Merchants of Mirth
The Top 25 playthings retailers
By Dana French -- Playthings, 11/1/2006
The Top 25 toy and video game retailers recorded $30.1 billion in toy sales in 2005, a 3.2 percent increase over 2004's sales of $29.2 billion for the group. That's the tally from Playthings magazine's exclusive ranking of the biggest names in the retailing business.
Combined, the Top 25 retailers opened a whopping 2,017 new stores last year.
Once again, Wal-Mart was No.1. The discount giant sold $9.97 billion worth of toys last year, a modest 1.9 percent gain over its 2004 sales of $9.78 billion. The Bentonville, Ark.-based behemoth alone accounted for one-third of the Top 25's toy and video game sales. The company led a discount department store channel that's on the upswing. The group registered $15.48 billion in toy sales in 2005, a gain of 2.9 percent over 2004's toy sales tally of $15.03 billion. The channel accounted for just over half of the Top 25's sales. Other leaders within the channel include Target (No. 4), Kmart (No. 5)—which moved down one and up one slot, respectively—and Meijer, which was unchanged from last year at No. 11.
TRU still number twoWayne, N.J.-based Toys “R” Us held onto the No. 2 spot, with 2005 sales of $5.85 billion, a 2.1 percent decrease from its revised 2004 sales of $5.98 billion. It's been a tumultuous time for the toy specialist, going private in July 2005, closing a net of 10 stores last year and 87 stores this year, including 12 that were converted to sister brand Babies “R” Us. The company also instituted new leadership under the direction of former Target executive Jerry Storch who joined the world's largest pure-play toy seller as Toys “R” Us Inc.'s chairman and CEO in February of this year.
As a channel, toy specialists garnered $7.36 billion in 2005 sales and comprised nearly one-fourth of the Top 25. Other toy specialists in the ranking include KB Toys, which emerged from bankruptcy protection in August 2005 and propelled its way to No. 7 on this year's list, one spot better than it landed last year; American Girl, which leapfrogged Circuit City to go from No. 10 to No. 8; and Build-A-Bear Workshop, up one to No. 12.
A new number threeGrapevine, Texas-based GameStop displaced Minneapolis-based Target as the No. 3 retailer on the list—a direct result of purchasing rival Electronics Boutique last May. GameStop pulled in $3.69 billion in U.S. playthings sales in 2005, an increase of 14.2 percent over a revised $3.24 billion in 2004. The electronic entertainment specialist opened a net of 372 new stores last year, and planned to open 400 new stores in 2006. The company plans to continue its aggressive growth policy with an estimated 600 new stores planned each year for the next two years.
Growing fastThe direct-to-consumer channel—comprised of Toysrus.com (No. 10) and QVC (No. 25), a newcomer to the ranking—recorded the fastest sales growth of any channel, 14.6 percent. Toysrus.com, the online arm of specialist Toys “R” Us, alone pulled in $400 million in toys last year, a 17.6 percent increase over 2004 sales, good enough to let the e-tailer crack the Top 10 for the first time. Total orders for Toysrus.com increased 13 percent in 2005 and the average dollar value of orders increased 5 percent. Parent Toys “R” Us officially severed its partnership with Amazon.com in June after winning a $750 million lawsuit. Toysrus.com partnered with GSI Commerce to provide online sales and marketing services and relaunched its e-commerce site July 1, a feat pulled of with minimal disruption to its business.
QVC joined the Top 25 for the first time at No. 25 as total plaything sales jumped 7.5 percent to $157 million. Helping fuel performance during the period was a jump in households receiving its broadcasts by more than 2 million, along with a flagship store in Minnesota's Mall of America and five outlet stores.
St. Louis-based Build-A-Bear Workshop sold $343 million in toys last year, up 17.5 percent from $292 million in 2004. That massive gain boosted the specialist to No.12 on the ranking, up one spot from last year. Build-A-Bear opened 25 new U.S. stores in 2005 and planned to open approximately 30 stores in 2006. Its 10,000-square-foot flagship store in Manhattan opened in July 2005, while in July of 2006 it opened its first Build-A-Dino location in Kansas City.
