SummaryWal-Mart’s revenue increased 7.1% in FY08 to US$405.6 billion and continued to dominate the US top 20, leaving the other companies way below on revenue size. The healthcare retailer CVS Caremark, which occupied the second position after Wal-Mart recorded revenue of US$61.0 billion in FY08. In terms of revenue growth however, Wal-Mart was not in the top five; and instead online retailer Amazon was on the top, followed by Staples, Inc. CVS Caremark managed to reach the third place in the top five list, in terms of revenue growth. It is interesting to note that despite the weak economic trend, the top five retailers on the list registered a double digit revenue growth in 2008. Operating expenses were in line with the revenue.
Interestingly, Nike, Amazon, Publix Super Markets, AutoNation and Kroger have made their mark on top five list, twice in four productivity measures. Wal-Mart achieved the best outlet productivity; whereas Amazon scored the highest in labor productivity due to its low labor base. AutoNation stood at second place in both outlet and labor productivity.
With huge revenue size, Wal-Mart remained at the top in EBIT, EBITDA and Net Income; but in terms of profit margin, several players like NIKE Inc., The TJX Companies, Lowe’s, and Publix performed better than Wal-Mart. For Publix and Lowe’s, however the profit margin contracted in 2008 when compared to that in 2007.
Table of Contents
1 Executive Summary . 20
2 About this report 21
2.1 Report summary . 21
2.2 Definitions 21
2.3 Summary Methodology 23
2.3.1 Basic Research Methodology . 23
2.3.2 Scorecard and Heat Chart Methodology 23
3 Leading Retailer Benchmarks 25
3.1 Peer Lists . 25
3.2 Company Benchmarking 26
3.2.1 Top Five US Retail Companies, By Revenue, 2008 26
3.2.2 Top Five US Retail Companies, By Revenue Growth, 2008 27
3.2.3 Top Five US Retail Companies, By Operating Expenses, 2008 28
3.2.4 Top Five US Retail Companies, By Labor Productivity, 2008 29
3.2.5 Top Five US Retail Companies, By Capital Productivity, 2008 30
3.2.6 Top Five US Retail Companies, By Outlet Productivity, 2008 31
3.2.7 Top Five US Retail Companies, By Area Productivity, 2008 32
3.2.8 Top Five US Retail Companies, By EBIT, 2008 . 33
3.2.9 Top Five US Retail Companies, By EBITDA, 2008 34
3.2.10 Top Five US Retail Companies, By Net Income, 2008 35
3.2.11 Top Five US Retail Companies, By Profit Margin, 2008 36
3.2.12 Top Five US Retail Companies, By ROCE, 2008 37
3.2.13 Top Five US Retail Companies, By Capital Expenditure, 2008 . 38
3.2.14 Top Five US Retail Companies, By Total Assets, 2008 . 39
3.2.15 Top Five US Retail Companies, By Total Asset Growth, 2008 40
3.2.16 Top Five US Retail Companies, By Quick Ratio, 2008 41
3.2.17 Top Five US Retail Companies, By Working Capital, 2008 . 42
3.2.18 Top Five US Retail Companies, By Return on Assets, 2008 . 43
3.2.19 Top Five US Retail Companies, By Total Debt, 2008 44
3.2.20 Top Five US Retail Companies, By Debtor Days, 2008 . 45
3.2.21 Top Five US Retail Companies, By Debt Ratio, 2008 46
3.2.22 Top Five US Retail Companies, By Debt to Equity, 2008 47
3.2.23 Top Five US Retail Companies, By Shareholder's Funds, 2008 . 48
3.2.24 Top Five US Retail Companies, By Market Cap, 2008 49
