1. 6400 Shafer Court, Suite 650, Rosemont, IL 60018  Phone 847.292.4200  Fax 847.292.4211  www.housewares.org U.S. Housewares Retail Market Presented by

2. Page 2 The International Housewares Association Is The Home Authority Not-for-profit, full-service trade association Founded in 1938 The voice for the housewares industry 1,550 supplier members Sponsors the International Home + Housewares Show

3. Page 3 Stores You Will Visit Today Best Buy Bloomingdales Brookstone The Container Store Crate&Barrel The Great Indoors Pottery Barn Target Wal*Mart Z Gallerie

4. Page 4 The Best Thing About 2008? It’s Over!

5. Page 5 US Retailers Who Have Closed Linens ‘n Things Sharper Image Mervyn’s Circuit City Fortunoff …and many more

6. Page 6 What Will 2009 Bring? “America’s retail footprint is shrinking. And not just because the industry will lose about 40,000 more stores than it gains during this recession year. The trend toward smaller stores is picking up steam.” The Kiplinger Letter, 3/1/09

7. Page 7 A February Surprise: The Consumer Begins Spending Intentions to Spend More, the Same or Less at Retail Stores Compared to This Time Last Year

8. Page 8 Global Housewares Market Insert new chart Global Housewares Retail Sales 2007 US$301.5 Billion US and Canada$86.1 Latin America$12.4 Western Europe$72.5 Asia$93.5 Africa$12.1 Eastern Europe$ 9.1 Oceania$ 4.8 Middle East$ 8.1

9. Page 9 2007 Housewares Sales By Key Retail Channel Discount Stores/Supercenters30.0% Specialty Stores11.9% Department Stores 10.5% Supermarkets 7.9% Warehouse Clubs 5.2% Hardware Stores/Home Centers 4.4%

10. Page 10 Discount Stores & Supercenters 30.0%

11. Page 11 Top Discount Store: Wal-Mart* Parent Company: Wal-Mart Stores General Profile: Wal-Mart is a global retailer providing a broad assortment of quality merchandise and services at everyday low pricing. Subsidiaries: Sam’s Club Number of stores in U.S.: 3,418 U.S. regions: National Total sales: $239,529 Million in 2007 Housewares sales: $20,100 Million in 2007 Housewares sales rank in top 100: 1 * Source: HomeWorld Business

12. 6400 Shafer Court, Suite 650, Rosemont, IL 60018  Phone 847.292.4200  Fax 847.292.4211  www.housewares.org Retail Intelligence Report Wal-Mart was one of only two DJIA stocks to grow in value in 2008.

13. 6400 Shafer Court, Suite 650, Rosemont, IL 60018  Phone 847.292.4200  Fax 847.292.4211  www.housewares.org Retail Intelligence Report Wal-Mart Stores Inc reported a higher-than- expected 5.1 percent rise in February sales at U.S. stores open at least a year, saying lower gas prices meant shoppers had more money to spend in its discount stores.

14. Page 14 Discount Store: Target* Parent Company: Target Corporation General Profile: Target strives to be the best place to buy high quality merchandise at low prices. They are an upscale discounter. Number of stores in U.S.: 1,591 U.S. regions: National Total sales: $63,367 Million in 2007 Housewares sales: $7,690 Million in 2007 Housewares sales rank in top 100: 3 * Source: HomeWorld Business

15. Page 15 Parent Company: Sears Holdings Number of stores in U.S.: 1,382 U.S. regions: National Total sales: $17,256 million Housewares sales: $2,380 million Housewares sales rank in top 100: 8 Discount Store: Kmart * Source: HomeWorld Business

16. 6400 Shafer Court, Suite 650, Rosemont, IL 60018  Phone 847.292.4200  Fax 847.292.4211  www.housewares.org Retail Intelligence Report Supercenters are the key growth channel for US retailing.

17. Page 17 Other Discount Stores Store 2007 Housewares Sales (US$ millions) Dollar General$1,350 Meijer’s$ 620 Family Dollar Stores$ 520 Shopko Stores Fred's Inc $ 410 $ 400

18. Page 18 U.S. Specialty Stores 11.9%

19. 6400 Shafer Court, Suite 650, Rosemont, IL 60018  Phone 847.292.4200  Fax 847.292.4211  www.housewares.org Retail Intelligence Report Chain specialty retailing is experiencing growth challenges, as witnessed by the going- out-of-business sale at Linens ‘n Things. However, this should eventually benefit other home goods retailers.