Michaels Stores (No.15) registered toy sales of $238 million in 2005, an increase of 15.5 percent over its 2004 sales of $206 million. The hobby and craft specialist, based in Irving, Texas, opened 46 stores last year, including 18 store relocations, and planned to open 45 new stores in 2006. Michaels' toy selection includes wooden and plastic model kits and crafts, as well as Magnetix construction toys and a line of toys from Thomas the Tank Engine.
Mattel's American Girl Brands sold $436 million worth of dolls and related merchandise last year, making it the No. 8 toy retailer. The specialist now has stores on both coasts with the opening of its Los Angeles store in April, in addition to its Chicago location.
The two companies that added the most door fronts in 2005 were Dollar General (No. 21) and Walgreen (No. 19), with net gains of 609 and 418 stores, respectively.
Six retailers on the ranking registered toy sales declines from the previous year: KB Toys (No. 7), Sears (No. 20), Kmart (No. 5), JCPenney (No. 17), Toys “R” Us (No. 2) and number ShopKo (No. 22).
| Company | Net income percentage change 2004 to 2005 | 2005 | 2004 |
| Wal-Mart | 9.4% | 3.6% | 3.6% |
| Costco | 8.3% | 1.9% | 2.0% |
| Target 1 | -24.7% | 4.6% | 6.8% |
| Sears Holdings 2 | -10.7% | 1.5% | 1.6% |
| Walgreen 3 | 8.3% | 3.6% | 3.7% |
| Best Buy 4 | 15.9% | 3.7% | 3.6% |
| JCPenney 5 | 112.5% | 5.8% | 2.8% |
| Circuit City 6 | 126.6% | 1.2% | 0.6% |
| Toys “R” Us 7 | --- | -3.4% | 2.3% |
| Dollar General | 1.7% | 4.1% | 4.5% |
| Family Dollar | -24.0% | 3.1% | 4.4% |
| Big Lots 8 | --- | -0.2% | 0.6% |
| Michaels Stores 9 | -35.1% | 3.6% | 5.9% |
| GameStop 10 | 65.4% | 3.3% | 3.3% |
| Build-A-Bear Workshop | 220.6% | 7.5% | 2.8% |
| Note: For the fiscal
year or trailing 12 months ended between Dec. 31, 2005 and Feb. 28, 2006, and
their year-earlier periods. 1. 2004 net income includes $75 million in net income from discontinued operations and a $1.2 billion net gain on the disposal of discontinued operations. 2. Pro forma results which show the Sears-Kmart merger as if it had occurred at the beginning of fiscal 2004. Net income includes pretax gains on the sale of assets of $40 million in 2005 and $356 million in 2004, pretax restructuring charges of $111 million in 2005 and $41 million in 2004 and bankruptcy-related recoveries of $40 million in 2005 and $59 million in 2004. 2005 net income also includes a $371 million pretax gain on the sale of business and a $90 million extraordinary charge, the cumulative effect of an accounting change. 3. 2005 net income includes a $54.7 million pretax charge for hurricane-related expense. 4. 2004 net income includes a $50 million net gain on the disposal of discontinued operations. 5. 2005 net income includes $111 million in net income from discontinued operations and 2004 net income, after $12 million in preferred stock dividends, includes a $133 million net loss from discontinued operations. 6. Net income includes net losses from discontinued operations of $9 million in 2005 and $2.7 million in 2004. 7. Net income includes pretax restructuring charges of $34 million in 2005 and $4 million in 2004 and income tax benefits of $121 million in 2005 and $59 million in 2004. 2005 net income also includes a $410 million pretax transaction charge. 8. Net income includes net losses from discontinued operations of $25.8 million in 2005 and $7.7 million in 2004. 9. 2005 net income includes an $88.5 million extraordinary charge, the cumulative effect of an accounting change. 10. 2005 net income includes a $13.6 million pretax merger-related charge. Source: Company reports and Playthings market research |
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| Company, Headquarters | Estimated 2005 playthings sales in millions $ | Estimated 2004 playthings sales in millions $ | % Change 2004 to 2005 | 2005 playthings stores | 2004 playthings stores |
| 1 Wal-Mart, Bentonville, Ark. | $9,970 | $9,785 | 1.9% | 3,189 | 3,066 |
