Share this on

Top 25 toy retailers

By Staff -- Gifts and Dec, 11/1/2004 12:00:00 AM

Led by number-one Wal-Mart, the discount department store channel dominates the Top 25. Wal-Mart alone comprises nearly one-third of the Top 25 and the channel as a whole accounts for nearly half. Discounters pulled in $14.4 billion last year in playthings sales, an increase of 6.7 percent over 2002.

Entertainment and electronics specialists were successful last year, taking advantage of the video game market. The channel garnered $4.1 billion in 2003 playthings sales, a 14.2 percent increase from 2002. Led by number five GameStop, the group increased its market share of the Top 25 from 13 percent in 2002 to 14 percent last year.

Toy specialists comprise 29 percent of the Top 25 and recorded $8.4 billion in sales, a decrease of 8.8 percent from 2002. Number 18 Build-A-Bear Workshop experienced the largest percentage increase in playthings sales for the Top 25 at 18.8 percent. The Saint Louis-based specialist opened a net of 17 stores last year and filed a notice with the Securities and Exchange Commission in August announcing plans to go public.

How the list is compiled

Playthings' exclusive survey of the Top 25 Playthings Giants ranks the Top 25 U.S. retailers by their estimated 2003 playthings sales. Retailers were considered for the ranking if they carry more than one toy category.

Retailers are ranked by their estimated 2003 sales of both traditional toys and electronic interactive toys and video and computer games. In some cases, because of the way a number of retailers organize their departments, sales figures may include a portion of sales for sporting equipment (for example scooters, skateboards, baseball bats, basketballs) or bicycles and related equipment.

Data is based on fiscal years ended Dec. 30, 2003, unless otherwise noted. All sales figures, except those of publicly held companies that break out toy sales as a separate line of business, are Playthings market research estimates.

Estimates were derived using a variety of sources, including the companies themselves, public company filings with the Securities and Exchange Commission, discussions with industry analysts and suppliers, as well as published and unpublished reports, including newspaper articles in various retailing areas.

In cases where companies have identical 2003 estimated plaything sales, the one with the fastest sales growth is ranked higher; if the rate of growth is also the same, the one with the fewer number of units is ranked higher.

—Director of market research Kay Anderson, senior research specialist Dana French and database coordinator Cynthia Myers compiled the data for this report.

