Chain Store Age State of The Industry Report 2009

AUGUST/SEPTEMBER 2009
The recent economic shock has left the industry

with fewer players, smaller fleets and weakened
offers. Faced with a whole new playing field,
retailers are struggling to replace outmoded
thinking with relevant new strategies.
TABLE OF
3A Reset. The New Forces At Play
Stores are confronted with new shopper behavior and expectations.
CONTENTS 5A Have People Changed for Good?

The jury is split, making it hard to plan future strategies.
6A Getting the Store Back on Track

Driven off course by short-term tactics, stores are regrounding
themselves in the basics.
7A Enhanced Store Experiences Add Value

Insight into what the shopper wants from the brand guides the
experience design.
8A What’s It Worth?
The value equation isn’t just price, it’s value plus reason.
10A New Retail Plays

A look across the retail landscape finds new concepts
and acquisitions.
13A The Rise of Shopper Marketing

The study of how shoppers behave in the store is enabling
designers to create improved retail experiences.
14A Analytics, Insights and Design

A well-understood target shopper leads to better design
and merchandising.
15A A Retail Experience Is the Sum of Its Touchpoints

Retailers continue to underestimate the number and importance
of their touchpoints.
16A A Balancing Act for Private Brands

Private labels and national brands need to collaborate, not
battle for space.
17A We’ve Got the Crisis. Where’s the Innovation?

They may not change the game, but these small innovations
are having a big impact.
18A Reset or Renaissance?

Brand is the business case for change.
20A 2009 Chain Store Age 100: Top U.S. Retailers

26A Alphabetical Listing of the Top 100
27A Retail Conglomerates
28A Chain Performance
32A Acknowledgments
2A chainstoreage.com CHAIN STORE AGE, AUGUST/SEPTEMBER 2009

RESET.
THE NEW FORCES AT PLAY
It’s taken a crisis — an emotional, social and
The length and severity of
economic reset of the current environment — to
the downturn has forced move executives away from the kind of thinking that
companies to confront basic often leads to mediocrity. Strategies used in the
past may not work going forward. Growth will be
assumptions about the way harder to find. The high cost of capital has in-
they’ve traditionally done creased the importance of leveraging current
assets. The changed consumer and a new empha-
business ... it’s about time. sis on brand experiences present challenge but
The thing about change is it’s always overdue. opportunity as well.
According to many reports, for the past several
This year, our State of the Industry report examines
years people have been losing interest in shopping.
the new forces affecting the marketplace and takes
Year-over-year comp-store numbers have been
a look at how retailers are finding ways to profit in
generally lackluster. Companies have tried to
the downturn.
compensate for middling numbers by opening
new store concepts, and now many of those
are struggling.
CHAIN STORE AGE, AUGUST/SEPTEMBER 2009 chainstoreage.com 3A

Willingness to Change Analytic Tools Aid Marketing
Of all the new forces brought on by economic Now that the consumer is immediately and digitally
upheaval, the first and foremost is retail’s greater connected to his or her own network of information,
willingness to change. One of the most common purchase decisions are being made largely beyond
barriers to growth in any economy is resistance to the reach of controlled marketing messages. New
doing things a new way. The volatile market means shopper marketing techniques, aided by specialized
radical change is needed now, and the best retailers analytic tools, allow retailers to take a deeper dive
aren’t wasting time. This is the moment to reap the into shopper behavior. The resulting insights can
advantages of recent technologies, reinvent broken focus the store’s investments only on the things that
systems and get back in touch with the reasons our matter to the customer. Design teams can then
stores were built in the first place. create store and shelf principles to improve the
brand experience and influence purchase. The high
Higher Expectations for Stores potential return on investment for shopper market-
In addition, there’s been a change in the general ing has captured retail’s attention.
perception of what makes a retail brand. It’s no

longer a store, it’s an experience with multiple Brand is Central to Change
touchpoints. Customers expect their retail experi- and Innovation
ence to be accessible anytime anyplace. Jumping If there’s any silver lining to the downturn, it’s that
gas prices have encouraged online and catalog retailers once securely on the path to mediocrity
buying. With traffic down at stores, retailers are have had to stop short and re-imagine their busi-
bringing solutions to the shopper. Non-traditional nesses. Brand thinking is coming to the forefront.
retail sites include airports, casinos, cruise ships Mining a retail brand for its competitive power and
and college campuses with interruptive formats, point of difference is essential if a store wants to lift
such as kiosks, vending machines, mini-formats itself above commodity status and develop a
and pop-up stores. winning retail proposition. Brand is also central to
the discovery of profitable creativity and innovation.
Have Consumers Changed?
The era of expansion fueled by cheap-debt is over.
Of course the most challenging of all new factors is
The economic reset has left the industry with fewer
the current lack of consumer confidence. Consumers
players, smaller fleets and weakened offers. The
are shopping more for needs than wants. They are
way to growth is innovation and productivity in the
far less interested in endless choices and have less
aisles. Those retailers that look through the eyes of
patience with clutter. While they are less inclined to
the shopper are going beyond “survival mode” to
add shopping trips or risk disappointment in new
find efficient, effective ways to make the brand
item trials, they still enjoy finding or experiencing
experience work harder.
something new. Retailers are learning to reframe
their offerings according to this emergent mind-set.
Consumers have also reframed their idea of “value.”
While price still enters into it, value doesn’t always
mean least expensive. There are other pretexts to
purchase — or not. The challenge for the store is to
understand and articulate these reasons in relation
to their brand.

HAVE PEOPLE
CHANGED FOR GOOD?
It’s still about winning their hearts and minds.
Yes. Frugality is here to stay. No. Americans spend to enjoy life.

The loss of jobs and household assets has been a Experts in public affairs and psychology point to the
wake-up call for Americans, 16% of whom are living fact that although most of the population has been
on reduced pay and 5.7 million out of work. Lee truly frightened by the economic crisis, they’re not
Scott, former president and CEO of Wal-Mart in a trauma state. Some aversion to debt will
Stores asserted that people have indeed changed remain, but it’s human nature to adjust to context
and have no desire to go back to the debt-driven very, very quickly. Behaviorists believe that a
consumption that imperiled their livelihoods. couple years discomfort isn’t going to make people
Procter & Gamble chairman A.G. Lafley believes resist the purchases that they perceive will help
that spending patterns have been altered forever. them enjoy life and social status. After all, people
Long after the recession, people will continue to are riding out the recession with fl at screen TVs,
repair instead of replace, dine at home instead of iPhones and Wiis. There is a lot of money currently
eating out, and continually revalidate their brand sitting on the sidelines that will flow with the return
experiences according to value or sustainability. of consumer confidence.
That will especially be true for the younger genera-
At least for the short term, customers are no
tion whose habits are being formed during a time of
longer on auto-pilot. They are examining their
financial insecurity.
brand loyalties and narrowing their decision
criteria. The change in their choice behavior
means every decision is an opportunity to steal
market share. The retailer who responds with the
strongest proposition has the best chance to win.

can afford to become more particular. And they
are much less tolerant of poor service and
indifferent shopping experiences.
The Home Depot views the economic downturn

as an opportunity to create a more engaging brand
experience. It’s investing $3 billion to develop new
systems, improve stores and hire skilled associ-
ates. This is one of the rare times when a company
as large as this home improvement giant is willing
to push for change. The risk is low, and the upside
is clear. The plan is to renovate stores for easier
navigation and add more training to fix Home
Depot’s reputation for poor customer service.
When customers finally begin to feel the effects
GETTING of a recovery, they will find knowledgeable service

and the merchandise they want in stock. CEO
THE STORE
Frank Blake believes a downturn is a terrible thing
to waste.
Macy’s CEO Terry Lundgren concurs. “There’s no
BACK resistance to trying new things; everyone is anxious

to stimulate sales and get the customer shopping
ON TRACK
again.” Macy’s has been using the time to test and
refine its localization initiative, a program that
caters its department store offerings to local
shoppers’ tastes. The revamped stores, each with
a different layout, will be “prototypical instead of
a prototype.”
Driven off course by
Budget-conscious customers are no longer looking
short-term tactics,
for endless choices. They are also sticking to
stores are regrounding familiar brands. There is less patience for clutter,
and a stronger desire to simplify their lives and
themselves in the basics
consolidate their shopping trips. Retailers who’ve
of a great shopping picked up on this new dynamic have realized that
“less is more.” Some merchants are expected to
experience.
slice SKUs by at least 15%. A few of the largest
You would think that with all the belt tightening, retailers, such as Walgreens and Walmart, are
price competition and lack of trust, we’d find responding by reducing assortments in favor of
ourselves in an era of reduced expectations for those that are most relevant, a strategy that is
the store. In fact, it’s just the opposite. With lifting overall sales.
everyone competing fiercely on price, consumers

ENHANCED STORE
EXPERIENCES ADD VALUE
Giving the shopper shelf organization has more relevant breakups,
flow and SKU placement. Crafters are delighted,
what she really needs: and blogs are buzzing about the fun and inspiration
inspiration. to be found in the new design.
Almost any retailer can find a way to add value to

Arts and crafts retailer Michaels is seeing a
the experience by auditing the store. Year after
pronounced impact from an engaging new store
year, the most common criticism leveled against
experience designed to spark the shopper’s
stores is that they are hard to shop. Supermarkets
imagination. By mapping the shopper journey and
and big boxes in particular have been known to fill
asking shoppers why they purchased, not just what,
aisles with pallets and displays for shoppers to
when and how much, the craft retailer discovered
dodge. Customers have even come to expect
their need went beyond crafting materials to a
out-of-stocks.
desire for inspiration and fun. The store’s brand
positioning became “Where Creativity Happens.” In any downturn, the tendency is to add more
Brand and shopper insights enriched the new promotional messaging than is really needed.
design of Michaels from the category level all the Things tend to creep onto the sales floor that have
way through to the shelf. nothing to do with the retail brand and no relevance
to the target segment. Only the most determined
The company concentrated its efforts on fi ve store
brands refuse to let the economy force them into
categories with the highest business potential. The
clutter or opportunistic buying. A fresh look at the
jewelry section is one of the fi ve seeing the most
space and new insights into how customers want
dramatic reaction from shoppers. Design, mer-
the brand to serve them are working for Michaels.
chandising and staffing gave it a boutique feel;

WHAT’S IT WORTH?
The definition of
value is fluid. Despite
the recession, price
is only part of it.
By now most people are familiar with the
Radiohead story. The band offered their album
online for download, which resulted in 1.5 million
downloads in the first week and an estimated $10
million in profits, more than the sales of their first
three albums combined. Remarkable because fans
were allowed to set their own price for the album,
including zero. Radiohead essentially asked the
customer at transaction time, “What is this worth
to you?” The fact that they paid on average $8 per
album clearly demonstrates how value has moved
from the company to the customer.
Price is part, but not all, of the value message

today. During the pre-recession bubble, value
propositions went far away from price to fashion-
able aspirations. Once the downturn hit, most
retailers went straight to the sticker. But price
competition is not sustainable because the
definition of value is fluid.
It includes ideas around purchase such as occasion, unique to the brand. Crucial, because without it a
quality, convenience, experience, current finances, brand’s power to create demand is diluted.
time, reputation, availability or rarity, taste,
Retailers are delivering value or “worth” in many
comfort and simplicity. When a shopper is at the
ways. For example, people are dining out less. This
shelf, the question he is most likely to ask himself
allows a grocer the chance to boost its category by
is not, “Is it the least expensive?” but “Is it worth
filling a different role, such as providing sugges-
the price?” And “worth” has come to mean “value”
tions on how to make a great dining experience in
plus “reason.”
the home. With consumer creativity, choice and
It’s retail’s challenge to articulate the reason to self-sufficiency at an all-time high, value must
buy. The solution is a balanced value proposition have a reason.

