Specialty Stores Remain Strong, Study Says
After a tough year of consolidations and mergers among department,
drug and grocery stores, specialty stores are gaining a wider
market share and are becoming a major force in retailing, according
to the 2005 Top 100 Specialty Retailers ranking, sponsored by
Alliance Data Systems.
Released by Stores, the monthly magazine of the National
Retail Federation (Washington), the report ranks specialty
retailers by revenues regardless of the merchandise categories
in which they operate.
“With so many choices, people are able to be selective
about where they spend their money,” said Rick Gallagher,
Stores publisher and vice president of the NRF. “Specialty
stores are attracting a large number of customers because
they are able to provide the consumer with deep product assortments,
experienced sales staff and high customer service levels.”
Minneapolis-based Best Buy (No. 1) once again topped the
chart as the nation’s largest specialty retailer with
sales of $27.4 billion in 2004, up 11.8 percent over the previous
year. By using both concept stores and smaller service outlets
to address consumers’ lifestyles, Best Buy has created
more intimate neighborhood concept stores to appeal to those
who are intimidated by their larger-format stores.
Pet stores remain a small but noteworthy niche, claiming
two spots on this year’s Top 100 chart. PetsMart Inc.
(Phoenix) once again ranked 21 on the list, with sales of
$3.36 billion in 2004, up 12.1 percent from the previous year.
Petco Animal Supplies Inc. (San Diego) dropped three spots,
ranking 43 on the list with sales of $1.81 billion for 2004,
up 12.5 percent from the previous year.
For Stores’ Top 100 Specialty Retailers list, visit
www.stores.org. [October 2005 PET AGE]
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