Top 25 Toy Retailers

Company, Headquarters	Estimated 2003 Playthings Sales in millions $	Estimated 2002 Playthings Sales in millions $	% Change 2002 to 2003	2003 Playthings Stores	2002 Playthings Stores
NS=No stores All Playthings sales information, except for publicly held companies that break out line-of-business sales for toys, are Playthings market research estimates. All data for calendar year ended Dec. 31, 2003, fiscal year end or trailing 12 months closest to date. Source: Playthings market research
1 Wal-Mart Bentonville, Ark.	$9,435	$8,500	11.0%	2,949	2,826
Fiscal year ended Jan. 31. Sales and store counts are for U.S. stores only, including discount, supercenter stores and neighborhood markets and exclude Sam's Club locations. In 2003, opened a net of 40 discount stores and 213 supercenters, including 130 discount store conversions. Plans to open 230 to 240 supercenters this year, with 150 as discount conversions. Slashed its toy prices before Thanksgiving last year, forcing competitors to follow suit. Both KB Toys and FAO cited stiff price cutting by rivals as part of their reason for filing Chapter 11 bankruptcies. Sporting goods and toys sales in 2003 were $10.5 billion, up 10.9 percent from $9.4 billion in 2002. Total 2003 sales were $174.2 billion, up 10.9 percent from $157.1 billion in 2002. For the second quarter ended July 31, sales were $42.9 billion, up 10.2 percent from $42.6 billion in the second quarter of 2003.
2 Toys R Us Paramus, N.J.	$6,345	$6,615	-4.1%	685	685
Fiscal year ended Jan. 31. Sales and store count are for 681 U.S. Toys R Us units and four Geoffrey units, which feature both Toys R Us and Babies R Us products. Announced in August a major restructuring of TRU Corp., including separating the toy business and Babies R Us by first half of 2005; a downsizing of its corporate headquarters; and $150 million in markdowns to liquidate TRU store inventories. Launched Geoffrey's Birthday Club in June to encourage repeat visits. Comp store sales decreased 3.6 percent for 2003. Total 2003 sales were $6.48 billion, down 4.1 percent from $6.76 billion in 2002. For the second quarter ended July 31, sales were $1,044 million, down 7 percent from $1,123 million in 2Q 2003.
3 Target Minneapolis	$2,530	$2,250	12.4%	1,225	1,147
Fiscal year ended Jan. 31. Division of Target Corp. Sales and store counts are for U.S. Target stores only. Opened 101 new units and closed 23, for net gain of 78 units in 2003. Sold its Marshall Field's department stores to May Department Stores in June. Sold its Signals and Wireless gifts catalogs to Universal Screen Arts in June. Reached an agreement to sell its Mervyn's business unit to an investment consortium in August. Plans to accelerate its direct sourcing—currently accounting for more than 15 percent—from offshore producers in the next few years. Unveiled its new store prototype, P2004, in October 2003. Comp store sales increased 4.4 percent in 2003. Total 2003 sales were $41.35 billion, up 12 percent from $36.92 billion in 2002. For the second quarter ended July 31, sales were $10.3 billion, up 10.2 percent from $9.3 billion in 2Q 2003.
4 KB Toys Pittsfield, Mass.	$1,650	$2,060	-19.9%	1,240	1,300
Privately held, fiscal year ended January. Operated stores in 50 states, Guam and Puerto Rico during 2003 and sold online at kbtoys.com and etoys.com. Also sold through 600 seasonal stores at Sears (ranked separately, (see No. 19) during holiday 2003. Partnered with Buy.com in November 2003 to become its exclusive toy provider. Filed Chapter 11 bankruptcy protection on Jan. 14, 2004. Closed 377 units as part of its bankruptcy restructuring in 2004, with liquidation sales beginning at the end of January. Divested its Internet assets and licensed kbtoys.com to Toy Acquisition Corp. in May. Total 2003 sales estimated at $1.65 billion, down 19.9 percent from $2.06 billion in 2002.
5 GameStop Grapevine, Texas	$1,566	$1,353	15.7%	1,498	1,231