3.2.25 Top Five US Retail Companies, By P/E Ratio, 2008 50
3.2.26 Top 20 US Retail companies, Revenue metrics, 2008 . 51
3.2.27 Top 20 US Retail companies, Productivity metrics, 2008 52
3.2.28 Top 20 US Retail companies, Profit metrics, 2008 . 53
3.2.29 Top 20 US Retail companies, Balance sheet metrics, 2008 54
3.2.30 Top 20 US Retail companies, Shareholder metrics, 2008 . 55
3.3 ‘Big Five’ focus . 56
3.3.1 Revenue Vs Operating Expense Growth 56
3.3.2 Revenue Vs EBITDA Margin 57
3.3.3 Revenue Vs Capex Growth 58
3.3.4 Total Asset Vs Debt Growth . 59
3.4 Summary on Heat Chart . 60
3.5 Top 20 Retail Heat Chart 61
4 Company Benchmark: Wal-Mart stores, Inc. . 62
4.1 Wal-Mart stores, Inc. Scorecard . 62
4.2 Wal-Mart stores, Inc. Company Overview . 64
4.2.1 Wal-Mart stores, Inc. Business Description 64
4.2.2 Wal-Mart stores, Inc. Major Products & Services . 67
4.2.3 Wal-Mart stores, Inc. History 69
4.3 Wal-Mart stores, Inc. Key Financials . 71
4.4 Wal-Mart stores, Inc. SWOT Analysis 73
4.4.1 Wal-Mart stores, Inc. Strengths 73
4.4.2 Wal-Mart stores, Inc. Weaknesses . 74
4.4.3 Wal-Mart stores, Inc. Opportunities 75
4.4.4 Wal-Mart stores, Inc. Threats . 76
5 Company Benchmarking: CVS Caremark Corporation 78
5.1 CVS Caremark Corporation Scorecard: 78
5.2 CVS Caremark Corp. Company Overview . 80
5.2.1 CVS Caremark Corp. Business Description . 80
5.2.2 CVS Caremark Corp. Major Products & Services 83
5.2.3 CVS Caremark Corp. History 83
5.3 CVS Caremark Corp. Key Financials . 85
5.4 CVS Caremark Corp. SWOT Analysis 87
5.4.1 CVS Caremark Corp. Strengths . 87
5.4.2 CVS Caremark Corp. Weaknesses 89
5.4.3 CVS Caremark Corp. Opportunities . 89
5.4.4 CVS Caremark Corp. Threats 90
6 Company Benchmarking: The Kroger Co. 92
6.1 The Kroger Co. Scorecard: . 92
6.2 The Kroger Co. Company Overview 93
6.2.1 The Kroger Co. Business Description 94
6.2.2 The Kroger Co. Major Products & Services 96
6.2.3 The Kroger Co. History 97
6.3 The Kroger Co. Key Financials . 99
6.4 The Kroger Co. SWOT Analysis . 101
6.4.1 The Kroger Co. Strengths . 101
6.4.2 The Kroger Co. Weaknesses . 102
6.4.3 The Kroger Co. Opportunities . 103
6.4.4 The Kroger Co. Threats 103
7 Company Benchmarking: The Home Depot, Inc. 105
7.1 The Home Depot, Inc. Scorecard: 105
7.2 The Home Depot, Inc. Company Overview 106
7.2.1 The Home Depot, Inc. Business Description 107
7.2.2 The Home Depot, Inc. Major Products & Services . 108
7.2.3 The Home Depot, Inc. History 109
7.3 The Home Depot, Inc. Key Financials 111
7.4 The Home Depot, Inc. SWOT Analysis 113
7.4.1 The Home Depot, Inc. Strengths 113
7.4.2 The Home Depot, Inc. Weaknesses . 114
7.4.3 The Home Depot, Inc. Opportunities 115
7.4.4 The Home Depot, Inc. Threats . 115
8 Company Benchmarking: Target Corporation 117
8.1 Target Corporation Scorecard: 117
8.2 Target Corporation Company Overview 118
8.2.1 Target Corporation Business Description . 119
8.2.2 Target Corporation Major Products & Services 120
8.2.3 Target Corporation History . 121
8.3 Target Corporation Key Financials 124
8.4 Target Corporation SWOT Analysis . 126
8.4.1 Target Corporation Strengths . 126
8.4.2 Target Corporation Weaknesses 127
8.4.3 Target Corporation Opportunities . 128
8.4.4 Target Corporation Threats 129
