913.8 535.5 882.013.469.9 629.9 512.2 388.0 244.4 1.6 393.7 171. International Trade Administration Plunkett Research.7 324.024.8 743.7 -138.5 -116.7 155. special category shipments.7 -766.027.6 -818. Manufactures include undocumented exports to Canada.4 1.259.8 981.7 -90.480.142.9 -324.8 1.162.6 626.Plunkett Research.6 -103.4 406.6 659.0 421.0 -308.7 216. military grant aid. trucks.5 464. www.1 -67. Adjustments were also made for carryover.6 289.8 -368.7 975.8 780.3 595.8 -506.1 1.2 441.1 1.0 -394.0 -84.3 -152.5 -168.4 361.1 322.7 1.plunkettresearch.0 693.7 -48.1 709.5 -115.9 -22.0 -525.4 731.7 164.7 817.0 488.5 -127.6 -22.2 Includes non-monetary gold.9 606.4 363. petroleum and petroleum products not included elsewhere.7 336.4 379.
com Total U.1 5.294 3.S.859 3. Ltd.094 3.400 Percent Change (%) NA 6. Source: U.plunkettresearch.082 4.2 6.4 6.2 6.456 2.483 4.4 4.466 3.5 4.610 2.S.9 8.7 4. Census Bureau.846 4.2 4.2 5. Ltd. Plunkett Research.7 8.158 2.3 6.336 2. Ltd. Retail Sales & Annual Percent Change: 1992-2008 (Includes Retail Automobile.5 2.8 2.732 2.308 4.8 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008* *Plunkett Research estimate.386 3. www.com .Plunkett Research.1 -1.plunkettresearch. Plunkett Research. Gasoline & Food Services Sales) Year Total Retail Sales (In Trillions of US$) 2.615 3. www.019 2.
645.978 83.119 31.609. Ltd.340 2.930 111.934 749.507 94.114 105.323 404.966 444.121.648 224.605 17.991 143.741 352.488 32.948 77.465 36. total (excl.280 64.334 358.031 3.569 317.352 9.867 3.057 9.488 28. 443 442 4421 4422 443 44311 443111 443112 44312 444 4441 44413 445 4451 4453 446 44611 447 448 4481 44811 44812 44814 4482 44831 Motor vehicle & parts dealers Automobile & motor vehicle dealers Automobile dealers New car dealers Used car dealers Automotive parts.725 56.110 102.992 18.563. home furn. electronic & appliance stores Furniture and home furnishings Furniture stores Home furnishings stores Electronics & appliance stores Appliance.904.252 843.846.496 21.512 265.474.793 134.168 121.003.247 15.580 34.897 63.193 1.542 89.693.050 70.439.727 55.654 224.314.075 6.190 63.403 60.772 39.370 445.S.510 25. & other electronics stores Computer & software stores Bldg. & supplies dealers Building materials & supplies dealers Hardware stores Food & beverage stores Grocery stores Beer.023. motor vehicle and parts dealers) Retail sales.680 27.525 67.com Retail & Food Services Sales by Kind of Business.096 2007 4.143 153.476 48.127 327.199.981.506 30.724 3.770 172.864 33.799 1.303 2.528 52.541 797.742 61.571 2.088.345 3.416 4.386 208.V.523 888.043 478.176 77.775 3.866 162.676 192.032 656.353 337.805.269 2.963 23.531 17.016 118.315 9.794 420.595 184. U. accessories & tire Furniture. wine & liquor stores Health & personal care stores Pharmacies & drug stores Gasoline stations Clothing and accessories Clothing stores Men's clothing stores Women's clothing stores Family clothing stores Shoe stores Jewelry stores 2002 3.383 85.805 37.232 19.212 224.617 122.309 584.458 86.195 864.249 200.740 27.323 18.663 190.811 72.288 30.359 85.610 51.915 178.482.293 52.052 231.233 52.322 2.773.410 290.743 Jan-Aug 2008* 3.729 665.265.543 2005 4.171 390.604 18.224 164. materials & garden equip.070 45.136 2.816 2003 3.955 3.522 19.129 14. total Total (excl.620 721.715.668 3.009 465.651 165.886 57.269 757.071 65.303 56.219 25.894 68.527 40.742 13.159 1.457 3.077 39.040.477 2.129.304 108.712 230.732 155.688 482.543 2004 3.053 913.047 14.921 21.065.035 60.579 112.989 675.851 463.105 51. T.293 22.782 263.411 3. motor vehicle and parts dealers) 1 GAFO 441 4411.675 645.316 2.835 67.215 24.313 26.305 3.243 320.787 76.888 560.984 17.434 198.034 532.181 771.916 62.303 8.914 39.262 948.962 30.485 97.445 17.122 494.585 42.759 61.711 175. total Retail sales.121 67.311 248.888 217.343 14.: 2002-August 2008 (Estimates in Millions of US$) NAICS Kind of Business Code Retail and food services sales.162.007.329 681.169 189.437 198.216 2006 4. www.051 34.400 761.268 83.424.885 64.752 17.734 71.307 816.726 74.131.542 683.615.132 17.896 146.778 128.719 919.096 298.170 2.373 214.925 820.584 237.354 707.plunkettresearch.079 137.524 51.755 516..241 72.414 18.272 23.112 827.147 64.115 10.429 373.566 178.292 734.946 250.649 501.933 167.246 841.173 295.330. 4412 4411 44111 44112 4413 442.485 214.610 477.263 71.134.437 901.327 11.819 20.083 103.327 54.588 273.957 66.430 2.211 49.123 1.130 429.748 140.342 43.Plunkett Research.724 26.061 180.495 541.483 73.435 190.827 94.088 350.466.657 62.610 32.847 417.439 25. TV & other electronics Household appliance stores Radio.344 201.215 776.206 30.776 (Continued on Next Page) .407 82.537 745.071 230.059 78.305 23.867 17.429.954 8.