Publicly held, fiscal year ended Jan. 31. Sales and store counts are for units in U.S. Puerto Rico and Guam. Does not include 16 units in Ireland. The majority of units operate under the GameStop brand and remaining stores are being rebranded. Also sells online at gamestop.com and publishes Game Informer, a mulit-platform video game magazine with more than 1.5 million subscribers. Opened 300 new stores last year and plans to open 300 to 330 before the end of fiscal 2004. Video software accounted for 63 percent of 2003 sales, up from 58 percent in 2002. Total 2003 sales were $1.58 billion, up 16.7 percent from $1.35 billion in 2002. For the second quarter ended July 31, sales were $345.6 million, up 13 percent from $305.7 million in the second quarter of 2003.
6 Kmart Troy, Mich.	$1,345	$1,700	-20.9%	1,511	1,829
Fiscal year ended Jan. 28. Closed 316 stores in 2003 and 283 in 2002 as part of Chapter 11 bankruptcy reorganization. Emerged from bankruptcy protection May 6, 2003. Plans to sell up to 54 of its stores to Sears by start of 2005 and between 15 and 19 stores to Home Depot. This May, extended its licensing agreement with Martha Stewart Living Omnimedia through 2009. Kmart continues to court the more urban and ethnic markets through its advertising and brands. Reported a profit for fourth quarter 2003 and first quarter of 2004, a first since filing bankruptcy in Jan. 2002. Total 2003 sales were $23.25 billion, down 20.8 percent from $29.35 billion in 2002. For the second quarter ended July 28, sales were 4.78 billion, down 15.3 percent from $4.65 billion in the second quarter of 2003.
7 Electronics Boutique West Chester, Pa.	$1,191	$1,061	12.3%	1,150	855
Publicly held, fiscal year ended Jan. 31. Sales and store counts are for U.S. stores only. Opened 383 net stores worldwide in 2003. Plans to open 400 new stores worldwide by the end of the fiscal year, 221 of which had opened by the end of July. Sells online at ebgames.com. EB's e-commerce subsidiary has been profitable since fiscal 2002. Mall-based stores average 1,200 square feet; strip center stores, 1,650 square feet. Worldwide 2003 sales were $1.59 billion, up 21.3 percent from $1.31 billion in 2002. For the second quarter ended July 31, total sales increased 19.9 percent to $360.5 million, driven by a 29 percent increase in video game software sales and strong hardware unit sales.
8 Best Buy Eden Prairie, Minn.	$972	$845	15.0%	608	548
Publicly held; fiscal year ended Feb. 28. Sales and store counts are for U.S. units only. Also sells online at bestbuy.com. Opened 60 new stores in 2003. Units average 43,500 square feet of selling space. Entertainment software, including video game hardware and software and computer software accounted for 23 percent of total sales in 2003 and 2002. Sold its interest in The Musicland Group to an affiliate of Sun Capital Partners on June 16, 2003. Total 2003 domestic sales were $22.2 billion, up 15.1 percent from $19.3 billion in 2002. For the second quarter ended August 28, domestic sales were $5.5 billion, up 12 percent from sales from the second quarter of 2003.
9 Circuit City Richmond, Va.	$418	$396	5.6%	604	626
Publicly held; fiscal year ended Feb. 29. Operated 599 superstores and five mall-based stores at fiscal year end; closed 19 under performing stores. Plans to open 60-70 superstores this year. Expanded online presence through acquisition of assets of MusicNow, digital music platform, which was integrated into Circuitcity.com as well as stores. Entertainment software accounted for 14 percent of total sales in 2003, up from 13 percent in 2002. Comp store sales decreased 3 percent last year. Total 2003 sales were $9.74 billion, down 2.1 percent from $9.95 billion in 2002. For the second quarter ended August 31, domestic sales were $2.23 billion, up 3.4 percent from $2.16 billion in the second quarter of 2003.
10 Toysrus.com Ft. Lee, N.J.	$355	$319	11.3%	NS	NS
Fiscal year ended Jan. 31. Part of publicly held Toys R Us (ranked separately, see No. 2). Sales are for Toysrus.com, Babiesrus.com, Imaginarium.com, Sportsrus.com and Personalizedbyrus.com. Continued its strategic alliance with Amazon.com, which expires in 2010. Toysrus.com is responsible for merchandising and content for the co-branded stores and identities, purchases, owns, and manages the inventory, while Amazon.com handles site development, order fulfillment for most items, customer service and the housing of inventory in Amazon.com's fulfillment centers in the U. S. Total 2003 sales were $376 million, up 10.6 percent from $340 million in 2002. For the second quarter ended July 31, sales were $51 million, flat with the second quarter of 2003.
