u.s. housewares retail market

6400 Shafer Court, Suite 650, Rosemont, IL 60018 Phone 847.292.4200 Fax 847.292.4211 www.housewares.org

U.S. Housewares Retail Market

Presented by

March 14, 2012

http://www.housewares.org/ppt/USHousewaresMkt_12.ppt

Find this presentation at:

Perry Reynolds

Contact me at

[email protected]

The International Housewares Association Is The Home Authority

• Not-for-profit, full-service trade association

• Founded in 1938

• The voice for the housewares industry

• 1,600 supplier members

• Sponsors of the International Home + Housewares Show

Stores You Will VisitToday*

Best BuyThe Container Store

Crate & BarrelWhole FoodsHome Depot

TargetWal-Mart

JCPenneyMacy’sSears

Breaking Retail News…

Trends

Wall Street Journal

Breaking News

Internet Retailer reports that more than two out of three - 68 percent - of leading e-tailers

have developed smartphone applications, and 59 percent of them have built mobile

commerce websites.

In addition, the story says, a new study shows that “around one-third of retailers

have optimized their sites for browsing and buying on tablets.”

Breaking News

Nearly a third of smartphone owners use phones for shopping

http://www.yelp.com/biz_photos/hLpJP1rngQUeWokxTL1BDw?select=BzhejDiL2dF4nOAhwoiJ3Q

http://blogs.wsj.com/digits/2012/02/27/online-retail-spending-at-200-billion-annually-and-growing/tab/print/


http://upload.wikimedia.org/wikipedia/en/d/dd/CVS_Caremark.png

Trends

Online-Retail Spending at $200 Billion Annually and Growing

Americans spent more than $200 billion on online shopping in 2011 and are expected to shell out $327 billion on Internet stores by

2016.

That’s the estimate from a report scheduled to be released Monday by Forrester Research analyst Sucharita Mulpuru, who also

predicts that online sales will make up almost 9% of overall retail sales by 2016, up from 7% today.

Wall Street Journal 2/26/12

Trends

U.S. Retail Highlights: 2012 Outlook

- E-commerce will continue to grow exponentially

- Mobile commerce is a game changer

- Consumers will choose experience over price

- Limited time only and mobile phone only deals

Collier’s International

.S. Retail Highlights: 2012 Outlook” report from

Trends

Retailers Add Gadgets for Shoppers at Ease With Technology

…instead of getting defensive, some stores and brands are embracing the change by creating new personal touches that feature gadgets

rather than a doting sales staff.

“It’s fun to see things in person, and touch the fabrics, and try on shoes,” she said. “It’s a social experience.”

NY Times 3/10/12

Global Housewares Market

Insert new chart

Global Housewares Retail Sales 2010

US$301.9 Billion

US and Canada $76.7

Latin America $11.9

Western Europe $76.4

Asia $95.3

Africa $12.4

Eastern Europe $16.0

Middle East $ 8.4

Oceania $ 4.8

Housewares SalesBy Key Retail Channel

Discount Stores/Supercenters 25.0%

Department Stores 10.8%

Specialty Stores 11.2%

Non Store Retailing 9.6%

Supermarkets 8.8%

Hardware Stores/Home Centers 5.7%

Warehouse Clubs 5.2%

Variety/One Price Stores 2.8%

Discount Stores & Supercenters

25.0%

Top Discount Store: Wal-Mart*Parent Company: Wal-Mart Stores

General Profile: Wal-Mart is a global retailer providing a broad assortment of quality merchandise and services at everyday low pricing.

Subsidiaries: Sam’s Club

Number of stores in U.S.: 3,804

U.S. regions: National

Total sales: $260,261 Million in 2010

Housewares sales: $20,375 Million in 2010

Housewares sales rank in top 100: 1

* Source: HomeWorld Business


Retail Intelligence ReportUS Retail Heavyweights Rebound

Wal-Mart, which benefited this past Christmas from a revived layaway program, for two straight quarters has seen higher sales at U.S. stores open at least a year, beginning to rebound from a two-year slump.