| Total 2005 sales were $209.9 billion, up 9.4 percent from $191.8 billion in 2004; total playthings sales were $9.97 billion, up 1.9 percent from $9.78 billion in 2004. For the second quarter ended July 31, sales were $55.4 billion, up 6.9 percent from $51.8 billion in the second quarter of 2005. Publicly held, fiscal year ended Jan. 31. Sales and store counts are for U.S. stores only and exclude Neighborhood Markets and Sam's Club (see No. 18). Includes sales at Walmart.com. Store expansions last year added about 39 million square feet by opening a net of 22 discount stores and 267 supercenters, including 166 discount conversions to supercenters. Ended the year with 1,209 discount stores and 1,980 supercenters. Plans to add 270 to 280 new supercenters and 20 to 30 new discount stores in 2006. Comp store sales increased 3.4 percent in 2005. The sporting goods and toy category accounted for 5 percent of sales in 2005, down from 6 percent in 2004. The electronics category accounted for 10 percent of 2005 sales, up from 9 percent in 2005. | |||||
| 2 Toys “R” Us, Wayne, N.J. | $5,850 | $5,978R | -2.1% | 671 | 681 |
| Total 2005 sales were $5.98 billion, down 2.1 percent from $6.1 billion in 2004; total playthings sales were $5.85 billion, down 2.1 percent from a revised $5.98 billion in 2004. For the third quarter ended July 29, U.S. TRU sales were $921 million, down 10.4 percent from $1.028 million in the third quarter of 2005. Privately held, fiscal year ended Jan. 28. Sales and store counts are for U.S. Toys “R” Us units only. Also sells online at Toysrus.com (see No. 10), sales figures not included. Was acquired on July 21, 2005, by two private equity firms—Bain Capital Partners LLC and Kohlberg Kravis Roberts & Co.—and real-estate developer Vornado Realty Trust. Closed 10 net stores in 2005 and 87 stores this year, including 12 units that were converted to Babies “R” Us stores. Former Target executive Gerald Storch joined the company in February as president. Storch's strategic plans include maintaining focus on younger children, improving customer service and uncluttering shelves and aisles. Vornado Realty Trust agreed in September to purchase up to 44 closed stores from TRU for an aggregate price of up to $189.9 million. Comp 2005 store sales decreased 1.4 percent. | |||||
| 3 GameStop, Grapevine, Texas | $3,695 | $3,236R | 14.2% | 3,624 | 3,252 |
| Total pro forma 2005 sales were $4.39 billion, up 14.8 percent from $3.83 billion in 2004; total playthings sales were $3.69 billion, up 14.2 percent from $3.24 billion in 2004. For the second quarter ended July 29, sales were $963.3 million, up 11.7 percent from pro forma sales of $862.4 million for the second quarter of 2004. Fiscal year ended Jan. 28. Operates stores primarily under the names GameStop and EB Games in the United States, Australia, Canada and Europe. Also operates electronic commerce websites—Gamestop.com and Ebgames.com—and publishes a video game magazine. Sales and store counts are for the U.S. only, including stores in Guam and Puerto Rico. Stores average 1,500 square feet and carry more than 5,000 SKUs. In 2005, GameStop acquired its rival, Electronics Boutique. The two chains opened a net of 372 new stores. Planned to open 400 new stores in 2006 and an estimated 600 new stores each in 2007 and 2008. | |||||
| 4 Target, Minneapolis | $3,050 | $2,800 | 8.9% | 1,397 | 1,308 |
| Total 2005 sales were $51.3 billion, up 12.2 percent from $45.7 billion in 2004; total playthings sales were $3.05 billion, up 8.9 percent from $2.8 billion in 2004. For the second quarter ended July 29, sales were $12.96 billion, up 11.1 percent from $11.67 billion in the second quarter of 2005. Publicly held, fiscal year ended Jan. 28. Includes sales at Target.com. In 2005, opened 87 new Target stores, 22 new Super Targets and closed 20 Target stores. Is on track to add 100 new stores in 2006. In March, opened new “Time to Play” toy boutiques in 1,397 of its toy departments. The boutiques are divided into three sections, Make Believe, Create and Pretend. Boutique toys are targeted for kids ages 2 to 7 and include Target's new in-house toy brand PlayWonder, as well as science kits, model horses, dolls and electronic learning toys. Comp store sales increased 5.6 percent last year. Sales for the electronics, entertainment, sporting goods and toy category were $11.8 billion in 2005. | |||||