CAN LUXURY SURVIVE
THE ECONOMY?
The new role of luxury is to help
people feel comfortable with wealth.
Jewelry, autos, designer clothing — the whole point of extravagance is delight in its
display, which at the moment may appear insensitive. Many wealthy consumers have
scaled back their spending, and those who haven’t are being more discreet. Analysts
report that spending at luxury retailers is down a staggering 30%.
Apparel retailers forced to slash prices so drastically to get rid of inventory left people
questioning how much things should really cost. Venerable brands, such as Tiffany &
Co. and Hermes, are wooing shoppers with messages of fine craftsmanship, history and
heritage. Others are adding simpler, smaller versions of indulgent items to their mix in
order to make their customers feel comfortable.
Experts predict the global luxury market will begin stabilizing in the second half of the
year, resulting in a net decline of 10% overall for cosmetics, fragrances, apparel, jewelry,
watches and accessories. On the up side, a recent study reveals a trend among luxury
shoppers to remain loyal to their top-of-mind brands even though they are currently
switching to lower-price-point items.
VALUE STORES ENJOY

THE SPOTLIGHT
Gaining sales through price and accelerating
growth through a better experience.
Extreme-value retailers and dollar stores are happily stealing share from all channels,
attracting consumers across all income level with their low, low prices. The value players
are taking advantage of the opportunity to serve a wider swath of thrifty customers by
investing in the shopping experience with things such as wider aisles, better lighting
and improved signage.
The collapse of real estate rents and remodeled stores are allowing these largely
urban/rural/strip mall players to move into better suburban locations. Closeout
retailer Big Lots has added branded consumables to its mix, remodeled its store for
improved merchandise display and put in place a new organizational system for
getting deals quickly and easily onto the floor. It plans to open more stores in 2009
than it has in the last three years combined.
Discount giant Walmart is attracting more affluent consumers. Seventeen percent

of the company’s store traffic comes from new households who are spending 40%
more than the average Walmart customer. Problems associated with navigation
and checkout lines are being addressed in newly remodeled stores, and future
discretionary dollars will be wooed with an enhanced portfolio of brands and an
improved overall shopping experience.
CHAIN STORE AGE, AUGUST/SEPTEMBER 2009 chainstoreage.com

chainstoreage.com 9A
Convenience is still king.
Maybe emperor.
Stop & Shop is counting on technology in the form
of handheld scanners to improve the customer
shopping experience. The device calls out sale
prices, provides a running total and reduces time
spent in checkout. Drug chains are on the conve-
nience forefront: CVS/pharmacy has 500 retail-
based MinuteClinic units — open 7 days a week,
some even for 24 hours — integrated into its
pharmacy care services. It is currently enhancing its
CVS.com offering, working through Google Health to
allow customers to better store, organize and
manage their prescription history online.
Is it bad timing or good

strategy for high-end deals?
Procter & Gamble moves into prestige retail via
NEW
the acquisition of the 36-store men’s grooming
chain, The Art of Shaving, a destination that offers,
among other items, $150 razors. It will be interest-
RETAIL ing to see if P&G keeps the chain small to preserve

its cachet. Even
PLAYS
though Staples’
same-store sales
dropped 8% in a
recent quarter, the
office products
superstore just
Even though resources introduced 25
exclusive co-branded
are limited and tension office products from
is high, there are signs OXO Good Grips that
cost up to fi ve times
of entrepreneurship more than the store’s own brand. The exclusive
and creativity. arrangement may yield strategic gains by differenti-
ating Staples from its rivals.
“Is anybody buying anything except food?”
That was the plaintive question asked by one retail Strength lies in flexibility.
expert who noted that food retailing seems to be the
Who knew the current climate was hospitable to
only recession-proof category. Consumables were
high-priced yoga pants? Vertically integrated
the strongest performers for supercenters, ware-
Lululemon Athletica is thriving with 113 stores and
house clubs and dollar stores. Target is expanding
plans for slow but steady expansion, thanks to its
its groceries to include about 90% of the SKUs found
success in an underserved market in women’s
in traditional supermarkets.
athletic wear.
Continued on page 12A

APPAREL CONCEPTS
STUMBLE
Specialty apparel isn’t special enough.
Fashion retail is the most challenging of all categories, since predicting the style
whims of the population comes with significant risk. Weak brand propositions are
being culled from the herd. Jones Apparel Group will shutter 225 units, Ann Taylor
plans to close 163 stores, Abercrombie & Fitch is abandoning its 29 Ruehl stores,
and Pacific Sunwear closed its d.e.m.o. and One Thousand Steps divisions.
Companies such as Zumiez, American Eagle Outfitters and Aéropostale are eyeing
opportunities in the volatile market, although American Eagle’s 28-unit apparel
concept, Martin + Osa, may not survive. Aéropostale closed Jimmy’Z but launched a
tween concept, P.S. from Aéropostale with a reported potential for 500 locations.
A concept like the Limited Group’s playful Pink brand resonates with its target more
effectively than many of the intimate apparel entries at the malls. Perhaps because
there are more aesthetic, rational and emotional dimensions associated with it.
Failure of many of the fashion retail concepts is being blamed on failure of niche
segmentation and the current squeeze on credit cards. The 2009 Most Valuable
U.S. Retail Brands report from Interbrand Design Forum suggests that there’s
not enough differentiation or defensible identity among brands. When you have
little to spend, there’s no reason to buy the high-priced polo shirt instead of a
lower-priced version with the right value equation.

Continued from page 10A
Used Lululemon items have high You are known by the company you keep ...
resale value on eBay, where even or acquire.
its shopping bags, free in the store,
Amazon.com purchased online shoe retailer Zappos for
sell for $5.
$807 million to bolster its offering in apparel. T-Mobile
teamed up with RadioShack, now rebranding itself as The
Less continues to be more.
Shack, to sell phones and services in more than 4,000 of
Some retail experts are advising RadioShack’s stores where it joins Alltel, AT&T Mobility and
chains to close 5% to 20% of their Sprint Nextel. Toys “R” Us is now associated with a
stores and invest those resources in keeping the remainder premium brand through its purchase of FAO Schwarz. It
of the fleet healthy. For the past three years, OfficeMax also acquired eToys.com, babyuniverse.com and ePreg-
has been slowing the pace of its expansion but recently nancy.com to conquer more of the market and become the
opened three new smaller-concept stores called Ink Paper No. 3 toy retailer after Walmart and Target.
Scissors. Its 2,000-sq.-ft. format is cheaper, requires less
inventory and fewer employees. Downsized concept stores
not only allow companies to enter new markets, they feel
more personal, especially now when there is such a thing
as too much variety.
Big ideas are often small.

Opening stores during the downturn comes with a
risk, but when done carefully and strategically positions
retailers for success when the economy turns. The
Whopper Bar is a brand innovation for Burger King with
a hip youthful fl air. The intimate and fun concept offers
the chain new opportunities because of its ability to adapt
to smaller footprints in non-traditional retail areas.
GIVE MY REGARDS
TO BROADWAY
JCPenney is in Herald Square.
Top retail talent has transformed J.C. Penney from its image
as a quality-and-value clothing store to a style destination with
exclusive fashionable private brands. One of Penney’s latest, the
“Joe” by Joseph Abboud men’s label, will be found exclusively at
the Manhattan store ahead of a nationwide launch. The flagship
expects to do big business for the retailer, potentially $90 million
annually once it hits its stride, providing healthy competition for
Macy’s across the square.

THE RISE OF SHOPPER
MARKETING
Advertising is broken. PR and to its traditional role as a builder of awareness,
marketing has become by necessity a form of
digital reign. The economy listening and facilitation.
is anemic and shoppers wary.
Shopper marketing is the study of how shoppers
What’s a marketing team behave in the store, where the majority of purchase
decisions still take place. The insights are applied
to do?
to the creation of high-performing stores through
Back when shopping was still offline and all media merchandise planning, adjacencies, shelf strate-
was mass, marketers considered the store just a gies and packaging. New plans can be modeled
tactical channel for price and value promotions. and measured to control cost and manage out-
No one looked beyond the day’s receipts and comes, making it one of the most efficient and
traditional marketing surveys to measure what effective marketing tools available today.
was going on in the store.
Economic pressure is leading to big shopper-
Now that the digital revolution has given media centered changes. Even though the retail
power to the consumer, too many things are vying investment in shopper marketing is currently
for her attention, and too many media platforms low, the search for growth will spur greater
make it difficult for her to narrow her focus. adoption of its principles.
Shoppers need help finding, simplifying and
justifying their decisions. That’s why, in addition

ANALYTICS, INSIGHTS
AND DESIGN
Consumer and Shopper This shopper mind-set is where more of the smart
marketing budgets are going — the exploration of
are not one and the same. what the shopper needs from the store experience
The behavior is different, to make a choice. Specialized research and retail
analytics can now uncover her choice drivers,
and so is the segmentation. purchase-decision hierarchy and sources of
dissatisfaction — that’s exciting, because those
Retailers now know that shopper differences
sources of dissatisfaction are the opportunities
abound by category, by brand and by mission, and
for innovation and growth.
they can only be revealed by a study of the shopper.
“Shopper” is the word used to describe the
consumer once they’re inside the store actively
Applied shopper insights result in
making decisions.
a more effective selling space.
Marketers often misunderstand their customers,
Research has discovered that people alternate
believing they shop in a manner opposite to what
between two mind-sets when they experience
they really do once inside the store. For example,
brands. In consumer-mode, we passively receive
say a small-format beauty store has used a
the media message about the brand. As we move
traditional consumer segmentation approach to
through the store, we work through decision
slot its customers into four categories: Sensible,
criteria right up to the point where we’re standing
Fussy, Vain and Perfect. The shelves are set
at the shelf.
assuming they all share one similar shopping style.
Shopper behavior study reveals that the four
segments exhibited two different shopping styles.
Sensible and Perfect are “purposeful” shoppers
after particular products. Vain and Fussy are
“thrill me” shoppers looking for a reason to stop
and select. Drilling down further reveals that once
the purposeful shopper makes her selection,
she switches to thrill-me mode, with no urgency to
leave the store. And what they both need/want is
education about the benefits of a new regimen and
possible creative product combinations.
But the real breakthrough is realizing the impor-

tance of a well-understood target shopper and the
impact that deep insights have on store design and
merchandising decisions.