But the fourth quarter's 1.5% comparable-store increase came at a cost: Profits fell 15% versus the

year before, largely because the store chain has been reducing prices as part of an aggressive strategy to win back business it lost during a

misguided store revamp.



Retail Intelligence Report

Wal-Mart representatives played down the quarterly profit drop to $5.16 billion from $6.06 billion a year earlier… Its quarterly revenue grew 5.9% overall to

$123.2 billion. For the full year, it grew 5.8% to $443.9 billion, including 13% increases in its fast-growing international division and a 6.8% jump at the Sam's

Club warehouse stores.


Discount Store: Target*

Parent Company: Target Corporation

General Profile: Target strives to be the best place to buy high quality merchandise at low prices. They are an upscale discounter.








Retail Intelligence ReportTarget sends letter to suppliers in effort

to fight ‘showrooming’

"Target has a long tradition of getting suppliers to provide exclusive products," the source explains. "It has teamed up for years with fashion designers to offer time-limited discount clothing collections, and it recently announced it will open a series of temporary boutiques featuring clothes, food and home furnishings from popular regional stores."

www.retailpro.com

Parent Company: Sears Holdings



Total sales: $15,593 million in 2010

Housewares sales: $2,235 million in 2010


Discount Store: Kmart


Other Discount Stores

Store2010 Housewares Sales (US$ millions)

Meijer’s $ 686

Shopko Stores $ 423

Department Stores

10.8 %

Department Store: Macy*s* Parent Company: Macy*s Group

General Profile: Macy*s Group, Inc. is the US's leading department store retailer. A tradition of exceptional shopping and lifestyle leadership.

Subsidiaries: Bloomingdale’s

Number of stores in U.S.: 852

Total sales: $24,983 in 2010

Housewares sales: $1,175 in 2010





Macy’s Earnings Increase 11.7%

Macy's reported an 11.7% increase in quarterly earnings, with sales rising 5.5%. Although competition in the department-store sector has been cutthroat in recent years as consumers traded down to

cheaper clothing chains, Macy's has managed to increase sales and profits each of the last three years with a strategy that has included adapting its merchandise assortment to local tastes and expanding

its online sales operation. Its annual sales grew 5.6% to $26.4 billion.




Macy's Announces February 2012 Same-Store Sales Up 4.6%

Macy's reported net sales of USD 1.86 billion for the four weeks ended February 25, 2012, a 5.5% increase over numbers reported for

the same period in 2011. Same-store sales increased 4.6%.

Online sales, including Macys.com and Bloomingdales.com, increased 31.3%.

According to Chairman, President and Chief Executive Officer, Terry J. Lundgren, "Our fiscal 2012 is off to a good start with February sales that exceeded our expectations. We saw good consumer response to our early spring deliveries in women's apparel, and

continued strong trends in accessories, shoes, cosmetics, men's and home, which bodes well for the months ahead.

Top Department Store: Sears*

Parent Company: Sears Holdings

General Profile: Sears is a multi-line retailer offering a wide variety of merchandise and related services

Divisions: Kmart, The Great Indoors

Total Stores: 2,248







Sears sales struggles continue as fourth-quarter profit slides

Declining sales of appliances and apparel at its namesake department stores cited for 13% drop-off

Sears Holdings Corp.'s fourth-quarter profit fell 13 percent as the retailer continues to struggle with declining sales of appliances and apparel at its

namesake department stores.

In his annual letter to shareholders Thursday, Sears Chairman Edward Lampert called the financial results "unacceptable" and outlined a vision for

the Hoffman Estates-based retailer of operating smaller stores and expanding online.

Chicago Tribune 2/23/12



In Retreat, Sears Set to Unload Stores

After seven years of trying to rebuild the iconic retailer Sears, hedge-fund manager Edward Lampert reversed course on Thursday, announcing that Sears Holdings Corp. will unload more than 1,200 stores in an effort to raise up to $770 million of much-needed cash.

