Toy cash registers
Sales increase in 2001 among Top 50 toy retailers despite closings
Staff -- Gifts and Dec, 1/1/2003 12:00:00 AM
The toy 'giants'—the industry's 50 largest retailers—outpaced the industry in sales for 2001 according to exclusive research by PLAYTHINGS magazine. The giants had combined 2001 sales of $29.6 billion, a 7.7 percent increase over the group's 2000 sales. Retail sales of toys, dolls and games as a whole increased by 6.3 percent according to Commerce department figures.
Sales in the discount channel grew faster than the Top 50; 9.1 percent over 2000. Led by the retailing behemoth Wal-Mart, discount department stores in the ranking (Wal-Mart, Kmart, Target, Meijer, Ames, ShopKo, Big Lots, Fred Meyer, T.J. Maxx/Marshalls, Kohl's, Family Dollar, Tuesday Morning and Dollar Tree Stores) had $13.8 billion in toy sales in 2001, nearly half of the Top 50 total.
While Build-a-Bear Workshop had a spectacular year and KB Toys outpaced the rest of the Top 50 by a good margin, 2001 was a struggle for the other five toy specialists—TRU, FAO Schwarz, Learning Express, Vermont Teddy Bear and Family Toy. As a group, the seven toy specialists on the list totaled $9.2 billion in sales—the same as in 2000.
The popularity of video and computer games among youngsters was borne out by the whopping 34.5 percent increase in sales among the entertainment and electronic specialists (GameStop, Electronics Boutique, Best Buy, Circuit City, Musicland and RadioShack) on the list. Spurred on by Sony's Playstation 2 and Nintendo's GameBoy Advance, this channel comprised 11 percent of the Top 50's sales.
Direct-to-consumer retailers (Mattel, Toysrus.com, QVC, Fingerhut, Amazon.com, Avon, Discovery Toys and Lillian Vernon) also had their problems in 2001, posting only a 4.8 percent increase over 2000 sales.
The top five, Wal-Mart, Toys R Us, KB Toys, Kmart and Target, accounted for nearly three-fourths of the giants' sales and garnered $21.0 billion in 2001 toy sales.
While the Top 50 experienced a 7.7 percent increase in sales, several players out-performed the list, having a stellar year. Build-A-Bear Workshop, ranked at number 21, led with 199 percent sales growth in 2001. Its enormous success was due to the opening of 30 new stores, bringing its year-end count to 70 units. Build-A-Bear continued its growth spurt in 2002, opening its 101st store this past October.
Proving that the Internet as a retail vehicle still holds promise, Toysrus.com also fared well with its new combination site, posting a 54 percent increase.
Also in the fast-growing category are GameStop, with a 48 percent increase and Circuit City, with a 40 percent increase. Both specialize in electronic games.
New to the Top 50 this year is Vermont Teddy Bear, ranked at number 49, with 2001 toy sales of $38 million. The Shelburne, Vt., retailer manufactures and sells its handcrafted teddy bears through two factory stores, catalogs and online. Another newcomer to the Top 50 is Rider's Hobby Shops at number 50. This regional toy and hobby shop, which is based in Ann Arbor, Mich., sold $33 million in 2001 toy sales and added five new stores.
Several retailers are absent from this year's Top 50 list. They include eToys, now part of KB Toys; Zany Brainy, now part of FAO, formerly known as The Right Start. Lost to bankruptcy were Bradlees, Play Co. Toys & Entertainment and Store of Knowledge.
Next year the ranking will lose two more because of bankruptcy woes: Ames Department Stores and Family Toy. Stay tuned to see who will take their places.
To purchase the complete report, including the Top 50 retailers, with detailed notes for each retailer, the fastest-growing retailer and an alphabetical listing of the Top 50, please go to www.playthings.com for more information.
