TOP TEN
5.  Y A N K E E   C A N D L E   C O.

The scent of luxury lures sales

1. Analogic Corp. 2. State Street Corp. 3. BJ's Wholesale Club 4. Charles River Labs 5. Yankee Candle 6. Staples 7. Gillette 8. TJX Cos. 9. Kronos 10. Investors Fin. Svcs.    The 2003 Globe 100    All the charts

onsumers are always looking for discounts, yet there are some things for which they will pay full price. Fortunately for Yankee Candle Co. (YCC), one of them is premium scented candles.

When buying a scented candle, a consumer isn't simply purchasing a commodity, but an affordable luxury, a calming "emotional experience," explained Pam Danziger, author of "Why People Buy Things They Don't Need."

In 2002, Yankee Candle's net income surged 48 percent to $64 million, and sales grew 17 percent to $444.8 million as more merchants carried its products.

Deerfield-based Yankee Candle sells its own stores and in the stores of others. When both channels were combined, the number of stores where a Yankee candle could be had grew by about 1,300 in 2002.

Another reason for good results, the company said, is its insistence on controlling all facets of its business -- from product development to manufacturing, distribution, and sales.

"Our achievement of record financial performance during such a challenging period is clear evidence of the strength of our brand," noted chairman and chief executive Craig W. Rydin.

Yankee Candle looks to evolve into a lifestyle brand, one that will enable it to have success selling products besides candles, including home fragrance and personal care items.

Not all was soft light and sweet smells last year. At the Yankee Candle chain, which numbered 239 stores at the end of 2002, sales at stores open at least a year fell 6.3 percent. One reason for the dip, the company said, was a decline in mall traffic.

CHRIS REIDY

Search the Globe  Search for:   Today Yesterday Past month Past year   Advanced Search © Copyright 2003 New York Times Company | Advertise | Contact us | Privacy policy |