9 Company Benchmarking: Walgreen Co. . 130
9.1 Walgreen Co. Scorecard: . 130
9.2 Walgreen Co. Company Overview . 131
9.2.1 Walgreen Co. Business Description . 132
9.2.2 Walgreen Co. Major Products & Services 133
9.2.3 Walgreen Co. History . 134
9.3 Walgreen Co. Key Financials 136
9.4 Walgreen Co. SWOT Analysis 138
9.4.1 Walgreen Co. Strengths . 139
9.4.2 Walgreen Co. Weaknesses 140
9.4.3 Walgreen Co. Opportunities . 140
9.4.4 Walgreen Co. Threats 141
10 Company Benchmarking: Lowe's Companies Inc 142
10.1 Lowe's Companies, Inc. Scorecard: 142
10.2 Lowe’s Companies Inc Company Overview 143
10.2.1 Lowe's Companies Inc Business Description . 144
10.2.2 Lowe's Companies Inc Major Products & Services 145
10.2.3 Lowe's Companies Inc History . 147
10.3 Lowe’s Companies Inc Key Financials 147
10.4 Lowe’s Companies Inc SWOT Analysis 149
10.4.1 Lowe's Companies Inc Strengths . 150
10.4.2 Lowe's Companies Inc Weaknesses 151
10.4.3 Lowe's Companies Inc Opportunities . 151
10.4.4 Lowe's Companies Inc Threats 152
11 Company Benchmarking: Sears Holdings Corporation . 154
11.1 Sears Holdings Corporation Scorecard: . 154
11.2 Sears Holdings Corporation Company Overview. 155
11.2.1 Sears Holdings Corporation Business Description . 156
11.2.2 Sears Holdings Corporation Major Products & Services 158
11.2.3 Sears Holdings Corporation History . 159
11.3 Sears Holdings Corporation Key Financials . 160
11.4 Sears Holdings Corporation SWOT Analysis . 162
11.4.1 Sears Holdings Corporation Strengths . 162
11.4.2 Sears Holdings Corporation Weaknesses 163
11.4.3 Sears Holdings Corporation Opportunities . 164
11.4.4 Sears Holdings Corporation Threats 165
12 Company Benchmarking: Best Buy Co, Inc. . 167
12.1 Best Buy Co, Inc. Scorecard: 167
12.2 Best Buy Co, Inc. Company Overview . 168
12.2.1 Best Buy Co, Inc. Business Description . 169
12.2.2 Best Buy Co, Inc. Major Products & Services 171
12.2.3 Best Buy Co, Inc. History 172
12.3 Best Buy Co, Inc. Key Financials . 173
12.4 Best Buy Co, Inc. SWOT Analysis 175
12.4.1 Best Buy Co, Inc. Strengths . 175
12.4.2 Best Buy Co, Inc. Weaknesses 176
12.4.3 Best Buy Co, Inc. Opportunities . 177
12.4.4 Best Buy Co, Inc. Threats . 178
13 Company Benchmarking: SUPERVALU INC. 179
13.1 SUPERVALU INC. Scorecard: . 179
13.2 SUPERVALU INC. Company Overview 180
13.2.1 SUPERVALU INC. Business Description . 181
13.2.2 SUPERVALU INC. Major Products & Services 182
13.2.3 SUPERVALU INC. History. 183
13.3 SUPERVALU INC. Key Financials 185
13.4 SUPERVALU INC. SWOT Analysis . 187
13.4.1 SUPERVALU INC. Strengths . 187
13.4.2 SUPERVALU INC. Weaknesses 188
13.4.3 SUPERVALU INC. Opportunities . 189
13.4.4 SUPERVALU INC. Threats 190
14 Company Benchmarking: Safeway Inc. . 191
14.1 Safeway Inc. Scorecard: . 191
14.2 Safeway Inc. Company Overview . 192
14.2.1 Safeway Inc. Business Description 193
14.2.2 Safeway Inc. Major Products & Services 195
14.2.3 Safeway Inc. History 196
14.3 Safeway Inc. Key Financials . 198
14.4 Safeway Inc. SWOT Analysis 200
14.4.1 Safeway Inc. Strengths . 200
14.4.2 Safeway Inc. Weaknesses. 201
14.4.3 Safeway Inc. Opportunities . 201
14.4.4 Safeway Inc. Threats . 202
15 Company Benchmarking: Rite Aid Corporation . 204
15.1 Rite Aid Corporation Scorecard: 204