20. Page 20 Specialty Store: Bed Bath & Beyond Parent Company: Bed, Bath & Beyond General Profile: Bed Bath & Beyond is a national chain of superstores selling predominantly better quality domestic merchandise and home furnishings. Bed Bath & Beyond aims to combine superior service with a huge selection of items at everyday low prices within a constantly evolving environment. Number of stores in U.S.: 971 U.S. regions: National Total sales: $7,048 Million in 2007 Housewares sales: $3,090 Million in 2007 Housewares sales rank in top 100: 5 * Source: HomeWorld Business

21. Page 21 Specialty Store: Williams Sonoma Parent Company: Williams Sonoma General Profile: Williams Sonoma is a specialty retailer of products for the home. Subsidiaries: Pottery Barn*, Pottery Barn Kids, West Elm Number of stores in U.S.: 600 U.S. regions: National Total sales: $3,949 Million in 2007 Housewares sales: $3,050 Million in 2007 Housewares sales rank in top 100: 6 * Source: HomeWorld Business

22. Page 22 Specialty Store: Sur La Table Parent Company: Sur La Table General Profile: Sur La Table was created to satisfy the growing demands from culinary professionals and home chefs for a reliable source of top quality cookware and hard to find kitchen tools. Number of stores in U.S.: 68 Total sales: $260 Million in 2007 Housewares sales: $195 Million in 2007 Housewares sales rank in top 100: 51 * Source: HomeWorld Business

23. Page 23 Specialty Store: Crate&Barrel* Parent Company: Crate&Barrel General Profile: Crate and Barrel features unique, functional, affordable designs for the home. They carry innovative, high quality design products focusing on shape, form, color and function. Subsidiaries: CB2 Number of stores in U.S.: 170 U.S. regions: National Total sales: $1,310 Million in 2007 Housewares sales: $850 Million in 2007 Housewares sales rank: 18 * Source: HomeWorld Business

24. Page 24 Specialty Store: Pier 1 Parent Company: Pier 1 Imports General Profile: North America's largest specialty retailer of unique, fashion forward, decorative furnishings, gifts and related items directly imported from over 50 countries around the world. Number of stores in U.S.: 1,117 U.S. regions: National Total sales: $1,512 Million in 2007 Housewares sales: $200 Million in 2007 Housewares sales rank in top 100: 50 * Source: HomeWorld Business

25. Page 25 Specialty Store: Cost Plus World Market Parent Company: Cost Plus World Market General Profile: Cost Plus World market is a leading specialty retailer of casual home furnishings and entertaining products. Their strategy is to differentiate themselves by offering a large and ever-changing selection of unique products, many of which are imported, at value prices in an exciting shopping environment. Number of stores in U.S.: 298 U.S. regions: 28 States Total sales: $1,024 Million in 2007 Housewares sales: $135 Million in 2007 Housewares sales rank in top 100: 57 * Source: HomeWorld Business

26. Page 26 Specialty Store: The Container Store* Parent Company: The Container Store General Profile: The Container Store is devoted to helping people streamline and simplify their lives by offering an exceptional mix of storage and organization products. Number of stores in U.S.: 42 U.S. regions: 12 States Total sales: $580 Million in 2007 Housewares sales: $520 Million in 2007 Housewares sales rank in top 100: 31 * Source: HomeWorld Business

27. 6400 Shafer Court, Suite 650, Rosemont, IL 60018  Phone 847.292.4200  Fax 847.292.4211  www.housewares.org Retail Intelligence Report For several years The Container Store has been ranked among the top ten best places to work in the US.

28. Page 28 Specialty Store: HomeGoods Parent Company: TJX Companies General Profile: HomeGoods is a chain of off- price home fashion stores. HomeGoods offers an exciting, and rapidly changing selection of home décor merchandise including furniture, giftware, rugs, bed and bath accessories, lamps and seasonal merchandise at great values. Number of stores in U.S.: 289 U.S. regions: National Total sales: $1,480 Million in 2007 Housewares sales: $675 Million in 2007 Housewares sales rank in top 100: 25 * Source: HomeWorld Business

