Global retail revenues continue to increase despite economic woes
Migros and Coop remain part of 50 largest retailers
Revenues from the world’s 250 largest retailers reached $4.3 trillion in the last fiscal year1. The average size of the top 250 retailers exceeded $17 billion according to the “2014 Global Powers of Retailing” report from Deloitte in conjunction with STORES Media. For the first time ever, the report also includes a list of the world’s top 50 e-retailers.
Swiss retail market leaders Migros and Coop remain in the top ranks of the classification of the 250 largest retailers, worldwide: Migros at number 39 (retail sales of USD 24,33 billion) and Coop (USD 19 billion) at number 49. Coop moved down the ranks slightly – from 46 in last year to 49, while Migros maintained its position.
Howard da Silva, industry leader consumer business at Deloitte in Switzerland, comments: “The global retail industry got off to a difficult start last year, but it is encouraging to see that the world’s leading retailers were able to sustain their revenues through innovation in how and what they sell, and their geographical diversification.”
There was a shake-up among the world’s 10 largest retailers last fiscal year, mostly as a result of a series of transactions. Carrefour fell to fourth place following back-to-back years of declining sales primarily attributable to the spinoff of the Dia discount chain in July 2011. Tesco was also impacted by discontinued operations after shuttering its Fresh & Easy operations in the United States.
The top 10 grew more slowly than the top 250 (retail revenue growth of 4.2 percent versus 4.9 percent in fiscal year 2012). The US-Giant Wal-Mart again leads as number one (retail sales USD 469,16 billion), while UK-company Tesco PLC is the new number 2 worldwide and tops the European charts (retail sales of USD 101,27 billion).
1June 2012 through June 2013
Emerging markets remain strong
Retailers based in emerging markets continued to enjoy strong consumer demand in fiscal year 2012. Howard da Silva: “Unlike the headwinds faced by most retailers in mature markets, in emerging markets the growth in retail continues to be strong.” Emerging market retailers accounted for more than half (26) of the world’s 50 fastest-growing retailers in fiscal year 2012.
European retailers faced another year of tough trading as the region fell back into recession. Retailers based in Germany and particularly the UK underperformed on the top line compared with Europe’s top 250 retailers as a whole.
Top 250 dominate e-retail ranking
E-commerce accounted for a significant share of total retail revenue for the e-50 in fiscal year 2012 (including the pure-play e-retailers) with on average one-third of company sales being online sales.
Howard da Silva explains: “The vast majority of the e-50 (42 companies) in the e-retail ranking are multi-channel retailers; only eight are non-store or web-only retailers. Most e-50 retailers are based in the United States (28) and Europe (17), and only five are emerging-market companies.”
About the 2014 Global Powers of Retailing Report
The 2014 Global Powers of Retailing report identifies the 250 largest retailers around the world and provides an outlook for the global economy, trends for retailers to consider in the coming months, and an analysis of market capitalization in the retail industry.
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 1,100 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 200,000 employees in more than 150 countries around the world.
Zurich, 14 January 2014
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