global powers of retailing 2020

Perspectives

Global Powers of Retailing 2020

The largest 250 retailers around the world are facing uncertainty surrounding the global economy and consumer sentiment. The 2020 retail sector outlook is subdued but positive. Four Swiss retailers remain firmly in the global top 250.

The aggregate retail revenue for the Global Powers of Retailing Top 250 companies reached USD 4.74 trillion in FY 2018, representing composite growth of 4.1%. Globally, the top 10 remained unchanged and continued to be dominated by US-based retailers. Amazon pushed Kroger down to fifth position to become the third-largest retailer globally, with Wal-Mart and Costco still leading the ranks.

Swiss retail market leaders Migros and Coop maintained their strong position in the top 50. Richemont entered the top 100 for the first time, as retail activity and its new online retail segment in particular had a positive impact on performance. Swiss travel retailer Dufry continued to shine as one of the fastest growing retailers worldwide with an impressive 19.5% compound annual growth rate since 2013, and ranked at number 120.

2020 retail sector outlook: subdued, yet positive

The outlook for the global economy and the retail industry in 2020 is uncertain. Overall economic growth is likely to be subdued but positive, with lower growth in consumer spending and inflation in most countries remaining low. Further uncertainty surrounding the global economy has been added by the coronavirus outbreak in China early in the year.

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In 2019, sales in the Swiss retail sector were overall stagnant. We expect 2020 to be similar: Geopolitical challenges and the strong Swiss franc are likely to hamper dynamic growth, but the continued positive development of online sales should fuel retailers’ performance.
Karine Szegedi, Member of the Executive and consumer industry expert, Deloitte Switzerland
 

The outlook for Switzerland is cautiously positive: 2020 will probably not be a very dynamic year for the Swiss retail market, but Swiss retailers will probably continue to keep pace with other global retail powerhouses. E-commerce is bound to further grow next year, especially in the food & beverage sector, where its revenue shares are nowhere near the levels in other countries.

Key findings

  • The Top 250 global retailers generate aggregated revenues of USD 4.74 trillion in fiscal year 2018 (up from USD 4.53 trillion in the previous year), representing composite growth of 4.1%. This is lower than the previous year’s 5.7% growth.
  • The world’s top 10 retailers made up almost one third (32.2%) of the Top 250’s total retail revenue in FY2018, and continued to be dominated by US-based companies.
  • Europe has the highest number of Top 250 retailers, with 88 companies based in the region (35.2%), contributing 34.4% to the total retail revenue.
  • Switzerland’s Migros and Coop remain firmly in the top 50, Richemont is new in the top 100, and Dufry remains one of the fastest-growing retailers worldwide.
  • With the largest number of companies (136) in the Top 250 list, the fast-moving consumer goods (FMCG) sector generated almost two thirds (66.5%) of the retail revenue in FY2018. 
  • E-commerce is driving high retail revenue growth among fastest growing 50 companies.
     

About Deloitte’s Global Powers of Retailing

Deloitte’s Global Powers of Retailing 2020 reviews the global economic scenario and its impact on the retailing industry. The report identifies the 250 largest retailers around the world based on publicly available data for FY2018 (fiscal years ended through 30 June 2019), and analyses their performance across geographies and product sectors. It also provides a global economic outlook, looks at the 50 fastest-growing retailers, and highlights new entrants to the Top 250.

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