905 191.732 135.253 224.445 85.593 244.033 2006 87.431 46.171 28.191 28.900 23.677 25.423 210.886 86. L.) Discount department stores Other general merchandise Warehouse clubs & superstores All other general merchandise stores Miscellaneous store retailers Nonstore retailers Electronic shopping & mail-order Fuel dealers Food services & drinking places Full service restaurants Limited service eating places Drinking places 2002 76.) (Estimates in Millions of US$) NAICS Code 451 45111 451211 452 4521 452112 452111 4521 452112 4529 45291 45299 453 454 4541 45431 722 7221 7222 7224 1 Kind of Business Sporting goods.017 215.305 43.427 128.329 426. hobby.723 131.861 19.662 17.601 172.966 255.111 * Through August.030 131. GAFO represents stores classified in the following NAICS codes: 442.244 128. 443.021 576.517 242.988 26.972 132.079 17.875 81.529 110.535 122.655 35.065 11.977 524.179 16.151 45. 451.085 147.com .179 468. apparel. Ltd. GAFO sales include general merchandise.482 340.324 37.257 193.423 39.087 17.988 331.252 34.: 2002-August 2008 (cont.684 19.333 161.493 270.163 189.138 86.680 138. The term excludes automotive and food stores. NAICS code 4532 includes office supplies.200 35. 448.D.300 79. Census Bureau Plunkett Research.313 23. www.229 118.541 130.191 212.112 182.177 40.734 214.S.240 379.278 128.426 209.450 446.307 216.980 103.922 307.241 169.902 131.728 127. L.094 105.547 86.892 128.D. furniture and miscellaneous specialty store segments within the retail industry.545 225.732 254.327 37.302 16.966 310.699 18.589 552.Plunkett Research.061 28.598 37.198 204. 452. = Leased Department Stores Source: U.plunkettresearch.879 371. www.976 163. 4532.653 104. L.757 497.465 218.498 182.181 128.814 148.857 227.698 281.822 366.D. book & music stores Sporting goods stores Book stores General merchandise stores Department stores (excl.030 131.432 38.961 349.S.com Retail & Food Services Sales by Kind of Business.) Discount department stores Conventional & national chain dept stores Department stores (incl.076 119.706 270.199 31.580 2004 80.056 203.190 442.211 138.plunkettresearch.487 227.335 27.199 394.059 186.347 15.296 78. stationery and gift stores. Ltd.657 129.693 155.534 323.879 78. U.834 158.174 215.743 133.002 147.950 214.106 220.242 16.168 16.366 123.110 221.934 42.168 2005 82.362 JanAug 2008* 55.456 31.773 137.853 16.648 220.329 2007 87.010 297.152 188.417 2003 77.848 303.982 221.716 83.