THE RANKING: TOP 15
| Rank | Company, Headquarters | Est. 2001 playthings sales in millions $ | Est. 2000 playthings sales in millions $ | % change 2000-2001 | 2001 total stores | 2000 total stores |
| 1 | Wal-Mart, Bentonville, Ark. | $8,300 | $7,300 | 13.7% | 2,744 | 2,624 |
| Publicly held, fiscal year ended Jan. 31. Sales and store count are for U.S. stores only and exclude Sam's Club locations ranked separately. Opened 178 Supercenters, including 121 discount store replacements; opened 33 new discount stores; expanded or relocated four discount stores; and, closed one discount store during 2001. At fiscal year end, operated 1,647 discount stores in all 50 states and 1,066 Supercenters in 43 states. Toys are also available online at www.walmart.com. | ||||||
| 2 | Toys R Us, Paramus, N.J. | $6,747 | $6,933 | -2.7% | 743 | 747 |
| Publicly held, fiscal year ended Feb 2. Sales and store counts are for 701 Toys R Us units, as well as 42 stand-alone Imaginarium specialty stores. Does not include Toysrus.com or Imaginarium.com sales ranked separately. In November 2001 opened its 110,000 sq. foot flagship store in Times Square. At the end of 2001, had completed the renovation of 433 units to the "Mission Possible" format. All remaining units were converted by October. Closed 10 units in 2001. Units average 30,000 to 45,000 sq. feet. | ||||||
| 3 | KB Toys, Pittsfield, Mass. | $2,000 | $1,766 | 13.3% | 1,350 | 1,325 |
| Privately held, fiscal year ended January. Units operate in all 50 states, Puerto Rico and Guam under the names of KB Toys, KB Toy Works, KB Toy Outlet/Toy Liquidator, KB Toy Express and online at KBtoys.com and eToys.com. Acquired eToys inventory in April 2001 and acquired its name and Web site in May 2001. Relaunched eToys.com in October 2001. In October 2002, opened a 20,000 sq. foot seasonal shop on Fifth Avenue in New York. Introduced in September 2002 its "KB Toy Club," a frequency program rewarding customers who have made four purchases of $25 or more with a 20 percent discount. | ||||||
| 4 | Kmart, Troy, Mich. | $1,999 | $2,050 | -2.5% | 2,114 | 2,105 |
| Publicly held, fiscal year ended Jan. 30. Sales and store counts are for U.S. stores only. Filed for Chapter 11 bankruptcy on Jan. 22. In 2001, opened 14 discount stores and six Supercenters and closed 11 discount stores. As part of the bankruptcy reorganization, closed 283 units, including 270 discount stores and 12 Supercenters in 40 states and one in Puerto Rico in May and June. | ||||||
| 5 | Target, Minneapolis | $1,995 | $1,800 | 10.8% | 1,053 | 977 |
| Publicly held, fiscal year ended Feb. 2. Sales and store counts are for the Target Stores division of Target Corp. More than doubled its SuperTarget units to 62 last year. Plans to have 400 SuperTargets by the end of 2010. Announced in September an exclusive line of National Geographic educational and play toys. Relaunched its comprehensive Web site, powered by Amazon.com, in August. Toys also sold online at www.target.com. | ||||||
| 6 | GameStop, Grapevine, Texas | $1,121 | $758 | 48.0% | 1,038 | 978 |
| 7 | Electronics Boutique, West Chester, Pa. | $868 | $659 | 31.7% | 729 | 601 |
| 8 | Best Buy, Eden Prairie, Minn. | $750 | $575 | 30.4% | 481 | 419 |
| 9 | Circuit City, Richmond, Va. | $350 | $250 | 40.0% | 624 | 629 |
| 10 | Mattel, El Segundo, Calif. | $337 | $346 | -2.6% | 1 | 1 |
| 11 | FAO, King of Prussia, Pa. | $332 | NA | NA | 256 | NA |
| 12 | Meijer, Grand Rapids, Mich. | $330 | $295 | 11.9% | 152 | 147 |
| 13 | JCPenney, Plano, Texas | $325 | $339 | -4.1% | 1,075 | 1,111 |
| 14 | Ames Department Stores, Rocky Hill, Conn. | $265 | $334 | -20.7% | 387 | 447 |
| 15 | Toysrus.com, Ft. Lee, N.J. | $257 | $167 | 53.9% | 3 | 1 |
| All PLAYTHINGS sales information, except for publicly held companies that break out line-of-business sales for toys, are PLAYTHINGS market research estimates. | ||||||
| NA = Not available | ||||||
| All data for calendar year ending Dec. 31, 2001, fiscal year-end or trailing 12 months closest to date. | ||||||
| How the list is compiled PLAYTHINGS exclusive survey of the Top 50 Toy Retail Giants ranks the Top 50 U.S. retailers by their estimated 2001 sales of toys. Retailers were considered for the ranking if they carry more than one toy category. | ||||||
| Retailers are ranked by their estimated 2001 sales of traditional toys, including electronic interactive toys and video and computer games. In some cases, sales figures may include a portion of sales for some sporting equipment (for example scooters, skateboards, baseball bats, basketballs) or bicycles and related equipment because of the way those retailers organize their departments. | ||||||
| Data are based on fiscal years ended Dec. 30, 2001, 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 from 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 estimated plaything sales, the one with the fastest sales growth is ranked first. | ||||||
| Director of Market Research Kay Anderson, Research Specialists Dana French and Judi Fulbright, and Database Coordinator Cynthia Myers compiled the data for this report. Copies of the full report are for sale at www.playthings.com. | ||||||
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