11 Meijer Grand Rapids, Mich.	$350	$340	2.9%	158	156
Privately-held, family-owned discount superstore, celebrating 70th anniversary this year. About half of its units are located in Michigan, with the rest in Illinois, Indiana, Kentucky and Ohio. Units average 200,000 to 250,000 square feet. Expansion plans for 2005 include eight new units. Unveiled a new program in its Holland, Mich. store to better serve growing Hispanic/Latino market. Will unveil new prototype in Detroit suburb of Southfield in 2005. Total 2003 sales were estimated at $12.7 billion, up 5 percent from $12.1 billion in 2002.
12 American Girl Middleton, Wis.	$345	$350	-1.6%	2	1
Part of publicly held Mattel, fiscal year ended Dec. 31. Sales and store counts are for direct-to-consumer sales of American Girl merchandise only, except for publications, which are sold through various retailers. American Girl Brands, including American Girl Today, The American Girl Collection and Bitty baby, are sold directly to consumers via American Girl Place stores in Manhattan and Chicago, catalogs and online at americangirl.com. Total 2003 worldwide sales for Mattel were $4.960 billion, up 1.5 percent from $4.885 billion in 2002. For the second quarter ended June 30, American Girl total sales were $49.1 million, up 18.0 percent from $41.6 million in the second quarter of 2003.
13 Big Lots Columbus, Ohio	$267	$250	6.8%	1,385	1,331
Fiscal year ended Jan. 31. Sales and store counts are for Big Lots stores only and do not include freestanding Big Lots Furniture stores. Opened 88 new stores last year and closed 38. This June, opened a $70 million, 1.2 million-square-foot distribution center in Durant, Okla., the closeout retailer's fifth. 2004 plans include opening 90 new units; renovating its oldest distribution center in Columbus, Ohio; adding a net of 219 furniture departments; and, rolling out UPC capabilities and debit card readers to the majority of its stores. Launched its newest television campaign in March, featuring nine 30-second spots, two of which target the Hispanic community. Experienced its second consecutive profitable year in fiscal 2003. Total 2003 sales were $4.2 billion, up 7.9 percent from $3.9 billion in 2002. For the second quarter ended July 31, sales were $994.9 million, up 4.8 percent from $949.3 million in the second quarter of 2003.
14 JC Penney Plano, Texas	$260	$270	-3.7%	1,020	1,049
Fiscal year ended Jan. 31. Sales store counts are for department stores, the “big book” and specialty catalogs. Opened six stores and closed 29 last year. Plans to open 14 new stores this year, half as free-standing stores and half in traditional malls. Sales per gross square foot were $143 in 2003, up from $140 in 2002. Comp store sales for 2003 were up 3.3 percent, its first positive comps since 2000. Department store sales increased 0.3 percent to $14.8 billion in 2003 and catalog sales increased 3.3 percent to $2.7 billion. Internet sales, included in catalog sales, totaled $617 million last year, an increase of 50.8 percent. Total 2003 retail sales were $17.79 billion, up 0.9 percent from $17.63 billion in 2002. For the second quarter ended July 31, net department store and catalog/Internet sales were $3.86 billion, up 5.8 percent from $3.65 billion in the second quarter of 2003.
15 Costco Issaquah, Wash.	$255	$230	10.9%	318	304
Fiscal year ended Aug. 31. Sales and store counts are for U.S. only, for trailing 12 months ended Feb. 15. Toys sold online at costco.com. Hardlines, including toys, as a percentage of total fiscal sales, comprised 16 percent in 2003 and 2002. Has opened two new units through May and plans to open seven to nine more before the end of fiscal 2004. Comp store sales for fiscal 2003 were up 5 percent. Total 2003 trailing 12-month sales were $44.40 billion, up 12.6 percent from $39.42 billion in 2002. For the 52-week fiscal year ended Aug. 29, sales were $47.15 billion, up 13 percent from $41.69 billion during the previous fiscal year.