904 231.858 4.163 7.740 21.479 64.) stores Beer.137 56. 348.063 56.288 6.634 31.854 726.183 71.156 4.949 3.432 99.769 65.264 1.518 8.188 8.659 6.118 58. total (excl.907 64.191 631. www.906 19.815 3. motor vehicle & parts dealers) GAFO* Motor vehicle & parts dealers Automobile & other motor vehicle dealers Automobile dealers New car dealers Used car dealers Automotive parts.603 1.879 26.724 326.711 21.575 50. stores Household appliance stores Radio.581 51.941.242 39.526 5.402 5.864 33.039 71.021 1.795 9.585 42.989 3.328 7.176 299. home furn.984 337.376 Jun.636 313.759 8.349 5.Plunkett Research.455 5. (except conv.995 8.105 51.960 145.212 2.530 5. total Retail sales.869 (Continued on next page) .929 71.750 27.794 40.711 66.597 34.540 286. through August 2008 (In Millions of US$.975 18.849 8.626 326.248 52.105 5. electronic & appliance stores Furniture & home furnishings stores Furniture stores Home furnishings stores Electronics & appliance stores Appl.384 71.777 17.084 49.910 1.327 11.117 6.202 1.427 4.510 42.416 68.476 46.244 243.876 46.525 CY CUM 3.414 17.004 87.837 307.398 46.439. 390.424 280.862 51.644 277. & other elect.727 78.932 57.742 61.741 1.488 7.521 1.743 18.572 340. stores Computer & software stores Building mat.100 4.197 327.364 1.303 9.946 1.625 42.783 19.011 25.883 61.597 26.131.036 8.996 367.272 8.861 65.670 4.843 40.648 224.668 77.898 1.327 62. Total Retail sales & food services excl.043 478. Not Seasonally Adjusted) Kind of Business Retail & food services sales.V.201 1.290 318.876 43.043 89.936 17.152 11.077 45.050 70..258 346.360 3.212 42.984 13.981 42.158 51.015.523 40. motor vehicle & parts dealers Retail sales.533 16.508 53.380 1.108 71.303 PY CUM 2.812 4.195 6.461 5.895 55.951 Feb.672 1.351 40.537 745.500 5.377 61.832 17.034 532.727 275.501 1.647. T.180 84.735 30. & garden equip.775 1.400 May 405.911 4.162 2.plunkettresearch. & supplies dealers Building mat.502 1.008 42.039 48.952 466.290 42.557 43.832 6.991 143.948 6.147 6.248 94.715. acc.304 59.802 1. U.399 23.781 18.com Retail & Food Services Sales by Kind of Business.683 Aug.091 2.127 1.476 50.269 2.281 7.976 300.171 390.063 3.783 100.358 13.315 2.869 307.830 278.663 190.268 364.309.420 41.918 45.742 13.430 5.679 8.776 351.088 350.737 Jul. & tire stores Furniture.443 7.655 314.392 45.876 March 378.817 3.731 7.438 75.794 95.929 8.537 329.702 40.596 6.914 39.557 527.942 4.703 21.647 57. Ltd.385 70. 346.710 35.: Monthly.840 61.970 38.053 93.523 319.377 9.869 8. & supplies dealers Hardware stores Food & beverage stores Grocery stores Supermarkets & other groc..298 8.429 4.824 40.822 5.773 25.857 6.601 48.571 2.930 42.720 8.372 2.701 279.664 349.778 6.690 8.708 31.309 584.434 7.047 14.567 6. 391.626 2.624 9.240 64.215 1.385 27.777 6.371 2.973 7.847 417.755 April 375.825 1.767 50.162 201.241 72.710 68.327 54.293 51.459 262.023.476 1.136 5. wine & liquor stores Jan.454 5.873 49.158 4.236 262.111 312.696 78. 385.907 2.396 5.517 580.S. TV & other elect.707 1.020 245.427 9.
184 41. 20.734 33.516 20.656 10.140 April 20.557 9.891 860 3.507 6.179 6.941 16. U.370 CY CUM 26.891 9. and gift stores. 451.077 1.191 2.473 17.994 5.459 10.518 14.540 15.583 6.233 52.790 8.384 10.752 17.655 35.748 140.157 7.442 3.283 3.604 30. Source: U.236 40.519 17.905 77.337 16.792 731 2.331 39.599 101.012 35.287 10. www.207 2.431 25.290 53.366 123.309 3.937 10.732 135.584 816 3. NAICS code 4532 includes office supplies.188 131.plunkettresearch.078 16.775 20.445 10.174 49.960 851 3.024 2.134 9. stores Conventional & national chain dept stores Other general merchandise stores Warehouse clubs & superstores All other gen.207 Jun.922 307.412 8.156 2.083 103.942 16.333 48.092 1002 45.765 4.203 5.427 16.352 17. 448.662 34.285 2.322 25.173 2.265 17.999 2.640 25.436 50.557 5.132 24.713 2.610 42.381 722 2.439 3.289 9.836 17.230 6.202 800 3.341 17.224 26.453 17.677 25.911 23.401 6.567 15.936 14.919 2.865 29.950 3.866 162.S.917 17.144 44.888 15.857 2.667 25.805 2.198 204.879 78.384 12.386 17. Census Bureau Plunkett Research. Ltd.128 11.406 25.395 2.567 10. www.075 6.042 6. 3.018 127.plunkettresearch.297 47.940 3.576 15. 442.795 16.713 6.929 15.632 15.943 233.159 Jul.544 6.458 14.019 47.117 81. Ltd.416 38.894 March 20.931 15.267 52.136 9. 