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Mixed Retailers in the US

United States mixed retailers market: $404 billion industry in 2012

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2014-02-25 20:55:02 - Mixed Retailers in the US - a new market research report on

Wal-Mart Stores, Costco Wholesale and Target are the three leading companies in the United States mixed retailers market. Wal-Mart operates both mass merchandiser outlets and warehouse clubs, and was the leader in the mixed retailer channel in 2012, with 18% of value sales. Costco remains number two through its popular warehouse club in the US, with a 15% value share, while Targets mass merchandise concept makes it the third leading retailer in the broader mixed retailer channel, with a 14% value share in 2012.

Retailers catering to a less differentiated middle class, such as mass merchandisers, encountered difficulties in 2012. Outlet count decreased by 1% while sales were slightly negative as major retailers, such as Wal-Mart, continued transitioning stores to the



hypermarket format or closing underperforming outlets. Nonetheless, Target, the largest player in the category, still experienced strong growth to partially offset other retailers weaknesses.

Constant value sales of mixed retailers are predicted to stay flat between 2012 and 2017 as opposing trends in different channels cancel out growth overall. The strong presence of warehouse clubs and variety stores, especially dollar stores, is expected to sustain a 4% CAGR over the forecast period. Mass merchandisers and department stores, on the other hand, are expected to decline at around the same rate. They face stronger competition from non-store retailing, particularly internet retailing, as consumers will migrate to their e-commerce arms as well as other pure internet retailers, and fewer of them have distinct value propositions. Categories most affected by this trend include apparel, beauty, and electronics.

Key Headlines

- Mixed retailers registers 2% growth in 2012 with sales reaching US$404 billion
- At opposite ends of the spectrum, variety stores and warehouse clubs continue to drive growth in 2012
- Outlet growth of mixed retailers reaches 3% in 2012
- Wal-Mart, Costco and Target remain the top three companies in 2012, although Wal-Mart loses ground
- Forecast growth for mixed retailers is flat, with declines in department stores and mass merchandisers offset by growth in variety stores and warehouse clubs

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