Biggest Retailers: Amazon In; McDonald's Out

The National Retail Federation -- which ranks the 10 biggest U.S. retailers in its STORES Magazine each year -- says Amazon has vaulted into the top 10, bumping out fast-food behemoth McDonald’s. With its domestic sales climbing 27.2% in 2013, up from 2012, the online leader moves up to No. 9 from No. 11 in the prior year’s ranking, which the group says is a reflection of just how passionate Americans have become about online shopping.

Walmart remains in the No. 1 position, based on U.S. sales of $334 billion in 2013. Kroger kept its No. 2 ranking, a spot it has held on to for five years running, with domestic sales of $93 billion. But Costco, powered by a 5.2% gain in sales, climbed a rung to No. 3 and shoved Target down to fourth. (Target’s 2013 sales declined 0.9% in 2013.) Home Depot, Walgreens, CVS Caremark, and Lowe’s each maintained their spots on the list as Nos. 5, 6, 7 and 8, respectively. And grocer Safeway took the 10th spot, after Amazon.

The ranking is compiled for the NRF by Kantar Retail.

"Amazon’s rise into the top 10 is symbolic of a shift in U.S. retail towards a genuinely multichannel future," says Kantar Retail chief knowledge officer Bryan Gildenberg, in the announcement. "Retailers that command the Top 100 in the future will have an in-depth knowledge of their shoppers across their physical and digital touchpoints, and they'll all have to fend off Amazon’s game-changing economic and operating model."

The magazine reports that Amazon added nearly $10 billion in Internet retail sales last year -- “no small feat, as the increase effectively matched Walmart’s total web sales.” It also notes that brick-and-mortar stores are making Internet strides, with Walmart now ranked the No. 4 performer in online retailing, behind Amazon, Apple and Staples.

Other big movers on this year’s list include Ikea North America, which leaped from 95 to 88, propelled by a 6.8% gain in sales. And Albertsons, based in Boise, catapulted from 96 to 21 as a result of its merger with Safeway. Macy’s and Kohl’s are ranked as the two largest department stores.

Tags: amazon, online, retail
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