3. * GAFO represents stores classified in the following NAICS codes.296 78.065 11.841 Feb.018 17.833 13.074 49.219 5.982 17. LD = Leased Department Stores.253 27.302 16.344 12.com .076 48.978 5.281 18.081 16.010 16.154 31.) (In Millions of US$.855 5.518 9.789 16.658 6. LD) Discount dept.543 19. 3.685 10. merchandise stores Miscellaneous store retailers Nonstore retailers Electronic shopping & mailorder houses Fuel dealers Food services & drinking places Full service restaurants Limited service eating places Drinking places Jan.191 28.393 CY CUM = Current Year Cumulative.986 3.914 14.365 2.144 24.860 137.201 33.682 3.813 15.Plunkett Research.396 50.325 1.064 6.014 10.642 7.078 294.426 3.156 51.368 1.150 751 2.550 10.582 2.917 10.998 3.406 6.520 1.234 16.076 2.521 79.285 42.944 16.744 1.504 3.722 13.995 124.124 48. PY CUM = Previous Year Cumulative.409 14.012 28. 4532.061 291.680 132.663 40.017 16.com Retail & Food Services Sales by Kind of Business.785 5.219 16.052 13.382 2.492 9.825 17.728 127.273 16.240 379.358 192.868 2. LD) Discount dept.993 17.808 6.151 45. hobby.922 10.490 9.487 227.574 34.169 6. stationery.084 May 20.467 15.579 4.220 3.680 1.049 2.321 5. stores Clothing stores Men's clothing stores Women's clothing stores Family clothing stores Shoe stores Jewelry stores Sporting goods.851 17. 443.025 25.259 29.715 26.205 14.998 33.971 361.751 2.895 2.032 5.881 17.662 17.278 128.247 47.708 3.741 20.105 157.111 PY CUM 25. Not Seasonally Adjusted) Kind of Business Health & personal care stores Pharmacies & drug stores Gasoline stations Clothing & clothing access.549 9.657 17.723 6.680 138.991 7.827 3.243 5.787 30.541 14. stores Conventional & national chain dept stores Department stores (incl.447 5.992 16.592 26.026 2.649 3.242 8.991 28.955 16.442 26.779 17.230 6.416 Aug.471 6.188 37.414 39.115 908 3.966 47.: Monthly.393 3.S. 20.053 128.452 6. book & music stores Sporting goods stores Book stores General merchandise stores Department stores (excl.013 30.334 255.776 55.867 17.574 3.592 3.495 1.418 1.009 10.712 36.938 9. 452.366 2.774 7.300 79.418 19.092 2.793 352.823 10.119 13.778 5.734 17.680 1.049 29.497 206.637 17.648 29.439 25.198 17. through August 2008 (cont.844 1.968 37.570 5.
1 5.3 -9.034.493 794.0 2.2 0.8 10.232 830.5 0.8 39.092 31.596 938. Not adjusted for Seasonal.3 3.027.025.030.823 30.4 5.344 1.1 28.4 2.7 2.5 1.4 1.4 7. Source: U.0 1.9 E-commerce -13. Does Not Include Food Services) Retail Sales in US$ Mil.3 3.3 0.8 1.8 4.3 1.8 1.2 3.897 16.877 741.619 1.602 32.4 2.8 1.0 1.9 -13.1 4.6 -10. www.8 6.com .395 33.635 1.779 947.4 10.836 14.7 1.112 937. Payment may or may not be made online.931 7.011 756.8 -13.6 11.721 10.509 31.698 15.3 -9.1 10.9 9.1 9.com Estimated Quarterly U.7 1.2 3.645 34.3 -0.S.1 3.3 -9.060 819.851 13.9 704.517 1.657 833.480 873.2 1. Retail Sales.5 6.302 790.2 2.492 934.9 0. Quarter Total 1 Quarter 2001 2 Quarter 2001 3 Quarter 2001 4 Quarter 2001 1 Quarter 2002 2 Quarter 2002 3 Quarter 2002 4 Quarter 2002 1 Quarter 2003 2 Quarter 2003 3 Quarter 2003 4 Quarter 2003 1 Quarter 2004 2 Quarter 2004 3 Quarter 2004 4 Quarter 2004 1 Quarter 2005 2 Quarter 2005 3 Quarter 2005 4 Quarter 2005 1 Quarter 2006 2 Quarter 2006 3 Quarter 2006 4th Quarter 2006 1st Quarter 2007 2nd Quarter 2007 3 Quarter 2007 4th Quarter 2007 1st Quarter 2008 2nd Quarter 2008 rd rd nd st th rd nd st th rd nd st th rd nd st th rd nd st th rd nd st E-commerce * E-commerce as a Percent of Total Retail Sales 1.023.128 827.501 1.080 24.5 3.3 1.606 * E-commerce sales are sales of goods and services over the Internet.141 21.7 -0. Ltd.486 792.1 10.3 5.3 3.2 -11.776 1.4 1.8 3.529 20.659 870.4 -10. Holiday & Trading-Day Differences.5 -13.6 1.334 12.5 0.3 2.0 1.6 31.761 17.5 29.573 839.7 2.3 2.624 35. www.1 -0.1 1. Electronic Data Interchange (EDI) or other online system.0 4.1 3. Ltd.757 779.692 874.5 3.161 10.plunkettresearch.2 0.2 2. Total & E-Commerce: 1st Quarter 2001-2nd Quarter 2008 (In Millions of US$. an extranet.952 21.3 2.322 27.3 Percent Change Over Previous Quarter Total Sales -11.810 10.992 19. Census Bureau Plunkett Research.1 2.903 9.6 4.7 3.835 994.014.276 27.7 -11.829 717.6 27.3 30.009.531 33.047 984.873 7.452 906.397 1.283 12.Plunkett Research.1 5.2 7.803 7.5 -2.6 -10.5 0.plunkettresearch.S.065 16.9 -8.9 2.
