WASHINGTON, DC, Jun 30, 2006 / --- The past year has been anything but boring for the retail industry. Defining events such as the Federated/May Department Stores and Sears/Kmart unions have added new power players to the scene and the competition to be the best has definitely heated up, according to the SAP Top 100 Retailers ranking reported in STORES Magazine’s July issue.

The report is an annual snapshot of the retail industry, ranking companies by revenue and grouping them on one chart regardless of the segment or segments in which they operate. STORES magazine is the monthly magazine of the National Retail Federation (NRF).

“The allure of the department store is making a fast comeback,” said Rick Gallagher, STORES Publisher and NRF Vice President. “Retailers are quickly learning how to appeal to all generations with new product lines, stylish private-label brands, and exciting marketing techniques.”

Two notable mergers last year caused a shake up in the Top 100 rankings. As a result of the Sears/Kmart merger, Sears Holdings made the most impressive jump, with the company’s newly combined sales earning them the #4 spot with sales of $53.96 billion. (Kmart was ranked #14 and Sears #9 in 2005.) Additionally, Federated Department Stores, ranked #20 in 2005, jumped six spots to #14 with $22.39 billion in revenue after reporting combined Federated and May sales.

Despite increased competition from department stores and discounters, it comes as no shock that Wal-Mart once again emerged on top with 2005 sales of $315.43 billion, a 9.5 percent increase over 2004. Last year’s push into luxury items by big-box retailers such as Wal-Mart (#1), Costco (#5) and Target (#6) resulted in even more competition. In a dead heat for fifth place, Costco out-maneuvered Target and secured the higher spot; sales for each company were more than $52 billion.

The housing boom resulted in strong profits for home improvement retailers, which also showed strength in 2005. Home Depot maintained the #2 spot with $81.51 billion in sales, an 11.5 percent increase, while its main competitor Lowe’s (#7) finished with $43.24 billion, an impressive 18.6 percent increase from the previous year.

Another major event in 2005 was the dismantling of the Idaho-based grocery store Albertsons, which slipped three spots to #9. Safeway (#10), which was unable to capitalize on any of Albertsons stores, now has the opportunity to increase its market share in select areas.

Kroger, having less overlap in store locations, maintained the #3 spot on the list with sales of $60.55 billion in 2005. Lifestyle stores offering natural and organic foods such as Trader Joe’s (#57) and Whole Foods (#55) have posed new threats to the traditional grocers in recent years and didn’t let up speed this year, each climbing a few ranks higher on the list.

Natural disasters in the United States and overseas caused gas prices to surge in the latter half of the year, helping boost sales at 7-Eleven and pushing it up two spots to #24. As a result, the Top 100 list also welcomed other convenience store giants like WaWa (#53) and Sheetz (#74).

STORES is the monthly magazine of the National Retail Federation.

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