WASHINGTON -- 7-Eleven Inc. and Alimentation Couche-Tard Inc. were the only pure-play U.S. convenience store retailers to make the National Retail Federation's Stores 100 Top Retailers list, ranking at No. 40 and No. 75, respectively.
Dallas-based 7-Eleven had 2010 U.S. retail sales of $8.513 billion, a 3.1% increase over 2009, representing 12.2% of worldwide retail sales of $69.617 billion. Its 2010 store count of 6,586 locations was 5.5% higher than the 2009 count.
Laval, Quebec-based Couche-Tard (with U.S. headquarters in Tempe, Ariz., from which it operates [image-nocss] the Circle K chain) had 2010 U.S. retail sales of $4.528 billion, a 10.7% increase over 2009, representing 70.1% of worldwide retail sales of $6.462 billion. Its 2010 store count of 3,862 locations was 7.2% higher than the 2009 count..
The first 10 retailers on the Top 100 list--which, for the second year, is determined by U.S. retail sales--were the same as in 2010; the one minor change is a position swap between No. 9 Sears Holdings and No. 10 Best Buy. While they operate in a variety of retail sectors--and some showed sales gains while others sustained a drop in revenues--all experienced positive earnings in their most recently completed fiscal years.
Walmart, whose performance has been treated by some economists as a proxy for the behavior of U.S. consumers, has been experiencing weakness in its domestic stores, though both the Walmart U.S. and Sam's Club divisions generated operating profits last year. In reviewing the company's performance for investors this spring, CEO Mike Duke said Walmart's results "demonstrate the strength of our underlying business and our dedication to delivering shareholder value" and expressed optimism "that Walmart will improve where we need to and continue to build momentum where we're already succeeding."
The company's top 2011 priority "is to achieve positive comparable store sales," Duke said. "At the same time, there's a tremendous opportunity to grow in the United States through supercenters and new store formats" like Walmart Express.
Walmart Express will feature an assortment of fresh food, dry grocery, consumables, health and beauty aids, over-the-counter medicines and limited general merchandise, Walmart spokesperson David Tova told Stores, and pharmacy counters may be included in some stores. Stores fitting this description would fit both in rural communities too small for conventional supercenters or traditional discount stores and in urban neighborhoods where Walmart has found it difficult to locate its larger formats.
No. 2 Kroger (which also operates nearly 800 c-stores under various banners) may be the exception to the trend of traditional supermarket operators being battered by the proliferation of retailers poaching on grocery's turf. Much of Kroger's success has been attributed to sophisticated customer data collection efforts that allow it to target core customers with promotions and offers that spur additional sales.
Kroger is not putting all its eggs in the food basket, however, and continues to innovate in the sale of nonfood merchandise in supermarket settings.
No. 3 Target's rollout out of fresh food and other grocery merchandise to its traditional discount stores is producing some immediate gains, and its U.S. operations are performing better than rival Walmart's, if only by a small degree.
No. 4 Walgreen added about 60,000 SKUs to its online offerings with the acquisition of drugstore.com while continuing to pick up clusters of drugstores and specialty pharmacies. As is the case with chief rival CVS/pharmacy, Walgreen is promoting convenience for shoppers through increased food and groceries merchandise.
Housing news doesn't seem to be getting any better, and that's not good for No. 5 Home Depot or No. 8 Lowe's. Over the past few years, consumers--even those fortunate enough to secure financing--have been reluctant to invest in significant remodeling projects on homes that have been declining in value, preferring instead to spend on subsidized major appliance purchases or automobiles.
Robert A. Niblock, chairman and CEO of Lowe's, recently told shareholders that the company doesn't intend to simply wait out the economy. Instead, he plans to transform the organization from a home improvement retailer into a home improvement company by providing inspiration, products and support to customers whenever and wherever they interact with Lowe's. "Making home improvement simple for customers starts with making it simple for our employees, by providing them with the right technology and resources," he said.
At No. 9, Best Buy is a retailer in transition, squeezed by online competitors led by Amazon.com, finding itself with a surfeit of store space and some recent negative publicity surrounding its Geek Squad technical assistance operation.
No. 10 Sears has experienced sales declines every year since merging with Kmart in 2005. President and CEO Lou D'Ambrosio says the company is "taking actions intended to leverage our suite of assets, including extending our leadership position in appliances, capitalizing on the scope of our portfolio and marquee brands ... extending our lead in home services, revitalizing our Sears' apparel business and delivering extraordinary customer experience at the store, online and in home."Click hereto view the full chart.
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