The 100 Fastest-Growing Cross-Channel Retailers

By The Retail Online Integration Staff

We're proud to bring you our annual list of the 100 fastest-growing cross-channel retailers for the 2011 to 2012 fiscal year. To compile the list, we searched Yahoo Finance for all the public retail companies in the U.S. and Canada. Then we visited the financial section of each company's website and found their 2011 (or in some cases 2012) net sales and compared them to the previous fiscal year's net sales. After we figured out the percentage change year-over-year, we ranked each company in descending order for our top 100. We've also included some profiles that highlight specific companies on the list. Click on the "Related Content" link below to access a PDF of the full list.

Another key metric cross-channel retailers look at when analyzing their successes (or failures) is web traffic. As a result, Retail Online Integration asked Compete, a Kantar Media company that provides monthly website visitation numbers for the world's top brands, to take our list of the 100 fastest-growing cross-channel retailers and provide us with December 2010 and December 2011 online visitation numbers for those brands, as well as the percentage change. For the list, ROI gave Compete all of the multiple domains owned by each retail company (e.g., Amazon.com includes Soap.com, Diapers.com, etc.) and it rolled them up into the numbers provided below. Click on the "Related Content" link below to access a PDF of the full list.

The retail industry is facing some trying times. New economic realities have resulted in a new order of buyers who are more price-conscious and careful about the purchases they make.

Shoppers expect the best merchandise at the lowest price, and they want it shipped as soon as possible (for free) or available at whichever retail location is closest to them. Despite all of this, consumers are still shopping. They've demonstrated the desire to spend on discretionary items, helping spur economic and retail sales growth in the first quarter of 2012, according to the National Retail Federation (NRF).

In fact, an earlier Easter holiday combined with unseasonably warm weather throughout much of the country contributed to retail sales in March increasing 0.8 percent seasonally adjusted from February and 6.6 percent unadjusted year-over-year.

Which brings us back to our list. Here we celebrate retailers that increased sales despite tough economic times. Enjoy!

#1 Green Mountain Coffee Roasters
One of the newer companies on this list (it was founded in 1981), Green Mountain Coffee Roasters (GMCR) has quickly grown from its humble beginnings as a small coffee shop in Vermont into a national brand known for its specialty coffee and coffee makers. The company operates three distinct business units: Specialty Coffee, which includes Green Mountain Coffee, Tully's Coffee, Diedrich Coffee and Coffee People; Keurig, which manufactures the single-cup brewing system; and GMCR Canada, which is responsible for all GMCR sales in Canada and includes the Van Houtte business and Timothy's World Coffee brand. GMCR prides itself in its commitment to social responsibility. The retailer supports local and global communities by offsetting 100 percent of its greenhouse gas emissions, investing in Fair Trade Certified coffee and donating at least 5 percent of its pre-tax profits to social and environmental projects.

Here are some highlights from Green Mountain's 2011 fiscal year, according to its website:

operating income of $368.9 million, a 166  percent increase over fiscal 2010;
net income of $199.5 million, a 151 percent increase vs. 2010; and
gross profit for fiscal 2011 was $904.6 million compared to $425.8 million in fiscal 2010.

It appears the good times very likely will continue for GMCR in 2012. The retailer, for example, recently opened a new manufacturing and distribution facility in Isle of Wight County, Virginia (its ninth total), as well as expanded its strategic relationship with Starbucks for the manufacturing, marketing, distribution and sale of Starbucks-branded Vue packs for use in GMCR's recently introduced Keurig Vue brewer. — Joe Keenan

#23 Carter's
If you're a parent, you've most likely heard of Carter's. The Atlanta-based manufacturer and retailer is a leading provider of apparel and related products for babies and young children. The retailer operates the Carter's and OshKosh B'goshbrands, two of the most recognized brands in the children's marketplace.

The brands are sold in department stores, national chains and specialty retailers, along with more than 400 company-operated stores and online at carters.com and oshkoshbgosh.com.

