Home Depot revenue 4th among retailers

Home Depot has dropped from second to fourth-largest among U.S. retailers based on revenue, according to the retail magazine Stores and the National Retail Federation.

Atlanta-based Home Depot’s sales fell 7.8 percent in 2008, to $71.3 billion.

Wal-Mart remained in the top spot among retailers, while grocery chain Kroger climbed to No. 2 and discounter Costco claimed the No. 3 spot.

The ranking reflects that grocery and discount stores have been more resilient in the recession as consumers “trade down” from restaurant meals to home-cooked and switch from high-end goods to affordable necessities.

Target was fifth behind Home Depot. Kroger and Costco both moved up two places in the latest ranking, while Target rose one spot.

Wal-Mart has been adding grocery components to its stores. The company had $405.6 billion in sales in 2008, a 7.2 percent increase over the prior year.

Lowe’s, Home Depot’s main home improvement rival, rose a spot to take eighth place, on revenues of $48.2 billion, down 0.1 percent.

Fitch analyst Robert Rulla told Stores magazine that with “credit markets still tight, the prospects for home improvement spending, at least through 2009, remain challenging.”