THE HUMAN TOUCHPOINTS
More stores emphasize brand engagement.
The reason retailers need to devote attention and resources to their people and
culture? These individuals are empowered touchpoints who can keep shoppers
coming to the store — even when everything in the store is available elsewhere.
To make sure they’re true ambassadors of the brand, The Cheesecake Factory
holds daily meetings and tests its staffers regularly on their menu knowledge. Job
applicants are quizzed on Cheesecake culture before they are hired. Workers are
well trained and generously compensated. The goal is to have employee enthusi-
asm bubble up into customer enthusiasm. It must be working. The Cheesecake
Factory has become a billion-dollar chain, and part of its success can be attributed
to its brand engagement program.
A RETAIL EXPERIENCE IS THE

SUM OF ITS TOUCHPOINTS
Retailers continue to Ikea devotees find the store experience, the catalog
and the online experience to be filled with inspira-
underestimate the number tion, serene style and beauty — not to mention
and importance of their affordability — even though they have to haul the
flatpacks home and assemble the furniture
brand’s touchpoints. themselves. The touchpoints are so effective, they
Mobility and the Internet have exploded the forget about the pain points. And Ikea fans will be
traditional structures of retail. Shoppers are further enraptured by the company’s investment in
assembling their own experiences from online, renewable energy, and its commitment to water
catalog and digital tools to build the store they and energy conservation. It has even recently
want. In reaction, companies are exploring ways launched a pay-as you-go mobile service.
to create communities around their brands through
the use of social networks, word of mouth, Web U.K. retailer Marks & Spencer raised eyebrows
2.0 tools such as Twitter, pop-up stores and recently when it terminated its in-store ordering
branded events. and pickup service, justifying its removal by saying
that shoppers can order online or by phone for
The store is becoming more of a relationship delivery. The thinking seems to be at odds with the
than a destination — more of a community of trend toward enhancing service in the downturn.
interest around the things being offered by the
business. Now that the tools are available to do The economy has called on consumers to research,
so, forward-thinking stores are co-creating budget, manage time and evaluate options, which
with their customers, giving them opportunity they do via a complex network of information. Every
to engage. point in the network could become the means of a
better shopper relationship.

A BALANCING ACT
FOR PRIVATE BRANDS
In a shopper-centered may think the answer is brand extension, when
product innovation might be the best way to
landscape, more private grow distribution.
labels are vying with Today’s shrinking economy is opening the door
national brand names for more collaboration between retailers and their
manufacturing partners to find a rationalized mix
for shelf space.
that will increase share, save marketing/trade
Spurred by penny-pinching consumers, 2008 saw money and make life easier for the customer.
a 9.3% increase in private and value labels
Department stores have carried their own brands
compared with a 4.5% rise for name brands.
for years as a method of relevant differentiation
Hundreds more private-label items have flooded
and increased margins. This summer, Saks Fifth
onto shelves this year alone, particularly in food.
Avenue devoted a corner window to the store’s
And some mass retailers have found that strategi-
own line of menswear in place of the designer
cally cutting inventory can lift sales and profits,
collection that would normally occupy that spot.
opening more shelf space for house brands.
Bloomingdale’s will put its moniker on a new line
A rush to react to the new marketplace dynamics for men, affordable but still upscale, aiming to
could lead both manufacturers and retailers to attract a new customer. Despite the backlash
make decisions that may weaken their respective against designer goods now perceived as over-
brand equities. For example, a strictly copycat priced, luxury department stores still need the
house brand may only borrow momentum from mystique of European labels. The optimum balance
the famous name beside it on the shelf, rather of national, exclusive and owned brands has
than build equity for its retailer. CPG companies never been more urgent and challenging.
PREDICTION: THE CENTER

STORE WILL DISAPPEAR
Shoppers are going online for commodities.
“Cans are hot!” declared Brandweek magazine in for the customer and the store brand rather
July. For the first time in five years, consumers are than just the vendors?
turning their attention from the supermarket’s fresh
The fact that Amazon.com and Peapod have
and frozen perimeters to the main aisles where
experienced an increase in online ordering
non-perishables are stacked on “shelves and
and delivery of basic, mundane “replenishment”
facings ad nauseum.” There’s not a lot of reason
products has prompted some experts to predict,
to shop it when you can afford not to.
or perhaps just hope, that center store will
As grocery experts point out, the center store disappear, creating a double value-add
hasn’t changed in 100 years. A total re-think is a experience for the consumer.
century overdue. How can that space work better

waiting for the next iPhone to come over the horizon,
retailers are gaining ground through small ideas
with big impact.
Service touches are earning Zappos.com a loyal

following. Sending an e-mail or calling to say the
shoes you want are now in stock in your size, or
secretly upgrading delivery to overnight is
delighting Zappos customers.
Walmart has a “site to store express” for its online

orders that allows unlimited free shipping to the
store of your choice with a small annual fee.
WE’VE GOT American Apparel is enjoying positive results from

its adoption of item-level RFID tagging. Inventory
THE CRISIS. accuracy means being able to keep the retailer’s

sales floors stocked, which helps boost sales, in
WHERE’S THE
one store by an
estimated 15%.
INNOVATION? Sunglass Hut

introduced a new
retail concept called
SocialSun, where
customers snap
photos of themselves
trying on sunglasses,
post them or send
them to friends. It’s
History indicates that game- clear the idea is
changing technologies engaging, as it is encouraging the retailers’
20-something customers to return
or business models appear
to the store.
during downturns.
Some great ideas have come out of company
Where are all the flying cars, personal jet packs and operations, such as Trader Joe’s ability to continu-
robot housemaids promised by modern technology ally source new inexpensive and interesting food.
and downturns? As for innovation in the store, the
Making it easier and simpler for your customers to
last game-changer was the self checkout. Are
be environmentally responsible, appealing to their
there any new ideas?
social concerns, is a small idea with a potentially
Yes, but they fall more into the category of “small big return for the right brand. Patagonia tracks its
and meaningful” than “revolutionary.” Instead of goods from design to distribution to determine

environmental impact and posts the results on its fixed registers and has given all its staff handheld
Web site. It measures water consumption as well as registers so customers don’t need to stand in the
energy consumption, waste, carbon emissions dreaded line.
and distance traveled for some products — perhaps
To encourage savings, Bank of America has a “Keep
starting a trend that other vertical
the Change” check card program, which rounds up
retailers will follow.
purchases to the nearest dollar and transfers the
And for the urban dweller, Best Buy, difference to the customer’s savings account.
the store that never stops innovat-
There are many societal issues caught up in retail
ing, will begin selling the Brammo
today. The credit crunch has people questioning the
electric motorcycle in a few of its
wisdom of their devotion to fast fashion and cool
West Coast stores this year.
consumer electronics. Analysts speculate that the
Apple sends its receipts by e-mail, retail innovations that appear over the next decade
which not only saves paper but will have to respond to a different set of criteria:
allows an additional touchpoint after the sale localization, lower margins, lifestyle shopping and
transaction. The store has also dispensed with sustainable consumption.
RESET OR
RENAISSANCE?
Brand is the business
case for change.
They say you can’t learn from success. So if the
recession has accelerated the failure of mediocrity,
that’s arguably a good thing. It means there’s a lot
of learning going on right now.
Those retailers still battling fear and inertia can

look to brand to help them build a business case for
change. Latent competitive advantages often lie in a
retailer’s most important business asset — the
heart, name and face of the company.
An understanding of how your own brand works

helps determine the way forward in good times and
bad. Its animating principles can help improve
functional alignment. The ideas around a brand that
inspire and endure can become the source of
innovation — and deliver measurable business
results to boot.
Brand can lead the way to a new attitude or a new

design that signals a change in the way business is
being conducted. In a departure from the chain
mentality that has robbed it of some of its cachet in

recent years, Starbucks is looking to blend in better ment without pressure, and be inspired by the
with its local environs. The chain is testing a store’s merchan-
format whereby stores will be named for their dising creativity.
surrounding neighborhood, with the Starbucks Most importantly,
name nowhere to be found. The prototype, called the brand ideals of
15th Avenue Coffee & Tea, is in Seattle and has La Rinascente led
a rustic look. The design is eclectic and raw, to the creation of a
featuring locally sourced and reused materials highly individual
that are one-of-a-kind. identity, one that’s
vivacious and able
In the same vein, a group of 13 department stores
to engage its
in Italy is being redesigned in a way that speaks
patrons who enjoy
perfectly to the power of brand. La Rinascente,
life and beautiful design.
whose name appropriately means rebirth, has
undergone a makeover from “clunky contessa And because the Mediterranean culture is strong
to chic chick.” The first store to be reborn is the on socializing, conviviality is encouraged by the
Milan location right next to the recently restored food hall and stunning restaurants with windows
Duomo cathedral. overlooking the Duomo’s spires. Adding to the
beauty: sales are up 30%.
The transformation is inspiring on every level.
The department store fills a gap in the market- Predictions set the number of U.S. store closures
place, as Italy has little to offer between the this year at 4,600 on top of almost 7,000 last year.
extremely high end and the low cheap-and- In a smaller landscape with tougher competition
cheerful retailers; La Rinascente occupies the for share of wallet, there’s no hiding mediocrity.
middle ground. Its merchandise mix is hip and Remaining stores must work harder and stay
exciting, a perfect match for the fresh contempo- focused on brand experience, which does not
rary pulse of Milano. require mountains of capital or undue risk. The
good news is creativity, innovation and meaningful
It took great courage to gut the building’s 150-year-
change are more possible — and more likely to be
old interior and reorient the traffic flow, in a way
appreciated by the shopper.
that encourages shoppers to explore and experi-

2009 CHAIN STORE AGE 100
TOP U.S. RETAILERS
$1,732,317,025*
APPAREL STORES CONVENIENCE STORES
2.4% 4.4%
WAREHOUSE CLUBS DEPARTMENT STORES
7.5% 6.4%
DISCOUNT STORES
SUPERMARKETS 7.3%
17.9%
new pie chart DRUG STORES
7.7%
SUPERCENTERS to come ELECTRONIC RETAILING

2.9%
15.5%
HARD LINES STORES
10.4%
SHOE STORES
0.5% HOME CENTER
MILITARY EXCHANGES MAIL ORDER
7.4%
1.1% 0.7% INTERNATIONAL OPERATIONS
7.9% *Total revenue for the top 100 retailers
Company/ 2008 2007 2008 2007 Stores

