Deloitte shows innovative trends in retailing
Migros and Coop remain in top 50 retailers worldwide – Richemont one of the fastest growing global retailers
The top 2501 global retailers generated revenue of US$4.4 trillion in fiscal year 2013, each with an average size of more than US$17.4 billion, according to the 2015 “Global Powers of Retailing, Embracing Innovation” report from Deloitte in conjunction with STORES Media.
Swiss retail market leaders Migros and Coop remain in the top ranks of the classification of the 250 largest retailers worldwide: Migros at number 38 – 1 position up from last year’s 39th rank (with wholesale and retail sales of USD 25,01 billion) and Coop (USD 19,53 billion) at number 50, down from number 49 last year. Compagnie Financière Richemont, ranked at number 132, was one of the fastest growing retailers globally, with USD 7,84 billion of retail revenue (position 21) and a 20,5% retail revenue compound annual growth rate over the last five years.
Revenue growth for the top 250 retailers, which has been declining since 2011, continued to slow in fiscal year 2013. According to the report, sales-weighted, currency-adjusted retail revenue was up 4.1% for the top 250, following a 4.9% growth in fiscal year 2012. While growth continued to decline, nearly 80% of the top 250 (199 companies) posted an increase in retail revenue in fiscal year 2013.
Howard da Silva, Industry Leader for Consumer Business at Deloitte in Switzerland, comments: “The sluggish global economy in 2014 left many consumers financially constrained and retail sales under pressure. Thus, the prosperity of the global retail sector in 2015 will very much depend on the economic stability of several of the largest economies. China, the Eurozone as well as a few key emerging economies had a particularly tough 2014. Comparatively, the US and British economies continue to do well, with indicators pointing to the likelihood of strong growth in 2015 and possibly beyond.”
Top retail trends in 2015
- Experience retailing – Retailing is no longer just about the product, but the experience. Retailers will continue to explore innovative ways to enhance the buying experience for their customers through social media campaigns, festivals, fashion shows and interactive displays.
- Travel retailing – International tourism is set to continue to rise above expectations despite continuing global geopolitical and economic challenges. The expanding middle class in emerging markets is increasingly travelling to the world’s capitals, thus boosting retail sales. In 2015, retailers are expected to increasingly cater to high-spending travellers, especially emerging market tourists to drive growth.
- Mobile retailing – Mobile retailing is expected to continue to grow aggressively. More than two thirds (65%) of the global population will be using a mobile phone by 2015 and an estimated 83% of internet usage will be through handheld devices. Retailers will need to respond by offering free in-store Wi-Fi and mobile-friendly retail websites optimized for different kinds of portable devices. Privacy and security will become increasingly important as trust, transparency and protecting customer information will be critical in retaining customer loyalty.
- Faster retailing – Speed continues to remain an important trend in retail. This includes: “fast fashion” (getting runway styles to the stores as soon as possible); limited-time-only products and flash sales to drive urgency and immediate purchase; pop-up establishments to quickly get products and services to market and build buzz; and self-service check-out and kiosks to reduce or eliminate waiting.
- Innovative retailing – The retail industry will continue to be disrupted by new technologies and innovative competition. More retailers are likely to adopt innovative practices, embrace technology and use it in creative ways.
1 The analysis is based on publicly available data for fiscal year 2013 (encompassing companies’ fiscal years ended through June 2014).
Zurich, 13 January 2015
|Retail revenue rank (FY13)||Name of company||Country of origin||2013 retail revenue (US $mil)|
|1||Wal-Mart Stores, Inc.||U.S.||476‘294|
|2||Costco Wholesale Corporation||U.S.||105‘156|
|4||Schwarz Unternehmens Treuhand KG||Germany||98‘662|
|6||The Kroger Co.||U.S.||98‘375|
|8||Aldi Einkauf GmbH & Co. oHG||Germany||81‘090|
|9||The Home Depot, Inc.||U.S.||78‘812|
|132||Compagnie Financière Richemont SA||Switzerland||7‘841|
e = estimate
* Metro changed its fiscal year from end of December to end of September. Fiscal 2013 results reported here include the 9 months ended 30 September 2013 plus the quarter ended 31 December 2013 to create a 12-month period equivalent to prior years.
** Revenue includes wholesale and retail sale
About the 2015 "Global Powers of Retailing, Embracing Innovation" Report
The 2015 report identifies the 250 largest retailers around the word and explores innovative trends in retail, forecasts for 2015 as well as the strategies retailers are utilizing to address the disruptive changes impacting the sector.
About Deloitte in Switzerland
Deloitte is a leading accounting and consulting company in Switzerland and provides industry-specific services in the areas of audit, tax, consulting and corporate finance. With approximately 1,300 employees at six locations in Basel, Berne, Geneva, Lausanne, Lugano and Zurich (headquarters), Deloitte serves companies and institutions of all legal forms and sizes in all industry sectors. Deloitte AG is a subsidiary of Deloitte LLP, the UK member firm of Deloitte Touche Tohmatsu Limited (DTTL). DTTL member firms comprise of approximately 210,000 employees in more than 150 countries around the world.
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