Here’s a detailed analysis and summary of the key points from NRF’s annual review of the best-performing U.S. retailers based on sales rankings:
The full Top 100 list can be found here
Overview
The National Retail Federation (NRF) released its annual list of the Top 100 Retailers, compiled by Kantar.
The 2024 Top 100 Retailers ranks the industry’s largest companies based on domestic sales.
The list reflects a post-pandemic return to normal, with retailers focusing on convenience and value as consumer spending moderates.
Top 5 Retailers
Walmart: Maintains the top position with $635.02 billion in U.S. retail sales in 2023.
Amazon.com: Ranked second with $359.93 billion in sales.
Costco Wholesale: Third with $234.20 billion.
The Kroger Co.: Fourth with $149.61 billion.
The Home Depot: Fifth with $150.73 billion.
Minimal Changes in Top 10
Target: Moved from No. 6 to No. 7.
CVS Health Corporation: Moved from No. 7 to No. 6.
Industry Stability and Trends
There was modest change within the top 100 retailers, especially in the top 20, due to the substantial size and capital of these companies.
The list includes a detailed ranking of retailers by past 52/53-week annual retail sales, focusing on U.S. retail activity.
Notable Movers
Harbor Freight Tools: Jumped 18 spots from No. 80 to No. 62, expanding its store count by 8.5% to 1,410 stores.
Dollar General: Added 5.5% to its store count, reaching 20,583 stores and ranking at No. 17 with $38.69 billion in sales.
Retailer Insights
The list reflects the stability of the top retailers due to their size and financial resources.
The document emphasizes the importance of mergers and acquisitions for growth. For example, Overstock.com's significant growth was due to acquiring Bed Bath & Beyond’s online operations.
The ongoing merger between Kroger and Albertsons, still pending court approval, reflects the dynamic nature of retail growth strategies.
Sector Analysis
The grocery sector shows strong representation in the top 20, with significant growth noted among retailers like Royal Ahold Delhaize USA, Publix Super Markets, and H.E. Butt Grocery Store.
The impact of inflation and inventory adjustments post-pandemic contributed to the performance of grocery retailers.
Convenience and Adaptation
The convenience store sector had to adapt to changes in consumer behavior due to the work-from-home trend, leading to strategic shifts in their business models.
Consumer electronics retailers like Best Buy and Dell faced challenges due to the cyclical nature of their products.
Lessons from Top Retailers
It pays to have deep pockets - The big guys can adapt, innovate and change at a level at which the smaller players can’t compete.
Walmart, Amazon, and Costco’s steady growth can be attributed to their strategic consistency and innovative approaches, such as Walmart’s chain-wide remodeling and expansion into financial services.
These top retailers are also investing in retail media to enhance their bottom line.