Booming Businesses

While it may not be a classic Darwinian case of survival of the fittest, it’s clear that in the dog-eat-dog business world, certain companies are thriving, while others are now buried bones.

It's a Dog Eat Dog Business World

The recession has bankrupted companies from Filene’s Basement to Circuit City. But as the herd thins, other businesses have turned the situation to their advantage, whether through better management, less debt-load, or just being in the right place at the right time.

U.S. News & World Report crunched the numbers to figure out which corporations have seen gains since the recession began, between the years 2007 and 2009, and came up with a top ten list.



Here are the top performers:

1. Aaron’s – Rent-to-own furniture may have been the dirty little secret in the living room for many, but with high unemployment and low wages, it’s become a necessity for a larger slice of the population. U.S. News reports that Aaron’s stock prices have risen 50% since the recession began and the company has been buying up competitors and aggressively expanding. This, coupled with the inability of many to get financing for furniture purchases, has made Aaron’s an attractive option for consumers and small businesses. This boost has meant a 21% revenue increase for the rental company.
2. Aeropostale – U.S. News reports that Aeropostale’s stock has risen 68% since 2007 and it’s had a 28% revenue increase. Competitors like Ambercrombie & Fitch have struggled for a foothold amidst controversy and lackluster sales. Part of Aeropostale’s charm – lower prices and a laid-back style that has caught on with the teens.
3. Amazon.com – No surprise here.  Amazon has become the go-to clearinghouse for just about any product you can imagine, with a range of prices to fit every budget. With EBay waning in popularity, Amazon has emerged as a powerhouse of online purchasing (along with Overstock.com), allowing people to shop from the comfort of their couch, and save gas. U.S. News says Amazon is poised to be the Wal-Mart of the web, with a recession revenue increase of 38%.
4. Buckle – A youth clothing chain store doesn’t immediately come to mind when you think of revenue generation, but never underestimate the power of the teeny-bopper. Buckle’s strong performance is linked to its diverse brand of offerings, including Guess, Lucky, Billabong, Hurley and Converse, and the company has also had a 38% revenue uptick in the past two years.
5. Dollar Tree – How could a dollar store not be popular in this economic climate? But with competition among the $1 retailers fairly stiff, Dollar Tree has emerged as exceptionally strong, posting a 16% revenue increase since 2007. Not the largest, but with 3400 stores and aggressive expansion, DT has tried to distinguish it’s low-budget offerings through store ambience and diverse offerings. And with share prices rising 108% since the recession began, according to U.S. News, DT is poised to be the $1 sales leader.
6. GameStop – Fabuless Life readers may not be avid gamers, but apparently there are plenty of people who are. As the biggest video game retailer in the U.S., GameStop has continued to post market share and profit margin gains. Its revenue increase of 26% is expected to rise as the popularity of video games grows.
7. O’Reilly Automotive – I have to admit I’d never heard of O’Reilly Automotive, but since the recession began, the company has reportedly shown an 84% revenue increase. According to U.S. News & World Report, O’Reilly Automotive:
   

   …sells fan belts, alternators, headlights and other components to two sets of customers: professional installers and at-home tinkerers who work on their own cars…

   The gangbusters business has revved up as consumers hang onto their cars longer and need more repairs.

8. Priceline.com – Flights have stayed pretty pricey, despite all the propaganda about “sales” and discount fares that airlines churn out on a regular basis. Looking for cheap flights can be a real roll of the dice, and Priceline has apparently become the go-to gamble for those looking for good rates. Priceline stock has been skyrocketing, up 54% since the recession began, and it’s had a revenue increase of 46%. Plans to expand abroad could further elevate Priceline’s success.
9. Staples – With competition from Office Depot and Office Max, Staples has managed to stand out from the crowd and keep it’s bottom line strong. Adding copying and printing services to its office products business, along with smart acquisitions have been a boon. Staples’ revenue is up 26%.
10. Ulta Cosmetics & Fragrances – Ulta has turned into somewhat of a big box retailer for everything beauty. The full-service stores even offer hair styling and facials. Ulta stocks a fabuless selection of products at its 333 superstores, allowing it to compete with drugstores and department stores as a one-stop shop. Revenue has increased 25%. Ulta’s success is just proof positive that you can still be fabuless, despite the economic downturn!

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