Main Retail Segments/ Revenues Revenues Profits Profits 2008
Fiscal Yearend (000) (000) (000) (000) 2007 Comments
1 Wal-Mart Stores Inc. $405,607,000 $378,476,000 $13,400,000 $12,731,000 7,873 Pressing its suppliers to be more eco-friendly.
Bentonville, AR 7,239 Supports an employer mandate for employee health-
(SC, DS, WC, I, E) 1/31/09 care benefits.
2 The Kroger Co. 76,000,000 70,235,000 1,249,000 1,181,000 3,550 Automated DVD rental kiosks will be added to 2,600
Cincinnati, OH 3,662 supermarkets and convenience stores within the next
(S, CV, HS, SC) 1/31/09 year.
3 Costco 72,483,020 64,400,155 1,282,725 1,082,772 512 Closed its two furniture stores, but started a
Issaquah, WA 488 consumer electronics trade-in and recycling
(WC, I, E) 8/31/08 program.
4 The Home Depot✝ 71,288,000 77,349,000 2,312,000 4,210,000 2,274 As part of turnaround effort, closed doors on Home
Atlanta, GA (HC, I) 2/1/09 2,234 Depot Expo.
5 Target Corp. 64,948,000 63,367,000 2,214,000 2,849,000 1,682 Expanding fresh food and produce mix in 100 stores
Minneapolis, MN 1,591 this year. Launched a new employee wellness initia-
(DS, SC, E) 1/31/09 tive. Defeated proxy battle for board seats waged by
hedge fund Pershing Square.
6 Walgreen Co. 59,034,000 53,762,000 2,157,000 2,041,000 6,934 After a 35-store pilot program, will expand a
Deerfield, IL 5,997 customer-centric store “reinvention” chainwide
(DR) 8/31/08 through 2010.
7 CVS Caremark Corp.** 48,989,900 45,086,500 3,483,700 2,691,300 6,923 Acquired Longs Drug Stores, continues to expand its
Woonsocket, RI 6,301 Minute Clinic in-store healthcare subsidiary.
(DR) 12/31/08
8 Lowe’s Cos. 48,230,000 48,283,000 2,195,000 2,809,000 1,649 Scaling back expansion in 2010 to 35-45 stores.
Mooresville, NC 1,534
(HC, I) 1/30/09
9 Sears Holdings 46,770,000 50,703,000 53,000 826,000 3,918 Testing 20 in-store mini-toy shops. Scored a big hit
Hoffman Estates, IL 3,847 with holiday lay-away and numerous online initiatives
(D, DS, C, I, E) transforming interaction with customers.
1/31/09
10 Best Buy 45,015,000 40,023,000 1,003,000 1,407,000 3,914 Acquired more than 2,400 stores in Europe. Rolling
Richfield, MN 1,314 out 40 freestanding U.S. mobile-phone stores.
(HS, E, I,) 2/28/09
* Estimate ** Retail operations only; operating income reported *** Pro forma results
✝ Continuing operations DNA = Does not apply NA = Not available
AS = Apparel Specialty D = Department E = Electronic HS = Hard Lines Specialty SC = Supercenter
C = Catalog DS = Discount GM = General Merchandise I = International SH = Shoe Store
CV = Convenience Store DR = Drug Store HC = Home Center S = Supermarket WC = Warehouse Wholesale Club
Source: Company reports/Chain Store Age research/Chain Store Guides

Company/ 2008 2007 2008 2007 Stores
11 Safeway $44,104,000 $42,286,000 $965,300 $888,400 1,739 Initiating everyday low pricing program across chain
Pleasanton, CA 1,743 after starting it in Northern California region.
(S, E, I) 1/3/09
12 Supervalu** 34,664,000 34,341,000 –2,315,000 1,550,000 2,421 Remodels planned for 75 to 80 stores this year, but
Eden Prairie, MN 2,474 that’s down about 50% from last year.
(S) 2/28/09
13 Rite Aid 26,289,268 24,326,846 –2,915,420 –1,078,990 4,901 Refinanced most of the debt that was to come due
Camp Hill, PA 5,059 in September 2010.
(DR) 2/28/09
14 Macy’s 24,892,000 26,313,000 –4,803,000 893,000 847 My Macy’s program of tailoring stores to match local
Cincinnati, OH 853 tastes is central to strategy to turn performance
(D,E, C) 1/31/09 around.
15 Publix Super Markets 24,109,584 23,193,590 1,089,770 1,183,925 993 Bulking up its enterprise data warehouse to keep
Lakeland, FL 926 pace with company’s growth and more complex
(S, CV) 2/27/09 analytical needs.
16 Staples 23,083,775 19,372,682 805,264 995,670 2,218 To enhance supply chain productivity, will use work-
Framingham, MA 2,038 force management software to support nearly 1,500
(HS, I,E) 1/31/09 DC workers.
17 Ahold USA** 21,835,000 20,996,000 934,000 875,000 711 Stop & Shop and Giant Food are expanding customer
Chantilly, VA 705 use of mobile handheld self-scanning devices.
(S, E) 12/28/08
18 Delhaize America** 19,222,000 18,293,000 996,321 957,511 1,594 Added a space-optimization tool to improve category
Salisbury, NC 1,570 and shelf performance chainwide.
(S) 12/31/08
19 Amazon.com 19,166,000 14,835,000 645,000 476,000 DNA Buying online shoe retailer Zappos.com for
Seattle, WA DNA $840 million.
(E,I) 12/31/08
20 TJX Cos. 18,999,505 18,336,726 880,617 771,750 2,652 Sold off Bob’s Stores last year. Agreed to multi-
Framingham, MA 2,529 million dollar settlement of data-theft investigations.
(AS, HS, I) 1/31/09
21 J.C. Penney✝ 18,486,000 19,860,000 567,000 1,105,000 1,093 Company returns to Manhattan, this time with an
Plano, TX 1,067 electronic queuing system to handle the Herald
(D, E, C) 1/31/09 Square crowds in store.
22 Kohl’s Department Stores 16,389,000 16,474,000 885,000 1,084,000 1,004 Close to 90 stores have or are slated to have solar-
Menomonee Falls, WI 929 energy generation power.
(D) 1/31/09
23 Alimentation Couche-Tard 15,781,100 15,370,000 3,900 189,300 5,443 In April agreed to acquire ExxonMobil’s 450-unit
Laval, Quebec 5,119 On the Run franchised c-store chain as well as
(CS) 4/26/09 43 company owned stores.
24 7-Eleven* 15,000,000 12,800,000 NA NA 5,680 200 new stores planned this year. Southern California
Dallas, TX 5,333 targeted for 100 new units over next three years.
(CV) 12/31/08
25 Gap Inc. 14,526,000 15,763,000 967,000 833,000 3,149 As part of its resuscitation plan, will remodel 50 Old
San Francisco, CA 3,167 Navy stores.
(AS, E, I) 1/31/09
26 H.E. Butt Grocery Co. 14,500,000 13,500,000 NA NA 338 Placed bill-payment and financial-services kiosks
San Antonio, TX 310 in 26 of its Texas-based stores.
(S,I) 10/31/08
27 Office Depot 14,495,544 15,527,537 –1,478,938 395,615 1,429 North American retail division sales percentage
Delray Beach, FL 1,370 contribution dropped for third year in a row, while
(HS, I, E) 12/27/08 international’s went up.

Company/ 2008 2007 2008 2007 Stores
28 Meijer* $13,900,000 $14,420,000 NA NA 186 Will build a smaller 102,000-sq.-ft. format,
Grand Rapids, MI 181 grocery-focused store in the Chicago suburbs.
(SC) 1/31/09 The store is roughly half the size of a typical Meijer.
29 Toys “R” Us 13,724,000 13,794,000 $218,000 $153,000 1,559 Buying spree this year — acquired FAO Schwarz,
Wayne, NJ 1,560 and Web sites eToys.com, BabyUniverse.com and
(HS, I, E) 1/31/09 ePregnancy.com.
30 Military Exchange System 12,725,592 12,400,000 NA NA 4,028 Includes Army, Air Force, Navy, Marine, Coast Guard
Arlington, VA (GM) 1/31/09 3,815 and Veterans retail services.
31 Dell Computer** 11,529,000 10,378,000 143,000 2,000 DNA Segment revenues comprised 19% of total corporate
Round Rock, TX DNA volume, up from 17% a year ago.
(C,E) 1/30/09
32 Dollar General 10,457,700 9,495,300 108,200 –12,800 8,362 After announcing a chainwide remodeling program,
Goodlettsville, TN 8,194 word has spread that the company may go public.
(DS) 1/30/09
33 BJ’s Wholesale Club 10,027,366 9,014,465 134,583 122,861 180 Signed a five-year agreement to receive IT data
Natick, MA (WC) 1/31/09 177 center and applications-management services.
34 Apple** 9,655,000 6,611,000 NA NA 247 Average store sales increased to $29.9 million from
Cupertino, CA 197 $23.1 million a year earlier.
(HS, E, I) 9/27/08
35 A&P✝ 9,516,186 6,401,130 –86,151 86,980 436 In need of cash to repay borrowings and invest in
Montvale, NJ 447 stores, received added investment from Yucaipa Cos.
(S) 2/28/09 and The Tengelmann Group, A&P’s German-based
majority owner.
36 Limited Brands 9,043,000 10,134,000 220,000 718,000 3,014 Lighting retrofit at five DCs in Columbus, Ohio,
Columbus, OH 2,926 expected to save $775,000 annually in energy
(AS, C, E, I) 1/31/09 and maintenance costs.
37 The Pantry 8,995,626 6,911,163 31,783 26,732 1,653 In June bought 38 convenience stores from Herndon
Sanford, NC (CV) 9/25/08 1,644 Oil Corp.
38 GameStop Corp. 8,805,897 7,093,962 398,282 288,291 6,207 European stores nearly doubled in the last year to
Grapevine, TX 5,264 1,201.
(HS, I, E) 1/31/09
39 QuikTrip* 8,700,000 8,400,000 NA NA 501 Implementing back-office check conversion.
Tulsa, OK (CV) 4/30/09 494
40 Nordstrom 8,573,000 9,080,000 401,000 715,000 169 Entry into Manhattan market will come via a
Seattle 156 Nordstrom Rack in spring 2010.
(D, AS, C, E) 1/31/09
41 OfficeMax 8,267,000 9,082,000 –1,657,900 207,400 1,022 Retail operations equaled 47.9% of sales versus
Naperville, IL 976 52.1% for contract segment.
(HS, E, I) 12/27/08
42 Menards* 8,100,000 8,000,000 NA NA 250 First Kansas store slated for community 80 miles
Eau Claire, WS (HC) 1/31/09 235 north of Wichita.
43 Liberty Media** 8,079,000 7,802,000 1,555,000 1,684,000 6 HSN’s $7.3 billion comprised the bulk of revenues,
Englewood, CO 6 which include contributions from Provide Commerce,
(E, I, GM) 12/31/08 Backcountry.com, Bodybuilding.com and
BuySeasons.com.
44 CDW Corp. 8,071,000 8,145,000 NA NA DNA Will rebound when IT investments rebound.
Vernon Hills, IL DNA
(C, E) 12/31/08
45 Giant Eagle* 8,000,000 7,100,000 NA NA 366 New 87,500-sq.-ft. store design in Western
Pittsburgh, PA 359 Pennsylvania unveiled, as well as Pittsburgh
(S, CV) 6/30/09 expansion of 13,500-sq.-ft. Giant Eagle Express, the
mini-grocery/c-store/pharmacy hybrid.
46 Whole Foods Market 7,953,912 6,591,773 114,524 182,740 275 Topped U.S. Environmental Protection Agency’s
Austin, TX 276 Green Power Partnership list of retailers that
(S) 9/28/08 purchase the most renewable energy.