| 5 Kmart, Troy, Mich. | $1,105 | $1,150 | -3.9% | 1,416 | 1,480 |
| Total 2005 sales were $19.1 billion, down 3.8 percent from $19.8 billion in 2004; total playthings sales were $1.10 billion, down 3.9 percent from $1.15 billion in 2004. Comp store sales for the second quarter ending July 29 declined 0.6 percent. Fiscal year ended Jan. 28. Part of publicly held Sears Holdings Corp. Merged with Sears (see No. 20) to form one company in March 2005. At fiscal year end, operated 1,361 discount stores and 55 supercenters in 49 states, Guam, Puerto Rico and the U.S. Virgin Islands. Also sells toys online at Kmart.com. Closed a net of 64 stores in 2005, including 48 stores converted to the Sears Essentials format. Discount stores average 92,000 square feet and supercenters average 165,000 square feet. Comp 2005 store sales decreased 1.2 percent. | |||||
| 6 Best Buy, Eden Prairie, Minn. | $1,060 | $1,030 | 2.9% | 742 | 668 |
| Total domestic 2005 sales were $27.4 billion, up 11.2 percent from $24.6 billion in 2004; total playthings sales were $1.06 billion, up 2.9 percent from $1.03 billion in 2004. For the first quarter ended May 27, domestic sales were $6.2 billion, up 12 percent from $5.5 billion in the first quarter of 2005. Fiscal year ended Feb. 25. Sales and store counts are for U.S. units only. Also sells online at Bestbuy.com. Continued to expand the roll-out of its customer centricity operating model that focuses store design and product assortment on specific consumer “types,” with 40 percent of stores operating under that model at fiscal year's end. Planned to transition all remaining U.S. stores during this year. Anticipates opening 75 to 80 U.S. stores, as well as relocating 10 to 15 existing stores. Video game hardware experienced strong launches of PlayStation Portable and the Xbox 360 console last year. Entertainment software, including video game hardware and software and computer software, accounted for 19 percent of 2005 total sales, down from 21 percent in 2004. | |||||
| 7 KB Toys, Pittsfield, Mass. | $725 | $850 | -14.7% | 640 | 750 |
| Total 2005 sales estimated at $725 million, down 14.7 percent from $850 million in 2004. Privately held. Purchased by PrenticeCapital in August 2005, bringing KB out of bankruptcy protection. Originally filed Chapter 11 on Jan. 14, 2004. Currently operates stores in 44 states, Guam and Puerto Rico. Has four retail formats: KB Toys, KB Toy Works, KB Toy Outlets/Toy Liquidators and KB Toy Express. Bills itself as the nation's largest mall-based specialty toy retailer. Denver-based eToys Direct operates its KBtoys.com e-commerce site. Has been redesigning and remerchandising stores this year, replacing bins of close-out product with frontline merchandise from manufacturers that are advertised on TV. Other changes include new wood flooring, 50 percent more lighting and new tower display racks. By the end of the year, about 50 conversions should be complete. | |||||
| 8 American Girl, Middleton, Wis. | $436 | $379 | 15.0% | 2 | 2 |
| Total 2005 American Girl Brands sales increased 15 percent to $436.1 million; total playthings sales were $436 million, up 15 percent from $379 million in 2004. For the second quarter ended June 30, sales for the American Girl Brands were $61.6 million, up 5 percent from the second quarter of 2005. Part of publicly held Mattel, fiscal year ended Dec. 31. Sales and store counts are for direct-to-consumer sales of American Girl merchandise only, except for publications which are sold through various retailers. American Girl Brands, including the historical collection (formerly The American Girls Collection), Just Like You (formerly American Girl Today) and Bitty Baby are sold directly to consumers via American Girl Place stores in Manhattan and Chicago, catalogs and online at Americangirl.com. Opened a 40,000-square-foot store, its third, in Los Angeles in April. | |||||
| 9 Circuit City, Richmond, Va. | $415 | $400 | 3.8% | 631 | 617 |