Many on Wall Street interpreted the move as the beginning of the breakup of the company. Sears on Thursday reported a loss of more

than $3 billion for 2011, and same-store sales have fallen for six straight years. The company's shares, which fell below $30 last

month, rose almost 19% on Thursday to $61.80 on news of the asset sales.




Sears to Unload AssetsSome retail analysts worry that unloading assets could ultimately hurt

Sears's prospects. Although the franchised stores Sears is spinning off, called Hometown, accounted for only about $2.6 billion of its $41 billion in revenue last year, they made up a disproportionate share of its earnings

before interest, taxes, depreciation and amortization—nearly 25%, according to Credit Suisse analyst Gary Balter.

Getting rid of them, he said, "actually makes the situation more precarious long-term."




Sears to Close Great Indoors Stores

HOFFMAN ESTATES, Ill.-Sears Holdings will exit The Great Indoors format by closing the nine

remaining stores this year, according to its most recent update on store closings.

Sears had operated The Great Indoors stores since the late 1990s, offering appliances, furniture,

home textiles, housewares, outdoor living and seasonal merchandise. In a statement, a company

spokeswoman said the decision to close the format was made in response to current business conditions

and “to advance its integrated retail strategy.HFN 2/29/12

Department Store: Kohl’s

Parent Company: Kohl’s Department Stores

General Profile: Kohl's mission is to be the leading family-focused, value oriented, specialty department store offering national brand merchandise to the consumer in an environment that is clean, friendly and convenient.






Department Store: JCPenney*

Parent Company: JCPenney

General Profile: Founded as JC Penney in 1913 - mid-priced national department store chain.



Housewares sales: $278 Million in 2010





Ron Johnson Takes Over at JCPenney



JCPenney attempts to Re-envision the Department Store

Other Department Stores

Store2010 Housewares Sales

(US$ millions)

TJMaxx/Marshall’s $606

Dillard's $119

The Bon Ton $107

Belk $111

U.S. Specialty Stores

11.2%

Specialty Store: Bed Bath & BeyondParent Company: Bed Bath & Beyond

General Profile: Bed Bath & Beyond is a national chain of superstores selling predominantly better quality domestic merchandise and home furnishings. Bed Bath & Beyond aims to combine superior service with a huge selection of items at everyday low prices within a constantly evolving environment.







Specialty Store: Williams Sonoma

Parent Company: Williams Sonoma

General Profile: Williams Sonoma is a specialty retailer of high-quality products for the home and kitchen.

Subsidiaries: Pottery Barn, Pottery Barn Kids, West Elm







Specialty Store: Sur La Table

Parent Company: Sur La Table

General Profile: Sur La Table was created to satisfy the growing demands from culinary professionals and home chefs for a reliable source of top quality cookware and hard to find kitchen tools.


Total sales: $211 Million in 2010




Specialty Store: Crate&Barrel*

Parent Company: Crate&Barrel

General Profile: Crate and Barrel features unique, functional, affordable designs for the home. They carry innovative, high quality design productsfocusing on shape, form, color and function.

Subsidiaries: CB2





Housewares sales rank: 19


Specialty Store: Pier 1

Parent Company: Pier 1 Imports

General Profile: North America's leading specialty retailer of unique, fashion forward, decorative furnishings, gifts and related items directly imported from over 50 countries around the world.








Retail Intelligence ReportPier 1 Imports, Inc. Announces December

Comp Store Sales Growth of 11.3%

FORT WORTH, Texas--(BUSINESS WIRE)--Jan. 5, 2012-- Pier 1 Imports, Inc. (NYSE:PIR) today reported that December comparable store sales increased 11.3% for the five-week period ended December 31, 2011 compared to last year's reported comparable store sales increase of 10.3% for the five-week period ended January 1, 2011, a three-year cumulative comparable store sales increase of 30.2%.