Company/ 2008 2007 2008 2007 Stores
47 Winn-Dixie✝ $7,281,000 $7,201,000 $13,000 $280,000 521 Computer-generated ordering system will automate
Jacksonville, FL 520 orders, optimize inventory and reduce out-of-stocks,
(S) 6/25/08 and new POS scanners speed up checkout process
and age-verification compliances when scanning
shoppers’ driver’s licenses.
48 Bed Bath & Beyond 7,208,340 7,048,942 425,123 562,808 1,037 One sign that consumer spending remains difficult —
Union, NJ 971 first-quarter 2009 coupon redemptions were up.
(HS) 2/28/09
49 Racetrac Petroleum* 7,000,000 5,800,000 NA NA 533 4,000-sq.-ft. c-store carries more than 4,000 SKUs.
Smyrna, GA 525
(CV) 12/31/08
50 Dillard’s 6,988,440 7,370,806 –241,065 53,761 315 This year off to a better start in first quarter from
Little Rock, AR 326 improved inventory management, expense reduction
(D) 1/31/09 and cash conservation.
51 Family Dollar Stores 6,983,628 6,834,305 233,073 242,854 6,571 Tough economic times driving more consumers to
Charlotte, NC 6,430 its stores, so third-quarter profits jumped 36% over
(DS) 8/30/08 a year ago.
52 AutoZone 6,522,706 6,169,804 641,606 595,672 4,240 Bucking the trend, earnings up 5.8% through the first
Memphis, TN 4,056 three quarters of this year on a 6.3% sales gain.
(HS, I) 8/30/08
53 Ross Stores 6,486,139 5,975,212 305,441 261,051 956 Continues to take advantage of huge buying
Pleasanton, CA 890 opportunities for closeout merchandise.
(AS) 1/31/09
54 Aldi* 6,250,000 6,000,000 NA NA 1,000 Plans to open 80 stores this year including its first
Batavia, IL (S) 1/31/09 900 in New York City.
55 Hy-Vee 6,200,000 5,600,000 NA NA 224 A move into Wisconsin is under way.
West Des Moines, IA 224
(S, DR) 9/30/08
56 Trader Joe’s* 6,000,000 5,400,000 NA NA 305 Ranked second-best supermarket chain by Consumer
Monrovia, CA 297 Reports, and second in customer service by MSN
(S) 6/30/09 Money, but Greenpeace unhappy with its sustainable
seafood policy.
57 Defense Commissary Agency 5,813,245 5,537,505 NA NA 273 Stores in the East record sales about 20% higher
Fort Lee, VA 277 than their western counterparts.
(S) 9/30/08
58 Blockbuster 5,287,900 5,542,400 –374,100 –73,800 7,405 Will rent and sell movies and TV shows through
Dallas 7,830 TiVo’s digital video recorders in the second half of
(HS. I, E) 1/4/09 this year.
59 Foot Locker✝ 5,237,000 5,437,000 –79,000 43,000 3,641 Brought in Ken Hicks, J.C. Penney’s president and
New York, NY 3,785 chief merchandising officer, to become its president
(SH, AS, I, E, C) 1/31/09 and CEO.
60 Advance Auto Parts 5,142,255 4,844,404 238,038 238,317 3,368 To improve inventory control and customer
Roanoke, VA (HS) 1/3/09 3,261 satisfaction, added predictive analysis software.
61 Barnes & Noble 5,121,804 5,286,674 75,920 135,799 778 Even as it scales back store openings, advances
New York, NY 798 digital platform with plans for free WiFi in all stores,
(HS, E) 1/31/09 a new e-book store and an application for the Apple
App Store.
62 Save Mart* 5,100,000 4,600,000 NA NA 245 Using an open-source database to manage the time-
Modesto, CA 248 and-attendance application for its more than 20,000
(S) 3/31/09 employees.
63 PetSmart 5,065,293 4,672,656 192,670 258,684 1,112 Slowing expansion — will open 40 to 42 retail stores
Phoenix, AZ 1,008 and 20 PetsHotels this year.
(HS, E) 2/1/09
64 WaWa* 5,050,000 5,000,000 NA NA 569 Almost 29% of the company is owned by workers
Media, PA 576 through an Employee Stock Ownership Program.
(CV) 12/31/08

Company/ 2008 2007 2008 2007 Stores
65 Albertsons LLC* $5,000,000 $6,100,000 NA NA 260 Remodeling 25 stores in the Dallas-Fort Worth
Boise, ID (S) 2/26/09 325 market.
66 Sheetz 4,900,000 3,900,000 NA NA 350 Incorporating contactless-payment technology
Altoona, PA (CV) 9/30/08 339 in its stores.
67 Sherwin Williams** 4,830,000 4,955,000 647,900 766,000 3,346 Opened 100 stores, closed 79 last year.
Cleveland, OH 3,325
(HS, I) 12/31/08
68 Wegmans Food Markets 4,800,000 4,400,000 NA NA 73 Plans to open two stores in Virginia and one in
Rochester, NY 71 Pennsylvania this year.
(S) 12/31/08
69 Casey’s General Store 4,687,895 4,828,793 85,690 84,891 1,478 Comp-store sales of prepared foods totaled 9.1% in
Ankeny, IA 1,454 last fiscal year compared with 5.9% for merchandise
(CV) 4/30/09 and 1.0% for gallons of gasoline sold.
70 Big Lots Inc. 4,645,283 4,656,302 151,547 158,461 1,339 Plans to open 45 stores in 2009, more than the past
Columbus, OH 1,353 three years combined, including units in more
(DS) 1/31/09 upscale locations.
71 Dollar Tree 4,644,900 4,242,600 229,500 201,300 3,591 Good times keep rolling during bad economic
Chesapeake, VA 3,411 times — this year’s second-quarter comp-store sales
(DS) 1/31/09 increased 6.8%.
72 Neiman Marcus Group 4,600,500 4,390,100 142,800 111,900 69 Internet sales accounted for three-quarters of all
Dallas 60 direct marketing revenues.
(D, C, HS, E) 8/2/08
73 Luxottica Group** 4,572,621 4,431,926 428,663 495,859 6,255 Its Sunglass Hut division opened for business in
Port Washington, NY 6,407 India last year.
(HS, I) 12/31/08
74 RadioShack 4,224,500 4,251,700 192,400 236,800 6,752 Though not changing its corporate name, it’s
Fort Worth, TX 6,670 re-branding itself as “The Shack” with a new
(HS, E, I) 12/31/08 television, print and digital campaign.
75 Dick’s Sporting Goods 4,130,128 3,888,422 –35,094 155,036 487 Looking to take over six Oregon sites from defunct
Pittsburgh, PA 434 Joe’s Sports, Outdoor & More.
(HS) 12/31/08
76 WinCo Foods* 4,000,000 3,500,000 NA NA 65 Expanding into Utah with two stores this year.
Boise, ID (S) 3/30/09 62
77 Roundy’s 4,000,000 4,000,000 NA NA 152 Implemented an enterprise-wide scheduling
Milwaukee, WS 153 solution to smooth inventory replenishment.
(S) 12/31/08
78 Michaels Stores 3,817,000 3,862,000 –5,000 –32,000 1,170 Named ex-Wal-Mart executive Jon Menzer as its
Irving, TX 1,129 new CEO after CEO Brian Cornell left to head up
(HS, E) 1/31/09 Wal-Mart’s Sam’s Club.
79 Stater Bros. Markets 3,741,254 3,674,427 40,630 49,395 165 Rolling out store-level program to turn organic waste
San Bernardino, CA 164 into compost that can be sold to area farmers.
(S) 9/28/08
80 Harris-Teeter** 3,664,804 3,299,377 177,765 154,083 176 New stores are smaller, by about 7%, at
Matthews, NC 164 48,330 sq. ft.
(S) 9/28/08
81 Bass Pro Shops* 3,600,000 3,200,000 NA NA 54 Database of more than 28 million customers receive
Springfield, MO 49 more than 170 pieces of literature a year.
(HS, E, C, I) 12/31/08
82 O’Reilly Automotive 3,576,553 2,522,319 186,232 193,988 3,285 Last July bought CSK and its 1,342 stores to open
Springfield, MO 1,830 in 12 new states.
(HS) 12/31/08

Company/ 2008 2007 2008 2007 Stores
83 Burlington Coat Factory $3,542,000 $3,393,000 NA NA 433 EBITDA through nine months was up 1.5% on a
Warehouse Corp. 397 revenue gain of 4.4%.
Burlington, NJ
(AS, HS) 5/30/09
84 Abercrombie & Fitch 3,540,276 3,749,847 $272,255 $475,697 1,125 Closing down Ruehl division but opened Epic
New Albany, OH 1,035 Hollister flagship store in Manhattan.
(AS, C, E, I) 1/31/09
85 Belk 3,499,423 3,824,803 –212,965 95,740 307 Turning to technology to better manage private-label
Charlotte, NC (D) 1/31/09 303 goods and to control markdowns.
86 Raley's* 3,450,000 3,400,000 NA NA 140 Second company in nation to earn Gold Level
West Sacramento, CA 138 certification from EPA’s GreenChill Partnership for
(S) 6/30/09 green refrigeration technology.
87 Collective Brands 3,442,000 3,035,400 –68,700 42,700 4,877 U.S. Payless stores contributed 63.6% of total
Topeka, KS 4,892 revenue, down from 75.7% as Stride Rite’s
(SH, I) 1/31/09 contribution increased.
88 Price Chopper/Golub Corp.* 3,400,000 3,200,000 NA NA 115 Expanding deployment of labor-management
Schenectady, NY 116 applications.
(S) 4/28/09
89 Williams-Sonoma 3,361,472 3,944,934 30,024 195,757 627 All sales down 14.8% but Internet dropped the least,
San Francisco 600 at 6.4%.
(HS, E, C) 2/1/09
90 Borders Group 3,275,400 3,597,400 –186,700 –157,400 1,021 After cutting HQ executives earlier this year, back on
Ann Arbor, MI 1,064 hiring road with new execs in charge of marketing
(HS, I, E) 1/31/09 revenue, technology, e-commerce systems and
non-book merchandising.
91 Ingles Markets 3,238,046 2,851,593 52,123 58,638 197 Profits tumble because of costs associated with
Black Mountain, NC 197 store openings and remodels.
(S) 9/27/08
92 Bon-Ton Stores 3,225,415 3,468,569 –169,930 11,562 281 Cut more than 1,000 jobs, 2008 senior executive
York, PA 280 bonuses and 2009 merit-based raises to cope with
(D) 1/31/09 slumping sales.
93 The Sports Authority 3,160,000 3,000,000 NA NA 462 Will begin accepting contactless payments at all
Englewood, CO 424 locations in the United States.
(HS, E) 1/28/09
94 Berkshire Hathaway** 3,104,000 3,397,000 163,000 274,000 361 Even the magic touch of Warren Buffett couldn’t
Omaha, NE (HS) 12/31/08 379 stave off lower sales and earnings.
95 Ikea U.S.* 3,100,000 2,700,000 NA NA 34 Ten percent of Ikea's global sales come from U.S.
Conshohocken, PA 31 customers.
(HS, C, E) 8/31/08
96 Systemax 3,032,961 2,779,875 52,843 69,481 16 Primarily a direct marketer of technology products,
Port Washington, NY 0 Systemax bought CompUSA’s e-commerce and 16
(E, I, HS) 12/31/08 of its retail leases.
97 Saks Inc.✝ 3,029,743 3,224,076 –122,767 50,687 104 Discontinued Club Libby Lu in January; created
New York, NY 102 one of the more frenzied holiday sales periods by
(D, E) 1/31/09 drastically discounting designer fashions.
98 Tractor Supply Co. 3,007,949 2,703,212 81,930 96,241 855 Sees opportunity for some 600 more stores in the
Brentwood, TN 764 United States.
(GM) 12/27/08
99 Susser Holdings** 2,880,584 1,655,969 NA NA 512 Claims to be largest non-refinery c-store operator
Corpus Christi, TX 504 in Texas based on store count. Also has stores in
(CV) 12/28/08 New Mexico and Oklahoma.
100 HSN 2,823,593 2,908,242 –2,390,888 164,804 DNA Spun off from IAC/InterActiveCorp in May 2008.
St. Petersburg, FL DNA
(E, I, C) 12/31/08

