Wal-Mart Tops NRF List of Top Retailers: QSR’s Appear for First Time

Wal-Mart again tops the National Retail Federation’s ranking of top retailers in the U.S., followed by The Home Depot and Kroger Co.

This year, for the first time, the association includes quick-service restaurants. Six companies made the list, based on corporate revenue (not system-wide sales): McDonald’s (16), Yum Brands (35), Starbucks (42), Darden Restaurants (53), Brinker International (73), and Outback Steakhouse (80).

“Americans still have to put dinner on the table every night, but now they are looking to restaurants to fill a larger portion of that need rather than relying exclusively on traditional supermarkets,” said Susan Reda, executive editor of Stores, in a statement. “Successful restaurants understand how to cater to today’s consumers, and there are some ideas they’re trying that traditional retailers may want to borrow.”

As for Wal-Mart, with 2006 sales of nearly $349 billion, it is bigger than the next five retailers combined. Wal-Mart’s sales rose nearly 12% from 2005 as the chain launched organic goods and worked on environmentally friendly initiatives.

Home Depot kept its No. 2 slot despite a tough year that saw the departure of CEO Robert Nardelli and a slump in the housing market (and, therefore, the DIY segment). Home Depot’s revenues rose 11.4% to $90.84 billion.

Kroger remains at No. 3 with sales up 9.2% to $66.1 billion.

NRF credited top performers for aggressively marketing their own private-label lines.

“It’s not enough anymore for retailers to carry the same merchandise as their competition,” Reda said. “From their own brand of food to an exclusive line of tools, today’s retailers will get ahead by differentiating their merchandise and offering products that consumers cannot find anywhere else.”

The annual list, which appears in the July issue of NRF’s Stores Magazine, ranks companies by revenue, regardless of class of trade.

Here are the top 10 retailers, with 2006 revenue and percentage increase over 2005:

  1. Wal-Mart—$348.65 billion (11.7%)
  2. Home Depot—$90.84 billion (11.4%)
  3. Kroger—$66.11 billion (9.2%)
  4. Costco—$60.15 billion (13.6%)
  5. Target—$59.49 billion (13.1%)
  6. Sears Holdings (Sears and Kmart)—$53.01 billion (7.9%)
  7. Walgreen—$47.41 billion (12.3%)
  8. Lowe’s—$46.93 billion (8.5%)
  9. CVS—$43.81 billion (18.4%)
  10. Safeway—$40.19 billion (4.6%)

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