079 29.614 28.961 22.593 20.378 Chained (2000) US$ 8.929 3.674 33.109 21.735 11.504 26. Bureau of Economic Analysis Plunkett Research.843 245.848 19.195 23.098 28.741 30.938 16.391 19.490 20.760 194.455 266.809 34.424 31.067 18.697 26.382 26.940 23.131 24. Annualized estimates as of the second quarter.816 17.837 10.822 13.546 23.235 27.215 24.015 32.590 20.161 23.307 46.215 290.064 7.257 17.065 24.683 242.955 13.359 37.498 8.520 20.080 37.964 293.563 3.600 28.053 29.S.727 5.150 28.082 20.554 18.646 12.072 20.274 27.981 227.095 7.490 36.208 19.667 35.004 18.260 Chained (2000) US$ 13.896 34.720 26.227 44.840 16.358 28.913 44.476 27.940 29.010 32.056 42.365 22.313 Estimates for 2008 are annualized as of the third quarter.287 21.707 47.091 21.plunkettresearch.750 38.297 16.666 25.403 28.994 18.647 28.249 17.271 31.027 34.722 16.976 38.087 305.546 15.700 5.331 11.349 15.167 28.578 26.590 36.896 35.420 18.131 17.783 25.923 22.403 36.382 20.153 22.911 29.545 Chained (2000) US$ 13.749 28.181 34.632 25.154 279.472 26.282 263.283 3.133 22.204 18.548 21.302 34.319 27.850 30.759 35.789 7.714 272.144 33.587 5.530 256.238 26.433 285.387 250.806 18.275 23.688 25. Ltd.073 25.314 2 Chained (2000) US$ 9.024 26.137 26.046 47.221 28.494 18.922 260.695 18.199 302.685 14.944 27.347 205.759 34.320 14.616 19.956 25.693 29.290 26.373 299.912 34.485 17.007 28.766 13.335 30.835 27.048 12.940 19.594 13.821 2 Population (000) 2.169 23.570 17.291 16. Expenditures & Gross Domestic & National Product Per Capita: 1960-2008 (In US$.866 40.770 24.556 28.971 35.643 36.335 23.148 38.548 26.844 27.796 41.770 27.716 11.812 22.542 19.835 21.089 215.659 34.432 38.432 37.609 18.328 282.183 23.564 25.S. Per Capita Estimates) Disposable Personal Income Year Current US$ 1960 1965 1970 1975 1980 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 1 2 1 Personal Consumption Expenditures Current US$ 1.400 17.881 31.323 21.726 238.372 288.827 22.773 32.544 31.Plunkett Research.162 4.644 296.884 29.491 23.912 3.862 24.566 27.682 24.752 33.050 23. www.356 37.872 19.472 25.326 37.040 17.514 28.563 30.740 21.022 2.576 32.886 32.554 18.112 30.506 240.555 20.898 19.665 19.com Total U.833 33.291 22.866 35.241 15. Disposable Income. Source: U.650 24.563 15.649 14. Ltd.517 20.671 39.476 19.906 20.120 21.046 45.982 30.181 253. www.968 25.152 180.958 276.700 26.plunkettresearch.835 2.722 25.595 37.387 Gross National Product Current US$ 2.588 269.com .128 30.222 33.904 34.281 21.429 28.406 12.061 247.104 Gross Domestic Product Current US$ 2.037 13.664 27.493 21.586 12.