CHAIN STORE AGE 100
ALPHABETICAL LISTING BY COMPANY NAME
2008 Revenues 2008 2008 Revenues 2008

Company (000) Rank Company (000) Rank
A&P✝ $9,516,186 35 Limited Brands 9,043,000 36
Abercrombie & Fitch 3,540,276 84 Lowe’s Cos. 48,230,000 8
Advance Auto Parts 5,142,255 60 Luxottica Group** 4,572,621 73
Ahold USA** 21,835,000 17 Macy’s 24,892,000 14
Albertsons LLC* 5,000,000 65 Meijer* 13,900,000 28
Aldi* 6,250,000 54 Menards* 8,100,000 42
Alimentation Couche-Tard 15,781,100 23 Michaels Stores 3,817,000 78
Amazon.com 19,166,000 19 Military Exchange System 12,725,592 30
Apple** 9,655,000 34 Neiman Marcus Group 4,600,500 72
AutoZone 6,522,706 52 Nordstrom 8,573,000 40
Barnes & Noble 5,121,804 61 Office Depot 14,495,544 27
Bass Pro Shops* 3,600,000 81 OfficeMax 8,267,000 41
Bed Bath & Beyond 7,208,340 48 O’Reilly Automotive 3,576,553 82
Belk 3,499,423 85 The Pantry 8,995,626 37
Berkshire Hathaway** 3,104,000 94 PetSmart 5,065,293 63
Best Buy 45,015,000 10 Price Chopper/Golub Corp.* 3,400,000 88
Big Lots Inc. 4,645,283 70 Publix Super Markets 24,109,584 15
BJ’s Wholesale Club 10,027,366 33 QuikTrip* 8,700,000 39
Blockbuster 5,287,900 58 Racetrac Petroleum* 7,000,000 49
Bon-Ton Stores 3,225,415 92 RadioShack 4,224,500 74
Borders Group 3,275,400 90 Raley’s* 3,450,000 86
Burlington Coat Factory Warehouse Corp. 3,542,000 83 Rite Aid 26,289,268 13
Casey’s General Store 4,687,895 69 Ross Stores 6,486,139 53
CDW Corp. 8,071,000 44 Roundy’s 4,000,000 77
Collective Brands 3,442,000 87 Safeway 44,104,000 11
Costco 72,483,020 3 Saks Inc.✝ 3,029,743 97
CVS Caremark Corp.** 48,989,900 7 Save Mart* 5,100,000 62
Defense Commissary Agency 5,813,245 57 Sears Holdings 46,770,000 9
Delhaize America** 19,222,000 18 7-Eleven* 15,000,000 24
Dell Computer** 11,529,000 31 Sheetz 4,900,000 66
Dick’s Sporting Goods 4,130,128 75 Sherwin Williams** 4,830,000 67
Dillard’s 6,988,440 50 The Sports Authority 3,160,000 93
Dollar General 10,457,700 32 Staples 23,083,775 16
Dollar Tree 4,644,900 71 Stater Bros. Markets 3,741,254 79
Family Dollar Stores 6,983,628 51 Supervalu** 34,664,000 12
Foot Locker✝ 5,237,000 59 Susser Holdings** 2,880,584 99
GameStop Corp. 8,805,897 38 Systemax 3,032,961 96
Gap Inc. 14,526,000 25 Target Corp. 64,948,000 5
Giant Eagle* 8,000,000 45 TJX Cos. 18,999,505 20
H.E. Butt Grocery Co. 14,500,000 26 Toys “R” Us 13,724,000 29
Harris-Teeter** 3,664,804 80 Tractor Supply Co. 3,007,949 98
The Home Depot✝ 71,288,000 4 Trader Joe’s* 6,000,000 56
HSN 2,823,593 100 Walgreen Co. 59,034,000 6
Hy-Vee 6,200,000 55 Wal-Mart Stores Inc. 405,607,000 1
Ikea U.S.* 3,100,000 95 WaWa* 5,050,000 64
Ingles Markets 3,238,046 91 Wegmans Food Markets 4,800,000 68
J.C. Penney✝ 18,486,000 21 Whole Foods Market 7,953,912 46
Kohl’s Department Stores 16,389,000 22 Williams-Sonoma 3,361,472 89
The Kroger Co. 76,000,000 2 WinCo Foods* 4,000,000 76
Liberty Media** 8,079,000 43 Winn-Dixie✝ 7,281,000 47
* Estimate ** Retail operations only *** Pro forma results ✝ Continuing operations

RETAIL CONGLOMERATES
DIVISION BREAKOUTS
2008 Sales 2008 2008 Sales 2008

Company (000 omitted) Stores Company (000 omitted) Stores
Abercrombie & Fitch $3,540,276 1,125 Military Exchange System $12,725,592 4,028
Abercrombie & Fitch 1,531,480 356 Army/Air Force (AAFES) 8,876,580 3,100
Hollister 1,514,204 515 Navy (NEXCOM) 2,648,317 543
Abercrombie 420,518 212 Marine Corps (MCX) 885,626 151
RUEHL 56,218 28 Veterans Canteen Service (VCS) 180,000 172
Gilly Hicks 17,856 14 Coast Guard (CGES) 135,069 62
Ahold USA $21,835,000 711

Neiman Marcus Group $4,600,500 41
Stop & Shop/Giant Landover 17,097,000 563
Neiman Marcus/Last Call 3,275,500 64
Giant-Carlisle/Tops 4,738,000 148
Bergdorf Goodman 580,000 2
Best Buy $45,015,000 3,942 Internet 562,000 DNA
Best Buy-U.S., Best Buy Mobile, Pacific Sales, Catalog 182,000 DNA
Magnolia Audio Video, Geek Squad 35,070,000 1,107
Best Buy-Europe, Canada, China, Mexico, Borders Group $3,242,100 1,021
Mobile Canada, Future Shop, Five Star 9,945,000 2,835 Borders Superstores 2,625,400 515
Waldenbooks 480,000 386
Charming Shoppes $2,474,900 2,301 International 136,700 120
Lane Bryant 1,111,900 892
Fashion Bug 843,800 897
Sears Holdings $46,770,000 3,918
Catherines 312,100 463
Sears (U.S.) 25,315,000 2,162
Petite Sophisticate 24,300 49
Kmart 16,219,000 1,368
Sears (Canada) 5,236,000 388
Chico’s FAS $1,582,405 1,076
Chico’s/Soma and outlet stores 1,074,939 731
White House/Black Market and outlet stores 436,875 345 Target Corp. $62,884,000 1,682
Catalog/Internet 70,591 DNA Target* 50,000,000 1,443
SuperTarget* 12,800,000 239
Barnes & Noble $5,121,804 778
Barnes & Noble 4,525,020 726
TJX Corp. $18,999,505 2,652
B. Dalton 67,525 52
MarMaxx (T.J. Maxx/Marshalls) 12,362,122 1,680
Barnes & Noble.com 466,082 DNA
T.K. Maxx (Europe) 2,242,057 242
Coldwater Creek 1,024,221 348
Winners/Home Sense (Canada) 2,139,443 277
Retail and outlet stores 751,352 348
HomeGoods 1,578,286 318
Internet 211,300 DNA
A.J. Wright 677,597 135
Catalog 61,600 DNA
Gap $14,526,000 3,149 Toys “R” Us $13,724,000 1,559

Old Navy North America 5,232,000 1,067 Toys “R” Us (U.S. stores) 5,900,000 584
Gap North America 4,169,000 1,193 Toys “R” Us (International stores) 5,244,000 713
Banana Republic North America 2,367,000 573 Babies “R” Us 2,580,000 262
Gap International (Europe/Asia) 1,728,000 316
Internet 1,030,000 DNA Wal-Mart $401,244,000 7,873
Supercenters (U.S.) 220,000,000 2,612
J. Crew $1,428,000 300
International 98,600,000 3,615
J. Crew stores 974,300 300
Discount Stores (U.S.) 32,400,000 891
Internet 338,200 DNA
Sam’s Club 46,900,000 602
Catalog 70,700 DNA
Neighborhood Markets 3,300,000 153
Limited Brands $9,043,000 3,014
Victoria’s Secret stores 3,590,000 1,043 Williams-Sonoma $3,361,472 627
Bath & Body Works 2,374,000 1,638 Stores 1,962,498 627
Victoria’s Secret Direct 1,523,000 DNA Internet 1,033,400 DNA
La Senza 491,000 322 Catalog 365,574 DNA
Source: Company reports/Chain Store Age research * Estimate DNA: Does not apply

