Top 20 kids home furnishings retailers

By Dana French -- Kids Today, 7/1/2007 12:00:00 AM

The nation's largest kids home furnishings retailers garnered a 4.9% increase in sales last year, growing to $10.16 billion from $9.69 billion for the same companies in 2005. The top 20 sold kids merchandise through 11,874 stores in 2006, up a net 246 doors from 11,628 in 2005.

For the fourth consecutive year, Wal-Mart, Target and Babies "R" Us rank as the No. 1, 2 and 3 companies respectively. The top three companies together registered 2006 kids home furnishings sales of $6.21 billion and accounted for 61% of the Top 20.

Headed by Arcadia, Wis.-based Ashley Furniture HomeStores, the full-line furniture store channel posted the highest sales gain in kids sales last year. No. 11 Ashley saw its sales from kids merchandise increase 30.8% to $170 million, the highest of any Top 20 retailer, and opened a net of 77 doors in 2006. Other full-line furniture stores on this year's ranking include No. 12 Rooms To Go, No. 19 Ethan Allen and No. 20 Berkshire Hathaway furniture division, which sells kids products through Nebraska Furniture Mart, Homemakers Furniture, R.C. Willey, Star Furniture and Jordan's Furniture. Together, the four furniture companies sold $432 million worth of kids home furnishings last year, up 14.3% from $378 million in 2005.

The lifestyle specialty store channel registered double-digit growth last year at 13.8%. Retailers included in this channel are San Francisco-based Pottery Barn and Conshohocken, Pa.-based IKEA. No. 5 Pottery Barn, with its highly successful PBTeen and Pottery Barn Kids brands, had 2006 kids sales of $640 million, up 12.3% over 2005 sales of $570 million. No. 13 IKEA posted kids sales of $145 million last year, a whopping increase of 20.8%.

Accounting for 58% of the Top 20 sales, the discount department store and off-price retailer channel recorded kids sales of $5.86 billion in 2006. Led by No. 1 Wal-Mart and No. 2 Target, the discount channel sold kids products through a massive 7,758 doors. The channel keeps growing, too. Bentonville, Ark.-based Wal-Mart and Minneapolis-based Target opened more stores than anyone on the ranking last year, a net of 142 and 91 respectively.

No. 14 Big Lots posted the highest sales gain within the discount channel. Even though Big Lots closed a net of 26 stores last year, home furnishings categories continue to be a growth vehicle for the closeout retailer. Big Lots recorded 2006 kids home furnishings sales of $117 million, a 11.4% increase over 2005.

The kids specialty store channel experienced decent growth last year, garnering $2.3 billion worth of kids sales, an increase of 6.5% from $2.1 billion in 2005. No. 3 Babies "R" Us led the charge with 2006 kids sales of $1.44 billion, an increase of 13% from $1.28 billion in 2005. The Wayne, N.J.-based baby superstore opened a net 21 stores last year.

Other kids specialty stores with sales increases were online retailer One Step Ahead, part of privately held Chelsea & Scott, and Lombard, Ill.-based USA Baby. No. 18 One Step Ahead continued its success with its One Step Ahead and Leaps & Bounds catalog and online stores, posting a 6.6% increase last year. And No. 15 USA Baby recorded a 3.3% increase in kids home furnishings sales in 2006, while closing eight doors.

Three kids specialty stores posted sales declines last year. Scardsale, N.Y.-based Bellini Furniture closed three stores during 2006 and saw its kids home furnishings sales decrease 13.8% to $75 million. Toys "R" Us closed 85 units and experienced a 8.4% decline in kids sales. And, No. 8 Baby Depot, part of parent company Burlington Coat Factory, recorded a 1.5% decline in kids home furnishings sales in 2006.

