You might think with a list of the hottest retailers, those whose overall categories are struggling wouldn’t be able to swim against the tide to make their way onto the list. That couldn’t be further from the truth.
NRF's Hot 25 Retailers ranks the nation’s fastest-growing retail companies.
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Take Abercrombie & Fitch, an exclusive brand that was almost too exclusive; its stumbles were even captured in a Netflix documentary. Those days are long gone, and the company has not only made NRF’s Hot 25 list, it’s closing in on record sales. That was enough to return the longtime clothier to full-blown “hot” status. It ranked at No. 5 on the list, with 15% growth in 2024.
“Any apparel company has all types of headwinds, but they’re doing very well,” says David Marcotte, senior vice president of global retail and technology for Kantar. Kantar compiles the data for NRF’s annual ranking of retailers that posted the biggest growth in 2024.
While no longer in the Class A malls, A&F is making its home with good locations in B and C malls, Marcotte says. “The traffic pattern is good, and they are presenting the brand as more dynamic.”
It also is a company that has been around since 1892, proving that it knows how to survive, even when outside pressures aren’t in its favor.
Speaking of headwinds, CVS is facing challenges head on. CVS rounded out the Hot 25 at No. 25, with 7% annual growth. “CVS shows that, if you can be competent and keep your head above water, you can absorb business from companies that are neither,” Marcotte says.
“There are a lot of positives to CVS, but the biggest positive is their competition. A lot of pharmacy, including in grocery and mass retailers, is not doing well. CVS has done a good job of maintaining their position. They’re not building new stores but growing their business.”
Sephora, No. 22 on the Hot 25, is another retailer that is swimming against a tide. “Despite the pandemic and the fact that return to office hasn’t been a roaring success, cosmetics is still selling very well,” Marcotte says. “Sephora is well placed to do that. Their ability to put in a variety of store sizes, from small to large, allows them a lot of flexibility.”
Sephora continues to invest in stores, too; the company is in the midst of a makeover of its 700 store locations.
