Sundale Research Report #2

Sales by Channel

Mass merchandisers, such as Wal-Mart and Target, account for the largest share of retail candle sales. In 2005, mass merchandisers represented 30% of sales, up considerably from just ten years ago. This channel will continue to dominate sales over the next few years. In 2010, mass merchandisers are expected to account for 33% of total retail sales of candles. Specialty retailers, like gift shops and card stores, accounted for 22% of retail candle sales in 2005. This channel is slowly losing market share and should represent 20% of sales in 2010, still making it the second leading source for candle sales. Department stores, which include home décor stores, accounted for a respectable 20% of retail candle sales in 2005. This channel is expected to represent 19% of sales in 2010. Grocery stores are the only other channel to account for more than 10% of retail candle sales, representing 12% of the total in 2005. Grocery stores’ share of sales is expected to fall slightly to 11% in 2010. Drug stores and mail order/catalog, which accounted for 7% and 3% of retail candle sales in 2005, respectively, should both retain their share of sales through 2010. On the other hand, the Internet, which accounted for 4% of retail candle sales in 2005, is expected to represent 5% of sales in 2010.

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