Top 20 retailers by channel

Kids specialists	22%
Discount department stores/off-price retailers	58%
Department stores	8%
Lifestyle specialty stores	8%
Full-line furniture stores	4%

Growth in 2006
Percent change in kids home furnishings sales, 2005–2006

Source: Kids Today market research
Full-line furniture stores	14.3%
Lifestyle specialty stores	13.8%
Kids specialists	6.5%
Discount department stores/off-price retailers	3.5%
Department stores	-2.0%
Top 20	4.9%

Top 20 kids home furnishing retailers

Rank	Company, home base, notes	Estimated kids home furnishings sales in $ millions		Percent change 2005 to 2006	Number of units with kids home furnishings
		2006	2005		2006	2005
Fiscal year ended Dec. 31. Owns Nebraska Furniture Mart, Homemakers Furniture, R.C. Willey, Star Furniture and Jordan's Furniture. Offers kids home furnishings from a variety of manufacturers including AP Inds., Bedtime, Canyon Furniture, John Boyd Designs, La-Z-Boy Kidz, Lea, Legacy, Powell, Pulaski, Stanley and Vaughan. All five retailers offer furnishings for the infant to young adult, except for Star Furniture which does not sell infant furniture. R.C. Willey entered California in June 2006, with a store in Rocklin. This spring, Homemakers began an 18-month expansion and remodeling project at its main Des Moines area store. Kids home furnishings accounted for about 2.6% of 2006 total sales. Total Berkshire Hathaway furniture division 2006 revenues were $2.13 billion, up 9.2% from $1.95 billion in 2005. All kids home furnishings sales information, except for publicly held companies that break out line-of-business sales for kids home furnishings, are Kids Today market research estimates. All data for calendar year ending Dec. 31, fiscal year-end or trailing 12 months closest to that date. R = Revised from updated information NS = No stores Source: Kids Today market research
1	Wal-Mart, Bentonville, Ark.	$3,090	$2,980	3.7%	3,331	3,189
Fiscal year ended Jan 31. Sales and store counts are for U.S. stores only, including discount and supercenter stores and excluding Neighborhood Markets and Sam's Club locations. Also sells kids merchandise online. Opened 15 new discount stores and closed two last year and opened 276 supercenters, including 147 discount conversions to supercenters. Plans to open 190 to 200 supercenters this year, followed by 170 in 2008. Comp store sales increased 2.0% in 2006. Total 2006 sales were $226.3 billion, up 7.8% from $209.9 billion in 2005. For the first quarter ended April 30, Wal-Mart Store sales were $55.4 billion, up 5.6% from $52.5 billion in the first quarter of 2006. Comp store sales decreased 0.1% for the first quarter.
2	Target, Minneapolis	$1,675	$1,575	6.3%	1,488	1,397
Fiscal year ended Feb. 3. Opened 94 Target Stores and 19 SuperTargets in 2006 and closed 22 stores, including 18 store relocations in the same trade area. Plans to open 100 new Target stores this year, including 30 to 35 SuperTarget stores. Also sells kids merchandise online. Launched on its Web site last year "Find-it-at-a-Target-store," a feature that allows customers to confirm product availability at their local store. Comp store sales increased 4.8% last year. Home furnishings and decor accounted for 19% of 2006 total sales, down from 20% in 2005. Total 2006 sales were $57.9 million, up 12.9% from $51.3 billion in 2005. For the first quarter ended May 5, sales were $13.6 billion, up 9.0% from $12.5 billion in the first quarter of 2006. Comp store sales were up 4.3% for the first quarter.
3	Babies "R" Us, Wayne, N.J.	$1,441	$1,275	13.0%	251	230
Division of privately held Toys "R" Us, fiscal year ended Feb. 3. Sales and store counts are for Babies "R" Us. Also sells online. Toys "R" Us was taken private in 2005 when it was purchased by an investment group consisting of affiliates of Kohlberg Kravis Roberst & Co., Bain Capital Partners LLC and Vornado Realty Trust. Stores average 35,000 square feet. Opened its first Manhattan location in Union Square in 2005. The accelerated growth of the Babies "R" Us division is part of the company's overall strategic plan. Has been the exclusive retailer of Wendy Bellissimo's nursery furniture, bedding and accessories since January 2005. Other exclusive brands include Koala Baby for apparel and accessories and Especially for Baby for feeding and safety accessories. Comp store sales increased 4.8% in 2006. Total 2006 sales were $2.4 billion, up 13.8% from $2.1 billion in 2005.
