Analyzing the NRF's Hot 25 Retail List of 2024

Hey Friends,

The National Retail Federation is a content machine and recently released their Hot 25 Retailer List of 2024 giving us some good data to chew on over the weekend. The Hot List ranks the fastest-growing retailers in the U.S. based on year-over-year domestic sales growth from 2022 to 2023. The rankings reflect a diverse array of companies, from e-commerce giants to discount retailers and international entrants, each demonstrating unique strategies to achieve substantial growth.

image credit: National Retail Federation, https://nrf.com/research-insights/top-retailers/hot-25-retailers/2024-hot-25-retailers-list

Background

• U.S.-Based Companies: 16 companies

• International Companies: 9 companies

• 5 companies that are also on the Fortune 500. These companies are:Aldi, Chevron Texaco, LVMH (Sephora, Tiffany & Co.),Schwarz Group, H.E. Butt Grocery

Types of Retailers:

• Grocery Chains: Aldi, H.E. Butt Grocery, Superior Grocers, Cencosud, Grocery Outlet, Schwarz Group

• Discount/Value Retailers: Five Below, Burlington, Ollie’s Bargain Outlet, Daiso Sangyo, Primark Stores

• Luxury/Fashion: LVMH (Sephora, Tiffany & Co.), Inditex, Abercrombie & Fitch, Fast Retailing, J.Crew

• E-Commerce/Digital-First: Overstock.com, Chewy.com, Wine.com

• Cosmetics/Beauty: Ulta Beauty, Sephora (LVMH)

• Fuel/Convenience: Chevron Texaco

Notable Industries:

• Fashion & Apparel: Includes Fast Retailing, Primark, Inditex, Abercrombie & Fitch, Lululemon, J.Crew.

• Beauty & Cosmetics: Ulta Beauty, Sephora (LVMH).

• Grocery: Several grocers on the list emphasize affordable, accessible food retail.

• Discount & Value Shopping: Strong representation with stores like Five Below, Ollie’s, and Daiso Sangyo, which appeal to price-sensitive consumers.

Customer Base:

• Youth-Oriented: Companies like Five Below, Abercrombie & Fitch, and Lululemon target younger demographics, particularly Gen Z and Millennials.

• Value-Conscious Consumers: Discount chains and off-price retailers like Aldi, Ollie’s Bargain Outlet, and Grocery Outlet cater to shoppers looking for deals.

• Luxury Consumers: Brands like Tiffany & Co. and Sephora (both under LVMH) attract higher-income consumers.

Key Findings

1. Overstock.com Takes the Top Spot

• Overstock.com ranks first with an astounding 135.1% increase in U.S. sales. The company’s acquisition of Bed Bath & Beyond’s online operations significantly contributed to this surge, indicating the power of strategic acquisitions in driving growth.

2. Strong International Presence

• Schwarz Group (No. 2): The German company achieved a 32.8% sales increase, demonstrating its successful expansion in the U.S. market.

• Fast Retailing (No. 3): This Japanese retail giant, known for its Uniqlo brand, grew its U.S. sales by 27.8%, highlighting its ability to appeal to American consumers.

• Primark (No. 4): The Irish fast fashion retailer increased its U.S. sales by 24.1%, showing strong demand for its low-cost, trendy clothing.

• Cencosud (No. 18): A new entrant from Chile, Cencosud made the list after acquiring a majority stake in The Fresh Market, illustrating the growing influence of Latin American companies in the U.S. retail landscape.