7 4.434 459 13.3 1. Household Expenditures (in US$) $39.013 2.183 801 611 1.375 400 2.297 445 764 378 552 1.7 2.712 2006 118.2 1.com Average Annual U.270 322 4.767 676 509 1.4 1.673 3.9 3.781 3.409 5.8 20.5 1.3 1.376 585 117 888 327 846 1.843 $60.453 2005 117.9 17.869 5.708 1.633 3.664 2.9 1.397 1.com .471 389 2.1 0.282 $54.099 450 798 328 552 970 2.276 376 13. Bureau of Labor Statistics Plunkett Research.398 6.326 $40.887 2.0 7.plunkettresearch.801 3.5 1.663 5.1 2. Ltd.S.277 3.339 448 2.3 1.998 2. Prior to 2004.574 2.1 4.321 3.0 2.333 2.7 3.339 $47.497 1.9 66 48.108 $49.075 2.658 $43.6 4.9 67 48.829 2.408 4.S.331 385 2.279 2.079 526 139 752 320 792 1.948 2006%3 100 12.5 5.677 5.458 1.9 0.366 9.182 1.plunkettresearch. poultry.533 20071 120.684 706 545 1.8 0.111 3.766 2.899 406 3.128 2004 116.8 1.8 2.640 7.167 8. Ltd.544 2.5 1.1 2.421 2.129 442 825 328 535 999 2.5 1.817 5.3 2.816 7. income values are derived from "complete income reporters" only.0 33.518 1.235 349 13.5 1.0 67 48.665 1.340 3.365 441 2.Plunkett Research.258 3.218 581 130 905 288 690 1. Household Expenditures: 2001-2007 (Latest Year Available) Characteristic Number of households (in thousands) Income before taxes2 Average age of head of household Average # of persons in household Average # of earners Average # of vehicles Percent homeowners Average annual expenditures Food Food at home Cereals & bakery products Meats.2 2.055 397 3.5 1.355 505 2. fish & eggs Dairy products Fruits & vegetables Other food at home Food away from home Alcoholic beverages Housing Shelter Utilities.918 7.227 2.2 0.749 7.430 2003 115. 3 Individual categories as a percentage of total 2006 expenditures.493 $40.395 5.356 $51.767 1.0 66 48.344 3.694 497 16.433 $46.0 5.349 $62.9 10.737 410 3.7 10.743 7.823 $48.6 1.388 541 126 940 319 808 1.598 2.432 7.646 1.6 7.350 2.874 8.6 0.4 2.3 3. Source: U.507 2002 112.602 2.370 4.886 8.204 381 4.4 2.S. fuels & public services Household operations Housekeeping supplies House furnishings & equipment Apparel & services Transportation Vehicle purchases (net outlay) Gasoline & motor oil Other vehicle expenses Public transportation Healthcare Entertainment Personal care products & services Reading Education Tobacco products & smoking supplies Miscellaneous expenditures Cash contributions Personal insurance & pensions Life & other personal insurance Pensions & Social Security 1 2 2001 110.811 707 529 1. www.375 3.158 2.805 3.9 68 48.518 5.927 753 594 1.011 7. Household Characteristics 48.416 2.060 527 127 783 290 606 1.732 1.410 General U.579 1.781 3.3 1.5 2.S.9 1.6 7.9 1.235 2.212 2.5 1.347 461 880 371 561 1.634 426 15.508 3.6 2.823 390 4.356 $58.759 3.953 485 141 648 308 750 1.283 7.086 452 828 332 522 952 2.931 3.9 67 Average U.2 Plunkett Research estimates. www.417 446 797 368 592 1.9 67 48.0 1.7 1.211 391 13.397 948 640 1.
0% 11.Plunkett Research. All Rights Reserved www.com Distribution of Total U.8% 1. Source: Plunkett Research.1% 14.1% 0.2% 6.com .5% * Includes Social Security. Annual Household Expenditures.3% 1.0% 3. by Major Category: 2008 (Estimates) (As Percentages of Total) Expenditure Item Housing Transportation Food Personal insurance & pensions* Healthcare Entertainment Apparel and services Reading and education Miscellaneous and cash contributions Personal care products and services Tobacco Percent Distribution 33.plunkettresearch.8% 2. Copyright © 2008. Ltd.plunkettresearch.3% 4.S.3% 21. Ltd. www.
662 13.007 23.947 19.275 20.193 20.109 9.870 19.108 20. Ltd. www.300 19.516 7.286 20.719 12.420 5.802 21.com 21.325 5.701 7.752 19.299 18.055 20.699 6.824 22.62 298.985 22.235 20.501 9.plunkettresearch.305 19.73 285.636 5.888 35.976 21.341 12.: 2001-2010 (In Thousands.452 19.23 293.537 19.558 4.474 21.670 5.236 14.797 18.314 21.123 5.plunkettresearch.479 12.587 21.952 22.362 20.022 22. Ltd.350 20.408 21.896 20.934 11.575 19.938 20. www.103 19.034 15.843 20. Source: U.994 20.621 36.986 17.605 7.112 35.791 7.120 75 to 79 years 80 to 84 years 85 years & over NA = Not available.350 10.91 287.964 21.436 22.206 13.010 20.117 20.013 18.512 Census Bureau estimates.020 20.082 11.468 20.43 295.600 7.368 8.526 20.732 22.941 21.444 19.104 9.458 20.387 5.309 4.936 NA 301.com Resident Population Estimates by Age.754 21.709 18.830 22.636 19.892 20.533 21.417 4.767 20.542 7.896 36.459 18.861 21.583 9. U.845 21. Census Bureau Plunkett Research.993 10.417 61.945 20.850 20. Latest Year Available) Characteristics 2010 2007 2006 2005 2004 2003 2002 2001 Summary Indicators Population.272 18.443 5.531 8.192 36.127 8.955 8. Based on 2000 Census.032 21. July 1 of year.755 36.S.695 15.703 20.147 4.176 21.752 8.581 8.486 16.416 5.119 22.674 20.06 290.476 10.060 19.051 20.744 8.S.450 5.724 19. .774 19.673 21.512 7.426 20.715 19.55 Five.847 19.468 5.058 104. all ages Median age 308.462 19.373 22.546 19.280 22.Plunkett Research.& Ten-Year Age Groups Under 5 years 5 to 9 years 10 to 14 years 15 to 19 years 20 to 24 years 25 to 29 years 30 to 34 years 35 to 39 years 40 to 44 years 45 to 49 years 50 to 54 years 81.810 20.012 55 to 59 years 60 to 64 years 65 to 69 years 70 to 74 years 34.607 21.599 21.448 35.
