To stay in top 100, retailers need to grow, get acquired or go big online
By Jay Keller
Michael Kors, Sprouts Farmers Market, Lululemon Athletica and Apple Stores/iTunes are among the top five fastest -growing retailers in the U.S. for 2013, according to Stores’ list of the Hot 100 Retailers published by the National Retail Federation.
In fact, many of the hottest retailers published on the Stores list are either on a growth tear or coming off a major acquisition, all factors that could provide huge bumps in category growth.
Regardless, the writing is on the wall, according to the researchers of the study, especially for some brick-and-mortar stores that could see rankings plummet next year if customers continue to shop online instead of coming inside to shop around.
Bi-Lo Holdings, headquartered in Jacksonville, Fla., a collection of struggling supermarkets, took the top spot by blowing away the competition in terms of retail sales, sales growth and worldwide sales.
According to the data, Bi-Lo nearly hit the $9 million mark last year in U.S. retail sales, marking a sales-growth-percentage increase of 353 percent in 2012 versus 2011.
“Next year’s Hot 100 report will likely tell tales of what happened to several of this year’s leaders,” Kantar researchers wrote in a statement published on Monday.
Michael Kors remains one hot clothing brand but the rise of H&M is difficult to miss, especially since this data was collected prior to H&M launching an online shopping site for U.S. customers last week.
Overall, Hot 100 retailers averaged year-over-year domestic sales growth of 15.4 percent, a decent bump above last year’s average of 12.7 percent, once again proving strong growth in specialty apparel, online and electronics segments.
“We are looking at retail growth over the next five years as roughly the same as the rate of inflation, about 4.5 percent, but that isn’t to say everyone will be growing equally,” Kantar Retail spokesperson Bryan Gildenberg said in a company statement. “
Gildenberg notes that the bricks-and-mortar segment growing slowly and losting market share thanks to the growth of non-store and online retailers.
“Right now, non-store accounts for approximately seven percent of non-automobile consumer sales but we see that doubling to 14 percent by 2020,” Gildenberg added.