| Total domestic 2005 sales were $10.97 billion, up 9.6 percent from $10.01 billion in 2004; total playthings sales were $415 million, up 3.8 percent from $400 million in 2004. For the first quarter ended May 31, domestic sales were $2.5 billion, up 17.5 percent from $2.1 billion in the first quarter of 2005. Fiscal year ended Feb. 28. Sales and store counts are for U.S. units only. Also sells online at Circuitcity.com and via the telephone through its call centers. In 2005, launched its 24/24 Pickup Guarantee for purchases made through its Web site or call centers. Customers can pick up their purchases at their designated store within 24 minutes of purchase or receive a $24 gift card. Also tested a catalog last year. In 2006, expected to open 32 to 36 U.S. stores, including 10 to 12 relocations. Entertainment software, including game hardware and software and PC software, accounted for 12 percent of 2005 total sales, down from 13 percent in 2004. | |||||
| 10 Toysrus.com, Wayne, N.J. | $400 | $340R | 17.6% | NS | NS |
| Total 2005 sales were $429 million, up 17.2 percent from $366 million in 2004; total playthings sales were $400 million, up 17.6 percent from a revised $340 million in 2004. Experienced a 13 percent growth in total orders and a 5 percent increase in average dollar value in 2005. Privately held, fiscal year ended Jan. 28. Sales are for Toysrus.com, Babiesrus.com, Imaginarium.com, Sportsrus.com and Personalizedbyrus.com. Parent company Toys “R” Us was acquired on July 21, 2005, by two private equity firms—Bain Capital Partners LLC and Kohlberg Kravis Roberts & Co.—and real-estate developer Vornado Realty Trust. Officially severed its online partnership with Amazon.com on June 30 after winning a $750 million lawsuit. Toys “R” Us filed against Amazon in 2004 claiming its exclusive rights were violated. Toys “R” Us signed a long-term agreement with GSI Commerce to provide its online sales, marketing and other services, effective July 1. | |||||
| 11 Meijer, Grand Rapids, Mich. | $387 | $370 | 4.6% | 171 | 163 |
| Total 2005 sales estimated near $14 billion; total playthings sales estimated at $387 million, up 4.6 percent from $370 million in 2004. Family-owned and operated, in business for 72 years. Is recognized as the pioneer of the supercenter. Approximately two-thirds of its stores operate in Michigan, with the balance in Illinois, Indiana, Kentucky and Ohio. Opened eight net stores in 2005, including six in Michigan. Planned to open five new supercenters in 2006. All stores are opened 24-hours a day and average between 200,000 to 250,000 square feet. Launched its aggressive “price drop” program to re-emphasize its low-cost reputation in July. Began offering nonperishable groceries online in July. Mark Murray joined the company as president in August, replacing former president Larry Zigerelli. | |||||
| 12 Build-A-Bear Workshop, St. Louis | $343 | $292 | 17.5% | 191 | 166 |
| Total 2005 sales, including Canada, were $361.8 million, up 19.9 percent from $301.7 million in 2004; U.S. sales were $343 million, up 17.5 percent from $292 million in 2004. For the second quarter ended July 1, net retail sales were $92.96 million, up 26.9 percent from $73.28 million in the second quarter of 2005. Publicly held, fiscal year ended Dec. 31. Sales and store counts are for U.S. units only and exclude nine stores in Canada. Also sells online at Buildabear.com, Friends2Bmade.com and Buildadino.com. Opened 26 new stores in the U.S. and four in Canada in 2005. Planned to open approximately 30 new stores in 2006. Opened its 10,000-square-foot flagship store in New York City in July 2005. Currently operates stores in five Major League Baseball ballparks. Opened in July its first Build-A-Dino store in partnership with T-Rex Café in Kansas City, Kan. Bought U.K.-based Bear Factory in March. | |||||
| 13 Costco, Issaquah, Wash. | $305 | $280 | 8.9% | 346 | 330 |