4	Kmart, Troy, Mich.	$800	$830	-3.6%	1,388	1,416
Fiscal year ended Feb 3. Part of publicly held Sears Holdings Corp. Merged with Sears (see No. 7) to form one company in March 2005. At fiscal year end operated 1,333 discount stores and 55 supercenters in 49 states, Guam, Puerto Rico and the U.S. Virgin Islands. Also sells kids merchandise online. Closed a net of 28 store last year. Remodeled about 200 stores in 2006, making them more customer friendly and easier to navigate. Introduced an animated spokescharacter, "Mr. Bluelight", its first integrated marketing campaign since 2003. Comp store sales declined 0.6% last year. Total 2006 sales were $18.6 billion, down 2.3% from $19.1 billion in 2005. Comp store sales for the first quarter ended May 5 declined 4.4%.
5	Pottery Barn, San Francisco	$640	$570R	12.3%	89	86
Fiscal year ended Jan. 28. Part of publicly held Williams-Sonoma. Sells kids home furnishings for children ages 0–12 through Pottery Barn Kids and for the teen to college-age child through PBteen. Both merchandising concepts sell through e-commerce Web sites and catalogs, Pottery Barn Kids also sells through its stores. Sales and store counts for U.S. only. For 2007, PBkids will continue expanding and improving key categories, seeing opportunity in the kids' bedroom and in nursery. Will also expand infant apparel in all three channels of distribution after launching the category in 2006. PBteen plans to substantially expand its assortment, improve its in-stock position and test new product categories.
6	JCPenney, Plano, Texas	$420	$412R	1.9%	1,033	1,019
Fiscal year ended Feb 3. Includes sales from stores, catalogs and online. Celebrated its 105th anniversary in April. Opened 28 stores during 2006, 23 in the off-mall format, and closed 14. Plans to open about 50 new stores a year from 2007 through 2009. Launched in February its new brand and marketing campaign: Every Day Matters. Sales per square foot were $164 in 2006, up from $157 in 2005. Comp store sales increased 3.7% last year, the sixth consecutive year of increases. Internet sales increased 24% in 2006 to $1.3 billion. Total 2006 sales were $19.9 billion, up 6% from $18.8 billion in 2005. For the first quarter ended May 5, sales were $4.4 billion, up 3.1% from $4.2 billion in the first quarter of 2006. Comp store sales increased 2.2% for the quarter.
7	Sears, Hoffman Estates, Ill.	$395	$420	-6.0%	935	924
Fiscal year ended Feb. 3. Part of publicly held Sears Holdings Corp. Operated 861 full-line stores and 74 Sears Essentials/Grand stores at fiscal year end. Also sells kids merchandise online and through Sears for Kids catalog. Merged with Kmart (see No. 4) to form one company on March 24, 2005. Launched Simply Indoors, a new catalog for home in October. Debuted Internet lounges in two full-line stores and 13 Sears Grand stores last year. Sears domestic comp store sales declined 6.1% last year. Total 2006 sales were $29.2 billion, down 2.9% from $30 billion in 2005. For the first quarter ended May 5, domestic comp store sales declined 2.4%.
8	Baby Depot, Burlington, N.J.	$325	$330	-1.5%	325	306
Privately held, fiscal year ended June 3, 2006. Sales and store counts are for the trailing 12 months ended March 3. Was taken private by Bain Capital Partners, LLC on April 13, 2006. As of March 3, sold kids home furnishings online and through 324 Baby Depot departments within Burlington Coat Factory stores and one free-standing Super Baby Depot. Offers a baby gift registry online and in stores. Kids brands include Combi, Avent, Evenflo, Graco, Kolcraft, Peg Perego, Regalo and Safety 1st. Trailing 12 month 2003 home sales, including kids home furnishings, were estimated at $669.4 million, down 1.1% from $676.5 million in 2005. Total 2006 trailing 12 month sales were $3.46 billion, up 2.4% from $3.38 billion in 2005.
9	Toys "R" Us, Wayne, N.J.	$185	$202	-8.4%	586	671