16 Army & Air Force Exchange Service Dallas	$243	$257	-5.6%	151	139
Sales are based on worldwide revenues, excluding food, services and vending. Figures include bike sales for both years and video games, including hardware and peripherals. Video game sales were $153.2 million in 2003, down 10.5 percent from $171.2 million in 2002. AAFES provides retail merchandise for active-duty military personnel, guard and reservists, retirees and their families and operates more than 150 main stores or shopping centers worldwide and in every U.S. state. Also sells through catalogs and online. Worldwide revenues, excluding food, services and vending were $7.57 billion in 2003, up 17.4 percent from $6.45 billion in 2002.
17 FAO King of Prussia, Pa.	$240	$410	-41.5%	53	243
Filed for Chapter 11 bankruptcy protection on Jan. 13, 2003; emerged April 23, 2003; then filed again on Dec. 4, 2003 and immediately began inventory clearance sales in its 89 Zany Brainy, 15 FAO Schwarz and 38 The Right Start stores. Sold its flagship FAO Schwarz store on Fifth Avenue in Manhattan, a second store in Las Vegas and its catalog and Internet operations to the D. E. Shaw Group on Jan. 27, 2004; its 34 Right Start stores to affiliate of Hancock Park Associates. Reopening of Las Vegas and New York stores expected by yearend. FAO's corporate sales in 2003 were $251 million, down 45.5 percent from $460 million in 2002.
18 Build-A-Bear Workshop Saint Louis	$202	$170	18.8%	147	130
Privately held, fiscal year ended December; sales, store counts, for U.S. only. At end of fiscal year, also operated four units in Canada and one in the UK. Also sells online at buildabear.com. Filed registration statement with SEC for proposed initial public offering of common stock in August. In 2004, opened store in Copenhagen, Denmark, its first in continental Europe, and units in Japan and Korea. Plans to open 18 U.S. stores by yearend. Partnered with Sesame Street Workshop beginning in July to offer Elmo-making to customers. Moved into Target stores with a limited line of accessories this summer. Plans to build a 22,000-square-foot flagship store in New York City on Fifth Avenue next year.
19 Sears Hoffman Estates, Ill.	$200	$215	-7.0%	871	872
Fiscal year ended Jan. 3. Sales and store counts are for full-line stores only. Opened four units in 2003 and closed five. Deployed an in-store price-check system to enable customers to self-scan items to check prices in May. Signed an agreement with Kmart to purchase up to 54 stores, to be converted to the Sears nameplate by the fourth quarter of 2005. Opened its third off-the-mall Sears Grand unit outside of Las Vegas in August. The Grand format includes a year-round toy department and an expanded electronics department, including video games. Full-line comp store sales decreased 2.7 percent in 2003. Full-line 2003 sales were $22.9 billion, down 0.7 percent from $23.0 billion in 2002. For the second quarter ended July 3, domestic merchanside sale and services totaled $7.67 billion, down 2.5 percent from $7.87 billion in the second quarter of 2003.
20 Sam's Club Bentonville, Ark.	$198	$185	7.0%	538	525
Fiscal year ended Jan. 31, division of publicly held Wal-Mart. Sales and store counts are for Sam's Club division only (Wal-Mart stores ranked separately, see No. 1). Opened 13 new units in 2003. Clubs average 127,000 square feet. Instituted a back-to-basics merchandising strategy last year and renewed its focus on small business members. The policy helped differentiate itself from Costco and helped drive a 10.1 percent increase in operating profit. Hardlines, including toys, accounted for 20 percent of 2003 total sales, up from 19 percent in 2002. Total sales were $34.54 billion in 2003, up 8.9 percent from $31.70 billion in 2002. For the second quarter ended July 31, sales were $9.4 billion, up 10.1 percent from $8.6 billion in the second quarter of 2003.
21 ShopKo Green Bay, Wis.	$180	$190	-5.3%	359	364