Specialty Store: Cost Plus World Market

Parent Company: Cost Plus World Market

General Profile: World Market is a leading specialty retailer of casual home furnishings and entertaining products. Their strategy is to differentiate themselves by offering a large and ever-changing selection that combines wine, beer, food and home products, many of which are imported, at value prices in an exciting shopping environment.







Specialty Store: The Container Store*

Parent Company: The Container Store

General Profile: The Container Store is devoted to helping people streamline and simplify their lives by offering an exceptional mix of storage and organization products.


U.S. regions: Major Metro Areas





Independent Specialty Stores

General Profile: Independent retailers form the frontline of housewares retailing in the US.


U.S. regions: Nationwide


http://www.cookswarehouse.com/

http://www.kitchenkapers.com/index.html

http://www.cpostores.com/kitchenwindow/index.htm

Specialty Store: HomeGoods

Parent Company: TJX Companies

General Profile: HomeGoods is a chain of off- price home fashion stores. HomeGoods offers an exciting, and rapidly changing selection of home décor merchandise including furniture, giftware, rugs, bed and bath accessories, lamps and seasonal merchandise at great values.







Specialty Store: Best Buy*

Parent Company: Best Buy

General Profile: America's leading specialty retailer of consumer electronics, personal computers, entertainment software and appliances.

Subsidiaries: Magnolia Audio Video, The Future Shop







Specialty Store: IKEA

Parent Company: Ingka Holding B.V.

General Profile: IKEA is a full-range specialty retailer selling a wide range of home furnishings with good design and function.






Other Specialty Stores


(US$ millions)

Kitchen Collection $220

Ross Stores $181

Michaels Stores $ 74

Non Store Retailing

9.3 %

Internet: amazon.com

Parent Company: Amazon

General Profile: Amazon is the largest online retailer in North America






Retail Intelligence ReportChannel War Looming

Showrooming is an increasing problem for chains ranging from Best Buy to Barnes and Noble; at the same time that it's a boon for Amazon.com and other online retailers.

This year store sales overall edged up 4.1% during the holiday shopping season, while online sales jumped 15%. And while online sales represent only 8% of total sales, that is up from just 2% in 2000.

Supermarkets

8.8%

Top Supermarket: Kroger

Parent Company: Kroger

Subsidiaries: Bakers, Calla Foods, CityMarket, Dillons, Food4Less, Fred Meyer, Frys, Gerbes, Hilander, Jay C Foods, Kessel Food Markets, King Soopers, Payless Super Markets, QFC Quality Food Centers, Quik Stop, Ralph's, Smith's Food & Drug, Tom Thumb Food Stores






Supermarket: SuperValu

Parent Company: SuperValu

Subsidiaries: Acme, Albertson’s, Jewel-Osco, Supersaver Foods


U.S. regions: 31 States





Supermarket: Safeway

Parent Company: Safeway

Subsidiaries: Carrs, Dominicks, Genuardi's, Pac n Save Foods, Pavillions, Randalls, Tom Thumb, Von's







Supermarket: Whole Foods Market*

Parent Company: Whole Foods Market








Other Supermarkets

Store2010 Housewares Sales (US$ millions)

PublixAhold USADelhaize AmericaAldi

$409$359$264$82

Hardware Stores & Home Centers

5.5 %


Hardware Stores & Home Centers: Home Depot *

Parent Company: Home Depot

General Profile: Home Depot is the world's largest home improvement retailer.







Home Depot Sales Grow

Home Depot said total store transactions grew 3.6%, citing unusually mild winter weather as a

contributor. The number of customers spending over $900, which makes up roughly a fifth of Home Depot's sales, grew 3%, signaling that some higher-

end home improvement was coming back.

The company, whose annual sales grew 3.5% to $70.4 billion, predicted growth would accelerate to 4% in 2012, and earnings per share would increase 13%.