Privately held, fiscal year ended Feb. 3. Sales and store counts are for U.S. Toys "R" Us stores and sales on www.toysrus.com. Was taken private in 2005 when it was purchased by an investment group consisting of affiliates of Kohlberg Kravis Roberst & Co., Bain Capital Partners LLC and Vornado Realty Trust. Closed 85 stores last year. Stores range in size from 30,000 to 45,000 square feet of selling space and offer between 8,000 and 10,000 products. Comp store sales increased 0.6% in 2006, the division's first comparable store sales increase in six years. The company is focusing on the turnaround of Toys "R" Us in 2007. Total 2006 sales were $5.9 billion, down 8.4% from $6.4 billion in 2005.
10	Meijer, Grand Rapids, Mich.	$180	$173	4.0%	176	171
Family-owned and operated. Is recognized as the pioneer of the supercenter. Operates stores in Illinois, Indiana, Kentucky, Michigan and Ohio. All stores are opened 24 hours. Opened five supercenters in 2006 and plans to open five this year and seven in 2008. Its new store in Allen Park, Mich., will carry energy efficient fixtures, incorporate sustainable building components and feature indoor air quality monitoring, qualifying it for LEED certification. Its new prescription drug program, unveiled in October, allows any customer, regardless of insurance, to take prescriptions for certain antibiotics to any store and have them filled for free. Total 2006 sales estimated at $14.1 billion.
11	Ashley Furniture HomeStores, Arcadia, Wis.	$170	$130	30.8%	296	219
Privately owned manufacturer's dedicated store network of licensed and company-owned stores across the U.S., including Alaska. Figures exclude stores outside the United States in Japan, Mexico and Canada. The youth departments average about 3,000 square feet and offer bedroom furniture, textiles, lamps, wall art, rugs and other accents targeted more toward the young adult and early teen versus a younger juvenile set. Overall, stores average 40,000 square feet. Opened its first store in West Virginia in March of this year. Kids home furnishings accounted for about 8.1% of total sales in 2006. Total 2006 sales were $2.1 billion, up 32.8% from $1.58 billion in 2005.
12	Rooms To Go, Seffner, Fla.	$150	$140	7.1%	116	102
Privately owned. Offers products for infants through teens at its kids stores, main stores and clearance centers in Alabama, Florida, Georgia, the Carolinas, Louisiana, Mississippi, Tennessee and Texas. RTG Kids online also delivers product to 32 states. At year's end operated some 40 Kids showrooms as free-standing units, adjacent units to a RTG main store and as showrooms within RTG stores. Last fall, added youth groups based on Pirates of the Caribbean and Cars to its line of Disney furniture. Has been the exclusive provider of licensed Disney Furniture since 2005. Last year, opened a net 14 stores and entered Mississippi, Louisiana and Alabama through the acquisition of Rhodes and Kirschman's stores. Kids home furnishings accounted for about 8.5% of 2006 total sales. Total 2006 sales were $1.76 billion, up 10% from $1.6 billion in 2005.
13	IKEA, Conshohocken, Pa.	$145	$120	20.8%	28	24
Privately held, Sweden-based retailer. Fiscal year ended Aug. 31. Sales and store count for U.S. operations only. At fiscal year's end, operated 28 stores in the U.S. — eight in California, three in Pennsylvania, two each in Illinois, Maryland, New Jersey and Texas and one each in Arizona, Connecticut, Georgia, Massachusetts, Michigan, Minnesota, New York, Virginia and Washington. Children's IKEA has a full range of kids furnishings for both infants and young adults including furniture, mattresses, accessories, textiles, lighting, storage and toys. Will end its fiscal year in August with 31 stores, including stores in Round Rock, Texas and Draper, Utah, which have already opened and one in Portland, Ore., opening this summer. Kids home furnishings accounted for approximately 5.8% of 2006 total sales. Total 2006 sales were $2.5 billion, up 25% from $2 billion in 2005.
14	Big Lots, Columbus, Ohio	$117	$105	11.4%	1,375	1,401
Fiscal year ended Feb. 3. Opened 11 stores last year and closed 37. Rather than opening new stores in the next three years, the closeout retailer plans to refine its merchandise mix, marketing efforts and Internet capabilities. Purchased about 24% of its merchandise directly from overseas vendors in 2006, including 19% from vendors in China. Home, including kids home furnishings, accounted for 31.1% of 2006 total sales, an increase from 30.1% in 2005. Comp store sales increased 4.6% last year. Total 2006 sales were $4.7 billion, up 7.1% from $4.4 billion in 2005. For the first quarter ended May 5, sales were $1,128 million, up 3.4% from $1,092 million in the first quarter of 2006. Comp store sales increased 4.9% during the first quarter.