29. Page 29 Specialty Store: Best Buy* Parent Company: Best Buy General Profile: America's leading specialty retailer of consumer electronics, personal computers, entertainment software and appliances. Subsidiaries: Magnolia Audio Video, The Future Shop Number of stores in U.S.: 1,314 U.S. regions: National Total sales: $40,023 Million in 2007 Housewares sales: $305 Million in 2007 Housewares sales rank in top 100: 46 * Source: HomeWorld Business

30. Page 30 Specialty Store: IKEA Parent Company: Ingka Holding B.V. General Profile: IKEA is a full-range specialty retailer selling a wide range of home furnishings with good design and function. Number of stores in U.S.: 33 Total sales: $3,000 Million in 2007 Housewares sales: $350 Million in 2007 Housewares sales rank in top 100: 43 * Source: HomeWorld Business

31. Page 31 Other Specialty Stores Store 2007 Housewares Sales (US$ millions) Kitchen Collection$210 Garden Ridge$140 Ross Stores$145

32. Page 32 Department Stores 10.5 %

33. Page 33 Department Store: Macy*s Parent Company: Macy*s Group General Profile: Macy*s Group, Inc., with its 2006 acquisition of May Department Stores, is now the US's leading department store retailer. A tradition of exceptional shopping and lifestyle. Subsidiaries: Bloomingdales* Number of stores in U.S.: 853 Total sales: $26,313 in 2007 Housewares sales: $1,260 in 2007 Housewares sales rank in top 100: 14 * Source: HomeWorld Business

34. 6400 Shafer Court, Suite 650, Rosemont, IL 60018  Phone 847.292.4200  Fax 847.292.4211  www.housewares.org Retail Intelligence Report Macy’s restructured its home goods buying division, formerly known as Macy’s Home Store, in early 2009.

35. Page 35 Top Department Store: Sears Parent Company: Sears Holdings General Profile: Sears is a multi-line retailer offering a wide variety of merchandise and related services Divisions: Kmart, The Great Indoors* Total Stores: 2,085 Total sales: $27,845 Million in 2007 Housewares sales: $1,950 Million in 2007 Housewares sales rank in top 100: 9 * Source: HomeWorld Business

36. Page 36 Department Store: Kohl’s Parent Company: Kohl’s Department Stores General Profile: Kohl's mission is to be the leading family-focused, value oriented, specialty department store offering national brand merchandise to the consumer in an environment that is clean, friendly and convenient. Number of stores in U.S.: 929 Total sales: $16,473 Million in 2007 Housewares sales: $1,535 Million in 2007 Housewares sales rank in top 100: 11 * Source: HomeWorld Business

37. Page 37 Other Department Stores Store 2007 Housewares Sales (US$ millions) TJMaxx/Marshall’s$530 JCPenney$315 Dillard's$145 The Bon Ton$115 Belk$115

38. Page 38 Supermarkets 7.9 %

39. Page 39 Top Supermarket: Kroger Parent Company: Kroger Subsidiaries: Bakers, Calla Foods, CityMarket, Dillons, Food4Less, Fred Meyer, Frys, Gerbes, Hilander, Jay C Foods, Kessel Food Markets, King Soopers, Payless Super Markets, QFC Quality Food Centers, Quik Stop, Ralph's, Smith's Food & Drug, Tom Thumb Food Stores Number of stores in U.S.: 3,662 Total sales: $70,234 Million in 2007 Housewares sales: $1,235 Million in 2007 Housewares sales rank in top 100: 15 * Source: HomeWorld Business

40. Page 40 Supermarket: SuperValu Parent Company: SuperValu Subsidiaries: Acme, Albertson’s, Jewel-Osco, Supersaver Foods Number of stores in U.S.: 2,474 U.S. regions: 31 States Total sales: $34,341 Million in 2007 Housewares sales: $390 Million in 2007 Housewares sales rank in top 100: 37 * Source: HomeWorld Business

41. Page 41 Supermarket: Safeway Parent Company: Safeway Subsidiaries: Carrs, Dominicks, Genuardi's, Pac n Save Foods, Pavillions, Randalls, Tom Thumb, Von's Number of stores in U.S.: 1,743 U.S. regions: National Total sales: $42,286 Million in 2007 Housewares sales: $705 Million in 2007 Housewares sales rank in top 100: 23 * Source: HomeWorld Business

42. Page 42 Other Supermarkets Store 2007 Housewares Sales (US$ millions) Publix Ahold USA Delhaize America $390 $380 $255