CHAIN PERFORMANCE
CONVENIENCE STORES
Fiscal 2008 % % Change Gross Margin Average Sales % Change
Year Sales (000) Change Sales Gross Margin % of Sales per Store Comp-store Sales
End Merchandise Merchandise Merchandise Merchandise Merchandise Merchandise
Company Only Only Only Only Only Only
Casey’s General Store 4/30/09 $1,010,018 7.1% 8.4% 33.5% $688,962 5.9%
The Pantry 9/25/08 1,636,700 3.9 1.6 36.4 992,842 –1.7
Speedway SuperAmerica 12/31/08 2,838,000 1.5 1.6 25.2 1,744,851 NA
Susser Holdings 12/28/08 729,857 64.3 73.4 34.3 1,436,726 6.6
Valero-U.S. 12/31/08 1,097,000 7.1 7.9 29.9 1,117,677 NA
Composite 2008 7,311,575 7.8 8.6 30.5 1,173,513 —
Notes: Operating income is defined as sales less cost of goods sold less selling, general and administrative expenses and store opening/closing expenses.
Average store sales is computed by dividing sales by the average number of stores open at the beginning and end of the fiscal year. NA = Not available
Source: Company reports/Chain Store Age research
DEPARTMENT STORES
Fiscal 2008 % % Change Operating Average % Change Operating
Year Sales Change Operating Income as % Sales per Comp- Income as % of
Company End (000) Sales Income of Sales Store Stores Total Assets
Belk 1/31/09 $3,499,423 –8.5% –40.9% 3.5% $11,473,518 –8.7% 4.8%
Bon-Ton 1/31/09 3,129,967 –7.0 –58.8 2.0 11,158,528 –7.4 3.4
Dillard’s 1/31/09 6,830,543 –5.2 –97.1 0.1 21,312,147 –7.0 0.2
J.C. Penney 1/31/09 18,486,000 –6.9 –33.0 8.2 17,116,667 –8.5 12.7
Macy’s 1/31/09 24,892,000 –5.4 –41.6 4.9 29,284,706 –4.6 5.5
Neiman Marcus* 8/2/08 4,600,500 4.8 –0.2 13.5 71,325,581 1.7 NA
Composite 2008 61,438,433 –5.4 –36.9 5.8 21,182,014 — 7.1
Average store sales is computed by dividing sales by the average number of stores open at the beginning and end of the fiscal year. *Department stores only NA = Not available
DRUG STORES
CVS Caremark Corp. 12/31/08 $48,989,900 8.7% 29.4% 7.1% $7,409,241 4.5% 12.3%
Duane Reade 12/27/08 1,774,029 5.2 12.2 3.7 7,196,872 4.2 9.2
Rite Aid 2/28/09 26,289,268 8.1 DNA DNA 5,278,969 0.8 DNA
Walgreen 8/31/08 59,034,000 9.8 9.2 5.8 9,130,616 4.0 15.4
Composite 2008 136,087,197 9.0 10.9 5.0 7,434,834 — 11.3
Average store sales is computed by dividing sales by the average number of stores open at the beginning and end of the fiscal year.
Source: Company reports/Chain Store Age research DNA: Does not apply because of a negative result in either 2008 or 2007.
FAMILY APPAREL STORES

Gap 1/31/09 $14,526,000 –7.9% 17.7% 10.7% $4,599,747 –12.0% 20.5%
J. Crew* 1/31/09 974,284 6.5 NA NA 3,479,586 –4.0 NA
Polo Ralph Lauren* 3/28/09 1,936,500 1.3 –47.0 5.6 6,013,975 –5.2 11.2
Stage Stores 1/31/09 1,515,820 –1.9 –42.2 3.4 2,115,590 –6.1 6.8
Stein Mart 1/31/09 1,326,469 –9.0 DNA DNA 4,771,471 –10.9 DNA
Composite 2008 20,279,073 –6.1 1.6 7.9 4,265,238 — 16.5
Average store sales is computed by dividing sales by the average number of stores open at the beginning and end of the fiscal year. * Store operations only
Source: Company reports/Chain Store Age research NA = Not available DNA: Does not apply because of a negative result in either 2008 or 2007.

FULL-LINE DISCOUNT STORES
Duckwall-ALCO 2/1/09 $490,021 1.7% –56.8% 1.2% $1,956,172 –5.1% 2.9%
Kmart 1/31/09 16,219,000 –6.0 –37.9 2.0 11,795,636 –6.1 5.4
Target* 1/31/09 62,884,000 2.3 –1.6 9.4 38,425,909 –2.9 13.4
Wal-Mart** 1/31/09 255,700,000 6.8 7.1 7.3 70,968,637 3.5 22.2
Composite 2008 335,293,021 5.2 3.9 7.4 48,840,935 — 18.6
*Discount stores and supercenters **Discount stores, supercenters and neighborhood markets
HARD LINES STORES

Year Sales Change Operating Income as Sales per Comp- Income as % of
Company End (000) Sales Income % of Sales Store Stores Total Assets
Best Buy* 2/28/09 $35,070,000 5.2% –12.1% 5.0% $33,753,609 –1.3% 19.4%
HH Gregg 3/31/09 1,396,678 11.1 6.6 6.2 13,897,294 –8.3 24.6
RadioShack 12/31/08 4,224,500 –0.6 –15.3 9.8 629,489 –0.6 18.1
Rex Stores 1/31/09 162,404 –16.6 –89.2 0.7 1,584,429 –10.3 1.4
Composite 2008 40,853,582 4.7 –12.4 5.5 5,136,877 — 19.2
Big 5 Sporting Goods 12/28/08 864,650 –3.8 –47.9 3.2 2,324,328 –7.0 7.1
Cabela’s ** 12/27/08 1,283,148 23.3 10.8 11.0 45,826,714 –3.7 14.3
Dick’s Sporting Goods 12/31/08 4,130,128 6.2 –27.6 4.7 8,968,790 –4.8 9.9
Gander Mountain 12/31/08 1,064,569 9.8 DNA 0.9 9,217,048 –5.6 1.6
Hibbett Sporting Goods 1/31/09 564,188 8.4 3.2 11.0 787,422 0.5 26.5
Sport Chalet 3/29/09 372,652 –7.4 DNA DNA 7,031,170 –12.4 DNA
Composite 2008 7,414,685 8.7 –14.8 5.2 5,398,387 — 9.8
Advance Auto Parts 1/3/09 5,142,255 6.2 –0.4 8.1 1,551,442 1.5 14.0
AutoZone 8/30/08 6,522,706 5.7 6.5 17.2 1,572,494 0.4 21.4
O’Reilly Automotive 12/31/08 3,576,553 41.8 10.0 9.4 1,398,457 1.5 8.0
Pep Boys 1/31/09 1,927,788 –9.8 DNA DNA 3,430,228 –8.0 DNA
Composite 2008 17,169,302 9.5 6.3 10.8 1,622,501 — 13.3
Bed Bath & Beyond 2/28/09 7,208,340 2.3 –19.6 9.3 7,179,622 –2.4 15.8
HomeGoods (TJX Cos.) 1/31/09 1,578,286 6.6 –44.4 2.7 5,296,601 –3.0 9.3
Composite 2008 8,786,626 3.0 –21.7 8.2 6,720,173 — 15.2
A.C. Moore 1/3/09 534,665 –4.5 –534.5 DNA 4,050,492 –9.0 DNA
Build-A-Bear Workshop 1/3/09 467,861 –1.4 –80.8 1.4 1,402,882 –14.0 2.1
Jo-Ann Stores 1/31/09 1,901,100 1.2 6.4 5.0 2,472,172 0.5 16.8
Composite 2008 2,903,626 –0.3 –39.5 2.7 2,352,066 — —
Cost Plus 1/31/09 1,000,434 0.5 DNA DNA 3,368,465 –2.6 DNA
Pier 1 Imports 2/28/09 1,320,700 –12.6 DNA DNA 1,195,204 –9.2 DNA
Williams-Sonoma** 2/1/09 1,962,498 –14.0 –59.9 7.2 3,198,856 –17.2 13.4
Composite 2008 4,283,632 –10.6 –110.1 –0.6 2,125,345 — —
Source: Company reports/Chain Store Age research DNA: Does not apply because of a negative result in either 2008 or 2007. *U.S. stores only **Retail stores only

CHAIN PERFORMANCE
JUNIOR APPAREL STORES

Abercrombie & Fitch* 1/31/09 $1,531,480 –6.6% NA NA $4,283,860 –8.0% NA
Aeropostale 1/31/09 1,885,531 18.5 19.7% 13.2 2,164,789 8.0 37.7%
American Eagle Outfitters 1/31/09 2,988,866 –2.2 –38.8 14.5 2,867,018 –10.0 22.1
Buckle 1/31/09 792,046 27.8 48.0 20.5 2,098,135 20.6 34.9
Charlotte Russe 9/27/08 823,252 11.1 –37.6 4.1 1,791,626 –1.5 8.7
Hollister (A&F)*** 1/31/09 1,514,204 –4.7 NA NA 3,138,247 –17.0 NA
Hot Topic 1/31/09 761,074 4.5 26.9 4.0 905,501 1.0 8.3
Pacific Sunwear of California 1/31/09 1,254,886 –3.9 DNA DNA 1,330,738 –5.2 DNA
Urban Outfitters** 1/31/09 1,724,558 22.0 35.7 17.3 6,399,102 7.8 NA
Wet Seal 1/31/09 592,960 –3.0 52.3 6.4 1,197,899 –8.5 14.7
Zumiez 1/31/09 408,669 7.2 –36.8 6.0 1,301,494 –6.5 10.5
Composite 2008 14,277,526 4.4 –17.1 8.5 2,212,712 — 24.6
*A&F division only **Retail operations only ***Hollister division only NA = Not available DNA: Does not apply because of a negative result in either 2008 or 2007.
LIMITED-ASSORTMENT DISCOUNT STORES

Big Lots 1/31/09 $4,645,283 –0.2 2.6% 7.2% $3,451,176 0.5% 23.3%
Dollar General 1/30/09 10,457,700 10.1 71.1 5.9 1,263,312 9.0 6.9
Dollar Tree 1/31/09 4,644,900 9.5 10.8 7.9 1,326,735 4.1 18.0
Family Dollar 8/30/08 6,983,628 2.2 –6.0 5.2 1,074,322 1.2 13.7
Fred’s 1/31/09 1,798,840 1.0 17.0 2.9 2,702,990 1.8 9.7
Composite 2008 28,530,351 5.6 19.6 6.1 1,406,059 — 11.1
OFF-PRICE APPAREL STORES

CitiTrends 1/31/09 $488,202 11.6% 25.8% 8.1% $1,444,385 0.0% 16.3%
Marmaxx (TJX)* 1/31/09 12,362,122 3.3 –0.2 9.3 7,485,390 0.0 32.7
Men’s Wearhouse 1/31/09 1,972,418 –6.6 –60.4 4.6 1,536,750 –9.0 7.6
Ross Stores 1/31/09 6,486,139 8.6 17.6 7.6 7,027,236 2.0 21.0
Syms 2/28/09 242,000 –9.4 –61.2 1.6 7,682,540 –7.9 1.8
A.J. Wright (TJX) 1/31/09 677,597 7.1 DNA 0.4 5,133,311 4.0 1.2
Composite 2008 22,228,478 3.9 –3.2 8.0 5,549,838 — 23.0
Source: Company reports/Chain Store Age research * Marshalls and T.J. Maxx only DNA: Does not apply because of a negative result in 2008 or 2007.