"In 2011, the company achieved sales growth in every segment of our business, which reflects the strength of our brands and compelling value they provide to consumers," said Michael D. Casey, chairman and chief executive officer of Carter's, in a company press release. "For the year, we achieved a record level of sales by extending the reach of our brands in the United States and international markets."

Indeed, international segment sales for the cross-channel retailer increased to $6.4 million, or 8.5 percent in fiscal 2011, reflecting the acquisition of the Canadian retailer Bonnie Togs last year, along with higher wholesale sales.

In addition, Carter's opened one store in Canada in 2011, bringing the total number of stores the company operates in Canada to 65. Other highlights of Carter's 2011 fiscal year include the following:

Carter's retail segment sales increased 22.9 percent to $671.6 million, driven by $57 million in sales generated from new store openings and $40.8 million generated from e-commerce sales; and
sales for the OshKosh B' gosh retail segment increased 6 percent to $280.9 million, driven by $12.9 million in e-commerce sales and $8.9 million from new store openings. — Melissa Campanelli

#39 The Vitamin Shoppe
With more than 150 million people in the United States taking dietary supplements every day, there's plenty of opportunity for a retailer of vitamins, minerals, herbs, supplements, sports nutrition, and other health and wellness products to capture market share. The Vitamin Shoppe did just that in 2011.

Selling its products via 528 brick-and-mortar stores in 40 states, Washington, D.C. and Puerto Rico, as well as online and by catalog enables The Vitamin Shoppe to engage its customers and prospects on a continual basis. The one-to-one relationships created in these interactions helps The Vitamin Shoppe target its customers and prospects with a variety of products that aren't readily available at other specialty vitamin retailers or mass merchants, such as drugstore chains and supermarkets.

That personal service has paid off. Last year was just the latest in a long line of successful years for The Vitamin Shoppe.

In fact, the retailer has grown its net sales from $436.5 million in fiscal 2005 to $856.6 million in fiscal 2011, while achieving positive comparable store sales for 18 consecutive years. Here are some highlights from The Vitamin Shoppe's 2011 fiscal year:

comparable store sales grew 7.4 percent on a 52-week basis;
operating income rose 28.8 percent; and
the company opened 48 stores during the year

The Vitamin Shoppe is looking forward to yet another successful year in fiscal year 2012. The company plans to open 52 new stores and is expecting comparable store sales growth in the mid-single digits, along with continued improvement in operating income margin and capital expenditures of $32 million — Joe Keenan

#48 Dollar Tree
Some retail categories are doing well in spite of the current economic issues Americans are facing. One such category is dollar stores — those variety stores that sell inexpensive items, often charging the same price per unit for all of the store's merchandise. One company in the dollar store category that did well in 2011 is Dollar Tree, Inc. Headquartered in Chesapeake, Va., Dollar Tree is the largest single price-point retailer in the country, operating an e-commerce site as well as 4,351 stores and nine distribution centers in 48 U.S. states and five Canadian provinces.

"For the full year 2011, as planned, we opened 278 new stores and relocated and expanded 91 stores for a total of 369 projects," said Bob Sasser, president and CEO of Dollar Tree, in a company press release. "Selling square footage increased 6.9 percent, and we ended the year with 4,351 stores. Our plan for 2012 includes approximately 315 new stores and 75 relocations or expansions for a total of 390 projects in the U.S. and Canada."

Dollar Tree is also adding distribution capacity to support its growth. The company is developing new retail formats as well. Dollar Tree's new "Deal$" stores, for example, offer a new multipriced format where not everything is $1 but is still value-priced.

"By lifting the restriction of the $1 price point, we can serve even more customers with more products and more categories," Sasser said. "We opened 28 new Deal$ stores in 2011 and ended the year with a net total of 182 Deal$ stores. We plan to continue this growth rate in 2012." Other highlights of Dollar Tree's 2011 fiscal year include the following:

comparable store sales increased 6 percent; and
diluted earnings per share were $4.03, an increase of 30 percent from diluted earnings per share of $3.10 in 2010. — Melissa Campanelli

#70 Express
Operating in the crowded apparel and accessories space, Express took steps last year to differentiate itself from its competition. Chief among them was extending its reach internationally. The retailer started shipping online orders to 60 countries across the Americas, Europe and Asia in August, then in September it opened its first brick-and-mortar store outside the U.S. in Toronto.

