Perspectives

Global Powers of Retailing 2014

Retail Beyond begins

Executive summary

The 17th annual Global Powers of Retailing report identifies the 250 largest retailers around the world for the past fiscal year-  but it is much more than a list. It also examines trends for retailers to consider as they plan their growth strategies; provides a global economic outlook for retail; and discusses "Q" ratio - a way of drawing inferences about the future performance of retailers based on current financial information.

This year’s report includes two exciting features. Its section on “Retail Beyond” takes a provocative look at how existing technologies could conceivably converge and further transform the already complex relationship between retailers and consumers. And, for the first time ever, the report includes a list and analysis of the world’s top 50 e-retailers.

Global Powers of Retailing 2014

Retailers based in emerging markets continued to enjoy strong consumer demand in fiscal year 2012. Unlike the headwinds retailers in mature markets faced, emerging market tailwinds continued to fuel aggressive organic growth. Emerging market retailers accounted for more than half (26) of the world’s 50 fastest-growing retailers in fiscal year 2012 including all four Russian top 250 companies, six of seven Africa/Middle East retailers, and six of nine based in Latin America.

Vladimir Biryukov, Partner at Deloitte CIS: "With each passing year, Russian retailers are strengthening their positions on the list of the top 250 retail companies in the world. This year, four Russian retailers were included in the rating (X5 Retail Group, Magnit, M.Video and Dixy), compared to three companies last year and two the year before. Furthermore, several retailers, including Lenta and O'Key, were almost included in the rating and are more than likely to be included next year. It is also worth noting that all four of the included Russian retailers held leading positions and were included in the ranking of the top 15 most rapidly-growing retailers in the world, which demonstrates the more dynamic development of the Russian retail market when compared to other countries’ markets."

“Over recent years, the developing economies have emerged as one of the most promising retail markets,” said Vicky Eng, DTTL Global Sector Leader, Retail. “Latin American retailers led the way with 15 percent retail revenue growth followed by retailers in the Africa/Middle East region. Retailers are successfully adapting their strategies to adequately cater to the growing middle-class consumers in emerging economies where there is strong demand for consumer goods, ranging from cars and electronics to personal care products.”

European retailers faced another year of tough trading as the region fell back into recession when austerity measures, put in place to cope with the Eurozone credit crisis, resulted in low growth and high unemployment in many European countries. Retailers based in Germany and particularly the UK underperformed on the top line compared with Europe’s top 250 retailers as a whole. Asia/Pacific retailers (excluding Japan) posted solid gains, but not at the double-digit level seen in the prior two years. Japanese retailers recovered from a devastating fiscal year 2011 but continued to trail the other countries and regions analyzed.

In the United States, growth cooled to 4.3 percent for the top 250 U.S. retailers, down from 6.3 percent in fiscal year 2011. For the North American region as a whole, and Canada in particular, revenue growth got a boost from c-store operator and licensor Alimentation Couche-Tard. As a result of a significant acquisition in 2012, Couche-Tard is now the largest retailer based in Canada.

Emerging markets enjoy strong demand while Europe increases dependence on foreign markets

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