Revenues of the world’s largest 250 retailers topped 4 trillion dollars
Swiss retail giants Migros and Coop in top 50 retailers worldwide
The revenues of the world’s 250 largest retailers topped $4 trillion* in fiscal year 20111, according to the “2013 Global Powers of Retailing” report from Deloitte, in conjunction with STORES Media. This is a 5 percent year-on-year increase in retail revenue worldwide despite the global economic downturn.
As in the previous years, Swiss retail market leaders Migros and Coop are in the top ranks of the 2011 classification of the 250 largest retailers, with Migros heading the Swiss stores at position 39 (retail sales of USD 25.35 billion) and Coop (USD 20.06 billion) following close by at 46. Both have moved up the ranks slightly in the previous year. The US-American retail giant Wal-Mart continues to be the undisputed worldwide leader with retail sales totaling USD 446.95 billion while Carrefour topped the European charts with retail sales of USD 113.19 billion.
As Howard da Silva, lead partner consumer business at Deloitte in Switzerland, explains: “Our report indicates a stable 5 percent year-on-year increase in retail revenue despite the global economic downturn. Despite a stumbling global economy, consumers continued to spend in 2011, which has served to boost global revenues.”
The top 250 retailers maintained a healthy 3.8 percent composite net profit margin in 2011, matching the industry’s 2010 result. Nearly all of the companies that disclosed their bottom-line results (181 of 194 reporting companies) operated at a profit in 2011.
Emerging markets fuel 50 fastest-growing companies
Emerging markets accounted for almost half (24) of the 50 fastest-growing companies over the 2006-2011 period. Chinese and Russian retailers are well-represented among the fastest 50, as well as retailers from Africa/Middle East and Latin America. The report attributes continued growth in emerging markets to the burgeoning middle classes, youthful populations, and sizeable foreign direct investment.
“The growth in large emerging markets such as China is projected to add at least 70 million new consumers to the global middle class per year, which is an additional 500 million new middle-class consumers by 2020. This new wave of consumption represents a huge opportunity for consumer business,” said da Silva.
Online sales – the future of retail has arrived
Alternative channels continue to capture market share from traditional retail and – while growth has slowed down with the overall economy – direct channels are proving resilient. Da Silva explains: “In order to be successful in a more technology driven world, retailers need to have a seamless, consistent, and comprehensive multichannel strategy. Retailers are faced with the challenge of engaging customers on more than just price. They must make shopping across all channels a more convenient, stimulating and satisfying experience, rather than simply a way to find the lowest price for a particular product.”
Top 10 worldwide retailers and Swiss retailers:
|Rank||Name of Company||Country of origin||2011 retail revenue (US$m)||2006-2011 retail revenue CAGR2|
|1||Wal-Mart Stores, Inc.||U.S.||446,950||5.1%|
|5||The Kroger Cp.||U.S.||90,374||6.5%|
|6||Costco Wholesale Corporation||U.S.||88,915||8.1%|
|7||Schwarz Unternehmens Treuhand KG||Germany||87,841||8.0%|
|8||Aldi Einkauf GmbH & Co. oHG||Germany||73,375||5.5%|
|10||The Home Depot, Inc||U.S.||70,395||-2.3%|
|39||Fédération des cooperatives Migros||Switzerland||25,352||5.7%|
1 Encompassing companies fiscal years ended through June 2012
2 Compound annual growth rate
* This year, for the first time, companies were ranked by total retail revenue, not just retail sales. For purposes of this analysis, retail revenue includes royalties and franchising/licensing fees as well as wholesales sales to affiliated/member stores or other “controlled wholesale space” operations (e.g., in-store shops or identity corners).
About the 2013 Global Powers of Retailing Report
The 2013 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, 21 January 2013
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