15.2 Rite Aid Corporation Company Overview . 205
15.2.1 Rite Aid Corporation Business Description. 206
15.2.2 Rite Aid Corporation Major Products & Services 207
15.2.3 Rite Aid Corporation History . 208
15.3 Rite Aid Corporation Key Financials . 210
15.4 Rite Aid Corporation SWOT Analysis 212
15.4.1 Rite Aid Corporation Strengths . 212
15.4.2 Rite Aid Corporation Weaknesses 213
15.4.3 Rite Aid Corporation Opportunities . 214
15.4.4 Rite Aid Corporation Threats 215
16 Company Benchmarking: Macy’s, Inc. 217
16.1 Macy’s, Inc. Scorecard: 217
16.2 Macy’s, Inc. Company Overview 218
16.2.1 Macy's, Inc. Business Description 219
16.2.2 Macy's, Inc. Major Products & Services . 220
16.2.3 Macy's, Inc. History 221
16.3 Macy’s, Inc. Key Financials 223
16.4 Macy’s, Inc. SWOT Analysis . 225
16.4.1 Macy's, Inc. Strengths . 225
16.4.2 Macy's, Inc. Weaknesses . 226
16.4.3 Macy's, Inc. Opportunities 226
16.4.4 Macy's, Inc. Threats . 227
17 Company Benchmarking: Publix Super Markets, Inc. 229
17.1 Publix Super Markets, Inc. Scorecard: 229
17.2 Publix Super Markets, Inc. Company Overview 230
17.2.1 Publix Super Markets, Inc. Business Description . 231
17.2.2 Publix Super Markets, Inc. Major Products & Services 232
17.2.3 Publix Super Markets, Inc. History . 233
17.3 Publix Super Markets, Inc. Key Financials 234
17.4 Publix Super Markets, Inc. SWOT Analysis 236
17.4.1 Publix Super Markets, Inc. Strengths . 236
17.4.2 Publix Super Markets, Inc. Weaknesses 237
17.4.3 Publix Super Markets, Inc. Opportunities . 238
17.4.4 Publix Super Markets, Inc. Threats 239
18 Company Benchmarking: Staples, Inc. . 241
18.1 Staples, Inc. Scorecard: . 241
18.2 Staples, Inc. Company Overview . 242
18.2.1 Staples, Inc. Business Description . 243
18.2.2 Staples, Inc. Major Products & Services 245
18.2.3 Staples, Inc. History . 247
18.3 Staples, Inc. Key Financials 248
18.4 Staples, Inc. SWOT Analysis 250
18.4.1 Staples, Inc. Strengths . 251
18.4.2 Staples, Inc. Weaknesses 252
18.4.3 Staples, Inc. Opportunities. 253
18.4.4 Staples, Inc. Threats 254
19 Company Benchmarking: Amazon.com, Inc. 255
19.1 Amazon.com, Inc. Scorecard: 255
19.2 Amazon.com, Inc. Company Overview 256
19.2.1 Amazon.com, Inc. Business Description 257
19.2.2 Amazon.com, Inc. Major Products & Services . 258
19.2.3 Amazon.com, Inc. History . 259
19.3 Amazon.com, Inc. Key Financials 262
19.4 Amazon.com, Inc. SWOT Analysis . 264
19.4.1 Amazon.com, Inc. Strengths 264
19.4.2 Amazon.com, Inc. Weaknesses . 265
19.4.3 Amazon.com, Inc. Opportunities 266
19.4.4 Amazon.com, Inc. Threats 266
20 Company Benchmarking: The TJX Companies, Inc. 268
20.1 The TJX Companies, Inc. Scorecard: 268
20.2 The TJX Companies, Inc. Company Overview 269
20.2.1 The TJX Companies, Inc. Business Description 270
20.2.2 The TJX Companies, Inc. Major Products & Services . 271
20.2.3 The TJX Companies, Inc. History . 272
20.3 The TJX Companies, Inc. Key Financials 273
20.4 The TJX Companies, Inc. SWOT Analysis . 275
20.4.1 The TJX Companies, Inc. Strengths . 275
20.4.2 The TJX Companies, Inc. Weaknesses . 276
20.4.3 The TJX Companies, Inc. Opportunities . 276
20.4.4 The TJX Companies, Inc. Threats 277
21 Company Benchmarking: NIKE, Inc . 278
21.1 NIKE, Inc Scorecard: 278
21.2 NIKE, Inc Company Overview . 279