| Total 2005 trailing 12-month sales were $54.6 billion, up 10.8 percent from $49.3 billion in 2004; total playthings sales were $305 million, up 8.9 percent from $280 million in 2004. For the third quarter ended May 7, net sales were $13.0 billion, a 11 percent increase over $11.75 billion in the third quarter of 2005. Fiscal year ended Aug. 28, 2005. Sales and store counts are for the trailing 12 months ended Feb. 12, and include sales from U.S. locations, as well as sales from Costco.com and its two Costco Home stores in Seattle and Tempe, Ariz. Opened 16 net new stores in 2005. Will open a third Home store in Fairview, Ore., in 2007. Is also testing another furniture concept, a 205,000-square-foot store with 12 aisles of furniture incorporated into the main warehouse store in Hillsboro, Ore. Hardlines, including toys, as a percentage of total fiscal sales, comprised 16 percent in both 2005 and 2004. | |||||
| 14 Big Lots, Columbus, Ohio | $288 | $283 | 1.8% | 1,401 | 1,459 |
| Total 2005 sales were $4.4 billion, up 6.8 percent from $4.1 billion in 2004; total playthings sales were $288 million, up 1.8 percent from $283 million in 2004. Sales for the second quarter ended July 29 were $1.06 billion, up 5.6 percent from $1.0 billion in the second quarter of 2005. Publicly held, fiscal year ended Jan. 28. Broadline closeout retailer operating a total of 1,401 stores in 47 states at fiscal year end, with 37 percent of its stores operating in four states—California, Ohio, Texas and Florida. Opened 73 new stores last year and closed 174, including all 41 of its stand-alone Big Lots Furniture stores. Continued to add furniture departments to stores, ending the year with 1,320 departments. 2005 sales for the seasonal and toy category increased 1.9 percent to $830.5 million. Comp store sales increased 1.8 percent in 2005. | |||||
| 15 Michaels Stores, Irving, Texas | $238 | $206R | 15.5% | 829 | 800 |
| Total 2005 sales were $3.7 billion, up 8.3 percent from $3.4 billion in 2004; total playthings sales were $238 million, up 15.5 percent from a revised $206 million in 2004. For the second quarter ended July 29, sales were $768.3 million, up 3.1 percent from $745.5 million in the second quarter of 2005. Fiscal year ended Jan. 28. Sales and store counts are for U.S. Michaels Stores only. In 2006, several private equity firms, including Bain Capital, Carlyle Group and Thomas H. Lee Partners, expressed interest to buy the company. Opened 46 stores during 2005, including 18 store relocations, and closed five. Planned to open 45 new stores this year and close four. Toys include wooden and plastic model kits and related supplies, kids' crafts, plush toys and paint-by-number kits. Name brands include Thomas the Tank Engine and Magnetix. Comp store sales increased 3.6 percent last year. | |||||
| 16 Army & Air Force Exchange Service, Dallas | $237 | $236 | 0.5% | 153 | 153 |
| Worldwide 2005 revenues were $8.26 billion, up 3.4 percent from $7.99 billion in 2004; total playthings sales were $237 million, up 0.5 percent from $236 million in 2005. Revenues are based on worldwide sales, excluding food, services and vending. Market areas include worldwide Army and Air Force military posts and bases serving active-duty military personnel, guard and reservists; retirees; and their families, some 7.3 million customers. Receives no funds from the Department of Defense. Has more than 150 main stores or shopping centers worldwide and in every state. Storefronts are supplemented by catalogs and online sales. | |||||
| 17 JCPenney, Plano, Texas | $223 | $230 | -3.0% | 1,019 | 1,017 |
| Total 2005 sales were $18.8 billion, up 3.8 percent from $18.1 billion in 2004; total playthings sales were $223 million, down 3 percent from $230 million in 2004. For the second quarter ended July 29, net sales were $4.24 billion, up 6.5 percent from $3.98 billion in the second quarter of 2005. Publicly held, fiscal year ended Jan. 28. Sales and store counts are for department stores in the U.S. and Puerto Rico, the Big Book catalog and specialty catalogs. Opened 18 new stores in 2005, including 11 off-mall locations, and closed 16. Plans to open 27 stores this year. Opened the JCPenney Experience, a three-level, temporary store in Manhattan's Times Square in March. Sales per gross square foot increased 4 percent last year to $157 from $151 in 2004. Comp store sales increased 2.9 percent in 2005, its fifth consecutive year of improvement. Internet sales increased 28 percent in 2005 and surpassed the $1 billion mark for the first time. | |||||