MN Costa Mesa.com Twenty Largest Shopping Centers. ft.000. Ltd.com . CA Erie. NJ Torrance.768. www. AZ Oak Brook. FL Sunrise.000 2.217.018.100.2 million sq.000 2.400. TX Garden City.710 2. has reported its gross leasable area as the entirety of its complex including surrounding properties (3. PR Honolulu.000 2. NY Schaumburg.600.Plunkett Research. formerly on this list. PA Bloomington.S. www. IL West Nyack. PA Aventura.399* 2.000 2.244. ft.000 2.000 2.100.200 2.: November 2007 (Ranked by Gross Leasable Area) Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 13 13 16 17 18 19 19 Name King of Prussia Mall Mall of America South Coast Plaza Millcreek Mall Aventura Mall Sawgrass Mills The Galleria Roosevelt Field Mall Woodfield Mall Palisades Center Tysons Corner Center Westfield Garden State Plaza Del Amo Fashion Center Plaza Las Americas Ala Moana Shopping Center Lakewood Center Scottsdale Fashion Square Oakbrook Center NorthPark Center Jordan Creek Town Center Location King of Prussia.793.2 million square feet).224. CA Scottsdale. of building area.000 2.092.8 million is gross leasable area (GLA).420 2. NY McLean.plunkettresearch. Ltd.322 2.581 2.200. CA San Juan.000.000 2.6 million sq. Source: Wikipedia * Mall of America has 4. The Director of Major Malls reports 1.700. FL Houston. of which about 2.100. TX West Des Moines.000 2. IL Dallas. Source: International Council of Shopping Centers (ICSC) Plunkett Research.298.169 2.112 2.906 2.049.000 Number of Stores 400 522 280 241 275 350 375 294 300 400 300 290 300 300 290 255 250+ 175 235 160 Note: The Eastwood Mall. VA Paramus. of grossable lease space enclosed within the mall proper. HI Lakewood. IA Size (Square Feet) 2.plunkettresearch.132.000 2. U.383.
com www.com www.youtube. which is the percentage of online traffic to the domain or industry.com www.com Top 20 Websites.Plunkett Research.org Market Share 6.facebook.43% 0.35% 0. Hitwise measures more than 1 million unique websites on a daily basis.yahoo.com search. Ltd. Hitwise categorizes websites into industries on the basis of subject matter and content.com mail.com search.94% 1.plunkettresearch.com www.17% 0.yahoo.34% Note: The Hitwise data featured is based on US market share of visits.49% 1.yahoo.myspace.yahoo.google.com my.com www. U. www.yahoo.com www.40% 0.wikipedia.55% 0.com address.com www.78% 1.yahoo.70% 3.com . from the Hitwise sample of 10 million US Internet users.aol.: October 2008 (Based on Market Share of Visits) Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Website www. Ltd.live.craigslist.org mail.ebay.msn. www.56% 1.com mail.com www.gmail. Source: Hitwise.google.91% 3.com images. including subdomains of larger websites.53% 0.pogo.plunkettresearch.17% 4.com www.S. as well as market orientation and competitive context.com www.82% 0.39% 0.24% 1. an Experian company Plunkett Research.98% 0.msn.41% 0.com news.40% 0.
2008 Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Name Amazon.com www.com www.ticketmaster.com Top 20 Retail Websites.hsn.bestbuy.qvc.Plunkett Research.lowes.43% 1.toysrus.com www.com .com www. DVD and video game rental. Ltd.25% 2.65% 1.amazon.macys. www.com www.jcpenney.com Market Share 11.target.02% 0.kmart.com www. subscription services.overstock.plunkettresearch.93% 1.98% 0.99% 0.com www.com www.com www.homedepot.41% 1.30% 1. Data is ranked by market share of visits.com www.com www.com www.S. classifieds.44% 3.com www. U.cabelas.walmart. www.com www.48% 1.09% 1.18% 1.com www.kohls. Ltd.kodakgallery.dell.17% 5.plunkettresearch.85% Note: The Hitwise Retail 100 Index does not include websites from the following industries: auctions.93% 1.91% 0.com Wal-Mart Target Best Buy JC Penney QVC Sears Circuit City Overstock.42% 1.com www.com www. an Experian company Plunkett Research.: November 1.50% 1. Source: Hitwise.12% 1.circuitcity.sears. reward point collecting and coupons.com www.com Toys 'R Us Dell Home Depot Lowes Home Shopping Network Cabela's Kohl’s Ticketmaster Kodak Galley K-Mart Macy's Domain www.com www.
