Overseas investment fuels Wal-Mart growth
US retailers vying for share
July 5 2002
The battle for the hearts and minds of US consumers has seen an increasing number of retailers cross over into rival product areas.
The 2002 Triversity Top 100 Retailers ranking, published in the National Retail Federation’s Stores magazine, shows a US retail landscape “irrevocably changed by the world’s largest retailer,” according to publisher Rick Gallagher.
Wal-mart’s success with new products and formats has spurred other retailers into expanding their offer. “This past year, the cross-category and cross-format race definitely heated up. The current Top 100 ranking shows grocery stores battling discount supercentres, while drug stores go head-to-head with them both. Department stores strive to reinvent themselves, and apparel retailers try to combat falling prices and merchandising missteps. There is no doubt that for retailers and the nation, 2001 was a challenging year both economically and emotionally,” said Gallagher.
Wal-Mart once again heads the list as largest retailer, with 2001 sales of $219bn, a 13.7 per cent increase over the previous year. Growth was driven by expansion into foreign food markets, as well as merchandise and format changes.
DIY retailer Home Depot is number two with sales of $53bn, pushing food retailer Kroger to drop to number three. Sears, Roebuck held onto fourth position, but both Home Depot and competitor Lowe’s (at number 14) are determined to steal market share from Sears in the major appliance segment.
Target replaces Kmart at number 5, with the toubled rival falling to seventh place. Albertson’s hung onto sixth position by selling off stores and exiting markets, while Costco moved up two notches to eighth, ahead of Safeway at ninth, and pushing JCPenney down to the tenth.