Hardware Stores & Home Centers: Lowe’s

Parent Company: Lowe’s Companies Inc.








Lowe’s ended its fiscal year on a high note with a 13 percent increase in its fourth-quarter net income, to $322 million. For the fiscal year as a whole, however, the home-improvement retailer’s bottom line dropped 8.5 percent to $1.8 billion.The company benefited from a strong sales gain of 11 percent in the quarter, to $11.6 billion, which included a 3.4 percent pickup in same-store sales. For the year, net sales rose 2.9 percent to $50.2 billion, with same-store sales being essentially flat.

Lowe’s Sales UP, Profits Down

Hardware Stores & Home Centers: Ace Hardware

Parent Company: Ace Hardware

General Profile: Ace is a cooperative composed of members who are entrepreneur retailers.






Hardware Stores & Home Centers: True Value

Parent Company: True Value Corp.

General Profile: True Value is a cooperative composed of members who are entrepreneur retailers. True Value grew in 1997 when Servistar/Coast to Coast merged with Cotter & Co, then True Value’s parent company.






Other Hardware Stores & Home Centers


(US$ millions)

Do It Best $454

Menard's $192

Warehouse Clubs

5.2%


Warehouse Club: Costco

Parent Company: Costco Wholesale Corp.

General Profile: Costco Wholesale operates an international chain of membership warehouses that carry quality, brand name merchandise at substantially lower prices than are typically found at conventional wholesale or retail sources. The warehouses are designed to help small and medium sized businesses reduce costs in purchasing for resale and for everyday business use.






Retail Intelligence ReportCostco Q2 Net Up Sharply

Second-quarter net income for Costco increased by 12 percent in its fiscal second quarter to $394

million.

The warehouse-club retailer’s bottom line benefited from a 10 percent gain in net sales for the quarter,

which ended on Feb. 12. Net sales totaled $22.5 billion, and included an increase of 8 percent in

same-club sales for both its U.S. and international locations.



Costco Net Less Than Membership

2011 Net Income $1,462 Million

2011 Membership Fee Income $1,867 Million

Warehouse Club: Sam’s ClubParent Company: Wal-Mart Stores Inc.

General Profile: Sam's Club is the nation's largest member only warehouse club in terms of number of stores.






Other Warehouse Clubs


(US$ millions)

BJ’s Wholesale $1,100

Drug Stores

4.1 %

Drug Store: Walgreens

Parent Company: Walgreens

General Profile: Walgreens is the nation's largest drug store chain.








Sushi at Walgreens? New State Street store offers urban format

Walgreens is trying a new approach at an old location: State and Randolph. The Deerfield-based drugstore giant is reopening Tuesday with a new format that

shows just how high-end it can go, with a $450 imported wine and a $192 skin-care cream.

Chicago Tribune

Drug Store: CVS

Parent Company: CVS

General Profile: CVS is the nation's second largest drug store chain.






http://upload.wikimedia.org/wikipedia/en/d/dd/CVS_Caremark.png

Variety/One Price Stores

2.8 %

One Price Store: Dollar General

Parent Company: Dollar General

General Profile: Dollar General is the nation's largest dollar store chain.






One Price Store: Family Dollar

Parent Company: Family Dollar

General Profile: Dollar General is the nation's second largest dollar store chain.






One Price Store: Dollar Tree

Parent Company: Dollar Tree

General Profile: Dollar Tree is the nation's third largest dollar store chain.






Other Stores You Will VisitToday

Lord & Taylor Nordstrom

Anthropologie Brookstone

Yankee Candle Z Gallerie

Build A BearLego

TeavanaDisney


http://www.housewares.org/iha/pubs/mw/default.aspx


www.smartbrief.com/iha

http://www.housewares.org/ppt/USHousewaresMkt_12.ppt

Find this presentation at:

Perry Reynolds

Contact me at

[email protected]


U.S. Housewares Retail Market

Presented by

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u.s. housewares retail market

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