Ikea checks all the boxes to earn fastest-growing retailer title

HIGH POINT — With many retailers struggling to get in or stay in the black in 2023, the pool of those qualifying for fastest-growing retailer was greatly reduced. Yet Ikea, the Swedish-born retailer with 54 stores across the United States, delivered on steady sales and modest retail store growth, putting it atop the list with a composite score of 446.

Ikea was No. 3 on Furniture Today’s Top 100 with furniture, bedding and accessories sales of more than $4.2 billion in 2023. While its 6% was good enough for eighth place on the list of fastest-growing retailers by percentage growth, its net increase of $238 million gave it the lead position on the increase in dollars roster. Ikea also added two U.S. stores in 2023, which helped it achieve a 2.2% increase in equivalent store sales.

Ikea earned points across all five of the indices used to determine the fastest growing, the only retailer to do so based on 2023 data.

Second, with a composite score of 396, was Conn’s, which saw its fortunes rise both in sales and store totals with the late-in-the-year acquisition of Badcock Home & Furniture. The purchase of Badcock boosted Conn’s store count by 385, putting it far ahead of Lovesac, which was second in stores with 34 new showrooms in 2023.

Moving up and down

Whereas last year’s fastest-growing list had all of the Top 10 retailers in store growth in double digits, this year just four achieved that mark.

Lovesac and Arhaus, both of which grew their store count and their sales, were the only retailers to repeat on this year’s list after appearing among the fastest-growing retailers last year based on 2022 numbers.

Arhaus, last year’s No. 1, fell to fourth with an index score of 381, while Lovesac moved up two spots from fifth to third with a 387 total.

Clive Daniel Home, a five-store retailer in Florida, earned the highest score for percentage sales increase with a 16.5% mark and also ranked in the categories of percentage increase in number of units and increase in dollars. The result was achieving the fifth spot among the fastest growing with a composite score of 372.

A newcomer to the Top 100 was also a newcomer to the fastest growing: Canales Furniture, at No. 6. The Texas retailer increased its store count by three during 2023 while also improving its sales by $4 million for a 9.2% year-over-year increase.

Rounding out the Top 10 growth index leaders based on 2023 performance were Regency Furniture, Old Brick Furniture, Matter Brothers and Furnitureland South.

What a difference a year makes

Indicators of the vast difference a year makes include the drastic change in equivalent store sales percentages.

Arhaus put up a 51.7% increase last year to earn the top spot. In contrast, Crate & Barrel, which was No. 1 for equivalent store sales growth this year, came in at 15.3%.

Furnitureland South, the only retailer to make the equivalent store sales that list for both years, went from 17% to 4.1%. No retailer on that list last year was below double-digit growth, while this year just three retailers — Crate & Barrel, Severegn Furniture Management and Lacks Furniture — were higher than 10%.

Similarly, the lowest net increase in dollar sales last year was Dufresne Spencer Group’s $73.8 million, whereas this year a $4 million gain was enough to get two retailers into the Top 10 based on actual sales gain.

See also:

  • Top 100 U.S. Furniture Stores 2024
  • How Top 100 retailers faced the challenges of 2023 to stay among the elite

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