| 18 Sam's Club, Bentonville, Ark. | $211 | $200 | 5.5% | 567 | 551 |
| Total 2005 sales were $39.8 billion, up 7.2 percent from $37.1 billion in 2004; total playthings sales were $211 million, up 5.5 percent from $200 million in 2004. Sales for the second quarter ended July 31 were $10.47 billion, up 5 percent from $9.97 billion in the second quarter of 2005. Fiscal year ended Jan. 31, division of publicly held Wal-Mart (see No. 1). Sales and store counts are for Sam's Club division only. Also sells online at Samsclub.com. Opened 17 new clubs in 2005 and closed one. Clubs range between 70,000 and 190,000 square feet and average 129,000 square feet. Continued its push to focus on small business members. Sales of hardgoods, including toys, were $9.2 billion in 2005, up 7.2 percent from $8.5 billion in 2004. Comp 2005 store sales increased 5 percent. | |||||
| 19 Walgreens, Deerfield, Ill. | $185 | $170 | 8.8% | 5,156 | 4,738 |
| Total trailing 12 month sales for 2005 were $44.4 billion, up 11.3 percent from $39.9 billion in 2004; total playthings sales were $185 million, up 8.8 percent from $170 million in 2004. For the third quarter ended May 31, total sales were $12.18 billion, up 12.4 percent from $10.83 billion in the third quarter of 2004. Fiscal year ended Aug. 31. Sales and store counts are for the trailing 12 months ended Feb. 28. Operates drug stores in 45 states and Puerto Rico. Also sells toys online at Walgreens.com. By the end of its fiscal year, will have opened about 475 new stores, a net increase of about 390. In June, opened its first store in West Virginia. Opened its first stores in Delaware this summer, as a result of an acquisition of a pharmacy chain, and will enter Maine next fiscal year. Plans to operate more than 7,000 stores in 2010. General merchandise sales, including toys, accounted for 25 percent of sales for the past two years. | |||||
| 20 Sears, Hoffman Estates, Ill. | $181 | $190 | -4.7% | 924 | 873 |
| Domestic sales were $30 billion in 2005, down 3.9 percent from $31.2 billion in 2004; total playthings sales were $181 million, down 4.7 percent from $190 million in 2004. Domestic comp store sales declined 6.3 percent for the second quarter ended July 29. Fiscal year ended Jan. 28. Part of publicly held Sears Holdings Corp. Sales and store counts are for full-line U.S. stores only, including Sears Grand and Essentials locations. Also sells toys and video games online at Sears.com. Merged with Kmart (see No. 5) to form one company on March 24, 2005. Closed three full-line stores in 2005 and opened 54 Sears Essentials and Grand locations. During the first half of 2006, all Sears Essential stores changed nameplates to Sears Grand. Full-line stores average 132,000 square feet. | |||||
| 21 Dollar General, Goodlettsville, Tenn. | $180 | $168 | 7.1% | 7,929 | 7,320 |
| Total 2005 sales were $8.5 billion, up 12 percent from $7.6 billion in 2004; total playthings sales were $180 million, up 7.1 percent from $168 million in 2004. For the second quarter ended August 4, net sales were $2.25 billion, up 9 percent from $2.07 billion in the second quarter of 2005. Fiscal year ended Feb. 3. In 2005, opened 734 new stores, including 29 Dollar General Market stores carrying an expanded assortment of grocery products and perishables. Also remodeled or relocated 82 stores in 2005 and closed 125 stores, including 41 due to hurricane damage. In 2006, plans to open 800 new Dollar General stores and 30 new Dollar General Market stores. Continues its focus on faster-turning consumable products. As a result of this push, seasonal products, including toys, accounted for 15.7 percent of 2005 sales, down from 16.5 percent in 2004. | |||||
| 22 ShopKo, Green Bay, Wis. | $170 | $172 | -1.2% | 351 | 360 |
| Total 2005 sales were $3.13 billion, down 1.2 percent from $3.17 billion in 2004; total playthings sales were $170 million, down 1.2 percent from $172 million in 2004. Fiscal year ended Jan. 30, privately held. Was taken private by private investment firm Sun Capital Partners on Dec. 23, 2005, after months of multiple offers and shareholder dissent. Sales and store counts are for 135 ShopKo units, excluding three ShopKo Express Rx stores in Wisconsin, and 216 Pamida stores. ShopKo stores are located in 15 Midwest, Pacific, Northwest and Western Mountain states and Pamida stores are located in 16 Midwest, North Central and Rocky Mountain states. Remodeled 16 stores in 2005. Sold its two Reno, Nev., stores in January to San Francisco-based SPI Holdings, LLC and Retail West Inc. | |||||