6 2.9 868.620.058.3 432.5 144.128. see www.2 1.4 645.0 218.7 154.0 94.0 2.8 930.0 543.8 913.4 953. hobby.5 241.3 192.443.279.2 941.863.1 2.5 226.8 228.5 2006 15.8 586.7 1.226.0 959.0 2.3 328.3 183.com Employment in the Retail Industry.2 179.9 434.0 179.101.2 1.2 390.1 136.324.0 1.2 1.3 170.252.4 1.5 154.822.9 117.1 187.4 434.5 2004 15.339.7 181. www.8 141.227.013.605.3 2.Plunkett Research.201.457.6 1.0 142.1 186.0 228.6 256.3 209.257.6 144.1 535.913. stationery & gift stores Used merchandise stores Nonstore retailers Electronic shopping & mail-order houses Vending machine operators Direct selling establishments 2002 15.918.4 504.1 1.414.4 1.7 1.3 646.304.5 106.8 240. periodical & music stores General merchandise stores Department stores Other general merchandise stores Miscellaneous store retailers Florists Office supplies.025. software.5 486.5 428.0 2003 14.879.812.2 472.9 541.6 1.5 661.0 1.3 512.6 1.305.0 1.3 179.5 236.9 1.html.817.913.7 1.0 112.4 2.2 333.0 139.407.5 485.276.881.4 658.census.147. wine & liquor stores Health & personal care stores Gasoline stations Clothing & clothing accessories stores Clothing stores Shoe stores Sporting goods.8 2.4 516.6 138.1 1.6 437.2 493.1 889.6 2.490.178.1 938.9 479.3 444 4441 4442 445 4451 4452 4453 446 447 448 4481 4482 451 4511 4512 452 4521 4529 453 4531 4532 4533 454 4541 4542 4543 1 2 Industry Sector Retail Trade Motor vehicle & parts dealers Automobile dealers Other motor vehicle dealers Auto parts.7 364.821.9 667.0 1.8 576.4 201.4 1.6 2.445.860.824.5 131.3 1. TV & other electronics stores Computer. accessories & tire stores Furniture & home furnishings stores Electronics & appliance stores Appliance. Not seasonally adjusted.257.plunkettresearch. camera & photography supply stores Building material & garden supply stores Building material & supplies dealers Lawn & garden equipment & supplies stores Food & beverage stores Grocery stores Specialty food stores Beer.8 981.4 166.2 138.6 247.6 2007 15.6 239.6 49.3 1.3 1. U.4 114. book & music stores Sporting goods & musical instrument stores Book.557.312.7 2005 15.6 142.3 434.1 For a full description of the NAICS codes used in this table.9 1.246.5 145.984.4 497.3 1.422.3 1.1 864.1 875.486.5 121.2 1.6 135.4 428.684.491.5 559.7 2.6 2.066.1 49.7 871.3 182.3 1.481.7 427.5 1.6 1.com .4 490.7 523.7 1.9 1.6 451.9 2.4 199.353.3 1.245.6 861.6 59.S. As of September or October.6 50.5 2.gov/epcd/www/naics.9 2.7 169.2 348.8 149.7 93.484.7 835.2 247.3 1.162. Ltd.1 538. Bureau of Labor Statistics Plunkett Research.9 167.7 2.024. Source: U.935.2 146.1 1.1 1.909.0 1.6 1.7 1.0 141.6 547.4 148.9 374.4 581.7 2.3 1. www.7 107.9 1.5 2.0 158.1 1.254.821.453.2 1.482.7 112.848.0 447.8 895.7 389.5 641.S.0 154.1 142.8 881.8 368.917.9 533.1 1.5 20082 15.7 647.7 188. Ltd.1 161.2 142.364.6 416.100.882.134.7 225.1 45.082.838.450.plunkettresearch.: 2002-September 2008 (Annual Estimates in Thousands of Employed Workers) NAICS Code1 N/A 441 4411 4412 4413 442 443 44311 44312.5 956.576.163.3 158.5 961.6 151.902.6 441.595.0 1.9 101.1 1.5 443.7 113.114.2 988.0 1.4 196.1 1.176.7 223.0 938.191.9 248.5 2.0 432.1 1.1 1.1 168.5 402.934.6 1.9 163.1 1.2 899.500.4 363.038.185.1 1.6 370.2 54.1 2.6 1.9 136.3 221.5 960.1 383.7 1.0 121.3 218.2 863.1 108.1 2. Preliminary estimate.261.5 458.3 50.2 83.377.2 2.6 563.0 136.
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