SUPERMARKETS
A&P 2/28/09 $9,516,186 48.7% DNA DNA $21,554,215 2.0% DNA
Ahold USA-Stop&Shop/
Giant Landover 12/28/08 17,097,000 2.4 5.9% 4.1% 30,448,798 2.1 8.7%
Ahold USA-Giant Carlisle 12/28/08 4,738,000 10.0 9.4 4.9 32,341,297 5.4 14.0
Delhaize America 12/31/08 19,222,000 5.1 4.1 5.2 12,150,442 2.5 10.1
Harris-Teeter 9/28/08 3,664,804 11.1 15.4 4.9 21,557,671 2.9 13.6
Ingles Markets 9/27/08 3,238,046 13.6 –0.6 3.8 16,436,782 13.5 8.8
Nash Finch* 1/3/09 602,457 1.8 13.8 4.7 10,387,189 0.1 28.4
Penn Traffic 1/31/09 926,700 –7.4 –8.9 3.2 9,964,516 –1.7 15.3
Publix 12/27/08 23,929,064 4.0 –5.6 5.8 24,939,097 1.3 17.1
Safeway 1/3/09 44,104,000 4.3 4.5 4.2 25,332,567 1.5 10.6
Stater Bros. 9/28/08 3,741,254 1.8 –6.9 4.5 22,743,185 2.5 13.2
Supervalu* 2/28/09 34,664,000 0.9 DNA DNA 14,163,023 –1.2 DNA
Village Super Markets 7/26/08 1,127,762 7.8 12.3 4.7 46,990,083 2.5 17.3
Weis Markets 12/27/08 2,422,361 4.5 –9.8 2.8 13,165,005 4.3 8.0
Whole Foods Market 9/28/08 7,953,912 20.7 –20.6 3.0 28,870,824 4.9 7.0
Winn-Dixie 6/25/08 7,281,000 1.1 DNA 0.3 13,988,473 0.9 1.4
Composite 2008 184,228,546 5.9 –50.4 2.0 19,258,681 — 5.0
*Retail operations only
Source: Company reports/Chain Store Age research DNA: Does not apply because of a negative result in either 2008 or 2007.
WHOLESALE CLUBS
BJ’s Wholesale Club 1/31/09 $10,027,366 11.2% 13.2% 2.2% 56,175,720 9.4% 10.9%
Costco 8/31/08 70,977,484 12.5 22.4 2.8 141,954,968 8.0 9.5
Sam’s Club 1/31/09 46,854,000 5.6 –0.5 3.4 78,548,198 4.8 13.0
Composite 2008 127,858,850 9.8 11.0 3.0 100,281,451 — 10.8
WOMEN’S APPAREL STORES

Ann Taylor 1/31/09 $2,194,559 –8.4% –97.8% 0.2% $2,354,677 –14.8% 0.4%
Caché 12/27/08 265,728 –3.2 DNA DNA 896,216 –4.3 DNA
Cato Corp. 1/31/09 845,676 1.4 9.5 6.6 650,770 –1.0 12.9
Charming Shoppes* 1/31/09 2,292,106 –11.5 –51.5 4.8 973,293 –12.0 15.0
Chico’s FAS 1/31/09 1,582,405 –7.7 DNA DNA 1,497,072 –15.1 DNA
Christopher & Banks 2/28/09 530,742 –5.4 –71.1 3.1 642,545 –12.0 5.8
Coldwater Creek* 1/31/09 751,352 –3.1 –60.3 4.0 2,089,992 NA NA
Dress Barn 7/26/08 1,444,165 1.2 –19.9 11.1 985,442 –2.9 15.7
New York & Company 1/31/09 1,139,853 –4.6 DNA DNA 1,953,476 –8.6 DNA
Composite 2008 11,046,586 –6.1 –64.9 3.1 1,204,053 — 6.5
*Retail store operations only NA = Not available DNA: Does not apply because of a negative result in either 2008 or 2007
Source: Company reports/Chain Store Age research .

ACKNOWLEDGMENTS
For more than 30 years we have been creating retail brand experiences for companies
around the world.
Interbrand Design Forum’s talent for game-changing innovation spurred us to create a business
model that integrates analytics-based strategy into what began as a design and architecture
group — the first and only company with such a comprehensive offering. This unique ability to
address retail’s growing complexity led many of the world’s top companies to our doorstep and
propelled Interbrand Design Forum to the forefront of the industry.
In 2008, we added Interbrand to our Design Forum name to reflect our place in the world’s largest
branding consultancy; we have been part of Interbrand since 2002. Today, we have 1,200 associates
in almost 40 offices around the globe and a practice that brings together a diverse team of insightful
right- and left-brain thinkers. This deep talent pool makes our business both rigorously analytic and
highly creative.
As a result, we have changed the dialogue, defined the meaning of brand management, and continue
to lead the debate around brand as a valuable business asset and what that means to retailers. By
making brand central to our clients’ strategic business goals, we help them create, manage and
grow the value of their brands.
For information about Interbrand Design Forum, visit www.interbranddesignforum.com or contact:

Lee Carpenter, CEO, lee.carpenter@interbrand.com
Bruce Dybvad, COO/President, bruce.dybvad@interbrand.com
Lynn Gonsior, CMO/Executive Vice President, lynn.gonsior@interbrand.com
Scott Smith, Senior Vice President/Executive Consultant, scott.smith@interbrand.com
The mailing address is: 7575 Paragon Road, Dayton, Ohio, 45459, 937-439-4400
Chain Store Age is the leading publication serving retail headquarters management.
Its reach and coverage extends across the entire spectrum of the industry, from discount
stores and apparel stores to department stores and hard lines stores to multi-site
restaurants and shopping center owners and developers.
A trusted source of news, information and analysis for more than 80 years,
Chain Store Age reports and analyzes trends and developments in the following areas:
• Corporate strategies • Store planning and design

• Technology • Facilities management
• E-commerce • Construction
• Supply chain • Real estate development and leasing
• Operations
Online, chainstoreage.com covers the industry 24/7, with daily retail news updates, breaking news,
interactive media, detailed reports, expert analysis and category-specific e-newsletters, including
TechTalk Tuesday, SiteTalk and SPECS Talk, as well as a weekly news roundup.
Chain Store Age produces the annual SPECS conference, the industry’s premier event dedicated
to store planning and design, construction and facilities management (specsshow.com). It also
produces Executive SPECS, a management development and networking event for senior-level
executives involved in store planning, construction, facilities, operations and real estate, and the
Retail Store of the Year design competition.
For more information on Chain Store Age, contact Gary Esposito, associate publisher,
212-756-5118, gesposito@chainstoreage.com. The mailing address is:
Chain Store Age, 425 Park Avenue, New York, NY, 10022.

Chain Store Age State of The Industry Report 2009

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Chain Store Age State of The Industry Report 2009

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AUGUST/SEPTEMBER 2009

The recent economic shock has left the industry

CONTENTS 5A Have People Changed for Good?

6A Getting the Store Back on Track

7A Enhanced Store Experiences Add Value

10A New Retail Plays

13A The Rise of Shopper Marketing

14A Analytics, Insights and Design

15A A Retail Experience Is the Sum of Its Touchpoints

16A A Balancing Act for Private Brands

17A We’ve Got the Crisis. Where’s the Innovation?

18A Reset or Renaissance?

20A 2009 Chain Store Age 100: Top U.S. Retailers

2A chainstoreage.com CHAIN STORE AGE, AUGUST/SEPTEMBER 2009

CHAIN STORE AGE, AUGUST/SEPTEMBER 2009 chainstoreage.com 3A

perception of what makes a retail brand. It’s no

4A chainstoreage.com CHAIN STORE AGE, AUGUST/SEPTEMBER 2009

Yes. Frugality is here to stay. No. Americans spend to enjoy life.

CHAIN STORE AGE, AUGUST/SEPTEMBER 2009 chainstoreage.com 5A

The Home Depot views the economic downturn

GETTING of a recovery, they will find knowledgeable service

Macy’s CEO Terry Lundgren concurs. “There’s no

BACK resistance to trying new things; everyone is anxious

6A chainstoreage.com CHAIN STORE AGE, AUGUST/SEPTEMBER 2009

Almost any retailer can find a way to add value to

CHAIN STORE AGE, AUGUST/SEPTEMBER 2009 chainstoreage.com 7A

Price is part, but not all, of the value message

8A chainstoreage.com CHAIN STORE AGE, AUGUST/SEPTEMBER 2009

VALUE STORES ENJOY

Discount giant Walmart is attracting more affluent consumers. Seventeen percent

CHAIN STORE AGE, AUGUST/SEPTEMBER 2009 chainstoreage.com

Is it bad timing or good

RETAIL ing to see if P&G keeps the chain small to preserve

Continued on page 12A

10A chainstoreage.com CHAIN STORE AGE, AUGUST/SEPTEMBER 2009

CHAIN STORE AGE, AUGUST/SEPTEMBER 2009 chainstoreage.com 11A

Big ideas are often small.

12A chainstoreage.com CHAIN STORE AGE, AUGUST/SEPTEMBER 2009

CHAIN STORE AGE, AUGUST/SEPTEMBER 2009 chainstoreage.com 13A

But the real breakthrough is realizing the impor-

14A chainstoreage.com CHAIN STORE AGE, AUGUST/SEPTEMBER 2009

A RETAIL EXPERIENCE IS THE

CHAIN STORE AGE, AUGUST/SEPTEMBER 2009 chainstoreage.com 15A

PREDICTION: THE CENTER

16A chainstoreage.com CHAIN STORE AGE, AUGUST/SEPTEMBER 2009

Service touches are earning Zappos.com a loyal

Walmart has a “site to store express” for its online

WE’VE GOT American Apparel is enjoying positive results from

THE CRISIS. accuracy means being able to keep the retailer’s

INNOVATION? Sunglass Hut

CHAIN STORE AGE, AUGUST/SEPTEMBER 2009 chainstoreage.com 17A

Those retailers still battling fear and inertia can

An understanding of how your own brand works

Brand can lead the way to a new attitude or a new

18A chainstoreage.com CHAIN STORE AGE, AUGUST/SEPTEMBER 2009

CHAIN STORE AGE, AUGUST/SEPTEMBER 2009 chainstoreage.com 19A

SUPERCENTERS to come ELECTRONIC RETAILING

Company/ 2008 2007 2008 2007 Stores

20A chainstoreage.com CHAIN STORE AGE, AUGUST/SEPTEMBER 2009

CHAIN STORE AGE, AUGUST/SEPTEMBER 2009 chainstoreage.com 21A

22A chainstoreage.com CHAIN STORE AGE, AUGUST/SEPTEMBER 2009

CHAIN STORE AGE, AUGUST/SEPTEMBER 2009 chainstoreage.com 23A