"International shipping allows Express to build upon our customer base and meet the requests we hear from our international customers who come to the U.S., shop in our stores and fall in love with our fashion," said Lisa Gavales, chief marketing officer at Express, in a press release announcing the launch of international shipping. "We feel there's a great opportunity to provide access to the universal fashion appeal of Express to men and women around the world."

In addition to its international efforts, Express also did quite well domestically in 2011. Here are some highlights from its latest fiscal year:

the company opened 27 new stores, including 21 in the U.S. and six in Canada;
operating income increased approximately  36 percent to $270.9 million, or 13.1 percent of net sales, compared to $199.3 million, or 10.5 percent of net sales, in 2010; and
net income was $147.1 million compared to $121.8 million the previous year.

Things are looking up for Express in fiscal 2012, as well. The company expects full-year comparable store sales to increase in the midsingle digits next year, compared to a 6 percent increase in 2011. What's more, it plans to open 30 new stores in 2012, including 20 to 23 in the U.S. and seven to 10 in Canada. — Joe Keenan

#79 Calloway's Nursery
Gardening, like everything else, must be big in Texas. If not, how else couldCalloway’s Nursery, a 19-store garden center chain serving the Dallas-Fort Worth (as Calloway’s Nursery) and Houston (as Cornelius Nursery) markets, manage to be one of the fastest-growing retailers?

Founded in 1986, Calloway’s Nursery strives to make gardening fun, easy and successful for its customers by offering expert advice from Texas-Certified Nursery Professionals; store environments that are educational and easy to shop; weekly gardening clinics that serve both novice and expert gardeners; displays and instructions to aid gardeners with design and color development in their yards; and a product selection of the best plant varieties available.

Calloway’s sales are primarily derived from living plants, as well as the products that are required to care for and nourish those plants. The company also sells lawn and garden accessories. In the Houston Cornelius Nursery stores, shoppers can find an extensive selection of gift items and custom arrangements as well.

While Calloway’s Nursery doesn’t have an online store, the company actively promotes its brand via direct mail, online advertising and an active presence on Facebook,Google+ and Twitter.

When consumers “Like” Calloway’s on Facebook, follow the company on Twitter or add Calloway’s to their Google+ circles, for example, they receive special saving notices.

Highlights of Calloway’s Nursery’s 2011 fiscal year include the following:

net income of $1.3 million, compared to net income of $0.7 million for fiscal year 2010; and
diluted net income per common share of $.17, compared to diluted net income per common share of $.09 for 2010. — Melissa Campanelli

#91 PC Mall
A hybrid B-to-B/B-to-C brand, PC Mall, Inc. sells technology products, services and solutions to businesses, government and educational institutions, as well as to individual consumers through three retail stores, a direct sales force and direct via its e-commerce sites and catalogs. The 25-year-old company is based in El Segundo, Calif. PC Mall bolstered its product offerings with the acquisition of online marketplace eCost.com in February 2011. eCost.com sells merchandise in an assortment of product categories, including computers, networking, electronics and entertainment, TVs, monitors and projectors, cameras and camcorders, memory and storage, apparel, and sports and leisure items. The move comes in conjunction with PC Mall's plan to form a new subsidiary to be named OnSale, which will be combined with the eCost business.

"We're very excited about this acquisition, which will help us broaden our reach into the consumer market," said Frank Khulusi, PC Mall's chairman and CEO, in a company press release announcing the move. "Consumer spending represents a significant portion of the U.S. economy and the opportunities surrounding a consumer-focused web strategy can be compelling. Our plan for our new consumer-focused subsidiary [OnSale] is to leverage its brands, revenue stream, vendor relationships, online traffic, customer base, patents and employee base to expand as well as to explore additional market opportunities."

Other highlights of PC Mall's 2011 fiscal year include the following: