{"id":3971,"date":"2014-07-09T13:34:41","date_gmt":"2014-07-09T13:34:41","guid":{"rendered":"http:\/\/newsroom.chainstoreguide.com\/?p=3971"},"modified":"2014-07-09T13:34:41","modified_gmt":"2014-07-09T13:34:41","slug":"csg-recession-busters-5","status":"publish","type":"post","link":"https:\/\/www.chainstoreguide.com\/offthechain\/2014\/07\/csg-recession-busters-5\/","title":{"rendered":"CSG Recession Busters 5"},"content":{"rendered":"\n\n\n
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CSG Industry Experts:\u0003<\/strong><\/p>\n

\u0003<\/p>\n

Natasha Perry\u0003<\/strong><\/p>\n

Apparel & Department\u0003<\/p>\n

Brian List<\/strong>\u0003<\/p>\n

Grocery & C-store<\/p>\n

Arthur Rosenberg<\/strong>\u0003<\/p>\n

Home, Hardware, & Discount<\/p>\n

Linda Helman<\/strong>\u0003<\/p>\n

Restaurant\u0003<\/p>\n

Rebecca Ewing<\/strong>\u0003<\/p>\n

Drug, & HBC<\/p>\n

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Our panel of Industry Experts and authors of CSG Through The Ages<\/em>, brings you this year\u2019s series: Recession Busters<\/strong><\/p>\n

Businesses need vision, strategy, and the right leadership to find success even in a tough economy.<\/p>\n

Using the vast CSG database of historical data and inside knowledge of each industry, our expert panelists have followed the trends for the last decade and selected the Top 10 companies in each segment that survived the recession.<\/p>\n

Each month we reveal a top company that weathered the storm. We will examine what they did, how they did it, and where they are going in the future.<\/p>\n

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Apparel & Department Store Retailers<\/strong><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

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Tilly\u2019s<\/strong> is a specialty retailer of west coast inspired apparel, footwear and accessories. Stores are distinct and create a shopping experience that is unique, creative and fun. Tilly\u2019s offers one of the largest assortments of the most sought-after brands for teen and young adult consumers in action sports, music, art and fashion. Products are also sold through an e-commerce website, www.Tillys.com<\/a>.<\/p>\n

Over the last few years, Tilly\u2019s has served as a destination for the latest, most relevant merchandise and brands with a balance of guys and juniors merchandise. Still led by Co-Founder Hezy Shaked, the company has demonstrated its ability to grow rapidly, having more than doubled its store count while entering several new markets.<\/p>\n

The first Tilly\u2019s store opened in southern California in 1982. Twenty five years later, in 2007, the company had 73 stores. Since then the company has grown to 203 mall-based stores in 33 states. The private company estimated its sales at over $500 million last year, a 187% growth from fiscal 2007. In 2013, Tilly\u2019s Co. was ranked in Chain Store Guide\u2019s Top 100 Apparel Specialty Retailers<\/em><\/strong>. Competitors include Pacific Sunwear, Hot Topic, Zumiez and other fast fashion retailers.<\/p>\n

Tilly\u2019s niche is its name-brand assortment of merchandise in the surf, skate and lifestyle apparel industries. Both online and in-store, the Tilly\u2019s shopping experience corresponds with its millennial consumers. The fast growing company plans to open at least 18 net new stores in fiscal year 2014.<\/p>\n

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Discount, Dollar, & Hardware Retailers<\/strong><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

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Back in March, this series properly featured the triumphs of Family Dollar for its ability to more than just survive the recession but actually thrive.\u00a0 Similarly, Dollar General<\/strong> was able to use a blueprint derived at least a decade before the recession, to greatly grow its imprint in American retailing.\u00a0 This was not so much despite the recession, but using recessionary conditions to exceed an already aggressive growth pattern.\u00a0 As even affluent consumers were suddenly struggling, it was Dollar General to the rescue, cleverly and affordably opening new locations, even in newly struggling neighborhoods.<\/p>\n

Along with national, regional and strong independent dollar stores, Dollar General devised a plan in the 90\u2019s to invest heavily to install refrigerators and freezers at its locations, while upgrading its grocery mix, focusing on perishables.\u00a0 This strategy was essentially a merchandising overhaul, designed to entice customers to visit stores more regularly while increasing average tickets at the checkout.\u00a0 The success of the plan likely exceeded expectations.<\/p>\n

However, as Dollar General\u2019s dollar store competitors decided on similar investments in equipment, along with grocery merchandising adjustments, Dollar General went a step further. \u00a0DG created a new prototype, Dollar General Market.\u00a0 These stores essentially doubled the size of the typical Dollar General prototype to become somewhat of a supercenter (though through a space about 1\/10 the size of many supercenters) to the traditional Dollar General store.\u00a0 As organics came more in demand, Dollar General expanded this concept further, while decreasing space for non-grocery, to seize the initiative on organics relatively early on.<\/p>\n

These initiatives produced a climate of unprecedented expansion, despite harsh recessionary conditions.\u00a0 In 2012, Dollar General opened its 10,000th<\/sup> location.\u00a0 The actual opening occurred in California, just as the retailer was entering the state for the first time.\u00a0 This was an indication that DG had lots of room for growth in still uncharted territories.<\/p>\n

This year Dollar General is on track to meet its plan to open 700 new locations.\u00a0 Not to be overlooked, the retailer also plans 200 remodelings.\u00a0 The company constantly seeks upgrades of locations it deems as having potential to better serve communities when given an investment upgrade. \u00a0Aggressive store remodeling is an often overlooked aspect in Dollar General\u2019s formula for success.<\/p>\n

Dollar General Just announced that its chairman and chief executive officer, Rick Dreiling, 60, has informed the Board of Directors of his intent to retire as CEO\u00a0effective May\u00a030, 2015 or upon the appointment of a successor.\u00a0 Mr. Dreiling has served as CEO since January 2008 and was named Chairman of the Board in December 2008.\u00a0 These dates of course coincide with the \u2018official\u2019 start of the recession.<\/p>\n

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Drug Store & HBC Chains<\/strong><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

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Ranked number 1 on Entrepreneur Magazine\u2019s Prestigious 2014 Franchise 500 list, Anytime Fitness<\/strong> has proven to outperform other gyms. Founded in 2001 by Chuck Runton, the company has grown from 444 gyms in 2008 to over 2,500 globally today. The company began franchising in 2002 and has become the fifteenth fastest growing franchise in the world, and number ten in America. Each club is independently owned and operated, and of the over 2,500 locations, only 28 are company owned. \u00a0Anytime Fitness has locations in all 50 states and 18 countries, and continues to grow.<\/p>\n

One of the main aspects of the gym franchise which draws people in is its hours. It is open 24 hours a day, 7 days a week, 365 days a year, and members can visit almost any other location at no extra cost. This is especially appealing for members that travel for work. Along with unlimited hours, many locations offer 24 tanning beds and each new member receives a free personal fitness orientation including demonstrations of basic fitness principles and a quick, effective, and safe program. Additionally, members receive access to\u00a0www.AnytimeHealth.com<\/a>. This website allows members to track their meals, workouts, goals, and overall health. The website keeps track of overall weight loss and boasts the total number of pounds lost and calories tracked by its users each week. \u00a0The website is innovative because it allows members to track all of their health needs in one place and ask any health questions they might have along with being connected to the gym.<\/p>\n

Anytime Fitness has also been ahead of the game in corporate wellness. Their workplace wellness program allows companies to choose from four different programs to encourage their employees to get healthy. The four options are: anywhere club access, which allows employees access to all gyms and the online product, a rewards and incentives program which encourages team wellness and has partially reimbursed or subsided memberships based on usage, gym only membership which gives employees a discounted membership rate, or an online only membership. As corporate wellness is becoming more and more prominent, Anytime\u2019s program is groundbreaking because the program is through a gym instead of an insurance company, and gives employees the freedom to become healthy on their own, but still gives them the structure and encouragement they need.<\/p>\n

Named \u201cOne of Americas most promising companies\u201d by Forbes, it is easy to see why Anytime Fitness has become an attractive option for anyone interested in joining a gym. It is a great option for anyone that travels in the US or around the world, companies that want to give their employees wellness opportunities, or anyone that simply wants to workout. The company now has over 2 million members and is adding clubs at a rate of 300 per year and has no plans of slowing down.<\/p>\n

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Grocery & C-Store Chains<\/strong><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