| 23 Fred Meyer, Portland, Ore. | $165 | $158 | 4.4% | 150 | 129 |
| Total playthings sales were $165 million, up 4.4 percent from $158 million in 2004. Fiscal year ended Jan. 28. Part of publicly held Kroger Co. Operated 123 Fred Meyer stores and 27 Marketplace stores at the end of 2005. Stores located in Alaska, Arizona, Idaho, Ohio, Oregon, Utah and Washington. Fred Meyer stores average 150,000 square feet and offer more than 225,000 food and non-food products, including toys, consumer electronics, home furnishings and accessories, apparel and jewelry. Marketplace stores range in size from 80,000 to 105,000 square feet and offer full-service grocery and pharmacy departments, as well as an expanded general merchandise area offering toys, electronics, home goods and outdoor living products. | |||||
| 24 Family Dollar, Matthews, N.C. | $160 | $148 | 8.1% | 6,002 | 5,600 |
| Total 2005 trailing 12 month sales were $6.1 billion, up 9 percent from $5.6 billion in 2004; total playthings sales were $160 million, up 8.1 percent from $148 million in 2004. For the third quarter ended May 27, sales were $1.57 billion, up 9.9 percent from $1.4 billion for the third quarter of 2005. Publicly held, fiscal year ended Aug. 27. Sales and store counts are for the trailing 12 months ended Feb. 25. Operates in 44 states. Plans to open 400 stores and close approximately 65 by end of fiscal 2006. Is currently constructing its ninth distribution center in Rome, N.Y. Introduced its “Treasure Hunt” merchandise program last year by placing more emphasis on the holiday, spring and back-to-school seasons. Continued to expand its assortment of hardline consumables during 2005 and to reduce the space allocated to apparel and shoes. Hardlines, including toys, accounted for 78.8 percent of fiscal 2005 sales, up from 77.7 percent in fiscal 2004. | |||||
| 25 QVC, West Chester, Pa. | $157 | $146 | 7.5% | 7 | 8 |
| Total domestic 2005 sales were $4.64 billion, up 12.1 percent from $4.14 billion in 2004; total playthings sales were $157 million, up 7.5 percent from $146 million in 2004. For the second quarter ended June 30, domestic sales were $1.14 billion, up 10 percent from $1.03 billion in the second quarter of 2005. Part of publicly held Liberty Media, fiscal year ended Dec. 31. Markets and sells toys through its televised shopping programs on the QVC networks, online at QVC.com and through its stores and outlet stores. Operates its flagship store at Minnesota's Mall of America, its Studio Store located at QVC headquarters and five Outlet stores in Pennsylvania, Delaware, and Florida. Closed its South Carolina Outlet store in 2005. QVC shopping programs were telecast live 24 hours a day to 90.8 million households in the U.S. in 2005, up from 88.4 million in 2004. Toys include dolls, trains, R/C, construction, electronic learning aids, handheld video games, arts and crafts, books and plush. Home products, including toys, accounted for 45 percent of 2005 total sales, down from 47 percent in 2004. | |||||
| NS = No stores R = Revised from
updated information All playthings sales information, except for publicly held companies that break out line-of-business sales for toys, are Playthings market research estimates. All data for calendar year ending Dec. 31, 2005, fiscal year end or trailing 12 months closest to date. Source: Playthings market research |
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| Top 25 | 3.2% |
| Direct-to-consumer | 14.6% |
| Entertainment/electronics specialists | 10.8% |
| Other | 7.9% |
| Warehouse membership clubs | 7.5% |
| Discount department stores | 2.9% |
| Toy specialists | -1.9% |
| Department stores | -3.8% |
| Other includes PXs, drug stores and hobby/craft
stores Source: Playthings market research |
|
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