15	USA Baby, Lombard, Ill.	$92	$89	3.3%	56	64
Chain of 56 franchised stores known primarily as USA Baby and The Baby's Room in 27 states and Puerto Rico, and one in Mexico (not included in sales or store count). Offers non-apparel products for infants and toddlers, including furniture, bedding, strollers, high chairs, car seats, textiles and toys. Also, operates ChildSpace departments within the stores, offering home furnishings and textiles for the 2-year-old through college-age child. Furniture and bedding accounted for about 80% of sales last year, with infant furniture accounting for 62% of sales and youth furniture, 10% of sales. Vendors include Baby Bjorn, Baby's Dream, Berg, Dutailier, Graco, Kolcraft, Lambs & Ivy and Peg Perego. In 2006, converted the freestanding ChildSpace store, in Cary, N.C., to a USA Baby store. Will have a net gain of three stores by the end of 2007 with the opening of eight new units and the closing of five.
16	Baby News Stores, Livermore, Calif.	$80	$80	0.0%	50	50
Independently owned and operated stores franchised through Stanford Distributing. U.S. stores are located in Alaska, Arizona, California, Hawaii, Illinois, Michigan, Missouri, Montana, Nevada, New Jersey, New York, Ohio, Oregon, Utah and Washington. Also operates stores overseas in Bermuda, Guam, Malaysia and Singapore, figures are excluded from estimates. Can purchase online through 19 U.S. stores. Units average 8,000 square feet and carry a full range of kids home furnishings. Vendors include Baby Bjorn, Baby's Dream, Britax Child Safety, Combi International, Cosco, Dutailier, Evenflo, Graco, Kolcraft Enterprises, Pali and Regal Lager.
17	Bellini Furniture, Scarsdale, N.Y.	$75	$87	-13.8%	46	49
Independently-owned stores franchised through Bellini Furniture. Closed three stores in 2006. Units average 5,000 square feet. Stores exclusively carry Bellini furniture, textiles and accessories, as well as accessories from other vendors. All furniture is made in Italy and Canada out of beechwood and maplewood. All Bellini cribs convert into toddler beds, have four mattress levels, side rails that raise up and down, a non-toxic finish and a storage drawer underneath. Bellini also has cribs that convert to full beds. Additionally, stores carry twin and full beds, dressers, changing tables, bassinets, armoires, nightstands, desks, toy chests and bookcases. All changing tables convert into bookcases or dressers.
18	One Step Ahead, Lake Bluff, Ill.	$65	$61	6.6%	NS	NS
Part of privately held, Chelsea & Scott Ltd. Sells through its One Step Ahead and Leaps & Bounds catalogs and online at www.onestepahead.com and www.leapsandbounds.com. Customers growth through its two-brand merchandise strategy: One Step Ahead features a complete line of home furnishings for prenatal through age 3, while Leaps & Bounds offers home furnishings, as well as developmental toys and a larger offering of safety equipment for ages 3 to 8. Mails catalogs four times a year for both brands. Pre-tests all products and offers a complete guarantee on every item. Online offerings include a gift registry and a birthday club.
19	Ethan Allen, Danbury, Conn.	$58	$58	0.0%	273	279
Fiscal year ended June 30. Sales and store count are for the trailing 12 months ended Dec. 31 and for U.S. stores only (144 company-owned and 129 dealer-owned). Offers everything from case goods, accents and upholstery to comforters, bedding and window treatments for infants to the young adult through its Ethan Allen Kids departments. Stores range in size from 6,000 to 35,000 square feet with an average size of 15,000 square feet. In 2006, opened nine stores, relocated seven and closed 15. Changed the designation of its retail outlets from "stores" to interior design centers , dubbed IDCs, to better reflect its expanded interior design capabilities. Kids home furnishings accounted for about 4.6% of total sales in 2006. Total 2006 sales were $1.25 billion.
20	Berkshire Hathaway furn. div., Omaha, Neb.	$54	$50	8.0%	32	31