43. Page 43 Warehouse Clubs 5.2%

44. Page 44 * Source: HomeWorld Business Warehouse Club: Costco Parent Company: Costco Wholesale Corp. General Profile: Costco Wholesale operates an international chain of membership warehouses that carry quality, brand name merchandise at substantially lower prices than are typically found at conventional wholesale or retail sources. The warehouses are designed to help small and medium sized businesses reduce costs in purchasing for resale and for everyday business use. Number of stores in U.S.: 520 Total sales: $64,400 Million in 2007 Housewares sales: $8,200 Million in 2007 Housewares sales rank in top 100: 2

45. 6400 Shafer Court, Suite 650, Rosemont, IL 60018  Phone 847.292.4200  Fax 847.292.4211  www.housewares.org Retail Intelligence Report While announcing flat January sales, Costco CEO Jim Sinegal claimed that Costco was gaining market share because most other retailers were down.

46. Page 46 Warehouse Club: Sam’s Club Parent Company: Wal-Mart Stores Inc. General Profile: Sam's Club is the nation's largest member only warehouse club. Number of stores in U.S.: 591 Total sales: $44,357 Million in 2007 Housewares sales: $4,550 Million in 2007 Housewares sales rank in top 100: 4 * Source: HomeWorld Business

47. Page 47 Other Warehouse Clubs Store 2007 Housewares Sales (US$ millions) BJ’s Wholesale$955 Smart & Final$ 71

48. Page 48 Hardware Stores & Home Centers 4.4 %

49. Page 49 * Source: HomeWorld Business Hardware Stores & Home Centers: Home Depot Parent Company: Home Depot General Profile: Home Depot is the world's largest home improvement retailer. Number of stores in U.S.: 2,234 Total sales: $77,349 Million in 2007 Housewares sales: $2,610 Million in 2007 Housewares sales rank in top 100: 7

50. 6400 Shafer Court, Suite 650, Rosemont, IL 60018  Phone 847.292.4200  Fax 847.292.4211  www.housewares.org Retail Intelligence Report The Home Depot sales has been impacted by the difficult U.S. housing market and but reported January profits exceeded expectations. They also announced the closing of their Expo chain of home design stores.

51. Page 51 Hardware Stores & Home Centers: Lowe’s Parent Company: Lowe’s Companies Inc. Number of stores in U.S.: 1,525 Total sales: $48,283 Million in 2007 Housewares sales: $1,335 Million in 2007 Housewares sales rank in top 100: 13 * Source: HomeWorld Business

52. Page 52 Hardware Stores & Home Centers: Ace Hardware Parent Company: Ace Hardware General Profile: Ace is a cooperative composed of members who are entrepreneur retailers. Number of stores in U.S.: 4,600 Total sales: $12,400 Million in 2007 Housewares sales: $820 Million in 2007 Housewares sales rank in top 100: 20 * Source: HomeWorld Business

53. Page 53 Hardware Stores & Home Centers: True Value Parent Company: True Value Corp. General Profile: True Value, recently renamed from TruServ, is a cooperative composed of members who are entrepreneur retailers. Tru-Serv was founded in 1997 when Servistar/Coast to Coast merged with Cotter & Co. Number of stores in U.S.: 5,600 Total sales: $8,700 Million in 2007 Housewares sales: $615 Million in 2007 Housewares sales rank in top 100: 27 * Source: HomeWorld Business

54. Page 54 Other Hardware Stores & Home Centers Store 2007 Housewares Sales (US$ millions) Do It Best$600 Menard's$190

55. Page 55 Others

56. 6400 Shafer Court, Suite 650, Rosemont, IL 60018  Phone 847.292.4200  Fax 847.292.4211  www.housewares.org Retail Intelligence Report Although still small in size, the Internet continues to be the fastest growing U.S. retail channel.

57. Page 57 Top Drug Store: Walgreens Parent Company: Walgreens General Profile: Walgreens is the nation's largest and fastest growing drug store chain. Number of stores in U.S.: 5,997 Total sales: $53,762 Million in 2007 Housewares sales: $1,825 Million in 2007 Housewares sales rank in top 100: 10 * Source: HomeWorld Business

58. Page 58 http://www.housewares.org/ppt/USHousewaresMkt_09.ppt

59. 6400 Shafer Court, Suite 650, Rosemont, IL 60018  Phone 847.292.4200  Fax 847.292.4211  www.housewares.org U.S. Housewares Retail Market Presented by Thank You