Fiscal year ended Jan. 31. Sales and store counts are for ShopKo and Pamida units. ShopKo units are located in 15 Midwest, Western Mountain and Pacific Northwest states and average 91,009 square feet. Pamida units are located in 16 Midwest, North Central and Rocky Mountain states and average 33,468 square feet. Hardlines at ShopKo, including toys, accounted for 52 percent of total sales, down from 53 percent in 2002 and 55 percent in 2001. Hardlines at Pamida accounted for 65 percent of total sales in 2003, down from 67 percent in 2002. Comp store sales for ShopKo decreased 3 percent last year and comp store sales for Pamida increased 2.8 percent. Total 2003 sales for ShopKo and Pamida combined were $3.18 billion, down 1.7 percent from $3.24 billion in 2002. For the second quarter ended July 31, sales were $775.6 million, up 1.4 percent from $764.7 from the second quarter of 2003.
22 Fred Meyer Portland, Ore.	$160	$155	3.2%	134	132
Part of publicly held Kroger, fiscal year ended Jan. 31. Sales and store counts are for Fred Meyer only. Operates stores in Alaska, Idaho, Oregon, Utah and Washington. Supercenters average 145,000 square feet and offer everything from groceries to domestics and consumer electronics to apparel. Will close three stores in Utah and convert five in the same state to the Smith's Marketplace banner this year. Rolled out its Fred Meyer Rewards Card in May. Relocated its eastern regional office from Salt Lake City, Utah, to Boise, Idaho, in June.
23 Walgreen Deerfield, Ill.	$160	$155	3.2%	4,336	3,998
Fiscal year ended Aug. 31, 2003. Sales and store counts are for railing 12 months ended Feb. 29. Operates drugstores in 44 states and Puerto Rico; sells toys online at walgreen.com. Opened its 11th major distribution center in Moreno Valley, Calif., July. Actively pursuing more sites in New York City, one of the few large markets the largest drugstore chain does not dominate. General merchandise sales, including toys, accounted for 26 percent of sales in fiscal 2003, down from 29 percent in fiscal 2002. Total trailing 12 month sales for 2003 were $35.1 billion, up 14.8 percent from $30.6 billion in 2002.
24 Dollar General Goodlettsville, Tenn.	$155	$135	14.8%	6,700	6,113
Publicly held, fiscal year ended Jan. 30. Opened 673 new stores in 2003 and remodeled 76. Expanded to the states of Wisconsin, Arizona and New Mexico this year. Rolled out automatic inventory replenishment to 2,473 stores last year and tested the acceptance of debit cards in five states. Selected Union County, S.C. as the site of its eighth distribution center. Seasonal products, including toys, accounted for 16.8 percent of 2003 sales last year, up from 16.3 percent in 2002. Experienced same store sales of 4.0 percent in 2003. Total 2003 sales were $6.87 billion, up 12.6 percent from $6.1 billion in 2002. For the second quarter ended July 30, sales were $1.84 billion, up 11.2 percent from $1.65 billion in the second quarter of 2003.
25 Michaels Stores Irving, Texas	$155	$144	7.6%	812	755
Publicly held, fiscal year ended Jan. 31. Sales and store counts are for Michaels units only and do not include ReCollections stores, Aaron Brothers or Star Wholesale stores. Opened 55 new stores, closed five and relocated 16 during 2003. Plans to open approximately 45 new stores per year in subsequent fiscal years. Opened its 1,000th retail store in Winter Park, Fla., in August. Plans to expand its ReCollections scrapbooking stores to the Washington, D.C. and Phoenix markets after success from its first three stores in the Dallas-Fort Worth area. Toys include wooden and plastic model kits and related supplies, kids crafts, plush toys and paint-by-number kits. Total 2003 sales were $3.09 billion, up 8.2 percent from $2.86 billion in 2002. For the second quarter ended July 31, sales were $682.9 million, up 10.8 percent from $616.5 million in the second quarter of 2003.

Share this on

Talkback

We would love your feedback!

The State of The Stores

Nov 1, 2008

Merchants of Mirth

Nov 1, 2006

Top 25 Retailers

Nov 1, 2007

Also by this author

»MORE

Featured Company

FurnitureCore.com

FurnitureCore.com is a dynamic web application aimed at the furniture industry. Retailers and manufacturers alike will find our deep reserve of tools to be exactly what their furniture business needs.www.furniturecore.com... more