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Celebrating its 50th<\/sup> anniversary, convenience store chain Wawa<\/strong> has experienced strong growth in 2014 with a net increase of 40+ stores since last year. The company opened its first Wawa Food Market in Folsom, PA on April 16th<\/sup>, 1964. However, the company has done business in the U.S for over 200 years. In 1803, the company began as an iron foundry in New Jersey. Owner George Wood began processing dairy in 1902, and by 1964 George\u2019s grandson Grahame Wood opened the aforementioned first store as an outlet for dairy products.<\/p>\n

Wawa\u2019s 640+ stores are located in Pennsylvania, New Jersey, Delaware, Maryland, Virginia and Florida, with nearly 30 projected openings still planned for this summer and fall. The company is privately held, and all stores are company owned and operated. Wawa\u2019s growth over the past 5-7 years has been exponential primarily due to its unique product offering, as well as quality. The company truly has a distinctive store experience that is very different from the traditional \u2018convenience\u2019 or gas station format.\u00a0 Inside, Wawa offers all of the amenities customers are used to, with large drink and coffee selections, a walk-in beer cave, and over 6,000 grocery items. What\u2019s different is the built-to-order fresh food section. Ordering for fresh food items is down on touchpad screens by the consumer, with many customizable selections available. Extra mayo, light oil and vinegar, and toasted bread on your sandwich? All are a fingertip away with no human interaction.<\/p>\n

Outside, 16 gas pumps line the parking line with easy access and competitive prices. Lunch crowds are large, and the quality of the fresh food and Wawa private label products are meeting customer expectations. Open 24 hours a day, Wawa serves over 400 million customers annually and brews more than 195 million cups of coffee each year. While the company is private, Chain Store Guide\u2019s historical sales data estimate Wawa at 78.2% growth since 2008.<\/p>\n

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Restaurant Chains<\/strong><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

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Chuy\u2019s Holdings<\/strong> is a fast-growing, full-service restaurant concept that offers a distinct menu of authentic, freshly-prepared Mexican and Tex-Mex inspired cuisine. It was founded in Austin, TX, in 1982 by Mike Young and John Zapp and became a publicly-held company in July 2012. The restaurants have a common d\u00e9cor, but each location is unique in format, offering what the company refers to as an \u201cunchained\u201d look and feel. The company motto is, \u201cIf you\u2019ve seen one Chuy\u2019s, you\u2019ve seen one Chuy\u2019s!\u201d<\/p>\n

Unlike many of its Texican competitors, all Chuy\u2019s restaurants are corporately owned and operated, and the company has not announced any plans to begin franchising. Growth has been measured but steady, progressing from 12 locations at the end of 2008 to more than 50 currently. The company attributes its success to fresh and authentic cuisine, a fun and upbeat atmosphere, and an experienced management team. Steve Hislop was named CEO\/President in 2007 when there were only eight Chuy\u2019s restaurants, and he leads a senior executive group that averages 29 years of restaurant experience. Store-level general managers have worked for Chuy\u2019s for approximately six years. Having such tenured staff has provided a high level of continuity of vision and performance.<\/p>\n

Perhaps the most important factor in the recent belt-tightening recession years is Chuy\u2019s value-priced menu options (most under $10 and an average check of $13.46). Despite a slight drop in recent years in the sale of alcoholic beverages, typically a high-profit item for restaurants, the company has managed to maintain attractive unit-level economics with an average unit volume of nearly $5 million, Current plans call for 10-11 new restaurants in 2014, and an approximately 20% annual growth in the following five years.<\/p>\n

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CSG Industry Experts:\u0003 \u0003 Natasha Perry\u0003 Apparel & Department\u0003 Brian List\u0003 Grocery & C-store Arthur Rosenberg\u0003 Home, Hardware, & Discount Linda Helman\u0003 Restaurant\u0003 Rebecca Ewing\u0003 Drug, & HBC   Our panel of Industry Experts and authors of CSG Through The Ages, brings you this year\u2019s series: Recession Busters Businesses need vision, strategy, and the right… Continue reading CSG Recession Busters 5<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"post-template-no-sidebar.php","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[9],"tags":[],"class_list":["post-3971","post","type-post","status-publish","format-standard","hentry","category-csg-news","entry"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/posts\/3971","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/comments?post=3971"}],"version-history":[{"count":0,"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/posts\/3971\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/media?parent=3971"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/categories?post=3971"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/tags?post=3971"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}